ABIM Conference
R&D trends in Crop Protection
Phillips McDougall Vineyard Business Centre Saughland Pathhead Midlothian EH37 5XP Tel : 01875 320611 [email protected]
October 2012 1 © PhillipsMcDougall ABIM Conference
Industry background
October 2012 2 © PhillipsMcDougall ABIM Conference Market Performance 2011 (Distributor level – average exchange rates - Nominal US$) Year Crop Non-Crop GM Conventional Protection Agrochemicals Seed Seed ($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% Seed= $34,495 +11.9% October 2012 3 © PhillipsMcDougall ABIM Conference
R&D in Crop Protection and Production
October 2012 4 © PhillipsMcDougall ABIM Conference
Cost of Bringing a New Product to Market
$m Registration
300 Environmental Total $256 m. Chemistry
250 25 Toxicology
Total $184 m. 24 200 Field Trials Total $152 m. 32 11 Development 16 Chemistry 146 150 13 18 54 13 Development 25 18 Development 79 Tox/Env Chemistry 100 18 67 20 36 9 18 11 10 Biology 44 Research 32 Research 50 30 Research 94 85 72 Chemistry 32 41 42 0 1995 2000 2005-8
Results of Study undertaken for ECPA and CropLife America
October 2012 5 © PhillipsMcDougall ABIM Conference
Cost of Bringing a New Product to Market
Agrochemical Plant biotechnology trait
300 300
Total = $256 m. Total = $136 m. Registration & Regulatory 250 Affairs 25 250 Regulatory Science 24 Registration 200 Environmental Chemistry 200 32 Introgression breeding & Toxicology Development testing 150 54 Field Trials 150 Commercial event $ million $ Chemistry million $ 17.2 production 17.9 100 36 Tox/Env chemistry 100 Construct optimisation 28 11 Biology 13.6 32 Late discovery 50 Chemistry 50 Research 28.3 42 13.4 Early Discovery 17.6 0 0 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
October 2012 6 © PhillipsMcDougall ABIM Conference
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
October 2012 7 © PhillipsMcDougall ABIM Conference
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 & 1302 selection V Introgression Breeding & Wide – 2 Area Testing VI Regulatory Science 1 VII Registration & regulatory Affairs 1
October 2012 8 © PhillipsMcDougall ABIM Conference
Time from New Product Inception to First Introduction
(1) Agrochemical
1995 2000 2005-8 Number of years between the first synthesis and the 8.3 9.1 9.8 first sale of the product
Results of Study undertaken for ECPA and CropLife America
(2) Plant biotechnology trait Canola Corn Cotton Soybean All crops Number of years from discovery of 11.7 12.0 12.7 16.3 13.1 trait to first commercial sale
Results of Study undertaken for CropLife International
October 2012 9 © PhillipsMcDougall ABIM Conference
Agrochemical Industry R&D Expenditure by Function (Fourteen Reporting Companies Only) 2007 2012
Product Monitoring Research of Product Monitoring Research / Stewardship New a.i. / Stewardship of New a.i. 11.3% 32.5% 12.2% 29.6%
Development Development of Generics of Generics 1.9% 1.8%
Post Launch Post Launch Development Development Development Development of New a.i. of New a.i. 31.4% 31.1% 23.3% 24.9%
Total = $2,328million Total = $2,943 million
Results of Study undertaken for ECPA and CropLife America
October 2012 10 © PhillipsMcDougall ABIM Conference Company Sales and R&D Expenditure 2011 Agrochemicals Seed and Traits 12000
10000
8000
6000
Sales $m. 4000
2000
0 Monsanto DuPont Syngenta BASF Dow Bayer
Agrochemicals Seed and Traits 1600 1400 1200 1000 800 600 400 R&D R&D Expenditure $m. 200 0 Monsanto DuPont Syngenta BASF Dow Bayer
October 2012 11 © PhillipsMcDougall ABIM Conference R&D Expenditure of Leading Agrochemical Companies
Agrochemical R&D Seed and Trait R&D 3500
3000
2500
US$ million US$ 2000
1500
1000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
