Monsanto Deal Could Bring US $100 million To Evogene
4 November 2008 The world’s biggest seed maker, Monsanto Co., could see sales generated of more than US $2 billion a year from its August agreement with Evogene Ltd., an Israeli biotechnology company. Monsanto also bought a 13.6% stake in Evogene, and may purchase an additional $12 million in stock three years from now, according to the agreement.
Evogene predicts royalties from the partnership of as much as 6%, or $100 million per year, for Evogene after 2016, Chief Executive Officer Ofer Haviv told Bloomberg.com.
St. Louis, Missouri, US-based Monsanto reported in August that it would provide Evogene with $35 million in funding over five years to jointly develop corn, canola, cotton, and soy seeds that produce higher crop yields, require less fertilizer, and are more drought-resistant.
According to Haviv, Evogene has signed license agreements over the past two years with at least six other seed companies, including Syngenta AG, the biggest maker of agricultural chemicals, and Bayer AG. Haviv says the company may duplicate its Monsanto agreement for other crops such as rice and wheat, as well as move onto other traits.
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