AAggrrooww Agribusiness intelligence Biologicals 2017 An analysis of corporate, product and regulatory news in 2016/2017 AAggrrooww Agribusiness intelligence Contents 2 A grow biologicals review 2017 11 B iologicals-related mergers, acquisitions and deals in 2016 13 Mergers, acquisitions and deals in 2017 15 N ew active ingredients registered or launched in 2016 17 N ew active ingredients registered or launched in 2017 19 E U to set new approval criteria for low-risk pesticides 21 Four biopesticides cleared for EU approval 22 M oving towards a simpler EU biostimulant registration regime 24 DuPont ag sales up 4% in Q1 25 Dow AgroSciences sales down 5% in Q1 27 B ayer agchem sales up 3% in first quarter 32 S yngenta agchem sales down 2% in first quarter 35 A rysta’s sales up 3% in Q1 36 BASF agchem sales up 4% in first quarter 37 F MC’s agchem sales down 3% in Q1 38 T he Chemspec Agrochemical Outlook Conference: Sponsored by Agrow AAggrrooww Agribusiness Intelligence | Informa UK Ltd. | Christchurch Court | London EC1A 7AZ | UK Telephone: +44 20 7017 7500 Agribusiness intelligence Editor-in-Chief Sanjiv Rana Contributor Dr Jackie Bird Marketing Enquiries (Europe/Asia) (EU Affairs) Email: [email protected] Email: [email protected] Email: [email protected] Agribusiness Intelligence Client Services Team EMEA: +44 20 7017 6242 (9am-5pm BST) APAC: +61 287 056 966 (9am-5pm AEST) Deputy Editor Andy Beer Correspondent Dr Shuyou Han NORTH AMERICA and LATAM: (North America/Australia) (China) +1 21 26 52 53 22 (9am-5pm EDT) Email: [email protected] Email: [email protected] Email: [email protected] Editorial Writer Robert Birkett Advertising Sales Ben Watkins www.agribusinessintelligence.com (Latin America) Tel: +44 20 3377 3911 Email: [email protected] Email: [email protected] Disclaimer: Within this issue some advertisements may contain references to active ingredients still under patent protection in Editorial Writer J R Pegg Advertising Sales (China) Lihong (Lily) Lai certain countries. Where this occurs, such advertisements are (United States) Email: [email protected] deemed inapplicable to those countries. Email: [email protected] © Informa UK Ltd 2017 www.agribusinessintelligence.com Agrow | Biopesticide (SE Asia) / 1 Agrow biologicals review 2017 By Sanjiv Rana Welcome to the fifth instalment in Agrow’s medium- and long-term with potential for series of annual biologicals reviews. further incremental innovation to address Biologicals, especially biopesticides, came key challenges in the agricultural area in a into prominence in the first half of the new way, it adds. current decade when a mix of political and regulatory pressures led to the big players Do the companies not involved in the mega looking at biologicals as possible deals perceive them as a threat? components of crop protection solutions. That was followed by a flurry of BASF, the only one acquisitions and deals during the period among the Big Six that 2012-2014 by the big agrochemical was not involved in a big- players seeking to give a jump start to ticket deal, feels “very their biopesticide programmes. comfortable” about its position. “Our crop But during the last couple of years, the Alyson Emanuel, protection business – BASF limelight has moved to mega deals and with approximately €5.6 acquisitions involving the Big Six billion ($6.1 billion at the themselves: DuPont and Dow Chemical current rate) in sales, industry leading agreeing to merge their businesses; margins (FY 2016: 29.9%) and supported Syngenta’s board accepting ChemChina’s by about one quarter of BASF’s entire R&D acquisition offer; and Monsanto accepting budget – has the critical mass to remain Bayer’s acquisition offer. What could be competitive in a changing industry the potential impact of these on the environment,” says BASF Crop Protection’s biologicals sector? vice-president of global strategic marketing for Functional Crop Care, Bayer points out that its combined R&D Alyson Emanuel. She points to its “well portfolio with Monsanto would have filled” innovation pipeline, with peak exceptional depth, reach and great sales potential of €3 billion ($3.3 billion) commercial potential. Both companies have from products launched between 2015 complementary pipelines over short-, and 2025. 