In the mids Monsanto began to produce urethane foam, which was flexible and easy to use; it later became crucial in making automobile interiors. In Monsanto acquired Lion Oil, increasing its assets by more than 50 percent.
Stockholders during this time numbered 43, Having finally outgrown its headquarters in downtown St. Louis, Monsanto moved to the suburban community of Creve Coeur in Three years later Edgar Queeny turned over the chair of Monsanto to Charles Thomas, one of the founders of the research and development laboratory so important to Monsanto.
Charlie Sommer, who had joined the company in , became president. Under their combined leadership Monsanto saw several important developments, including the establishment of the Agricultural Chemicals division, created to consolidate Monsanto's diverse agrichemical product lines.
Monsanto's European expansion continued, with Brussels becoming the permanent overseas headquarters in In Monsanto changed its name to Monsanto Company in acknowledgment of its diverse product line. The company consisted of eight divisions, including petroleum, fibers, building materials, and packaging. According to Monsanto historian Dan Forrestal, "Leadership during the s and early s came principally from O'Neal, who had come to Monsanto in with the acquisition of the Swann Corporation, was the first chair in company history who had not first held the post of president.
Another company leader was Edward J. Bock, who had joined Monsanto in as an engineer. He rose through the ranks to become a member of the board of directors in and president in Edgar Queeny, who left no heirs, died in Although Bock had a reputation for being a committed company executive, several factors contributed to his volatile term as president. High overhead costs and a sluggish national economy led to a dramatic 29 percent decrease in earnings in Sales were up the following year, but Bock's implementation of the reorganization caused a significant amount of friction among members of the board and senior management.
In spite of the fact that this move, in which Monsanto separated the management of raw materials from the company's subsidiaries, was widely praised by security analysts, Bock resigned from the presidency in February After a nine-month search, John W. Hanley also took over as chairperson in Under Hanley, Monsanto more than doubled its sales and earnings between and Toward the end of his tenure, Hanley put into effect a promise he had made to himself and to Monsanto when he accepted the position of president, namely, that his successor would be chosen from Monsanto's ranks.
Hanley and his staff chose approximately 20 young executives as potential company leaders and began preparing them for the head position at Monsanto. Among them was Richard J. When Hanley joined Monsanto, Mahoney was a young sales director in agricultural products. In Hanley turned the leadership of the company over to Mahoney. Wall Street immediately approved this decision with an increase in Monsanto's share prices.
During this time, public concern over the environment began to escalate. Ralph Nader's activism and Rachel Carson's book The Silent Spring had been influential in increasing the American public's awareness of activities within the chemical industry in the s, and Monsanto responded in several ways to the pressure.
In the company introduced biodegradable detergents, and in , Monsanto announced plans to phase out production of polychlorinated biphenyl PCB. In a lawsuit was filed against Monsanto and other manufacturers of Agent Orange, a defoliant used during the Vietnam War.
Agent Orange contained a highly toxic chemical known as dioxin, and the suit claimed that hundreds of veterans had suffered permanent damage because of the chemical. With the announcement of a settlement Monsanto's share price, depressed because of the uncertainty over the outcome of the trial, rose substantially. The U. Supreme Court upheld the suit and award, finding that Monsanto had acted to fix retail prices with other herbicide manufacturers. In August , Monsanto purchased G.
Searle, the "NutraSweet" firm. Since the late s the company had sold nearly 60 low margin businesses and, with two important agriculture product patents expiring in , a major new cash source was more than welcome. What Monsanto did not count on, however, was the controversy surrounding Searle's intrauterine IUD birth control device called the Copper Soon after the acquisition, disclosures about hundreds of lawsuits over Searle's IUD surfaced and turned Monsanto's takeover into a public relations disaster.
The disclosures, which inevitably led to comparisons with those about A. Robins, the Dalkan Shield manufacturer that eventually declared Chapter 11 bankruptcy, raised questions as to how carefully Monsanto management had considered the acquisition.
As the parent company, Monsanto was well insulated from its subsidiary's liabilities by the legal "corporate veil. Toward the end of the s, Monsanto faced continued challenges from a variety of sources, including government and public concern over hazardous wastes, fuel and feedstock costs, and import competition. Built into the financing was a surcharge on the chemical industry created through the tax reform bill.
