Press Releases
MONSANTO AND FLAMEL TECHNOLOGIES TO COLLABORATE TO IMPROVE AGROCHEMICAL FORMULATIONS
ST. LOUIS (MO), LYON (France), January 6, 1998 – Flamel Technologies S.A. (NASDAQ: FLML) and Monsanto Company (NYSE: MTC) today announced they have signed a research agreement for the development of an enhanced formulation of Roundup® herbicide, the leading post-emergent weed control product sold by Monsanto.
Flamel will apply to certain proprietary Monsanto products a technology proprietary to Flamel, known as Agsome™ Agrochemical Delivery System, which involves the nanoencapsulation of certain agrochemical active ingredients to improve their delivery and efficacy. Nanoencapsulation is an advanced polymer-based technology which can increase, on a cellular level, the ability to maximize agrochemical efficiency.
Under the terms of the agreement, Flamel will receive R&D payments and potential milestone payments. In addition, Flamel will receive royalties on the sales of all products which utilize the Agsome™ technology. The specific terms of the agreement are not disclosed.
The new agreement replaces a more limited one signed by Flamel and Monsanto in August 1996, and expands the scope of their collaboration to certain agrochemical products on an exclusive basis. As part of the collaboration, Monsanto retains the right to use Flamel's Agsome™ technology in other crop protection products, whereas Flamel retains the right to use the technology in all other applications outside of agrochemicals.
"We believe our new Agsome™ agrochemical nanoencapsulation technology will enable Monsanto to economically enhance the efficacy of certain of its products," said Dr. Gérard Soula, chief executive officer of Flamel. "This technology, which is covered by three patents, represents an important leveraging of the advanced polymer-based technology we have been developing for drug-delivery applications. Our technology overcomes the economic issues that have discouraged other drug delivery companies from working on agrochemical applications, and opens up opportunities to add value to a major agrochemical compound. We believe the successful application of this technology to Monsanto agricultural products will create a unique market opportunity for both Monsanto and Flamel."
Monsanto, headquartered in St. Louis, is committed to finding solutions to the growing global needs for food and health by sharing common forms of science and technology among agriculture, nutrition and health. The company's 20,000 employees worldwide make and market high-value agricultural products, pharmaceuticals and food ingredients.
Flamel Technologies is engaged in the development of advanced polymer technologies and unique applications, including drug delivery, biomaterials, and agrochemicals. The Company is seeking to meet important unmet medical needs through programs including Micropump™ and Medusa® in drug-delivery, and ColCys in biomaterial-based medical devices. Flamel is building on its principal technology platforms also through its work to develop other commercially valuable products, including new materials for ophthalmic lens products and, most recently, its Agsome™ agrochemical product delivery technology.
Roundup® is a registered trademark of Monsanto Company (NYSE: MTC); Micropump™ and Agsome™ are trademarks, and Medusa® is a registered trademark, of Flamel Technologies .
NOTE: This press release contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, including but not limited to the risk associated with the Company's limited history of operations and historic and future losses, and the risk that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, reliance on outside parties and the risks associated with key strategic alliances, and other risks detailed in the Company's filings with the Securities and Exchange Commission.