2 / Biopesticide (SE Asia) | Agrow www.agribusinessintelligence.com The company keeps a close watch on but this will give time for the SMEs to in May 2016 with a focus on plant growth potential acquisition opportunities. “As a develop superior products and prove and yield effects. The bionematicide, BioAct general practice, we constantly review efficacy and grower acceptance.” He sees Prime (Paecilomyces lilacinus 251), which acquisitions and divestitures opportunities potentially more opportunity for smaller received Greek approval in April, will be as part of our active portfolio players to have an impact in the biologicals launched there this year with many other management.” The company has “clearly market with the upcoming consolidations. countries around the globe to follow. defined” key criteria. “We focus on “There are still many well-established, innovative business segments that offer independent, small and mid-sized In terms of forthcoming launches, Bayer’s specific customer benefits, segments that companies working on biologicals that have bioinsecticide, Requiem Prime (extract of can grow above market average and shown recent success in the market or that Chenopodium ambrosioides), will be enable growth in attractive regions, have been building up their portfolios and launched in 2017/2018 in many European especially in emerging markets, as well as pipelines for some time.” countries. The seed treatment, Votivo segments that can make our portfolio even (Bacillus firmus + clothianidin), will be more countercyclical.” Mr Meadows-Smith also points out that launched in Europe in 2018. “most of the industry leaders have made Arysta LifeScience (part of Platform research investments or acquisitions in the Bayer has production sites for biologicals Specialty Products), which was an early biologics space at this time, and thus are at Tlaxcala, Mexico and Wismar, Germany. entrant to the biologicals segment, says primed to support and advance acceptance Bacterial microbials are produced in that most companies currently undergoing and usage of biologicals in standard Tlaxcala while Wismar produces fungal an M&A process have a clear strategy on commercial agriculture”. Stockton CEO Guy microbials. biologicals. “It will be interesting to see if Elitzur is in agreement. “Regardless the synergies are found by the combined mega M&As, biopesticides will keep growing BASF launched the biofungicide, Serifel companies,” says Paula Pinto, vice- and be integrated into the conventional (Bacillus amyloliquefaciens strain MBI600), president, global portfolio management. programmes in the short and long run.” in South America and Central America. The biofungicide, Integral (B subtilis strain MBI Specialist biologicals companies such as Product launches 600), was launched in Asia. In the EU, an Marrone Bio Innovations (MBI), Stockton and pipeline emergency measure based on the EU and BioConsortia also do not seem to Regulation 1107/2009 was granted for use Bayer CropScience’s perceive the industry restructuring as a biofungicide, Contans WG of the bioinsecticide, Velifer (Beauveria threat. “The bigger you get the slower you (Coniothyrium minitans), bassiana strain PPRI 5339), in Germany and get,” says MBI chief executive officer received regulatory Austria on potatoes to protect against Dr Pamela Marrone. “The combination of approval in South Africa wireworms in February 2017. Under the research programmes within the soon to last year. The biofungicide, trade name Broadband, Velifer was initially be ‘big four’ is expected to expand the Serenade ASO (Bacillus Benoit Hartmann, developed for and is on the market in South spend on biological research but, subtilis strain QST 713), Bayer CropScience Africa, the company says. historically, large organisations have a received use expansions in harder time with rapid innovation,” concurs a number of markets. Bayer CropScience’s Velifer is currently under evaluation in the chief executive officer of BioConsortia, head of biologics R&D, Benoit Hartmann, Australia and the company expects that Marcus Meadows-Smith. says that apart from combating diseases to be completed by the end of 2017. such as Botrytis spp, bacterial infections Velifer will be launched in Asia in 2017. Dr Marrone also points out the and black sigatoka on bananas as well as The seed-applied biofungicide for opportunities for small, nimble, fast soil-based syndromes, the product also oilseed rape, Integral Pro (Bacillus companies to be innovators. Mr Meadows- shows strong effects on improved plant amyloliquefaciens MBI 600), is in the final Smith has a similar view. “There will growth and stimulation of plant defence. stages of regulatory approval in France probably be a lull in the M&A of the SMEs, Serenade Prime was launched in Australia and Germany. Ashish Malik, Bayer CropScience