DuPont Leader Outlines Path for Growth in Agriculture and Nutrition & Health Segments
Advancements in R&D are Expected to Create New Value in Agriculture and Nutrition
FT. LAUDERDALE, Fla., Feb. 26, 2015 – DuPont Executive Vice President James C. Borel discussed growth priorities driven by key research advancements and product launches across the Agriculture and Nutrition & Health segments at today’s Bank of America Merrill Lynch 2015 Global Agriculture Conference.
“While farmers worldwide met the challenge of building grain supplies the last two years, long-term demand for agricultural production is expected to continue at the pace of the last decade, when demand for corn and soybeans increased 40 percent,” said Borel. “To meet this demand for more and better food, DuPont is delivering innovative solutions across the food value chain fueled by a robust research pipeline, which leverages our leading positions in seed, crop protection, ag services, biologicals, nutrition science and food formulation.”
Extending DuPont leadership in Agriculture and Nutrition is one of the company’s three strategic priorities to build a higher value, higher growth company. Following the separation of Performance Chemicals, the Agriculture and Nutrition & Health segments are expected to represent about half of total company sales.
Advancing Innovation in Agriculture Research Pipeline
Borel presented an update of the agriculture research pipeline for DuPont, noting six key program advancements and the addition of four research programs which have moved forward out of the discovery phase.
“Focused investments in research and development are yielding exciting innovation in our seed and crop protection pipelines and will position DuPont to better serve our customers and deliver value to our shareholders,” said Borel. “Our global pipeline reinforces our leadership in germplasm and breeding, crop protection, and our growing strength in proprietary biotechnology trait development.”
In addition, Borel highlighted near-term launches in corn by DuPont Pioneer, the advanced seed and genetics business of DuPont. DuPont Pioneer launched Pioneer® brand Optimum® Leptra® corn hybrids in the southern United States in 2014 under a stewarded program. With the recent Chinese import approval of the Agrisure Viptera® trait, DuPont Pioneer will expand its U.S. lineup of Optimum® Leptra® corn hybrids in 2015 and expects also to launch in Brazil for the 2015/2016 Safrinha season, pending completion of field testing and applicable regulatory reviews. DuPont Pioneer anticipates that the approaching launch of DP 4114 will help enable it to develop higher yielding corn hybrids and expand its triple-stack offerings to about half of its North American corn volume mix in the years following introduction. DP 4114 received cultivation approval in the United States and Canada in 2013 and will be tested in Pioneer’s IMPACT™ trial system in 2015. It is anticipated to launch in a stack configuration early in the second half of this decade, pending completion of field testing and applicable regulatory reviews.
In soybeans, DuPont Pioneer is making solid progress transitioning its North America soybean lineup to its newest Pioneer® brand T series soybean varieties, which will account for about two-thirds of volume in 2015. This year Pioneer® brand soybean varieties with the Roundup Ready 2 Xtend™ trait will be tested in IMPACT™ trials with first commercial sales anticipated as early as 2016, pending completion of field testing and applicable regulatory reviews.
While presenting the DuPont Crop Protection pipeline, Borel highlighted our new proprietary seed treatment solutions, including Dermacor® for soybeans which we successfully launched on over 3 million acres in Brazil last summer. The DuPont Crop Protection pipeline was recently named “Best R&D Pipeline” by Agrow for the second consecutive year and third-time overall, building upon the success of innovative insect control products like Rynaxypyr® and Cyazypyr®. Borel noted that over the life of these products, peak annual sales for Rynaxypyr® are expected to approach $1.5 billion and for Cyazypyr® are expected to exceed $500 million.
Borel also spoke about DuPont™ Zorvec™ disease control, a new low-rate mode of action fungicide for fruits and vegetables by DuPont Crop Protection. The first global launches are expected in 2015, pending regulatory approvals. DuPont believes Zorvec™ will provide growers with unmatched consistency and disease control to realize better crops for better business.
To view a full copy of today’s presentation, visit the “Events & Presentations” page on the DuPont Investor Center.
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.
Forward-Looking Statements: This news release contains forward-looking statements which may be identified by their use of words like "plans," "expects," "will," "believes," "intends," "estimates," "anticipates" or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's growth strategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting products based on biotechnology; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company's intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
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The DuPont Oval Logo, DuPont™, Optimum®, Leptra®, IMPACTTM, Rynaxypyr®, Cyazypyr® and Dermacor® are trademarks or registered trademarks of DuPont or its affiliates.
Agrisure Viptera® is a registered trademark of, and used under license from, a Syngenta Group Company. Agrisure® technology incorporated into these seeds is commercialized under a license from Syngenta Crop Protection AG.
Roundup Ready 2 Xtend™ is a trademark of Monsanto Technology LLC used under license.
Pioneer® brand soybeans with the Roundup Ready 2 XtendTM technology will not be offered for sale or distribution until completion of field testing and applicable regulatory reviews.
DuPont™ Zorvec™ is not registered for use or sale in the United States. No offer for sale or use of these products is permitted to the issuance of the country level registrations.