R&D trends in Crop Protection Phillips McDougall Vineyard Business Centre Saughland Pathhead Midlothian EH37 5XP Tel : 01875 320611 phillipsmcdougall@dial.pipex.com 1
Industry background 2
Year Market Performance 2011 (Distributor level average exchange rates - Nominal US$) ABIM Conference Crop Non-Crop GM Conventional Protection Agrochemicals Seed Seed ($m) ($m) ($m) ($m) 2000 27830 2195 14269 2001 25760 2778 13597 2002 25150 4270 3140 13060 2003 26710 4445 3709 13521 2004 30725 4675 4476 14524 2005 31190 4905 5095 14657 2006 30425 5150 5855 14485 2007 33390 5365 7062 14648 2008 40475 5655 9150 16870 2009 37860 5860 10570 17185 2010 38315 5880 12870 17950 2011 44015 6290 15685 18810 2011 /2010 % +14.9 +7.0 +21.9 +4.8 Agrochemicals = $50,305 +13.8% 3 Seed= $34,495 +11.9%
R&D in Crop Protection and Production 4
Cost of Bringing a New Product to Market $m Registration 300 Total $256 m. Environmental Chemistry 250 25 Toxicology 200 150 100 50 0 Total $152 m. 13 13 18 18 18 10 30 32 Development 67 Research 72 Total $184 m. 11 16 18 25 20 36 9 11 44 Development 79 Research 94 24 32 54 32 41 42 1995 2000 2005-8 Development 146 Research 85 Field Trials Chemistry Tox/Env Chemistry Biology Chemistry Results of Study undertaken for ECPA and CropLife America 5
Cost of Bringing a New Product to Market Agrochemical Plant biotechnology trait $ million 300 250 200 Development 150 100 50 Research 0 Total = $256 m. 25 24 32 54 36 11 32 42 Registration Environmental Chemistry Toxicology Field Trials Chemistry Tox/Env chemistry Biology Chemistry $ million 300 250 200 150 100 50 0 Total = $136 m. 17.2 17.9 28 13.6 28.3 13.4 17.6 Registration & Regulatory Affairs Regulatory Science Introgression breeding & testing Commercial event production Construct optimisation Late discovery Early Discovery Agrochemical Crop Biotech trait Agrochemical costs based on 2009 Crop Life America/ECPA study Plant biotechnology trait costs based on 2011 Crop Life International study 6
No. of Agrochemical Products Processed Leading to a Successful Product Launch 1995 2000 2005-8 Research Synthesis 52500 139429 140000 Development 4 2 1.3 Registration 1 1 1 Results of Study undertaken for ECPA and CropLife America 7
Number of Units Associated with Biotech Trait R&D Process Activity Stage For an Event introduced between 2008-2012 Mean Number of Units Evaluated I Early Discovery 6204 II Late Discovery 4005 III Construct Optimisation 511 IV Commercial Event Production & selection V Introgression Breeding & Wide Area Testing 1302 2 VI Regulatory Science 1 VII Registration & regulatory Affairs 1 8
Time from New Product Inception to First Introduction (1) Agrochemical ABIM Conference Number of years between the first synthesis and the first sale of the product 1995 2000 2005-8 8.3 9.1 9.8 Results of Study undertaken for ECPA and CropLife America (2) Plant biotechnology trait Number of years from discovery of trait to first commercial sale Canola Corn Cotton Soybean All crops 11.7 12.0 12.7 16.3 13.1 Results of Study undertaken for CropLife International 9
Agrochemical Industry R&D Expenditure by Function (Fourteen Reporting Companies Only) 2007 2012 ABIM Conference Product Monitoring / Stewardship 11.3% Research of New a.i. 32.5% Product Monitoring / Stewardship 12.2% Research of New a.i. 29.6% Development of Generics 1.8% Development of Generics 1.9% Post Launch Development 31.1% Development of New a.i. 23.3% Post Launch Development 31.4% Development of New a.i. 24.9% Total = $2,328million Total = $2,943 million Results of Study undertaken for ECPA and CropLife America 10
