Bayer: The Beginning of What’s Next

In mid-March Dr. Bob Reiter, Bob Reiter, Head of R&D, Crop Science Division at Bayer, provided an update on the Bayer pipeline. When asked how he reflects on the past three years, and how the teams at Bayer and Monsanto came together, he provides two examples. 

“It’s recognition that farming is not one thing–and not one decision. It’s a continuum from the time you plant to the time you harvest and being a company that serves farmer form the seed to harvesting, we service the customer front to back. It sets the stage where we want to take ag overall. Not just sell individual products but sell an outcome. And not just an outcome of weed control, but the outcome of a successful harvest. We are able to participate in the farm more extensively, and it’s a big win of coming together,” Reiter says. 

And for the second example he shares: “There are tangible examples of how it’s starting to influence our decision making in our pipeline. We think about disease control---beyond just disease tolerance and breeding that into our crop, but now we think about the chemistry to enhance the disease control. And think about how biological seed treatments combine with chemical seed treatment. And we think about the next generation of weed control and first new MOA in 30 years and a trait to complement that. If we were apart and still two separate companies, we wouldn’t start that for another decade.”

With a $2 billion euro investment every year in R&D, he provides these updates in key areas of Bayer’s pipeline and strategy: 

Short Stature Corn: 
The Bayer team is developing these hybrids in three ways for multiple markets: 

1. Breeding method—allowed us to introduce the concept in Mexico, for wider planned launch in 2023
2. Biotech solution---additional features particularly to expand the genetic footprint, with potential launch in 2027 pending regulatory approvals
3. Gene editing—discovery behind the other two methods. 

Reiter says these hybrids reduce height without effecting yield potential, provide excellent standability, and below ground are more efficient at using water and producing stronger root masses. 

Outcome based pricing: 
Bayer has piloted different programs in outcome based pricing models for three years, and continues to do so. 

“We’ve learned a lot but we have a ways to go in fulfilling some of it,” Reiter says. “First, farmers are very interested in these models and are interested in sharing in risk and outcomes. The second side is risk management. And to do it well, you have to be good at your prediction for those risks. In terms of risk management value share, don’t expect it to be on every acre next year, but by the later part of this decade, we’ll see significant expansion of offerings to growers.” 

He says this area is a key focus for Bayer as they transition from a volume-based business to an outcome based business. 

“It’s important to have the digital focus–not just focused on making products and handing them over. But enhance the value of digital with the product and how you use that product to create a value,” he says. 

Biologicals: 
Specific to row crops, Reiter says, “no one has mastered how to best use biologicals. The increase use by farmers will help with use cases.” 

As an example he shares that more than 80 million acres of seed treatments combine biologicals and chemical products. And the pairing of the two methods, he sees as a good pathway forward. 

“We don’t see that biologicals have the efficacy that chemicals crop protection products provide today without substantial loss in productivity. But there’s potential to supplement and enhance how chemical products are used.”

Technology Partners:
Reiter calls out that Bayer has a “philosophy to not invent everything within Bayer,” and the team maintains partnerships with more than 100 technology agreements.

He shared three specific examples: 

1. Joyn Bio, which is a partnership focusing on microbes that produce nitrogen with corn. 
2. Rantizo, which is a startup providing aerial application via drones. 
3. Pairwise, a company focusing on gene editing with CRISPR technology. 

Soybean Breeding Highlights:
“Soybeans are a growing segment in ag---a key source of protein,” Reiter says. “And weed control continues to be the trait platform for farmers.” 

With the launch of XtendFlex providing three herbicide options, the company is working on its fourth generation and fifth generation offerings. By the end of the decade, the company expects to offer tolerance to six herbicides. 

• Fourth generation with five herbicide tolerances currently in phase 3, tolerant to: glyphosate, dicamba, glufosinate, HPPD, 2,4-D
• Fifth generation in phase 2, tolerant to: glyphosate, dicamba, glufosinate, HPPD, 2,4-D plus PPO. 

Biotech Trait In Cotton: 
“We have a tremendous technical achievement—because sucking piercing insects and how they eat the cotton plant are hard to control. Bollgard 3 Tryvon  provides this new insect protection in cotton, which is a solution developed for a brand-new insect category,” Reiter says. 

Next-Gen Insect Control Traits in Corn: 
As Reister explains, SmartStax PRO takes advantage of RNA interference technology snd selectively controls the corn rootworm trait. It provides below ground insect control for corn with two bt proteins. 

It has gained import approvals, and will have commercial launch in 2022.

Gene Editing: 
Reiter explains Bayer is focused first on exploring gene editing for disease control and second for productivity characteristics. 
“Those are two key segments that will serve our customers well,” he says. 

Crop Protection Development: 
With the technology the company uses today, small molecule candidates are screened twice as fast with target-based screening with a direct focus on new modes of action. 

“We want to advance brand new MOAs, which is critical in serving customers the best way possible,” Reiter says. 
Bayer has launched at least one new active ingredient per year since 2007. Here are recent launches as well as upcoming new products…. 
    Insecticides: 

• Plenexos, ketoenel insecticide for foliar and soil application. 
• Novel mite solution

    Fungicides:

• Iblon
• Fox supra
• Xivana
• New fungicide

    Herbicides: 

• Novel PPO herbicide
• New herbicide MOA, first new mode of action in post emergence weed control in 30 years. Reiter says this product candidate provides tremendous control of grasses.

Farm Data: 
Bayer is looking to leverage the in-field performance of its products to learn more about their best placement. 

“This creates a data flywheel---what is happening with that customer on the farm and combine that with internal R&D data. It provides better insights on product performance and how they are used,” he says. 

For example, with seed products, each field will respond differently, so this approach can be used to better refine product placement recommendations. 

“To take it a step further—it can be used to further optimize use for products and help customers focus on an outcome. So instead of chemistries being used uniformly, data science can help us be more prescriptive.”