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News Release
DELAWARE FEDERAL COURT VERDICT INVALIDATES MYCOGEN BT PATENTS
2/3/1998 WILMINGTON, Del. - A jury in Federal District Court today ruled that two U.S. patents held by Mycogen Corporation that cover Bacillus thuringiensis (Bt) gene synthesis technology used to make plants insect-resistant are invalid.
Mycogen filed suit in October 1996, claiming that Bollgard® cotton, marketed by Monsanto Company and Delta & Pine Land Co., Monsanto's New Leaf® potato and YieldGard® hybrid seed corn marketed by Monsanto and DeKalb Genetics infringe Mycogen's patents for making synthetic Bt genes and using them to develop insect-resistant plants and seeds. Carl Eibl, Mycogen's president, said that the practical impact of the jury verdict is that the patents that were the basis for the litigation will not restrict other companies' use of that technology in plants and seed products in the U.S.
"We believe that this verdict is flawed and we will consider pursuing an appeal," Eibl said. "The verdict does not create a proprietary position for Monsanto, DeKalb, or Delta and Pine Land, and thus does not affect Mycogen's ability to continue developing and commercializing Bt insect-resistance traits through our retail seed businesses or licensing those traits to other companies."
Mycogen holds other patents and has pending patent applications that cover Bt genes and Bt-based insect resistance in plants. These include broad patents covering Bt gene modification technology in Europe, Australia, South Africa and other "first to file" jurisdictions.
"We also hold dozens of U.S. and foreign patents covering the industry's largest library of Bt genes, the "active ingredients" that make plants insect-resistant," Eibl said. "Those proprietary genes, along with Mycogen's extensive collection of biotechnology tools and our technology collaborations with our majority owner, Dow AgroSciences, and Pioneer Hi-Bred International position Mycogen to be a leading player in agricultural biotechnology over the long term."
Nickolas D. Hein, chairman of Mycogen's board of directors and vice president, biotechnology for Dow AgroSciences, Mycogen's majority owner, said that the court decision will not change the relationship between the two companies.
"Mycogen's Bt gene library and other Bt patents and its retail corn, oilseed and cotton seed platforms are very valuable strategic assets," Hein said. "We are committed to working with Mycogen to expand its seed platform, and, with the ability to draw on the combined technology resources of Mycogen, Dow AgroSciences and Pioneer, we are confident that Mycogen will become a powerful force in developing and marketing genetically enhanced seed products and insect resistance traits globally."
Mycogen introduced NatureGard® hybrid seed corn with Bt-based resistance to European corn borer in 1996. Ciba Seeds (now Novartis Seeds), which holds a license from Mycogen, introduced a similar product under the trade name, Maximizer®. In 1995, Mycogen entered into a 10-year technology collaboration with Pioneer Hi-Bred International to develop insect resistance traits for several crops, using Mycogen's Bt genes and Bt gene synthesis technology.
In 1996, DowElanco, since renamed Dow AgroSciences, acquired a 46 percent equity stake in Mycogen and the two companies entered into an alliance to develop crop enhancement traits. Dow AgroSciences, a wholly-owned subsidiary of The Dow Chemical Company (NYSE: DOW), has continued to increase its ownership and now owns approximately 63 percent of Mycogen's common stock.
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. The forward-looking statements in this document are based on projections and estimates regarding the economy and the seed and crop protection industries. Various factors could cause actual results to vary significantly from management's expectations. These include the impact of weather on production and sales, actions by competitors and regulatory agencies, intellectual property positions, commodity prices, fluctuations in crop acreage and the effectiveness of internal expense controls.
For more information about Mycogen, please call 1-888-SEE-MYCO (1-888-733-6926) or visit Mycogen's website at www.mycogen.com.
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