AgroPages-Dow expects $2 bn sales growth from new products-Agricultural news

According to the report presented by Tim Hassinger, President and Chief Executive Officer of Dow AgroSciences, at 2017 Global Agriculture & Chemicals Conference held by Bank of America Merrill Lynch during March 1-2, Dow AgroSciences is expected to gain $2 billion sales growth from new products. Some $1.4 billion will generate from the company’s four new crop protection products, and $600 million will be contributed by its seeds pipeline.

Crop Protection Pipeline Full with High-Value Solutions

The four new crop protection products are Isoclast® Active Insecticide, Arylex™ Active Herbicide, Rinskor™ Active Herbicide and Inatreq™ Active Fungicide.

Isoclast® Active (sulfoxaflor) is a new insecticide discovered by and proprietary to Dow AgroSciences. It belongs to a new chemical class of insecticides called the sulfoximines. It was developed to control economically important sap-feeding insect pests in major crops. Successful launch in 32 countries, Isoclast® Active could be used in multiple crops and geographies. Dow plans to launch it in more 16 countries within this year. Dow estimates maturity annual sales of Isoclast® Active at $400 million, and the overall revenue opportunity available for this product will reach $2 billion.

Arylex™ Active (halauxifen-methyl) is a new broadleaf weed herbicide for utility in multiple crops (wheat, barley, burn down) with superior performance against most hard-to-control weeds. Arylex™ Active is an ideal nnovative resistance management tool from a novel area of chemistry. It has been registered for sale and use in several countries around the world. Maturity sales of Arylex™ Active is estimated at $600 million, while addressable opportunity is expected to exceed $3 billion.

Inatreq™ Active, expected to be launched in 2018-19, is an innovative new fungicide to control key diseases in cereal crops. Inatreq™ Active, a product derived from naturally occurring material with outstanding performance, represents a new market opportunity for Dow AgroSciences, with expected annual sales to exceed $200 million at maturity. Dow anticipated addressable opportunity for this product at 1.5 billion.

Rinskor™ Active is another product anticipated to be launched in 2018-19. Rinskor™ Active (florpyrauxifen-benzy) is a post-emergent herbicide that controls grasses, broadleaves and sedges in multiple crops (including rice) and geographies. Annual sales of Rinskor™ Active is expected to exceed $200 million at maturity, addressable market opportunity for this product is about $2 billion.

Robust Seeds Pipeline Continues to Deliver Value

Dow forecast a 50 million acres market for Enlist™ soybean, a 40 million acres market for Enlist™ Corn, and a 10 million acres market for Enlist™ Cotton. Dow estimates addressable market opportunity for another robust product, PowerCore™ corn at 100 million acres. PowerCore is a pyramid of Bt traits that combines three proteins to deliver broad spectrum protection against above-ground pests. SmartStax® PRO corn, expected to be launched during 2018-2021 in US and Canada, is the first trait technology with three modes of action for below ground insect pests. It combines proven benefits of SmartStax® corn with novel RNAi technology for trait durability and insect resistance management. Dow forecast a 100 million acres addressable market for SmartStax® PRO corn.

Tim Hassinger also discussed 2017 priorities for Dow AgroSciences at the conference.

Accelerate Value Capture from Innovation

• Continue Record Pace Pipeline Advancements

• Secure Regulatory Approvals

• Exceed Launch and Ramp-Up Expectations

Deliver Financial Commitments

• Meet annual goals for new product 2020 Sales target of $1.4B

• Continued progress to meet 2020 EBITDA goal

• Increase EVA versus prior year

Complete Successful Integration After Closing Merger

• Cost and Growth synergies identified

• Business model defined