Dow Chemical Company
) and life sciences company
) have entered into an agreement, wherein, the latter will
manufacture drug-solubility solution, Dow Hydroxypropyl
Methylcellulose Acetate Succinate (HPMCAS), to enhance drug
Operations under the agreement will be conducted in a new
facility at Cambrex Karlskoga. Construction is currently underway
at the facility with commercial product launch is expected by the
end of 2013. The agreement will help Dow to supply solubility
enabling excipients. It also marks the final step in building on
the solubilization partnership as announced by Dow and Bend
Research in Oct 2012.
The AFFINISOL product range is designed to meet the diverse
excipients needs of the customers. The first solution from this
product range, which leverages Dow's polymer science and
application expertise along with Cambrex's capabilities, is
expected to be well received in the market.
Dow came out with its fourth-quarter 2012 results last month.
The company reported a wider loss in the quarter hurt by hefty
restructuring and goodwill impairment charges. The company's
adjusted earnings missed the Zacks Consensus Estimate but
Lower pricing and weak end market conditions impacted sales in
the quarter. However, Dow's agricultural business was a bright
spot, with sales increasing at a double-digit clip.
Dow is benefiting from strong fundamentals in agriculture and
food markets and is leveraging its North American feedstock
advantage. A string of innovative products in its pipeline adds
to its strength. However, weakness in the electronics and
construction end markets may continue in first-quarter 2013.
Moreover, Dow still faces challenges in Western Europe and is
exposed to significant pension headwinds.
Dow Chemical retains a short-term (1 to 3 months) Zacks Rank
Other companies in the chemical industry worth considering are
) with both retaining a Zacks Rank #1 (Strong Buy).
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