|
News Release
JURY AWARDS $174.9 MILLION IN DAMAGES TO MYCOGEN IN SEED TECHNOLOGY DISPUTE WITH MONSANTO
3/20/1998 SAN DIEGO, Calif. - A Superior Court jury has awarded $174.9 million in damages to Mycogen Corporation in a breach of contract suit against Monsanto Company arising from Monsanto's delay in fulfilling the terms of option agreements to license crop enhancement technology to Mycogen.
For Mycogen, the damage award represents compensation for lost profits and market share for its seeds business caused by lack of access to Monsanto's Bacillus thuringiensis (Bt) insect-resistance technology for corn and glyphosate herbicide tolerance technology for corn, cotton and canola, for which Mycogen holds license options.
"We are gratified that the jury has held Monsanto accountable for the negative impact the delay in receiving this technology has had on our seeds business," said Carl Eibl, Mycogen's president. "These traits are creating tremendous value for seed companies and we have been trying to exercise our right to obtain them since 1993."
In 1989, Monsanto granted options to license the technology to Lubrizol Genetics, an entity in which Mycogen acquired a controlling interest in 1992. When Mycogen sought to exercise the options in 1993, Monsanto refused and Mycogen filed suit. In 1994, a San Diego Superior Court judge granted Monsanto's motion for summary judgment upholding its refusal to license the technology to Mycogen, and Mycogen appealed that ruling. In 1996, the California Court of Appeal reversed that ruling and Mycogen filed the damage suit that was decided today. During the trial, the judge ruled that Monsanto had breached the agreement as a matter of law, and that the sole issue before the jury was the amount of damages suffered by Mycogen as a result.
The jury verdict does not affect Mycogen's options to license the Monsanto technology, and Eibl said that the company intends to complete license agreements as soon as possible.
Mycogen is a diversified agribusiness and biotechnology company that develops and markets seeds and value-added traits for genetically enhanced crops and provides crop protection products and services. Mycogen (Nasdaq: MYCO) is majority owned by Dow AgroSciences LLC, a wholly owned subsidiary of The Dow Chemical Company (NYSE: DOW).
For more information about Mycogen, please call 1-888-SEE-MYCO (1-888-733-6926) or visit Mycogen's website at www.mycogen.com.
# # #
Return to Press Release Listing
|
