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Monday, December 28, 1998

Is Monsanto washing hands off terminator? 

Sharad Mistry  
MUMBAI, DEC 27: Monsanto, the US-based biotech giant, is understood to be preparing for a life without the controversial `terminator' gene. The company was closely involved in the development of the terminator gene.

Seeds with `terminator' gene produce sterile seeds in the first crop thus forcing the farmers to purchase seeds again for his next crop.

But given the immense commercial benefits associated with transgenic or genetically engineered seeds, there is a possibility that the company would continue research in-house to develop its own genetically modified seeds.

The `terminator' gene was jointly developed by the US department of agriculture (USDA) and Delta & Pine Land (D&PL) and has been patented in the USA. Interestingly, Monsanto which has already shareholders approval to takeover D&PL is awaiting legal clearance from the US government.

What is more, at least four other global bio-tech companies like Du Pont, Zeneca of the UK, Novartis and AgrEvo are in the race to capture the global marketfor genetically produced seeds estimated to be of $2 billion by 2000, by which time, all major crops will contain one or more bio-engineered traits. Between them, these five bio-tech companies virtually control 100 per cent of the global transgenic seed market.

But, even before Monsanto could actually reap the first harvest its top brass are grappling with the crucial question: Should the company continue its association with a product that has attracted global opposition?

According to a note from Rural Advancement Foundation International (RAFI), Monsanto held a high-level meeting on December 10 to `consider whether or not to abandon its quest for an exclusive license on the `terminator' technology.' RAFI, an non-governmental organisation, is spearheading the global opposition against the `terminator' gene.

According to RAFI, `Monsanto's director (corporate communications) Philip Angell confirmed that the company held a meeting (attended by Bob Shapiro, Monsanto's president) to discuss`terminator'.

Angell declined to offer details of the meeting while confirming that "it's an issue we have to wrestle with."

Monsanto, dubbed as the Microsoft of micro-biotechnology, had in early 1998 risen to number two position in the global commercial seed market with its annual seed revenue placed at $1.32 billion. Pioneer Hi-Bred International with 1997 seed revenues placed at $1.78 billion, is the first.

Given the immense commercial value attached to the genetically modified seeds, both the USDA and Delta & Pine have applied for patent in some 87 countries, including India. Delta & Pine, the de facto subsidiary of Monsanto, is in negotiations with the USDA to transfer the US government's rights on `terminator' exclusively to the latter.If the negotiations go through and D&PL gets the exclusive marketing rights for the `terminator' gene, Monsanto had plans to exclusively market the same in all those countries where the patent rights are sought.

Monsanto India's chief Terry J Bunn, in an interviewwith The Financial Express early this month, had maintained that "commercialisation of such a product -- though commercially viable -- could be considered by the company only if it is accepted both socially and economically".

Terry J Bunn's view therefore, reveals the view of Monsanto bosses that because of the global opposition to `terminator' gene, the company is now keen to disassociate itself with the controversy around the genetically engineered seed.

Bunn did not clarify whether or not the company will continue the research inhouse given its immense commercial value. Said Bunn: "It's a commercial world wherein if the farmer is convinced about the economic benefits available with the `terminator' seeds -- better yield at slightly higher price-it is necessary that he is allowed to buy the product from the market as any other product".

Though not explicit, this view of Bunn could mean that Monsanto is unwilling to let go off the benefits associated with genetically modified seeds.

Quoting anunnamed USDA official, RAFI's executive director, Pat Mooney said in the note that `Monsanto might have an alternative strategy in the works, meaning the company may choose to avoid negative publicity by giving up its high-profile association with the `terminator' patent and instead conduct in-house research on a second-generation variation of the suicide seed'.

Not to be outdone by Monsanto, Zeneca of the UK (which together with VanderHave, owns the world's fifth largest seed company) has indicated it will seek patents in more than 50 countries for its `improved plant germplasm' invention.

Sweden's Astra after its alliance with Zeneca of UK will become the third largest `life science' company, followed by Rhone-Poulenc which is in the process of merging with Hoechst of Germany.

Zeneca's invention has been termed as `verminator' by RAFI. The patent includes utilising a rodent's gene from rat fat tissue. Zeneca's patent puts it bluntly: "This invention enables the production of plant varieties which arerendered non-viable..."

The `verminated' seed requires exposure to a chemical to deactivate a blocking process that prevents normal plant growth. The patent appears to be wider and more flexible than the `terminator' but the results could be same.

In 1997, Pioneer and DuPont had announced a $400 million joint venture called `Optimum Quality Grains' which will focus on value-added grain and oilseeds, including feed grains to optimise livestock production, seeds to produce biofuels, seeds with modified starch potent, healthy oils and nutritionally-enhanced foods.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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