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n e w s o f t h e week MONSANTO NIXES TERMINATOR SEEDS Industry leader halts development of controversial plant technology M onsanto, the leading developer and marketer of genetically engi- neered crops, says it won't com- mercialize technologies that render sec- ond-generation seeds sterile. Such "ter- minator" technologies have been a contentious issue in the intensifying de- bate surrounding genetically modified plants and foods. Although companies see such technologies as ways to protect and recoup their R&D investments through seed sales, opponents see them as a threat to farmers' centuries-old prac- tice of collecting seeds from year to year for replanting, an economic necessity in developing countries. Monsanto will gain ownership of the technology through its still-pending ac- quisition of cottonseed producer Delta & Pine Land. The Scott, Miss.-based company jointly developed and patented the technology—still several years away from commercialization—through a co- operative R&D agreement with the De- partment of Agriculture's Agricultural Research Service (ARS). A U.S. patent was awarded in March 1998. Delta & Pine Land is free to do what it wants with the technology until the acqui- sition by Monsanto goes through. As a federal agency, ARS says it is committed to transferring technology to the private sector and making it widely available for use in public and private research. In line with this policy, Delta & Pine Land has agreed to make the technology available for sublicensing to other seed producers. Monsanto says that licensing will stop when—and if—it completes its pur- chase of Delta & Pine Land. It has been 17 months since the $1.2 billion stock deal—now to close by Dec. 31—was an- nounced. Antitrust concerns have ap- parently caused the delay. 'The need for companies to protect and gain a return on their investments in agri- cultural innovation is real," says Monsanto Chairman and Chief Executive Officer Robert B. Shapiro. The company holds patents on other gene protection technol- ogies, such as one that would inactivate Shapiro: respond publicly to concerns or control only the specific gene for a ge- netic trait. "We are not currently invest- ing resources to develop these technolo- gies," Shapiro adds, "but we do not rule out their future development and use." Monsanto "continuels] to support the open, independent airing of all the issues raised by the use of gene protec- tion systems," Shapiro says. 'We renew the pledge we made in April that we will not make any decision to commercialize a gene protection technology until full airing of the issues is complete and we have responded publicly to the con- cerns that are raised." Monsanto's position was expressed by Shapiro in a letter to Gordon Conway, president of the Rockefeller Foundation, New York City. The foundation has in- vested more than $100 million in plant biotechnology research and has trained plant scientists from Africa, Asia, and Lat- in America. As part of a continuing dia- logue with Monsanto's board of direc- tors, Conway had urged the company to drop the terminator technology (C&EN, July 19, page 42). Groups opposed to the technology of- fered a mixed response to Monsanto's pledge, viewing it as only one small victo- ry, at best, although coming from the leading ag biotech producer. According to the Winnipeg, Manitoba-based Rural Advancement Foundation International (RAFI), U.K.-based AstraZeneca in- formed the United Nations Convention on Biological Diversity in June that it would not commercialize sterile seed technologies. However, RAFI says more than a dozen companies and public insti- tutes have at least 31 patents that include claims involving seed sterilization. "Monsanto has taken a positive step," says RAFI Executive Director Pat Moo- ney. The foundation has been waging a campaign to stop gene protection and trait-control technologies. Without gov- ernment action to firmly reject these technologies, he believes they will be commercialized within a few years "with potentially disastrous consequences." Ann Thayer ICI completes its metamorphosis With two deals in the past two weeks, Britain's ICI has completed its transfor- mation from a commodities chemical producer to a specialty chemicals company. Last week, it sold its acrylics busi- ness to Britain's Ineos for approximate- ly $835 million. That sale came hard on the heels of ICI's divestment a week ear- lier of its international fluoropolymers business, which went to Japan's Asahi Glass for $136 million. The transformation process has not always gone smoothly. However, as ICI Chief Executive Brendan O'Neill says, "we have completed more than 50 di- vestments" since May 1997. Gross pro- ceeds from the divestment program now exceed nearly $10 billion. ICI says its just-sold acrylics division is the world leader in methacrylates, producing the compounds in a wide va- riety of forms ranging from resins to acrylic sheet for construction. Some of that business is the result of a product swap. Several years ago, DuPont swapped its acrylics business for ICI's nylon operations. ICI's acrylics business now employs about 2,000 people worldwide and has production sites in Europe, the U.S., and Asia. Last year, it had sales of $868 mil- OCTOBER11,1999 C&EN 17

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Page 1: MONSANTO NIXES TERMINATOR SEEDS

n e w s o f t h e w e e k

MONSANTO NIXES TERMINATOR SEEDS Industry leader halts development of controversial plant technology

M onsanto, the leading developer and marketer of genetically engi­neered crops, says it won't com­

mercialize technologies that render sec­ond-generation seeds sterile. Such "ter­minator" technologies have been a contentious issue in the intensifying de­bate surrounding genetically modified plants and foods. Although companies see such technologies as ways to protect and recoup their R&D investments through seed sales, opponents see them as a threat to farmers' centuries-old prac­tice of collecting seeds from year to year for replanting, an economic necessity in developing countries.