Biotechnology regulations were just being formulated, and Monsanto, which already had types of genetically engineered bacteria ready for testing, was poised to be an active participant in that field. In keeping with its strategy to become a leader in the health field, Monsanto and the Washington University Medical School entered into a five-year research contract in Two-thirds of the research was to be directed into areas with obviously commercial applications, while one-third of the research was to be devoted to theoretical work.
One particularly promising discovery involved the application of the bovine growth factor, a way to greatly increase milk production. In the burgeoning low-calorie sweetener market, challengers to NutraSweet were putting pressure on Monsanto. Pfizer Inc. In an interview with Business Week, Howard Schneiderman, senior vice-president for research and development, commented, "To maintain our markets--and not become another steel industry--we must spend on research and development.
By the end of the s, Monsanto had restructured itself and become a producer of specialty chemicals, with a focus on biotechnology products. The Monsanto Chemical Co. Almost new products containing NutraSweet were introduced in , for a total of 3, products. Monsanto continued to invest heavily in research and development, with 7 percent of sales allotted for this area. The investment began to pay off when the research and development department developed an all-natural fat substitute called Simplesse.
The FDA declared in early that the product was "generally recognized as safe" for use in frozen desserts. Monsanto hoped to see Simplesse used eventually in salad dressings, yogurt, and mayonnaise. Despite these successes, Monsanto remained frustrated by delays in obtaining FDA approval for bovine somatotropin BST , a chemical used to increase milk production in cows.
Opponents to BST said it would upset the balance of supply and demand for milk, but Monsanto countered that BST would provide high-quality food supplies to consumers worldwide. The final year of the s also marked Monsanto's listing for the first time on the Tokyo Stock Exchange.
Monsanto officials expected the listing to improve opportunities for licensing and joint venture agreements. Monsanto had expected to celebrate as its fifth consecutive year of increased earnings, but numerous factors--the increased price of oil due to the Persian Gulf War, a recession in key industries in the United States, and droughts in California and Europe--prevented the company from achieving this goal.
Nonetheless, subsidiary Searle, which had experienced considerable public relations scandals and headaches in the s, had a record financial year in The subsidiary had established itself in the global pharmaceutical market and was beginning to emerge as an industry leader. Monsanto continued to work at upholding "The Monsanto Pledge," a declaration to reduce emissions of toxic substances.
Furthermore, Monsanto and the Environmental Protection Agency agreed to a cleanup program at the company's detergent and phosphate plant in Richmond County, Georgia. The company restructured during the early s to help cut losses during a difficult economic time. Despite this showing, was a good year for some of Monsanto's newest products. Bovine somatotropin finally gained FDA approval and was sold in Mexico and Brazil, and Monsanto received the go-ahead to use the fat substitute, Simplesse, in a full range of food products, including yogurt, cheese and cheese spreads, and other low-fat spreads.
In addition, the herbicide Dimension was approved in , and scientists at Monsanto tested genetically improved plants in field trials. Furthermore, Monsanto expanded internationally, opening an office in Shanghai and a plant in Beijing, China. The company also hoped to expand in Thailand, and entered into a joint venture in Japan with Mitsubishi Chemical Co. However, as net income dropped percent from due to several one-time aftertax charges, the company prepared itself for challenging times.
The patent on NutraSweet brand sweetener expired in , and in preparation for increased competition, Monsanto launched new products, such as the NutraSweet Spoonful, which came in tabletop serving jars, like sugar.
The company also devoted ongoing research and development to Sweetener , a high-intensity product. In , Monsanto denied that it planned to sell G. Searle and Co. Profits from the sale were used to buy the Ortho lawn-and-garden business from Chevron Chemical Co. Monsanto expected to see growth in its agricultural, chemical, and biotechnological divisions. In , Monsanto and NTGargiulo joined forces to produce a genetically altered tomato. As the decade progressed, biotechnology played an increasingly important role, eventually emerging as the focal point of the company's operations.
Monsanto's efforts finally yielded tangible success in , when BST was approved for commercial sale after a frustratingly slow FDA approval process.