Company Sales and R&D Expenditure 2011 ABIM Conference Agrochemicals Seed and Traits 12000 10000 Sales $m. 8000 6000 4000 2000 0 Monsanto DuPont Syngenta BASF Dow Bayer Agrochemicals Seed and Traits R&D Expenditure $m. 1600 1400 1200 1000 800 600 400 200 0 Monsanto DuPont Syngenta BASF Dow Bayer 11
R&D Expenditure of Leading Agrochemical Companies ABIM Conference 3500 Agrochemical R&D Seed and Trait R&D 3000 US$ million 2500 2000 1500 1000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12
Product Introductions and R&D by Crop ABIM Conference Number of new Active Ingredients Time period 1980/1989 1990/1999 2000/2009 2010/11 In R&D Herbicides Cereals 15 12 12 1 1 Soybean 11 10 1 0 0 Maize 2 10 9 0 1 Rice 11 19 15 0 4 F&V 2 1 0 1 0 Other 10 5 2 1 1 Total 51 57 39 3 7 Insecticides F&V 11 16 16 2 4 Rice 5 2 3 0 3 Cotton 9 12 3 0 0 Others 4 7 5 1 3 Total 29 37 27 3 10 Fungicides F&V 13 9 17 4 4 Cereals 14 16 8 2 5 Rice 9 5 7 1 1 Others 0 0 0 0 0 Total 36 30 32 7 10 Others 7 3 5 1 0 Total 123 127 103 13 27 Average annual rate of introduction 12.3 12.7 10.3 6.5 5.4 13
14 New Active Ingredient Introductions 0 5 10 15 20 25 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 No.of Products
Agrochemical Product Introductions and R&D Products Introduced 1995-2010 Currently in R&D Bayer 35 6 Syngenta 15 4*** BASF 20 3* Dow 17 2 Sumitomo 15 1 DuPont 7 3* Monsanto 2 0 Other Japanese 42 12 Rest 22 2 Total 175 32** * Some in co-development with other companies ** some licensed products counted twice *** Syngenta has another 4 unidentified products in early development 15
a.i.s in development 80 70 60 50 40 30 20 10 Agrochemical Active Ingredients in Development ABIM Conference 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 16
BASF Seed Companies: Input Traits - Development ABIM Conference Maize Soybean Cotton Canola Others Herbicide Tolerance* Nematode Resistance* Disease Resistance Bayer GlyTol Twinlink insect resistance Roundup Ready Insect Resistant Rice GlyTol + HPPD Herbicide Tolerance Dual Mode Herbicide Tolerance Liberty Link + Roundup Ready Fungus Resistant Rice Dow Enlist Corn Enlist Soybeans Enlist Cotton DuPont Monsanto Optimum AcreMax Xtreme Triple Mode Herbicide Tolerance Multiple Mode Herbicide Tolerance Novel Insect Resistance Roundup Ready 2 Optimum GLY Glyphosate Tolerance Herbicide Tolerant Rice Optimum Intrasect + DP4114 Aphid Resistance Liberty Link Insect Resistant Rice Lepidoptera Resistance III Coleoptera Resistance III Dicamba and Glufosinate Tolerance Genuity Rootworm Resistance III Genuity Corn borer Resistance III FOP Herbicide tolerance Goss's Wilt Resistance*** Gray Leaf Spot resistance Lepidoptera Resistance Hemiptera Resistance Asian Soybean Rust Resistance Genuity Intacta Genuity Bollgard III Roundup Ready 2 Dicamba Tolerance Dicamba and Glufosinate Tolerance Dicamba tolerance Insect protected Roundup Ready Sugarcane Herbicide tolerant wheat Roundup Ready 2 Xtend Lygus Control Roundup Ready + Liberty Link Gemini Virus Resistant Tomato*** 2nd Generation Cyst Nematode Resistance Asian Rust Resistance* 2nd Generation Phytophthora Root Rot Resistance Reniform Nematode Resistance Root Knot Nematode Resistance Phytophthora Resistant Peppers Syngenta Agrisure Viptera 3222 Insect Resistance Insect resistance (COT 102) Insect Resistant Rice Agrisure Duracade Disease Resistance *BASF / Monsanto partnership ** BASF / Embrapa partnership ***Developed through conventional breeding 17
