Exactly a year after announcing its corporate split, ag supplier Corteva has spun out its seeds and genetics company, following months of preparation and work to lay out the vision and leadership for each company.
Announced on Oct. 1 last year, Corteva decided to split the company because “the seed and crop protection markets have evolved,” and that market opportunities were diverging, legacy Corteva CEO Chuck Magro said during the initial spin-off announcement.
“This is a new day for Corteva, and we couldn’t be more excited as we move forward with greater focus, agility and a renewed commitment to innovation and operational excellence. As the challenges facing agriculture continue to evolve, we’re ready to meet the needs of the future with the industry’s best people, portfolio and pipeline — advancing safe, effective and sustainable solutions that deliver for farmers, our channel partners and our shareholders,” said Corteva CEO Luke Kissam.
On Vylor, the company’s CEO, Chuck Magro, said in a statement, “Our ambition is to work with farmers of all sizes to solve some of the world’s toughest challenges — food security to energy security — and in the process, help farmers and communities thrive. Agriculture has always had technology at its core and today, from hybrid wheat to next gen corn, gene editing to biofuels, Vylor aims to harness the next generation of technology to propel the industry forward. And we can’t wait to get started.”
Corteva, Vylor lay out innovation strategies
Despite spinning out, innovation remains central to both companies, with Corteva and Vylor having an $11 billion and $19 billion R&D pipeline, respectively.
Corteva expects to launch 12 new crop protection products in the next decade, including five biologicals, which will generate roughly $4 billion in peak revenue, the company shared in its investor day call on Sept. 15. Additionally, the company plans to get ahead of competition from generics by mixing different actives and moving into new claims.
Vylor is estimating $11.2-11.9 billion in net sales by 2029 for a 3-4% annual growth from the planning period, driven in part from its innovation, the company shared in a press release. Additionally, the company is projecting $500 million in 2027 gross licensing income, which will grow to $1 billion and $2 billion by 2035 and 2040, respectively.
During an investor day presentation and a press release, Vylor laid out its vision to advance corn, soybean, and wheat traits over the next decade, including …
- Vylor plans to introduce seven corn technologies, including a multi-disease resistant corn and a trait that improves yield, starting in 2028.
- The company will launch four soybean technology platforms by 2035, including a broad-spectrum insect control.
- In late 2027, Vylor will launch its Xpedite hybrid wheat program, which produced strong yields and resilience against disease and drought, according to multi-year research trials.
Last month, Vylor revealed its Vylor Edge investment platform would inherit the partners from Corteva Catalyst and focus on the same technology themes. Details remained unclear on how investments that were focused on both sides of legacy Corteva’s business would unfold.
Vylor’s stock ended its first day trading at $67.74, increasing 2.64% from its initial price.
