r&d trends in crop protection - abim · registration environmental chemistry toxicology field...

ABIM Conference

October 2012 © PhillipsMcDougall1

R&D trends in Crop Protection

Phillips McDougall

Vineyard Business Centre

Saughland

Pathhead

Midlothian

EH37 5XP

Tel : 01875 320611

[email protected]

ABIM Conference


Industry background

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Market Performance 2011(Distributor level – average exchange rates - Nominal US$)

Year Crop Protection

Non-Crop Agrochemicals

GMSeed

Conventional 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

2011 /2010 % +14.9 +7.0

2006 30425 5150 5855 14485

2007 33390 5365 7062 14648

2008 40475 5655 9150 16870

Agrochemicals = $50,305 +13.8%

2009 37860 5860 10570 171852010 38315 5880 12870 17950

Seed= $34,495 +11.9%

2011 44015 6290

+21.9 +4.815685 18810

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R&D in Crop Protection and Production

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Cost of Bringing a New Product to Market

32 41 42

30

4432

10

91118

20 3618

25

54

18

18

32

13

16

24

13

11

25

0

50

100

150

200

250

300

1995 2000 2005-8

Registration

Environmental Chemistry

Toxicology

Field Trials

Chemistry

Tox/Env Chemistry

Biology

Chemistry

$m

Research

72

Research

85

Research

94

Development

67

Development

146

Development

79

Total $152 m.

Total $256 m.

Total $184 m.

Results of Study undertaken for ECPA and CropLife America

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Cost of Bringing a New Product to Market

42

32

11

36

54

32

24

25

0

50

100

150

200

250

300

Agrochemical

$ m

illio

n

Total = $256 m.

Registration

Environmental Chemistry

Toxicology

Field Trials

Chemistry

Tox/Env chemistry

Biology

Chemistry

17.613.4

28.3

13.6

28

17.9

17.2

0

50

100

150

200

250

300

Crop Biotech trait

$ m

illio

n

Total = $136 m. Registration & Regulatory Affairs

Regulatory Science

Introgression breeding & testing

Commercial event production

Construct optimisation

Late discovery

Early Discovery

Agrochemical Plant biotechnology trait

Research

Development

Agrochemical costs based on 2009 Crop Life America/ECPA study Plant biotechnology trait costs based on 2011 Crop Life International study

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1995 2000 2005-8

Research Synthesis 52500 139429 140000

Development 4 2 1.3

Registration 1 1 1

No. of Agrochemical Products Processed Leading to a Successful Product Launch


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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

1302

V Introgression Breeding & Wide –Area Testing

2

VI Regulatory Science 1

VII Registration & regulatory Affairs 1

Number of Units Associated with Biotech Trait R&D Process

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1995 2000 2005-8 Number of years between the first synthesis and the first sale of the product

8.3 9.1 9.8

Time from New Product Inception to First Introduction


Canola Corn Cotton Soybean All crops Number of years from discovery of trait to first commercial sale

11.7 12.0 12.7 16.3 13.1

Results of Study undertaken for CropLife International

(1) Agrochemical

(2) Plant biotechnology trait

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2007 2012

Research of New a.i. 32.5%

Research of New a.i.

29.6%

Development of Generics

1.8%

Development of Generics

1.9%

Development of New a.i.

23.3%

Post Launch Development

31.1%

Product Monitoring / Stewardship

11.3%

Development of New a.i.

24.9%

Post Launch Development

31.4%

Product Monitoring / Stewardship

12.2%

Total = $2,328million Total = $2,943 million

Agrochemical Industry R&D Expenditure by Function(Fourteen Reporting Companies Only)


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Company Sales and R&D Expenditure 2011

0

2000

4000

6000

8000

10000

12000

Monsanto DuPont Syngenta BASF Dow Bayer

Sale

s $m

.

Agrochemicals Seed and Traits

0

200

400

600

800

1000

1200

1400

1600


R&D

Expe

nditu

re $

m.


