FMC and Corteva sign rimisoxafen supply deal worth $200M prepayment

FMC Corporation (NYSE: FMC) and Corteva, Inc. (NYSE: CTVA) have announced a co-exclusive supply and license agreement covering FMC's rimisoxafen herbicide technology for corn and soybean markets across North and South America.

Under the agreement, which extends through the next decade, FMC retains ownership of rimisoxafen and will supply Corteva with the active ingredient. Corteva will make an initial prepurchase payment of $200 million for product to be supplied by FMC. Both companies will independently develop and commercialize their own premix formulations for the Americas, while FMC continues to develop rimisoxafen-based products for other crops and geographies.

Rimisoxafen has been classified by the Herbicide Resistance Action Committee as the industry's first dual mode of action herbicide. The classification recognizes its ability to control broadleaf weeds, including palmer amaranth and waterhemp, which have developed resistance to multiple herbicide classes. First commercial sales are anticipated by the end of the decade, pending regulatory approvals.

"This agreement ensures that more growers across the Americas will have access to rimisoxafen," said Leonardo Bastos, FMC vice president and chief marketing officer.

Cynthia Ericson, Corteva vice president of the weed control segment, described the deal as "a unique growth opportunity with attractive economics for Corteva above our current deep crop protection pipeline set to launch over the next decade."

Additional financial terms of the agreement were not disclosed.

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