Monsanto Life Sciences

RAJESH V. DEVRAJ and JOHN J. PARLOW Searle/Monsanto Life Sciences Company... 

Rajesh V. Devraj, Parallel Medicinal Combinatorial Chemistry Unit, Searle/Monsanto Life Sciences Company, 800 N. Lindbergh Blvd., St. Louis, MO 63167, USA... 

Monsanto spun off chemicals unit and becomes Monsanto Life Sciences. 

By late 1996, Monsanto had planned to divide itself into two entities Monsanto Life Sciences and a chemical entity (later given the name Solutia) (Reisch). This occurred within a year, during which Monsanto purchased a plant biotechnology company (Calgene) that held patents for improved fresh produce, cotton seeds, specialty industrial and edible oils (derived from seeds) and plant varieties (Anonymous, 1997). Based on analysis of 1995 sales, the life sciences products accounted for annual sales of S5.3 billion based on the major products of Round-up herbicide, Roundup-resistant soybeans, Bollguard insect-protected cotton, Nutrasweet sweetner, and prescription drugs for arthritis and insomnia. 

The established fipcos face competition not only from one another but also from start-up pharmaceutical and biopharmaceutical companies, which number about 1300 in the United States. Competition surfaces from other quarters, too. Companies like DuPont and Monsanto, which manufactured chemicals in bulk, recently entered the fi ay, respectively forming the DuPont Pharmaceutical Company and Monsanto Life Sciences. The opportunities to... 

Gateway Chemical Technology Monsanto Life Sciences Co. Reliable Biopharmaceutical Corporation Searle... 

Monsanto Agricultural Company, Life Sciences Research Center, St. Louis, MO 63198... 

Reisch, M. Monsanto Plans to Split in Two Chemical and Life Sciences Firms will be Formed. Up to 2,500 Jobs May Be Cut . Chem. Eng. News, 74(51), 9... 

Placing all life science activities under one roof appeared to be a logical decision, and it at first had the blessings of financial analysts. However, it proved unwise. Indeed, no sooner had Novartis, AstraZeneca, Pharmacia-Upjohn-Monsanto, and Aventis been created than their managements were made aware of some important facts ... 

In 1997 Monsanto divested the 3 billion a year chemicals segment of its business (now called Solutia). Management shifted its focus to life sciences such that the company now consists of life sciences and agricultural products, Searle pharmaceuticals, and food ingredients. Monsanto investors now are likely to be interested in higher risk and higher returns but this may take time. This is a company in transition. 

Below, we give some descriptive examples of the development of the polyolefin industry from the perspective of individual companies, some of whom have remained in polymers but have largely exited their early polyolefin activities (such as DuPont), no longer even participate in the industry of which they were an early member (such as Hoechst AG or Monsanto, which went on to become a life science or agricultural company, respectively) or were a founding member, but no longer even exist (ICI being a prime example). 

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