Monsanto is forming a partnership with Danish biotech firm Novozymes to research and develop microbial-based products to protect crops from insects, disease and weeds. Creve Couer-based Monsanto, the world’s largest seed company, will pay Novozymes an upfront fee of $300 million and pay Novozymes to supply products. The companies will split revenue and costs from alliance products.
The deal, which still needs regulatory approval, is expected to close next year.
By combining Monsanto’s field testing and commercial capabilities with Novozymes’ microbial expertise, the companies will be able to push products to market faster together than they would working alone, executives said.
Agricultural biologicals, which are derived from bacteria, fungi and other naturally occurring microorganisms, have grown to $2.3 billion in global sales annually. Novozymes brought in $120 in revenue last year.