NEWS OF THE WEEK
BUDGET DEAL PROMISES RELIEF ASSOCIATED PRESS
GOVERNMENT: Science agencies may get
Budget committee chairs Rep. Ryan and Sen. Murray crafted the deal released on Dec. 10.
reprieve from across-the-board cuts
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FTER YEARS of near-constant wrangling,
congressional leaders last week reached a bipartisan budget deal that would avert another federal fiscal crisis for two years. If passed by both the Senate and House of Representatives, the bill will prevent a government shutdown on Jan. 15, 2014, when the current temporary budget deal expires. Even more important for R&D funding, the deal will provide temporary relief from the acrossthe-board budget cuts, called sequestration, that took effect in March and are set to continue for a decade. The deal “is an important first step toward slowing the damage the nation’s biomedical research enterprise has been enduring since sequester cuts began drastically cutting our national investment in basic science research,” says Benjamin W. Corb, spokesman for the American Society for Biochemistry & Molecular Biology. The agreement from budget committee leaders Rep. Paul D. Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.)
MICROBES POWER CROP ALLIANCE AGRICULTURE: Novozymes and Monsanto to merge crop biologicals businesses
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ness giant Monsanto are joining forces in the emerging business of agricultural biologicals. These are microbes that are added to soil and coated on seeds to help plants absorb nutrients or fight pests. Novozymes has been building its microbe business through acquisitions for the past seven years. In contrast, Monsanto launched its effort just last year. By joining forces, the companies say, they can develop better products more quickly than either could alone. Monsanto is the latest traditional seed and crop chemicals firm to scramble to obtain microbial know-how. In 2012, BASF spent $1.0 billion to buy Becker Underwood for its biological NOVOZYM ES
Microbial seed coatings can help crops such as corn absorb nutrients.
NZYMES PRODUCER Novozymes and agribusi-
CEN.ACS.ORG
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sets discretionary spending levels—which include most federal R&D—at $1.012 trillion for fiscal 2014, which began on Oct. 1, and $1.014 trillion for fiscal 2015. That restores about half of the sequester’s cuts in 2014 and about 25% in 2015, according to an analysis by the American Association for the Advancement of Science. But some Democrats are threatening to vote against the bill because it does not extend benefits for the long-term unemployed. The details of how this will trickle down to science agencies still need to be worked out by congressional committees. Federal agencies, including those that fund much of chemistry-related research, do not comment on pending legislation. But observers say that science is likely to reap the benefits by returning to presequester funding levels. Many scientists appreciate the temporary relief, but they are disappointed that the agreement doesn’t address the larger budget issues facing the country. For example, the plan takes no action on tax and entitlement reform, and it spares agencies from sequestration cuts for only two years, even though the cuts by law can continue for 10 years. Research!America President Mary E. Woolley says, “Until policymakers tackle those issues head-on, we will continue to fund research at levels far below what’s necessary to maintain our competitive edge.”— ANDREA WIDENER
seed treatments. In smaller deals that year, Syngenta acquired Pasteuria Bioscience, maker of a nematode-killing microbe, and Bayer CropScience spent $425 million to buy AgraQuest, another biological pesticide company. The agreement between Novozymes and Monsanto calls for the two to combine their current products and R&D pipelines. Novozymes will lead manufacturing efforts, and Monsanto will run field testing, registration, and marketing. Novozymes will receive a $300 million payment from Monsanto in recognition of the capabilities it brings. In a conference call with analysts, Monsanto CEO Hugh Grant acknowledged playing catch-up, but he argued that this deal trumps past ones. “None are as compelling and far-reaching in ability as what we’ve done today,” he said, adding that the alliance “immediately elevates microbials as the next major platform in agriculture.” Grant stressed that microbes can be developed more quickly, and for lower cost, than biotech seeds. Novozymes sold $120 million worth of microbial products in 2012. An example of the company’s offerings is a line called JumpStart. Made with the soil fungus Penicillium bilaii, it helps crops such as corn increase their uptake of phosphate from soil and fertilizer. “It’s a small business today, but there is a big market,” Novozymes CEO Peder H. Nielsen said on the conference call. Sales of biological products from all suppliers last year totaled $2.3 billion and have been growing by as much as 16% annually, he said.—MELODY BOMGARDNER
DECEMBER 16, 2013