October 2012 12 © PhillipsMcDougall ABIM Conference Product Introductions and R&D by Crop 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
October 2012 13 © PhillipsMcDougall ABIM Conference
New Active Ingredient Introductions
No.of Products 25
20
15
10
5
0 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
October 2012 14 © PhillipsMcDougall ABIM Conference
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
October 2012 15 © PhillipsMcDougall ABIM Conference
Agrochemical Active Ingredients in Development
a.i.s in development 80
70
60
50
40
30
20
10
0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
October 2012 16 © PhillipsMcDougall ABIM Conference Seed Companies: Input Traits - Development
Maize Soybean Cotton Canola Others BASF Herbicide Tolerance* Nematode Resistance* Disease Resistance
Bayer GlyTol Twinlink insect resistance Roundup Ready Insect Resistant Rice Dual Mode Herbicide GlyTol + HPPD Herbicide Tolerance Liberty Link + Roundup Ready Fungus Resistant Rice Tolerance Novel Insect Resistance Roundup Ready 2
Dow Enlist Corn Enlist Soybeans Enlist Cotton Triple Mode Herbicide Tolerance Optimum GLY Glyphosate Optimum AcreMax Xtreme Multiple Mode Herbicide Tolerance Herbicide Tolerant Rice DuPont Tolerance Optimum Intrasect + DP4114 Aphid Resistance Liberty Link Insect Resistant Rice Lepidoptera Resistance III Lepidoptera Resistance Coleoptera Resistance III Hemiptera Resistance Asian Soybean Rust Resistance Dicamba and Glufosinate Insect protected Roundup Ready Genuity Intacta Genuity Bollgard III Roundup Ready 2 Monsanto Tolerance Sugarcane Dicamba and Glufosinate Genuity Rootworm Resistance III Dicamba Tolerance Dicamba tolerance Herbicide tolerant wheat Tolerance Genuity Corn borer Resistance Roundup Ready 2 Xtend Lygus Control Roundup Ready + Liberty Link Gemini Virus Resistant Tomato*** III 2nd Generation Cyst Nematode Reniform Nematode FOP Herbicide tolerance Phytophthora Resistant Peppers Resistance Resistance Root Knot Nematode Goss's Wilt Resistance*** Asian Rust Resistance* Resistance 2nd Generation Phytophthora Root Gray Leaf Spot resistance Rot Resistance
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 October 2012 17 © PhillipsMcDougall ABIM Conference
Seed Companies: Output/Agronomic Trait Research
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 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 Seed production technology (yield) Higher yielding Higher yielding Hybrid rice DuPont 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
October 2012 18 © PhillipsMcDougall ABIM Conference
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%
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
October 2012 19 © PhillipsMcDougall ABIM Conference
Proprietary v Off Patent Market Share
% 55.0 Generic 50.0 45.0 40.0 35.0 Proprietary Off-Patent 30.0 25.0 Patented 20.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
October 2012 20 © PhillipsMcDougall ABIM Conference
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
October 2012 21 © PhillipsMcDougall ABIM Conference
R&D Expenditure – Historical development
2001 2011
Agrochemicals Seed and Traits Agrochemicals Seed and Traits
600 1600 1400 500 1200 400 1000 300 800 600 200 400 R&D R&D expenditure $m. 100 R&D Expenditure $m. 200 0 0 Monsanto DuPont Syngenta BASF Dow Bayer Monsanto DuPont Syngenta BASF Dow Bayer
October 2012 22 © PhillipsMcDougall ABIM Conference
R&D Expenditure 2011 by Industry (Leading companies)
4000
3500
3000
($m.) 2500
2000 Expenditure 1500 R&D 1000
500
0 Agrochemical Seed and traits Biological crop protection
October 2012 23 © PhillipsMcDougall ABIM Conference
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
October 2012 24 © PhillipsMcDougall