Monsanto Co. (MON) and AgraQuest Inc. have entered into a collaboration to evaluate the potential use of AgraQuest's pipeline of biopesticide leads to develop seed treatments for Monsanto's core crops and vegetables.
AgraQuest noted that the three-year deal is aimed at developing seed treatment products to control nematodes, disease and insects, and enhance plant growth and yield, using AgraQuest's collection of microbes.
Monsanto currently offers Acceleron seed treatment products for corn and soybeans and a seed treatment for cotton is expected in 2011.
AgraQuest stated that Monsanto will have exclusive rights to the technology for seed treatments in its core crops and vegetables. AgraQuest will retain all rights to the technology for foliar -- to be sprayed over the top of plants -- and soil application uses, and for use as seed treatments in all other crops.
Under the agreement AgraQuest will receive an upfront payment and research funding, as well as performance-based payments and royalties. Additional details about the agreement were not disclosed. Monsanto also will have access to AgraQuest's library of Bt proteins for potential use as insecticides in biotech crops.
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