Monument Circle Acquisition Corp (MON)

[Democritus_of_Abdera]

Re: Delayed release of Optimum GAT...

This is a second major disappointment for Pioneer Hi-Bred's Optimum GAT.... Earlier this year, DuPont implied that the GAT technology did not meet their efficacy expectations for glyphosate tolerance when they decided to stack GAT on Roundup Ready... This plan led to the patent dispute with Monsanto that is currently in the courts. See: http://www.monsanto.com/dupontlawsuit/timeline.asp for a concise timeline of DuPont PRs related to Optimum GAT and Monsanto’s complaint regarding this use of Roundup Ready trait.

As background: Optimum GAT bundles DuPont’s glyphosate tolerance trait with the ALS trait. ALS (acetolactate synthase) renders the plant resistant to sulfonylurea and imidazolinone herbicide families. Monsanto's Roundup Ready trait contains an altered EPSPS synthase enzyme that does not bind to glyphosate. Whereas, with Optimum GAT, the glyphosate is metabolized by a modified glyphosate acetyltransferase (GAT4601).... It was originally hoped that Optimum GAT would allow for higher glyphosate application rates and a wider application window than Roundup Ready (see http://vocuspr.vocus.com/VocusPR30/Newsroom/Query.aspx?SiteName=DupontNew&Entity=PRAsset&SF_PRAsset_PRAssetID_EQ=101062&XSL=PressRelease&Cache= ).

One of the possible consequences of the delayed release of Optimum GAT is rendering of the Monsanto suit against DuPont moot. This question was raised, but not explicitly answered, in the Dec 4 CC, i.e.:

<Q – David Begleiter>: Thank you. Good morning. Paul, does this announcement impact at all the litigation between DuPont and Pioneer on the stacking of Roundup on the Optimum GAT trait?
<A – Paul Schickler>: That is a separate issue. We are proceeding aggressively with continuing to test Optimum GAT soybeans. And as I said in my remarks, both the combination of product efficacy for glyphosate and ALS is leading our expectations and the product performance is excellent. We’re very excited about the combination of efficacy and product performance for soy.

<Q – Jeffrey Zekauskas>: I think I’ll ask David’s question in another way. Does the postponement of the launch in soybeans to 2014/2015 render the patent dispute moot – that is, it doesn’t matter what happens with it because you’ll be introducing your product after the Monsanto glyphosate patent expires? And when does their patent expire in corn and glyphosate tolerant corn?
<A – Paul Schickler>: I’m not going to comment on the lawsuit. But again, go back to the point I was making when the previous question from David was asked, and that is our Optimum GAT soybean from an efficacy and product performance standpoint is very strong and exciting. But even before that, we’ve got excellent high yielding industry leading soybeans in the marketplace today that will continue in the marketplace that have glyphosate tolerance.