www.agribusinessintelligence.com Agrow | Biopesticide (SE Asia) / 3 The company has also recently submitted range of inoculants. Expansion is underway Two of Arysta’s bioinsecticides based on applications with the US EPA to register the at the site for Velifer production, which is B bassiana strain 147 and strain NPP111B005 biofungicidal seed treatments, Velondis Flex expected to come online this year. Other have recently been cleared for EU approval. (Bacillus subtilis strain BU1814), Velondis facilities include: Littlehampton, UK for The company plans to launch them in 2018 Extra (B subtilis strain BU1814 + B beneficial nemotodes-based insect in France and southern Europe, contingent amyloliquefaciens strain MBI 600) and management Nemasys products and the upon regulatory approvals. Velondis Plus (B subtilis strain BU1814 + B inoculants, HiCoat and HiStick; Durban, amyloliquefaciens strain MBI 600). South Africa for HiCoat, Broadband and A licensing agreement last year with the Velifer; Saskatoon, Canada for Nodulator Chinese Academy of Agricultural Sciences’ Nodulator Duo is a combination of inoculants; Ames, Iowa, US for Serifel and Institute of Plant Protection for protein- inoculant and biofungicide and will be Integral; and additional sites in the US and based plant disease control technology has launched in Canada in 2018. It will have South America that produce a range of led to a biological product being under the Nodulator rhizobia inoculant biologicals products including Gelfix, HiStick, evaluation. The next step will be the (Bradyrhizobium japonicum) along with HiCoat, Rhizoflo, Nodulaid, Nodulator, Vault development and regulatory phases, with the biofungicide, Velondis Flex (B subtilis and Integral. an expected launch around 2020-2021. strain BU1814). Dow AgroSciences points out that the An exclusive licensing agreement with US In 2016, BASF agreed a deal with French majority of its activity in the biologicals biostimulant company Beem Biologics for plant biotechnology company Plant space has involved natural products, such novel plant-derived biostimulant Advanced Technologies for the discovery as the insecticide, spinosad. Microbial- technology has led to a product that is and development of novel biopesticides. based biological products are a logical currently under field testing with aim of Some promising starting points have been extension of its leadership in the natural having it registered with the US EPA as a identified although BASF points out that products market space, it says. “We have plant growth regulator in 2019. development time will take about ten years. expertise both inside the company and with collaborators that can help us grow in Arysta has production sites at: St Malo, France BASF has several production sites for this area.” The company has an “active for the production for seaweed extract-based biologicals solutions, from foliar- and seed- testing programme” to work with multiple biostimulants and biofungicides; Pau, France applied bioncontrols to seed-applied third parties in the biological technology mainly for the production of virus-based biostimulants or inoculants. The facility at space, but does not currently offer any bioinsecticides, including carpovirusine and Somersby, Australia produces the Nodulaid products in this area. B bassiana-based products; and Saltillo, Proven expertise that paves the way for your biological products to international markets Over 25 years of comprehensive regulatory consultancy: Our knowledge is the key to your success MEET ANNERIE LIEBENBERG at Biopesticides Europe 2017 www.agribusinessintelligence.com Agrow | Biopesticide (SE Asia) / 5 Winning Science. Winning Solutions. Biological Crop Protection from BASF. To learn more, visit agro.basf.com Always read and follow label directions. © 2017 BASF Corporation. All rights reserved. 6 / Biopesticide (SE Asia) | Agrow www.agribusinessintelligence.com Mexico for various biostimulants and that registrations in Spain, Portugal, Greece marked as F500 + Integral - Bacillus subtilis nutrition products with a strong focus on and Italy will shortly follow. Bi-PA has other strain MBI 600). natural plant extracts. uses in development for the product. “Chemistry will always be more relied upon Among recently launched products, MBI Earlier this year, Bi-PA acquired a 25% stake due to the typically wider spectrum of highlights: the bionematicide, Majestene in Australian company Innovate Ag. Bi-PA control and efficacy under most (Burkholderia rinojensis strain A396), in the will develop and