Biotech Values

[DewDiligence]

MON, Novozymes ink R&D deal to improve crop yields:

http://finance.yahoo.com/news/monsanto-novozymes-team-sustainable-bioagricultural-131500130.html

• Novozymes will be responsible for production and supply of the microbial solutions to Monsanto, building on its expertise within fermentation. Monsanto will serve as the lead for field testing, registration and commercialization of all alliance products.

• The companies will co-manage the alliance and co-fund research and development efforts [i.e. a 50/50 split].

• Monsanto will pay Novozymes an aggregate upfront payment of $300 million net in recognition of Novozymes’ ongoing business and microbial capabilities, and for Novozymes to supply alliance products.

• Marketing responsibility for Novozymes’ current product portfolio in agricultural biologicals will be transferred to Monsanto along with much of the Novozymes commercial organization currently responsible for that work.

Novozymes, which is publicly traded in Copenhagen and on the US pink sheets, was split off from NVO in 2000.