Monsanto will gain ownership of the technology through its still-pending ac­quisition of cottonseed producer Delta & Pine Land. The Scott, Miss.-based company jointly developed and patented the technology—still several years away from commercialization—through a co­operative R&D agreement with the De­partment of Agriculture's Agricultural Research Service (ARS). A U.S. patent was awarded in March 1998.

Delta & Pine Land is free to do what it wants with the technology until the acqui­sition by Monsanto goes through. As a federal agency, ARS says it is committed to transferring technology to the private sector and making it widely available for use in public and private research. In line with this policy, Delta & Pine Land has agreed to make the technology available for sublicensing to other seed producers.

Monsanto says that licensing will stop when—and if—it completes its pur­chase of Delta & Pine Land. It has been 17 months since the $1.2 billion stock deal—now to close by Dec. 31—was an­nounced. Antitrust concerns have ap­parently caused the delay.

'The need for companies to protect and gain a return on their investments in agri­cultural innovation is real," says Monsanto Chairman and Chief Executive Officer Robert B. Shapiro. The company holds patents on other gene protection technol­ogies, such as one that would inactivate

Shapiro: respond publicly to concerns

or control only the specific gene for a ge­netic trait. "We are not currently invest­ing resources to develop these technolo­gies," Shapiro adds, "but we do not rule out their future development and use."

Monsanto "continuels] to support the open, independent airing of all the issues raised by the use of gene protec­tion systems," Shapiro says. 'We renew

the pledge we made in April that we will not make any decision to commercialize a gene protection technology until full airing of the issues is complete and we have responded publicly to the con­cerns that are raised."

Monsanto's position was expressed by Shapiro in a letter to Gordon Conway, president of the Rockefeller Foundation, New York City. The foundation has in­vested more than $100 million in plant biotechnology research and has trained plant scientists from Africa, Asia, and Lat­in America. As part of a continuing dia­logue with Monsanto's board of direc­tors, Conway had urged the company to drop the terminator technology (C&EN, July 19, page 42).

Groups opposed to the technology of­fered a mixed response to Monsanto's pledge, viewing it as only one small victo­ry, at best, although coming from the leading ag biotech producer. According to the Winnipeg, Manitoba-based Rural Advancement Foundation International (RAFI), U.K.-based AstraZeneca in­formed the United Nations Convention on Biological Diversity in June that it would not commercialize sterile seed technologies. However, RAFI says more than a dozen companies and public insti­tutes have at least 31 patents that include claims involving seed sterilization.

"Monsanto has taken a positive step," says RAFI Executive Director Pat Moo-ney. The foundation has been waging a campaign to stop gene protection and trait-control technologies. Without gov­ernment action to firmly reject these technologies, he believes they will be commercialized within a few years "with potentially disastrous consequences."

Ann Thayer

ICI completes its metamorphosis With two deals in the past two weeks, Britain's ICI has completed its transfor­mation from a commodities chemical producer to a specialty chemicals company.

Last week, it sold its acrylics busi­ness to Britain's Ineos for approximate­ly $835 million. That sale came hard on the heels of ICI's divestment a week ear­lier of its international fluoropolymers business, which went to Japan's Asahi Glass for $136 million.

The transformation process has not always gone smoothly. However, as ICI Chief Executive Brendan O'Neill says, "we have completed more than 50 di­

vestments" since May 1997. Gross pro­ceeds from the divestment program now exceed nearly $10 billion.

ICI says its just-sold acrylics division is the world leader in methacrylates, producing the compounds in a wide va­riety of forms ranging from resins to acrylic sheet for construction. Some of that business is the result of a product swap. Several years ago, DuPont swapped its acrylics business for ICI's nylon operations.

ICI's acrylics business now employs about 2,000 people worldwide and has production sites in Europe, the U.S., and Asia. Last year, it had sales of $868 mil-

OCTOBER11,1999 C&EN 17