Monsanto & Millennium Sign Major Genomics Deal

US firms Monsanto and Millennium Pharmaceuticals have announced thebiggest deal ever in terms of upfront payments between a major drugmaker and a start-up biotechnology company. Over the five-year term of the agreement, Monsanto will pay Millennium $118 million in upfront licensing and technology transfer fees, as well as payments of up to $100 million over the five years in milestones. As part of the deal, Monsanto will form a wholly-owned subsidiary in Cambridge, Massachusetts, where Millennium is based.

Monsanto will fund the new subsidiary's research activities, including staffing of some 100 scientists during 1998, while Millennium will receive royalty payments based on certain plant and agricultural products originating from research conducted by the new company. The group will also have the right to use technologies developed by the company for non-exclusive use outside plant and agricultural areas.

In return, Millennium will collaborate with the subsidiary to apply its proprietary technologies to the discovery and development of genomics-based plant and agriculture products and will transfer a range of genomics technologies, on a non-exclusive basis, to Monsanto for use in other fields, notably pharmaceuticals.