John Queeny founded Monsanto in 1901 in order to produce saccharin, a product which had not yet been produced in America. After surviving stiff competition from his German rivals, Queeny expanded into the caffeine, vanilla, and aspirin markets. The company later added synthetic fibers, herbicides, pharmaceuticals, food ingredients, and lawn and garden products to its repertoire. After enjoying impressive growth in recent years, Monsanto has undergone a major restructuring, merging with Pharmacia-Upjohn to form Pharmacia Corporation. Pharmacia now plans to absorb Monsanto's pharmaceutical division, and subsequently, to spin off the remainder of Monsanto.

Please pass the genetically engineered potatoes

The fourth-largest chemical company in the U.S., Monsanto believes that new developments in biotechnology will enable it to grow even further. Current products include Roundup herbicide, and other agricultural biotechnological products; it hopes soon to be able to market insect resistant cotton and potatoes. The company hoped to grow even bigger with a multi-billion dollar merger with pharmaceutical giant American Home Products, but the deal fell through because of concerns about culture clashes and power struggles. Monsanto Canada, Inc., however, established a crop development center at the University of Manitoba in 1999 to transfer genes into plants as part of Monsanto's desire to expand its genetically altered foodstuff market even further.

Fresh out of the Monsanto pipeline

In December 1998, Monsanto received FDA approval for its new arthritis drug, Celebrex. It belongs to a new class of drugs called Cox-2 inhibitors, which are less likely to cause ulcers than products already on the market, including naproxen and ibuprofen. Observers on Wall Street predict that these drugs will be one of the industry's biggest blockbusters. Monsanto's Searle subsidiary is handling marketing and sales of Celebrex, and hopes to convince managed care companies to pay for the drug. Celebrex and others of its kind are expected to be priced at around $3 to $4, while comparable generic drugs cost only pennies a day.

Sweet divestitures

In an effort to pay off debts and excessive spending, Monsanto sold its NutraSweet division and the rest of its food business. The sale appeased investors, many of whom were disappointed at the collapse of a combination deal Monsanto had made with American Home Products Corp. However, it also resulted in the elimination of 1,700 jobs. The falling through of the American Home Products deal, which would have given the company access to AHP's assets, caused a significant decline in Monsanto's stock prices. Monsanto's divestiture continued with the February 2000 sale of its Kelco biogums business.

Big changes

In November 1999, faced with heavy debt, Monsanto revealed that it was considering selling part or all of its business. The giant Swiss pharmaceutical company, Novartis, had emerged as a serious suitor. Pharmacia-Upjohn beat Novartis to the punch, however. Inticed by Monsanto's profitable Searle pharmaceutical unit, the company merged with Monsanto in March 2000, creating a $50 billion drug behemoth named Pharmacia Corporation.