Seed Companies: Output/Agronomic Trait Research ABIM Conference Maize Soybean Cotton Canola Others BASF Higher yielding* Higher yielding* Drought tolerance* Higher yielding* Higher yielding sugarcane Drought tolerance* Healthy fatty acids Higher yielding sugarbeet Improved Nitrogen Improved feed Amylopectin potatoes Higher yielding wheat* Stress tolerant wheat* Bayer Altered oil content Higher yielding Plant made pharmaceuticals Stress tolerance Hybrid rice Dow Healthy oils Stress tolerance Added Nutrition DuPont Seed production technology (yield) Higher yielding Higher yielding Hybrid rice Improved feed Plenish modified oils Improved processing Increased oils Improved Nitrogen Improved feed Drought tolerance Monsanto Higher yielding* Higher yielding* Drought tolerance* Higher yielding* Higher yielding wheat* Drought tolerance* SDA omega-3 oil Stress tolerant wheat* Improved Nitrogen Vistive Gold Syngenta Improved Nitrogen Carb Yield * In collaboration 18
Proprietary v Off Patent Market Share - 2011 ABIM Conference Patented 23.0% Off - Patent 77.0% Proprietary 23.0% Proprietary Off Patent 25.3% Generic 51.7% Sales $m 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1969 1968 1967 1966 1965 1964 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 19
Proprietary v Off Patent Market Share % 55.0 50.0 Generic 45.0 40.0 35.0 Proprietary Off-Patent 30.0 25.0 20.0 Patented 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20
Company Acquisitions 2011- Present Company Bayer BASF Monsanto Syngenta Dow DuPont Acquisition US seed company Hornbeck Seed, producer of soybean, rice and wheat Research company SoyTech Seeds Biological crop protection company AgraQuest US-based biological products company Becker Underwood U.S. based biotechnology company Divergence Bee health company Beeologics Precision Planting Public offer for the Belgian biotechnology company Devgen US-based biotechnology company Pasteuria Bioscience DuPont Professional Products insecticide business for $125 million GreenLeaf Genetics acquired the seed genetics licensing company JGL Inc Seed company Northwest Plant Breeding Company Brand and marketing assets of Prairie Brand Seed US-based alfalfa and clover company Cal/West Seeds Danish enzyme and food ingredient company Danisco South African Pannar Seed US seed company Dobler's hybrids 21
R&D Expenditure Historical development 2001 2011 ABIM Conference Agrochemicals Seed and Traits Agrochemicals Seed and Traits 600 1600 R&D expenditure $m. 500 400 300 200 100 R&D Expenditure $m. 1400 1200 1000 800 600 400 200 0 Monsanto DuPont Syngenta BASF Dow Bayer 0 Monsanto DuPont Syngenta BASF Dow Bayer 22
R&D Expenditure 2011 by Industry (Leading companies) 4000 3500 3000 R&D Expenditure ($m.) 2500 2000 1500 1000 500 0 Agrochemical Seed and traits Biological crop protection 23
Disclaimers The information contained in this presentation constitutes our best judgement at the time of publication, but is subject to change. Phillips McDougall do not accept any liability for any loss, damage or any other accident arising from the use of the information in this presentation. The information given in this presentation has been drawn from analyses and reviews presented in the Phillips McDougall products AgriService, Seed Service, AMIS Global and AgreWorld. Phillips McDougall maintain a wide range of databases covering the crop protection and seed industries, this presentation presents only headline information. Access to these databases can be gained through subscription or consultancy. Our market research databases track product sales from global market totals down to brand level sales by crop and country in both volume, value and area treated terms. For more information about these products please visit www.phillipsmcdougall.com www.agreworld.com 24