Bayer AG - Stockholders' Newsletter Third Quarter 2007 - Driver for the future of Bayer CropScience is its well-stocked pipeline

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Driver for the future of Bayer CropScience is its
well-stocked pipeline

Bayer CropScience plans to align its research even more closely with the needs of the new agricultural economy. In the picture, Bieke Nagels examines canola plants at the Center for Plant Molecular Biology in Ghent, Belgium.

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Bayer CropScience plans to align its research even more closely with the needs of the new agricultural economy. In the picture, Bieke Nagels examines canola plants at the Center for Plant Molecular Biology in Ghent, Belgium.

Monheim. Bayer CropScience (BCS) plans to align its research even more closely with the needs of the new agricultural economy. Limited agricultural land, the steady growth of the world’s population and the impact of climate change are threatening the supply of agricultural products and leading to shortage-driven prices for major commodities. Bayer CropScience also expects the use of agricultural raw materials for the production of biofuels to increase considerably. The company regards innovation and technological progress as essential to meet the expanding requirements and therefore plans to increase its annual research and development budget to some €750 million by 2015, from €614 million in 2006. Bayer CropScience began its “Launch” program in 2000 with the goal of bringing a total of 26 new crop protection active ingredients to market by 2011. BCS expects these substances to have a combined peak sales potential of approximately €2 billion. Of the 26 compounds, 17 had already been launched by the end of 2006, posting more than €1 billion in sales last year. In 2007 the company has received first regulatory approvals for three more active ingredients in various markets. In addition, it has 19 substances in development and a further 45 new projects at an early stage of research.

The company also has a highly promising seed and plant biotechnology pipeline currently containing over 40 lead projects. Six herbicide tolerance and insect resistance projects are at a late stage of development and are scheduled for launch from 2010 onwards. In addition, the introduction of three new herbicide tolerance traits is planned within the next three years.