Novozymes gets more partners for bio-agriculture arm beyond Bayer
Apr. 9, 2019
In addition, Novozymes is pursuing a multi-partner setup, with two new partners, Univar Solutions and UPL, announced today. Novozymes will also pursue partnerships in biocontrol, similar to its existing partnership with Syngenta. The new setup is expected to enable Novozymes to capture more value from its continued investments in BioAg.
The 2019 organic sales growth outlook for Novozymes and for the Ag & Feed business is maintained. The long-term BioAg target of supplying technology to 250-500 million acres is also maintained. The EBIT margin, net profit growth, free cash flow before acquisitions and ROIC guidance for 2019 are updated due to a one-off deferred income release.
Peder Holk Nielsen, President & CEO, Novozymes: "I'm very pleased with the future setup of our BioAg business and look forward to continuing the successful collaboration with Bayer as our core partner. The BioAg Alliance has been good for Novozymes, particularly when it comes to developing and commercializing products to boost corn yields.
However, the exclusive Alliance had limited flexibility and breadth. The new, more flexible setup allows Novozymes to bring biological solutions to market with multiple partners. These partners complement the focus areas we have with Bayer, such as broader crop and geographical coverage, and continues the journey towards the 250-500 million-acre target."
Liam Condon, President, Bayer Crop Science: "As science-driven organizations, Bayer and Novozymes want to use microbial solutions to promote efficient and sustainable farming. Building on groundbreaking innovation developed successfully between the two companies, such as the BioRise 2 corn offering and further global upstream corn bioyield solutions, we are really excited to continue to work with Novozymes - and innovate together as core partners to pave the way for the next generation of microbial technology for corn."
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