Monsanto Company (MON) and Limerick, Ireland-based biotechnology firm Stokes Bio Limited entered into a licensing agreement and R&D collaboration. Under the agreement, Monsanto has exclusive rights to Stokes Bio’s patented technology for use in agriculture.
In-plant breeding, genotyping — or gene analysis — is used to identify seeds or plants with the most desirable characteristics, such as better yield or disease resistance. Currently, Monsanto’s gene analyses are limited by the number of samples that can be processed at one time and the turnaround time per sample.
Stokes Bio’s system utilizes microfluidic technology that can provide the same evaluations using much smaller sample sizes –- as little as 1/1000th of what is currently required -– which continually flow through the system in nanoliter-size droplets.
The instrument can evaluate up to 100,000 data points per hour, making it more efficient than any method of gene analysis currently used. It is capable of generating more data in less time, using less sample and reagent, and at a cost lower than existing technologies. Stokes Bio will deliver a number of these next-generation genotyping instruments to Monsanto in 2011.
The new technology has applications in areas ranging from plant genetics through the entire spectrum of human healthcare, which will help boost productivity.
Monsanto is a leading global provider of agricultural products. The company’s pipeline of agricultural biotechnology products stands unmatched in the industry.
However, the intense competitive environment and Monsanto’s huge dependence on a few large customers pose a risk. Nevertheless, a healthy balance sheet, coupled with a robust pipeline of new products along with the continuous growth in the seeds and genomics segment, appears encouraging. Thus we maintain our Neutral recommendation on Monsanto.
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