In the coming years, the development of further biotech products moved to the forefront of Monsanto's activities, ushering in a period of profound change. It acquired several seed and software companies during the early s. That deal was finalized in , and Bayer announced the company would continue on under the Bayer name.
When Bayer announced its intention in to buy Monsanto, it was thought to be to boost agricultural research and innovation. Along with the finalization of the sale, Bayer announced that the name Monsanto would be dropped, but all acquired products would keep their brand names. This may have been a strategic way to distance them from the negative association that had developed between the name Monsanto and genetically modified organisms and genetically engineered seeds.
The deal was quite controversial for many reasons. It worried consumers because with Bayer buying Monsanto, competition in the crop market—and, more important for consumers, the products made with those crops—became even less, foreshadowing price increases for bread, cereal, and other staples made from grains.
In addition, Monsanto had become fairly synonymous with pesticides, Roundup in particular, and seeds genetically modified to be resistant to glyphosate the main ingredient in Roundup , spurring fears that even more pesticide residues would collect on crops and wind up in our food. Mainstream commercial farmers were also concerned due to the merger meaning even less competition for seed prices.
And finally, anti-trust lobbyists were quite concerned. With the purchase of Monsanto, Bayer gained control of more than 30 percent of the seed market. The next largest controlled 18 percent, with the third largest controlling a bit over 9 percent, so 30 percent, by comparison, is a huge piece of the industry.
Monsanto is no stranger to lawsuits on both sides of the table: as defendant and plaintiff. The main ingredient in Roundup is glyphosate. It was discovered by a chemist at Monsanto in , and they began selling it commercially for agricultural use in It is an herbicide used to kill weeds. Farmers found it useful, especially when Monsanto later introduced glyphosate-resistant crops—meaning, crops genetically engineered to resist being harmed or killed by Roundup, so the farmers could use it to kill the weeds but not harm their crops.
By , Roundup was the most used herbicide in the United States—being used on farms, by homeowners, and in government and industry. The Environmental Protection Agency estimates that million pounds of glyphosate is applied to lawns and crops in the United States every year. Some environmental and wildlife studies and concerns surrounding the manufacture and use of glyphosate are:.
You will never be charged a fee unless a recovery is made for you. History of Monsanto. Bayer Purchases Monsanto When Bayer announced its intention in to buy Monsanto, it was thought to be to boost agricultural research and innovation.
Nevertheless, the sale was finalized in Monsanto Lawsuits Monsanto is no stranger to lawsuits on both sides of the table: as defendant and plaintiff. Here is a brief, non-inclusive list of lawsuits in which Monsanto was the defendant: A class action lawsuit was filed against Monsanto for injuries sustained by military personnel exposed to the defoliant Agent Orange in Vietnam.
Agent Orange contained dioxin, which is associated with many adverse health effects, including cancer and infertility. Monsanto settled the suit. Some of those cases settled, and some were won by Monsanto. In addition, there were other suits brought by communities where Monsanto had manufactured PCBs, claiming the company should pay to for the clean-up.
Some were dismissed and some were settled; some are still ongoing. The case was dismissed, and appeals were denied. The judge dismissed the case, citing the lack of contamination at that time. Monsanto, or Bayer since they are now owned by Bayer, has lost several of these lawsuits to the tune of millions of dollars. Bayer says it will appeal. And there are over 15, cases still awaiting trial. Glyphosate—History and Applications The main ingredient in Roundup is glyphosate. In , a birth cohort study in Indiana found detectable levels of glyphosate in more than 90 percent of the women tested, and the study found a correlation between the levels found and shortened pregnancy rates.
This study, conducted in by researchers at the University of Washington, was actually a meta-analysis of many studies—evaluating their data and conclusions. A test found that 21 cereals and snack foods contained glyphosate.
In addition, another, smaller study found higher levels of glyphosate in children than their parents. An epidemiological study of farmers in Ontario, Canada, showed that glyphosate exposure increased the risk of late spontaneous abortions and premature births.
Glyphosate Environmental and Wildlife Concerns Some environmental and wildlife studies and concerns surrounding the manufacture and use of glyphosate are: A study found that weeds on farms where glyphosate is used were becoming glyphosate resistant. One survey found that almost half the farms studied were infested with glyphosate-resistant weeds.
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