Monument Circle Acquisition Corp (MON)

[DewDiligence]

Pioneer’s Next-Gen Corn, Soybean Products Delayed

[These are big delays, not small ones! The explanation given below for the soybean delay does not ring true, IMO, and one has to wonder if there isn’t some fundamental problem with DD’s “Optimum GAT” technology.

In the short run, DD’s delays probably won’t benefit MON to a material degree; however, I can’t see why these missteps by a leading competitor are not strongly bullish for MON’s prospects in seeds and traits during the next 5-10 years. Comments?]

http://finance.yahoo.com/news/DuPont-Updates-its-prnews-935067197.html?x=0&.v=1

›DuPont Updates its Commercialization Timelines for Optimum® GAT® Corn and Soybeans

8:00 am EST, Friday December 4, 2009

DES MOINES, Iowa, Dec. 4 /PRNewswire-FirstCall/ -- DuPont (NYSE: DD) business Pioneer Hi-Bred updated its commercialization timelines today for corn hybrids and soybean varieties with the Optimum® GAT® trait.

Corn hybrids

Optimum GAT corn demonstrates excellent glyphosate and ALS herbicide tolerance efficacy; however, based on comprehensive harvest results, the current version of the trait in corn does not meet Pioneer's high yield standards. Therefore, Pioneer has reset its plans to commercialize Optimum GAT corn and will not have controlled releases in 2010 and 2011 in North America. Meanwhile, Pioneer will intensify its ongoing research efforts along multiple pathways for the corn trait and work toward commercialization in the middle of the next decade.

Soybean varieties

Optimum GAT soybeans have shown outstanding glyphosate and ALS herbicide tolerance efficacy and strong multi-year yield results. Specifically, pre-commercial Optimum GAT soybean varieties repeated a 6 percent yield advantage on average when compared to current industry-leading Pioneer varieties.

Optimum GAT soybeans are expected to be commercialized about two to three years later than the anticipated 2011 introduction [i.e. 2013-2014 (maybe)] due to changes in regulatory policy in key import markets and increasing complexity in managing grain stewardship. [What the heck does this mean?] The business is aggressively pursuing these regulatory approvals and has already received regulatory approval in the U.S. and Canada.

"Our continued confidence in the Optimum GAT trait is supported by significant data. Over the past several years, we have gained additional knowledge about the Optimum GAT trait and we keep making progress on a number of fronts," said Pioneer President Paul E. Schickler. "Importantly, we already have a full lineup of herbicide tolerant corn and soybean products to meet customer needs now and in the future.

"To satisfy grower demand and deliver on our commitment to grow the business, we have a robust lineup of top-yielding hybrids and varieties with strong agronomics, defensive traits and herbicide tolerance that customers value," said Schickler. "Product performance, along with a strong focus on the right product for the right acre, grew corn and soybean market share in 2009, and we expect to do it again in 2010."

With Pioneer's continued strong performance, DuPont reaffirms its outlook for greater than 15 percent compounded annual earnings growth rate of the DuPont Agriculture & Nutrition business segment through 2013.

DuPont will host a teleconference today at 9 a.m. (ET) for investment analysts regarding the update. The teleconference number is: 847-619-6250, passcode: 25964519.

Pioneer Hi-Bred, a DuPont business, is the world's leading source of customized solutions for farmers, livestock producers and grain and oilseed processors. With headquarters in Des Moines, Iowa, Pioneer provides access to advanced plant genetics in nearly 70 countries.‹