Innovation Opportunities in the Crop Protection Industry - ACS

Chapter 1

Innovation Opportunities in the Crop Protection Industry

Downloaded by 80.82.77.83 on May 6, 2018 | https://pubs.acs.org Publication Date: February 1, 2007 | doi: 10.1021/bk-2007-0948.ch001

Ann Orth, George Theodoridis, and John W. Lyga Discovery Research and Development Department, Agricultural Products Group, F M C Corporation, P.O. Box 8, Princeton, NJ 08543

"Be sure to take change by the hand before it takes you by the throat" Sir Winston Churchill

The crop protection industry has gone through remarkable change over the past ten years. There has been unprecedented merger and acquisition activity, with more than half of the top agricultural chemical companies from the mid1990's no longer independently active. The company with the highest level of sales growth over the past decade was Nufarm; however, their success was based not on internal discovery of new active ingredients, but through acquisition of companies and products (I). During this same period, however, we also have experienced unprecedented innovation, most notably the introduction of genetically altered crops. As of last year, nearly 240 million acres of genetically modified (GM) crops were planted worldwide, taking a continually increasing market share from the more traditional chemical pesticides (2). We live in an ever-changing global marketplace. The agricultural chemicals industry was at its lowest in sales in 2003 after years of decline, but 2004 brought an upturn with 5.5% real growth (3). Overall trends show a positive forecast for South America and Eastern Europe, but the rest of the world is experiencing stagnant or declining profits. There are several key factors which

© 2007 American Chemical Society Lyga and Theodoridis; Synthesis and Chemistry of Agrochemicals VII ACS Symposium Series; American Chemical Society: Washington, DC, 2007.

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2 are influencing this trend. We continue to experience an overall rising cost of R & D , including discovery, development, label expansion and defense (pre- and post-launch). Increased regulatory hurdles and consumer scrutiny have led to reregistration requirements for older products and higher costs for toxicology, environmental studies, risk assessments, and other supporting research. One outcome of increasing regulatory requirements is the declining proportion of large and medium products and the rise in the number of small products introduced over time, which now represent over 70% of all launches since 1990 (3). Synthesis and screening costs have also escalated significantly due to more sophisticated tools and shift to target R & D . There is a greater need to investigate more complex molecules to improve both efficacy and safety, and to test products in more markets segments and applications so that the projected payback justifies the investment. Expanding regional markets dictate conducting more field trials, which also adds to registration costs. Many companies have invested in technology tools such as genomics, combinatorial chemistry, and high through-put screening which are both necessary and costly. The multiplicity of discovery approaches, each of which has different investment, time and risk profiles, requires firms to make choices about which tools to utilize. Perhaps most importantly, though, a robust generic pesticide industry is gaining strength, offering farmers a choice between the known, lower cost inputs of off-patent products and the premium price of new innovation. Especially for smaller agricultural chemical companies, there is a need to stay focused on those areas in which we can compete on a global scale. The 'tool-kit' for survival is a mixed group of strategies. We must apply innovative solutions to product life cycle management, manage costs, and maintain Discovery productivity. Internal and external innovation is key, including establishing effective alliances and partnerships, as is the discriminate use of costly Discovery technology. We need to maintain a lean, flexible, focused organization and goals. The ultimate key to success is active pipeline management, closely aligned with Development and business goals, and a strong emphasis on enabling creative people to fully utilize their talents. Despite the challenges of our business, there are a number of clear opportunities in the agrochemical industry today. Global population will continue to grow dramatically, increasing the demand for food and energy. This is compounded by decreasing arable acreage and fresh water supplies, which ensure the need for innovative solutions to enhance agricultural productivity. Resistance will continue to generate new opportunities for herbicides, insecticides and fungicides. Pest spectrum shifts will continue, especially i f we increase our reliance on older chemistries. Regulatory pressure on older compounds opens new opportunities for newer products. Non-crop markets will continue to expand. 'Discontinuities' such as the soybean rust epidemic are

Lyga and Theodoridis; Synthesis and Chemistry of Agrochemicals VII ACS Symposium Series; American Chemical Society: Washington, DC, 2007.


3 always possible, presenting outbreaks of pests or diseases requiring new, effective solutions. To meet these demands, new chemistries will continue to be a necessary asset to the grower. One measure of the innovation and productivity of agrochemical discovery is the number of new chemical entries reported in the Annual A g Chem New Compound Review (4). These new compound reports have continued to be in the range of 50-100 per year over the past six years with only a slight downward trend, which is impressive considering all the factors described above that are pressing on the industry. Since the publication of the last volume in this A C S Symposium Series in 2002 {Synthesis and Chemistry of Agrochemicals VI) (5), we have seen a number of new innovations in chemical crop protection, many of which are captured in the present volume. O f note is the introduction of two new insecticides by Nihon-Bayer and DuPont acting at the ryanodine receptor. Also included in this symposium are reports on continued innovation in the herbicide and fungicide area with new chemistry and new modes of action described. As an industry, we have developed techniques and strategies to enable earlier decision making along the path of chemical optimization; as examples, two papers are included in this volume on the importance of understanding physical properties and on early stage assessment of metabolic stability. Innovation has continued in more familiar territory as well, such as the neonicotinoids, as presented in papers from Bayer and Syngenta, and in looking for new chemistries acting at known target sites. It is clear that to sustain the demands of a growing population amid the increased regulation by governmental organizations and activism by environmental groups, we must continue to innovate. The rich expertise and talent of creative individuals in our R & D organizations are certainly up to this challenge. "He that will not apply new remedies must expect new evils; for time is the great innovator." -Francis Bacon

References 1. 2. 3.

AgriFutura Newsletter April 2005, PhillipsMcDougall Agriservice, Edinburgh U K James, C. 2005. Global Status of Commercialized Biotech/GM Crops: 2005. I S A A A Briefs No. 34. I S A A A : Ithaca, N Y Agrochemical Services, September 2005 Outlook, Cropnosis Limited, Agrochemical Industry Consultants, Edinburg, EH3 6 A A , UK


4 4.


5.

Rob Bryant, Marie Bite, A g Chem New Compound Review, Agranova, Kent U K , vol 18 - 23; 2000 - 2005 (www.agranova.com) Baker, D. R, Fenyes, J. G.,Lahm, G . P., Selby, T. P., Stevenson, T.M.; Synthesis and Chemistry of Agrochemicals V I , American Chemical Society, Oxford University Press, 2002.


Innovation Opportunities in the Crop Protection Industry - ACS

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