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Dow Chem goes biotech
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September 8, 1998: 10:39 a.m. ET
Company forms alliances with two biotech firms to accelerate growth
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NEW YORK (CNNfn) - Dow Chemical Co. is getting into the biotech business with two alliances and a new biotech company of its own planned.
The chemical giant said Tuesday it is forming a new company called Advanced AgriTraits that will act as a clearinghouse for companies seeking to bolster their biotech offerings.
Illinois Foundation Seeds Inc. will receive a 16.4 percent stake in the new company. In return, Dow will acquire a 10 percent stake in the Champaign, Ill.-based seed company.
Dow also plans to work with Vacaville, Calif.-based Biosource Technologies Inc. to identify and patent new genes that can produce improved varieties of crops.
"The goal of our biotechnology activity is to capture value for Dow and its shareholders," William Stavropolous, Dow president and CEO said. "We'll do that through seed sales, trait marketing and value-added grain alliances."
The research alliance between Dow and Biosource gives the chemical maker exclusive rights to a technology that provides scientists with a quicker, more efficient way of identifying genes that improve plants.
"Biotechnology is evolving rapidly and you will see us continue to enhance our assets and capabilities," Stavropolous said.
The company said its subsidiary, Dow AgroSciences LLC, will continue its internal buildup of biotechnology-related research and development capabilities.
Dow Chemical (DOW) is the fifth-largest chemical company in the world, with annual sales of $20 billion. 
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