The two sides exchanged technology to expand the market and Syngenta and DuPont reached an agreement

According to overseas media reports, two rivals in the agrochemical industry, Syngenta and DuPont, have reached an agreement that the two parties will exchange patent applications on plant protection products to expand market and business so as to achieve a win-win situation. Syngenta stated, “Under the current market environment, it is not surprising that the company and its competitor DuPont have reached this agreement. With the development of technology, the performance and effectiveness of the developed agrochemicals are also getting better and better. At some point Companies must learn to use research results and it is necessary to unite them so that R&D results can play a greater role."

Market analysts pointed out that this agreement conveys such a message. After a period of consolidation and merger, the global leader in the field of plant protection, such as Syngenta, began to look for ways to expand its business. Right now, rising costs, advances in genetically improved seeds, and other factors affecting the plant protection industry have all become the key issues for agrichemical companies.

According to reports, the agreement will be implemented after approval by relevant legislative bodies. Syngenta will be licensed by DuPont and will use DuPont's insecticide called Rynaxypyr exclusively to formulate its own insecticide products. DuPont will also be licensed by Syngenta to use Syngenta's fungicide picoxystrobin globally under Syngenta.

The two companies did not disclose the financial details of the deal to the outside world. The two companies stated that the current global market value of pesticides and fungicides has reached 7 billion U.S. dollars.

The exchange of technological achievements helps Syngenta and DuPont to introduce new products to the market at a lower cost. Craig Sadoski, manager of Southern Research and Development at Syngenta’s Memphis, Tennessee, said, “If we develop a new product to evaluate it from now on, it’s the fastest to market it. In 7 years, the required cost will be at least US$20 million even if only direct costs are considered.”

According to relevant researchers, the average cost of launching a new pesticide product is about US$170 million, and the development cycle is about 9 years. The period of patent protection expires after 17 years. At that time, new products will be put on the market. As a result, the price of products that have lost protection will often collapse.

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