Key Takeaways
- FMC Corporation and Corteva have signed a co-exclusive strategic supply and license agreement to expand access to FMC's rimisoxafen herbicide technology across North and South America corn and soybean markets.
- The agreement extends through the next decade, with FMC retaining all ownership rights to rimisoxafen and supplying the active ingredient while both companies develop their own exclusive premix formulations.
- Corteva will make an initial prepurchase payment of $200 million to FMC for product to be supplied under the agreement.
- Rimisoxafen has been classified by the Herbicide Resistance Action Committee as the industry's first dual mode of action herbicide, targeting resistant weeds including Amaranthus species such as palmer amaranth and waterhemp.
- First commercial sales are anticipated by the end of the decade, pending applicable regulatory approvals.
FMC and Corteva Sign Rimisoxafen Supply and License Deal
FMC Corporation (NYSE: FMC) and Corteva, Inc. (NYSE: CTVA) have announced a co-exclusive strategic supply and license agreement covering FMC's rimisoxafen herbicide technology across North and South America corn and soybean markets. The deal adds rimisoxafen as a new tool to each company's respective herbicide portfolio and is aimed at expanding grower access to a dual mode of action chemistry designed to control herbicide-resistant weeds.
“This agreement ensures that more growers across the Americas will have access to rimisoxafen, one of the most innovative herbicide technologies developed in decades. By working with Corteva, we are expanding the reach of this breakthrough technology to help growers effectively manage resistant weeds that threaten their productivity and profitability. Together, we are bringing growers a solution they urgently need. At the same time, FMC is committed to unlocking the full global potential of rimisoxafen across additional crops and geographies, reflecting our confidence in this molecule as a cornerstone of our innovation pipeline,” said Leonardo Bastos, FMC vice president and chief marketing officer.
Why Rimisoxafen Matters for Herbicide-Resistant Weeds
The agreement targets Amaranthus species, described as the leading weed resistance challenge globally in soybeans and a significant cross-crop pressure in corn. Rimisoxafen's dual mode of action is designed to create a higher barrier to resistance development compared to single mode of action herbicides, an attribute intended to help growers manage weeds such as palmer amaranth and waterhemp that have developed resistance to multiple herbicide classes.
The Herbicide Resistance Action Committee recently classified rimisoxafen as the industry's first dual mode of action herbicide, recognising its ability to control troublesome broadleaf weeds that threaten crop yields and farm profitability. Resistant weeds are estimated to cost farmers billions of dollars annually in lost yield.
FMC Retains Ownership; Deal Terms Detailed
Under the agreement, which extends through the next decade, FMC retains all rights of ownership to rimisoxafen and will act as the supplier of the active ingredient to Corteva. Both companies will independently develop and commercialise their own exclusive premix formulations for the corn and soybean markets across North and South America. FMC will continue developing additional rimisoxafen-based products for other crops and geographies globally, separate from this agreement's scope.
As part of the deal, Corteva will make an initial prepurchase payment of $200 million USD for product to be supplied by FMC.
“By collaborating with FMC on rimisoxafen, we are expanding our ability to provide growers with advanced weed control tools that complement our portfolio. This agreement supports our long-term strategy of forging new collaborations that drive value for farmers, as well as a unique growth opportunity with attractive economics for Corteva above our current deep crop protection pipeline set to launch over the next decade,” said Cynthia Ericson, Corteva vice president, weed control segment.
Regulatory Path and Commercial Timeline
First commercial sales of rimisoxafen under the agreement are anticipated by the end of the decade, contingent on receiving applicable regulatory approvals. Both companies stated their shared commitment to ensuring broad availability of the technology and supporting rapid adoption among growers seeking durable weed management solutions across the Americas. Additional terms of the agreement were not disclosed.
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