- Quarterly Report

Quarterly Report for the quarter ended November 30, 1995

December 18, 1995

To Our Shareowners:

Mycogen's future is coming into sharper focus as we place cornerstones for the major agribusiness company we've set our sights on building. On December 13, we signed a definitive agreement to collaborate with Pioneer Hi-Bred International, the world's largest seed company, to develop Bacillus thuringiensis (Bt) insect-resistance technology for a broad range of crops. This agreement gives Mycogen access to Pioneer's unmatched plant science research and development infrastructure and $51 million cash to continue building our seed and crop protection businesses.

Financial - As we stated in our 1995 annual report, we believe 1996 is the year that will begin to demonstrate the full commercial value of the technology we've been assembling for the past decade. In reviewing Mycogen's financial performance for this first fiscal quarter, please bear in mind that our businesses are highly seasonal. First quarter expenses reflect stepped-up sales and promotional programs for the coming growing season, but seed sales aren't recorded until the second and third fiscal quarters, and crop protection revenues fall mainly in the third and fourth quarters. That's why our loss for the quarter was about the same as last year's, despite a 23 percent year-to-year increase in revenues.

Crop Protection - Continuing heavy demand for crop protection services in California and Arizona and strong biopesticide sales produced above-plan revenues for the quarter. Our new Mattch™ bioinsecticide for caterpillar control in vegetables is off to a fast start in winter growing areas in Florida and Texas, and our new Scythe™ herbicide is rapidly gaining acceptance in landscape markets. International sales also continue to grow as a result of Kubota's successful introduction of Guardjet® bioinsecticide in Japan, and our entry into new markets where Mycogen's products have been approved.

Seeds - With larger quantities of our NatureGard™ insect-resistant, and Totally Managed Feedstuffs™ silage seed corn products now available, our focus is on building sales through our existing farmer/dealer network and broadening distribution through new channels. As we reported in September, Cargill Hybrid Seeds will sell NatureGard seed corn with Bt-based resistance to European corn borer under the Mycogen brand for planting this spring. At the same time, we continue to explore added 1996 distribution through agricultural products distributors and retailers.

Outlook - With biotechnology moving rapidly into the agricultural mainstream, the coming months and years will be a period of unprecedented opportunity for Mycogen. We continue to explore every avenue to strengthen and broaden our business to ensure that those opportunities are translated into shareowner value. We appreciate your support.

Jerry Caulder Chairman & Chief Executive Officer

Carl Eibl President & Chief Operating Officer

                               Mycogen Corporation
               Interim Consolidated Condensed Statements of Operations
                   (Amounts in thousands, except per share data)
                                                  Three months ended 
                                                     November 30, 
                                             _____________________________ 
                                                 1995              1994
                                             ______________   ______________
                                                       (Unaudited)
Revenues:
  Net operating revenues:
    Seed segment                              $    1,126       $      596
    Crop protection segment                       10,923            8,913
                                             ______________   ______________
                                                  12,049            9,509
  Contract and other revenues                      1,571            1,896
                                             ______________   ______________
       Total revenues                             13,620           11,405
                                             ______________   ______________
Costs and expenses:
  Cost of operating revenues                       7,823            6,245
  Operating expenses                              13,363           12,704
                                             ______________   ______________
   Total costs and expenses                       21,186           18,949
                                             ______________   ______________
Operating loss                                    (7,566)          (7,544)
                                             ______________   ______________
  Interest and other, net                            154              529
                                             ______________   ______________
Net loss                                          (7,412)          (7,015)
  Dividends on preferred stock                      (384)            (369)
                                             ______________   ______________
Net loss applicable to common shares          $   (7,796)      $   (7,384)
                                             ==============   ==============
Net loss per common share                     $     (.40)      $     (.39)
                                             ==============   ==============
Weighted average number of shares                 19,447           19,099 
                                             ==============   ==============

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