U.S. chemical giant
) has joined forces with leading pharmaceutical drug-delivery
research company, Bend Research Inc., to offer drug-solubility
solutions and new polymers. The terms of the deal were not
Bend Research specializes in the development and commercialization
of pharmaceutical technologies. Its leading drug development and
delivery technologies include spray-dried dispersion (SDD),
controlled-release, inhalation and biotherapeutics technologies.
Under the collaboration, the companies will develop and market SDD
solutions which address technology gap in drug manufacturing and
delivery. Moreover, they will deliver new polymers having the
ability to tailor materials to meet the performance needs of
specific drugs. Dow will offer hypromellose and hypromellose
acetate succinate to tailor these materials and next-generation
cellulosic and noncellulosic polymers for improved performance.
The partnership will bring together Dow's excipient and materials
science expertise, high-throughput synthesis and commercial
scale-up capabilities with Bend Research's SDD screening,
formulation, scale-up and technology-transfer capabilities. The
collaboration will mitigate drug-development risk by integrating
materials development and optimization early in the formulation
development process for SDDs to attain optimal clinical results.
Headquartered in Michigan, Dow Chemical is one of the largest
chemical manufacturers in the world, offering a range of chemical,
plastic and agricultural products and services. It competes with
EI DuPont de Nemours & Co.
) among others.
Dow is benefiting from strong fundamentals in agriculture and food
markets. The company retains its strategy of growth through joint
ventures and acquisitions. A string of innovative products in its
pipeline also adds to its strength.
Dow is targeting faster-growing geographies. The company earns
two-thirds of its income from outside the U.S. Growth in emerging
economies has been especially fast, contributing a meaningful
portion of the company's sales.
However, Dow is contending with soft electronics and construction
end-markets and is facing challenges in Western Europe due to the
prevailing recessionary conditions.
Dow currently retains a short-term Zacks #3 Rank (Hold). We have a
long-term Underperform recommendation on the stock.
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