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R&D Expenditure of Leading Agrochemical Companies

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US$

mill

ion

Agrochemical R&D Seed and Trait R&D

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Number of new Active Ingredients Time period

1980/1989 1990/1999 2000/2009 In R&D

Herbicides Cereals 15 12 12 1

Soybean 11 10 1 0

Maize 2 10 9 1

Rice 11 19 15 4

F&V 2 1 0 0

Other 10 5 2 1

Total 51 57 39 7

Insecticides F&V 11 16 16 4

Rice 5 2 3 3

Cotton 9 12 3 0

Others 4 7 5 3

Total 29 37 27 10

Fungicides F&V 13 9 17 4

Cereals 14 16 8 5

Rice 9 5 7 1

Others 0 0 0 0

Total 36 30 32 10

Others 7 3 5 0

Total 123 127 103 27

Average annual rate of introduction 12.3 12.7 10.3 5.4

Product Introductions and R&D by Crop

1

0

0

0

1

1

3

2

00

1

3

4

2

1

0

7

1

13

6.5

2010/11

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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

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Agrochemical Product Introductions and R&D Products

Introduced 1995-2010 Currently in R&DBayer 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

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0

10

20

30

40

50

60

70

80

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Agrochemical Active Ingredients in Development

a.i.s in development

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Seed Companies: Input Traits - Development

*BASF / Monsanto partnership ** BASF / Embrapa partnership ***Developed through conventional breeding

Maize Soybean Cotton Canola Others

BASF Herbicide Tolerance*

Nematode Resistance*

Disease Resistance

Bayer GlyTol Twinlink insect resistance Roundup Ready Insect Resistant Rice

GlyTol + HPPD Herbicide ToleranceDual Mode Herbicide

ToleranceLiberty Link + Roundup Ready Fungus Resistant Rice

Novel Insect Resistance Roundup Ready 2

Dow Enlist Corn Enlist Soybeans Enlist Cotton

Triple Mode Herbicide Tolerance

DuPontOptimum AcreMax Xtreme Multiple Mode Herbicide Tolerance

Optimum GLY Glyphosate

ToleranceHerbicide Tolerant Rice

Optimum Intrasect + DP4114 Aphid Resistance Liberty Link Insect Resistant Rice

Lepidoptera Resistance III Lepidoptera Resistance

Coleoptera Resistance III Hemiptera Resistance

Asian Soybean Rust Resistance

Monsanto

Dicamba and Glufosinate

Tolerance Genuity Intacta Genuity Bollgard III Roundup Ready 2

Insect protected Roundup Ready

Sugarcane

Genuity Rootworm Resistance III Dicamba ToleranceDicamba and Glufosinate

ToleranceDicamba tolerance Herbicide tolerant wheat

Genuity Corn borer Resistance

IIIRoundup Ready 2 Xtend Lygus Control Roundup Ready + Liberty Link Gemini Virus Resistant Tomato***

FOP Herbicide tolerance2nd Generation Cyst Nematode

Resistance

Reniform Nematode

ResistancePhytophthora Resistant Peppers

Goss's Wilt Resistance*** Asian Rust Resistance*Root Knot Nematode

Resistance

Gray Leaf Spot resistance2nd Generation Phytophthora Root

Rot Resistance

Syngenta Agrisure Viptera 3222 Insect Resistance Insect resistance (COT 102) Insect Resistant Rice

Agrisure Duracade Disease Resistance

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Seed Companies: Output/Agronomic Trait Research

Maize Soybean Cotton Canola OthersBASF Higher yielding* Higher yielding* Drought tolerance* Higher yielding* Higher yielding sugarcane

Drought tolerance* Healthy fatty acids Higher yielding sugarbeet

Improved Nitrogen Amylopectin potatoes

Improved feed 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

DuPontSeed 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

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Proprietary v Off Patent Market Share - 2011

Patented 23.0% Off - Patent 77.0%

Proprietary 23.0% Proprietary Off Patent 25.3% Generic 51.7%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

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

Sales $m

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Proprietary v Off Patent Market Share

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

%

Patented

Proprietary Off-Patent

Generic

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Company Acquisitions 2011- Present

Company Acquisition

Bayer US seed company Hornbeck Seed, producer of soybean, rice and wheat

Research company SoyTech Seeds Biological crop protection company AgraQuest

BASF US-based biological products company Becker Underwood

Monsanto U.S. based biotechnology company Divergence Bee health company Beeologics Precision Planting

Syngenta 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

Dow Seed company Northwest Plant Breeding Company

Brand and marketing assets of Prairie Brand Seed

DuPont 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

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0

200

400

600

800

1000

1200

1400

1600

Monsanto DuPont Syngenta BASF Dow BayerR&

D Ex

pend

iture

$m

.


0

100

200

300

400

500

600


R&D

expe

nditu

re $

m.


2001 2011

R&D Expenditure – Historical development

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R&D Expenditure 2011 by Industry (Leading companies)

0

500

1000

1500

2000

2500

3000

3500

4000

Agrochemical Seed and traits Biological crop protection

R&

D E

xpen

ditu

re($

m.)

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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 Globaland 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

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