FMC and Corteva sign rimisoxafen herbicide supply and license agreement

FMC Corporation and Corteva signed a co-exclusive strategic supply and license agreement covering FMC's rimisoxafen herbicide technology across North and South American corn and soybean markets, running through the next decade. FMC retains ownership of rimisoxafen and will supply the active ingredient to Corteva, while both companies develop and commercialize their own exclusive premix formulations. Corteva will make an initial prepurchase payment of $200 million USD, and first commercial sales are anticipated by the end of the decade, pending regulatory approvals.

Key facts

Market context

Herbicides are chemicals used to control unwanted plants, and they are a major input for field crops. Corn and soybeans are the largest end markets for herbicide active ingredients in the Americas, where growers depend on effective chemistry to manage weeds. Demand is shaped by weed resistance, since growers need tools with different modes of action to rotate in and out of their programs. Herbicide active ingredients are typically manufactured by a small number of producers and then formulated into premixes or sold as standalone products by different companies. Arrangements that split supply from formulation can give the active-ingredient producer committed volume and a steady revenue base, while giving partners access to new chemistry without building their own manufacturing. Such deals can also influence competitive dynamics in weed control, as they add options to a market where resistance management is a constant concern.

Source: official release on fmc.com. Summary and context written by Market Krystal.