register Innovate Ag’s environmental conditions, but we see US; the bioinsecticide/acaricide, Grandevo bioinsecticide, Sero-X (Clitoria ternatea biologicals growing to be an important (Chromobacterium subtsugae strain extract), outside Australia and New Zealand. factor in coming years,” says Ms Emanuel. PRAA4-1T), in Mexico; the biofungicide, The product has received Australian approval. Biological products extend BASF’s portfolio Regalia (Reynoutria sachalinensis extract), The generation of data for its development and are not substitutes for BASF chemical in Chile; and the anti-transpirant product, outside Australia is ongoing and the dossier crop protection products, she says. Haven, in the US. The company has also will be submitted as soon as possible, Bi-PA launched an unnamed bioinsecticide/ says. The companies, Belchim, American Arysta LifeScience has more than 50 stand- nematicide for seed treatment applications Vanguard and Unifert, hold stakes in Bi-PA, alone biosolutions products, covering in collaboration with Albaugh, which is which gives it access to their marketing biocontrol, biostimulants and innovative marketing the product. The deal between channels in Europe, Americas and North nutrition. The company has also developed the two companies covers all crops in the Africa/Middle East, respectively. numerous ProNutiva crop production input US and Canada. programmes, which are integrated solutions BioConsortia is in its consisting of protection, stimulation and/or Among new active ingredients in its research and development nutritional inputs, derived from natural pipeline, MBI points to its biofungicide, phase. “Certain leads for biosolutions and conventional crop protection. MBI 110, based on a new strain of are in second or third year It is also in the process of developing ProNutiva B amyloliquefaciens, for which is being field trials with major pre-mixes, creating specific combinations of considered for US approval. The company partners, as well as self- biological as well as conventional ais. has also agreed a deal with Nufarm to funded trials, for drought Marcus develop Grandevo for Australia and New tolerance, nutrient use Meadows-Smith, MBI is also looking for partners for pre- BioConsotria Zealand. MBI expects a launch in New efficiency and yield mixed combination products. Albaugh is Zealand in 2018 and in Australia in 2019. improvement in stressed and standard already stacking MBI’s microbe with its agronomic conditions,” says Mr Meadows- chemicals, points out Dr Marrone. MBI produces Grandevo, Regalia and Smith. Some new Zequanox at its facility in Michigan and has consortia for contractor sites for its other products. biofungicide activity are moving into their first During 2016, Stockton’s year of field trials. Melaleuca alternifolia extract-based biofungicide, Combination Timorex Gold, was approved products in Brazil, South Africa, BASF’s view is that most Serbia, New Zealand, China, often, biocontrols will be Ecuador, Spain and several Guy Elitzur, used along with and to Stockton additional states in the US. complement chemistry- In 2017, the company expects approvals based solutions in IPM in Colombia, Argentina, Guatemala, Serbia, programmes, although Peru, Nicaragua and Dominican Republic. it is possible Stockton’s combined biological and chemical circumstances may fungicide, Regev (M alternifolia extract + arise where a biocontrol difenoconazole), was registered in Israel and can address a need for is in the process of registration in Colombia. which there is no chemistry-based Our expertise, Belgian company Biological Products for solution available. The your solution Agriculture (Bi-PA) received EU approval in company’s research 2016 for its biofungicide based on directions include Trichoderma atroviride strain SC1 for use on development of grapevines. Vintec, the product based on combinations of that ai, has been launched in five European biological and chemistry countries (France, Belgium, Germany, Austria and it also has such and Luxembourg). Registrations in other commercial offers on European countries are ongoing. As France the market, such as the was the zonal rapporteur member state for fungicide, Xanthion www.saltigo.com the southern zone, the company expects (pyraclostrobin - trade- www.agribusinessintelligence.com Agrow | Biopesticide (SE Asia) / 7 合力科技股份有限公司 The First and The Best Maxunitech Inc. BEST SUPPLIER Looking for knowledge & experience for global markets JOIN US! [email protected] [email protected] Innovation for Agrochemicals www.maxunitech.com