Syngenta announces 20-year corn licensing agreement
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WASHINGTON, Oct. 15, 2015 - Syngenta has announced a new 20 year, $200 million agreement to expand its licensing of current and future genetically modified (GM) corn traits."
The agreement covers licensing with KWS, Limagrain, AgReliant, and Genective and their business in North America and elsewhere. Syngenta will receive an upfront payment of $200 million for its trait portfolio as well as payments depending on royalties and milestones. The deal depends on regulatory approvals.
Davor Pisk, Syngenta's chief operating officer, called the agreement “a further affirmation of the value of Syngenta's innovative GM traits portfolio and biotechnology capabilities.”
“The creation of additional value through trait outlicensing, as well as the incorporation of leading technologies in our own branded offer, will be an important driver in improving the profitability of our seeds portfolio,” he said in a release.
Syngenta is an agricultural seed and chemical company based in Switzerland but does business in over 90 countries around the world. In August, the company's board unanimously voted to reject a $47 billion merger offer from fellow agribusiness giant Monsanto, saying it “significantly undervalued the company.”