In a presentation to investors tomorrow, Monsanto Company's (NYSE: MON) Chief Technology Officer Robert T. Fraley, Ph.D., will preview developments in the company's research-and-development (R&D) pipeline that signal the advancement of next-generation agronomic and consumer-benefit-oriented  biotechnology traits to the commercial market.

Fraley is delivering a presentation as a part of the 17th Annual Chemical Conference sponsored by Credit Suisse First Boston in New York.

"In effect, biotechnology R&D is at a crossroads because Monsanto's success in introducing traits for weed and bug control has proven that the market is hungry for innovation," said Fraley.  "The investment in the first round of biotechnology traits is largely complete, so it's important to identify what the next relevant applications will be so that you focus your R&D dollars on the possibilities you believe will define the next generation of technology."

"We've concentrated our resources and our energy on the projects that we believe anticipate the next market need, and the positive momentum we've seen in our projects progressing from concept to product proposition leads us to believe that we're on the front edge of a new era of commercial products." 

The First Products of Next-Generation Research

One of the projects Fraley will provide an update on is Monsanto's Vistive brand low-linolenic soybeans.  Produced through conventional breeding, Vistive soybeans will reduce or eliminate trans fatty acids (trans fats) in processed soybean oil, while maintaining performance parity with leading soybean varieties.

"Vistive soybeans will be commercially available next growing season, making it the first product out of the industry pipeline offering direct consumer benefits," said Fraley.  "This initial product is still a small foray into the promise of enhanced oils, but it provides an important signal that our research pipeline is making progress on traits beyond those already established in the market."

Additionally, the Vistive brand low-lin soybeans will be stacked in combination with Monsanto's Roundup Ready trait, building on the benefit platform soybean farmers have come to expect.

Fraley will also preview research results from project concepts advancing in various stages in the company's R&D pipeline.  The company continues to see positive progress from projects like its second-generation Roundup Ready Flex cotton technology and its drought-tolerant corn and soybeans.

"This is a year when we have had more product concepts in the field than ever before," said Fraley.  "And, when you walk through the research fields and see these crops growing, you get a real sense for how much progress we are making."

Building On A Solid Base

According to Fraley, the momentum generated in the R&D pipeline is an extension of the success Monsanto has established in the first-generation of biotech traits.

"Farmers have come to rely on the first generation of biotechnology traits, but we're not taking our leadership for granted," Fraley said.  "Even with the rapid adoption of the first generation of traits, we're building and improving the choices we're offering to farmers by commercializing second-generation crops, stacking traits in combination so farmers can do more with one seed, and we're reinvesting the returns into the next generation of products in our pipeline."

Fraley cited an "intensity index" of U.S. biotech traits that shows significant penetration of multiple Monsanto traits for key crops on each acre planted with biotech crops. For instance, in cotton, for the 2004 planting season, Monsanto estimates an intensity index of approximately 1.5 – meaning Monsanto believes there are approximately 1.5 Monsanto traits being planted on every acre growing biotech cotton. Similarly, for 2004, the projected intensity index for corn is 1.2, with continued growth expected in 2005 and 2006 as a result of the introduction of second-generation traits and increased penetration of stacked traits.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Vistive and Roundup Ready are trademarks of Monsanto Technology LLC.