BioReliance, a unit of
) Fine Chemicals ("SAFC") division, recently announced that it will
unveil a novel skin assay geared to detect DNA damage from products
with dermal routes of exposure.
SIGMA ALDRICH (SIAL): Free Stock Analysis
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The assay dubbed Reconstructed Skin Micronucleus ("RSMN")
represents the first commercialized genetic toxicology assay that
uses 3D tissue models. The assay leverages the "EpiDerm" 3D skin
model, developed by leading tissue engineering firm MatTek
Use of these models in predictive toxicology has been growing
recently as they do not require animal models, more closely
resemble human organs and have been found to be more predictive
compared with other in vitro models.
BioReliance has conducted several qualification tests of the
ground-breaking RSMN assay using chemicals with defined
genotoxicity/carcinogenicity and has developed a robust Good
Laboratory Practices (GLP) protocol. The results from these studies
have been presented in a number of meetings. BioReliance feels that
the assay represents a paradigm shift from legacy genotoxicity
Sigma-Aldrich completed the acquisition of BioReliance In early
2012 for $350 million in cash. The addition of BioReliance's
industry-leading QA/QC testing services to the company's product
portfolio has enabled it to build better and more customized
products. The acquisition has extended Sigma-Aldrich's reach into
the promising new market of biologic drugs.
Sigma-Aldrich registered record sales in its SAFC division in
second-quarter 2012, boosted by the new facility in Taiwan. The
company expects macroeconomic uncertainties to weigh on its larger
Research Chemicals segment in the second half of 2012. It has,
however, reaffirmed its low double-digit organic growth forecast
Sigma-Aldrich's recent acquisitions (including BioReliance) and
expansion initiatives in Asia Pacific and other high growth markets
are expected to add to its growth in 2012.
However, the company's research business is expected to continue
facing economic challenges due to uncertainties in the U.S. and
Europe. Moreover, unfavorable currency exchange translation is
expected to drag down its earnings in the remainder of 2012.
Our long-term Neutral recommendation on Sigma-Aldrich is backed by
a short-term Zacks #3 Rank (Hold).