DuPont DD and Monsanto MON have signed a licensing agreement for one of Monsanto’s next-generation soybean technologies that will offer an additional option for farmers. Per the agreement, DuPont Pioneer will get a royalty-bearing license to Intacta RR2 PRO technology in Brazil.
The license will be granted following the customary review and prior approval by Brazilian regulatory authorities. Additional terms and financial details of the deal were not divulged.
DuPont Pioneer expects to bring the Intacta insect technology along with leading soybean genetics to Brazilian farmers in the 2017 selling season. The technology along with DuPont Dermacor seed treatment will enable the productivity of soybean growers while providing increased insect control and strengthening their integrated pest-management practices.
The agreement also reinforces the value of Intacta RR2 PRO platform, which is providing an important new choice in insect control and convenience to growers in South America. Intacta RR2 PRO soybeans provide three distinct benefits for growers – increased yield potential, protection against major pests that attack soybeans and tolerance to glyphosate herbicide.
DuPont reported adjusted earnings of $1.26 per share in first-quarter 2016, outperforming the Zacks Consensus Estimate of $1.02. Earnings were aided by cost saving plans. Sales of $7.4 billion for the reported quarter also beat the Zacks Consensus Estimate, despite currency headwinds and lower volumes. The company is undertaking an aggressive restructuring program this year, with numerous cost-cutting actions, including the layoff of 10% of its workforce.
DuPont currently holds a Zacks Rank #3 (Hold).
Better-ranked companies in the diversified chemicals industry include Innophos Holdings Inc IPHS and Innospec Inc. IOSP, both sporting a Zacks Rank #1 (Strong Buy).
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