NEW YORK (TheStreet) -- Shares of Monsanto (MON) were gaining in pre-market trade on Thursday after the company pulled an application seeking government approval in India for the company's next generation of genetically modified (GM) cotton seeds, Reuters reports.
The Indian government previously proposed that the St. Louis-based agricultural conglomerate share its technology with local seed companies.
Monsanto's local partner sent a letter to government officials yesterday, strongly objecting to the proposal.
The decision to remove its application in India could delay Monsanto in introducing its new seed to markets for years, Reuters reports.
The new GM seed, called Bollgard II Roundup Ready Flex, is meant to fight against weeds that steal nutrients from cotton crops and ultimately hurt harvest yields.
Monsanto said the withdrawl of its application was spurred by the "uncertainty in the business and regulatory environment," but that the move would not impact its current cotton portfolio in India, according to Reuters.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: MON