Sigma-Aldrich Beefs Up Continuous Flow Capabilities - Analyst Blog

By
A A A

Sigma-Aldrich 's ( SIAL ) SAFC Commercial division has enhanced its continuous flow capabilities with the installation of a new commercial-scale continuous flow reactor at its plant in Sheboygan, WI. The reactor will produce as much as 150 kg of products a day.

The new reactor, which is currently online, has been complemented by a smaller pilot-scale continuous flow reactor (with capacity to produce up to 30 kg of products daily), which is being fabricated at the Milwaukee, WI, plant to conduct process optimization studies. These reactors are supported by a host of research reactors based in the U.S. and EU that offer support to customers from research to commercialization.

With these reactors, SAFC Commercial will be able to develop or scale up flow reactions for customers, thus eliminating the need to install in-house flow capacity. This will allow customers to save a significant amount of money, space and time while minimizing the amount of chemicals and solvents employed in reactions.

Revenues from SAFC Commercial, Sigma-Aldrich's custom manufacturing services business unit, went up 3% to $159 million in first-quarter 2014. Sales rose in the low single-digits organically in life science products business while life science services saw a double-digit rise on gains in biopharma services. However, SAFC Hitech sales declined in the low single-digits on pricing pressure.

Sigma-Aldrich's significant investments in sales, marketing and R&D initiatives are generating demand for its products. The company is seeking to take advantage of country-specific opportunities by expanding its presence in high-growth emerging markets. It is actively expanding its foothold in the Asia-Pacific region, especially in the fast-growing emerging markets of India and China.

However, Sigma-Aldrich's research business, especially with large pharmaceutical companies, is expected to continue to face challenges due to weak academic spending in the U.S. and Europe. Uncertainty surrounding academic funding (in particular in the U.S.) is expected to sustain through first-half 2014.

Sigma-Aldrich is a Zacks Rank #3 (Hold) stock.

Other companies in the specialty chemicals space with favorable Zacks Rank include International Flavors & Fragrances Inc. ( IFF ), Sensient Technologies Corporation ( SXT ) and Zep, Inc. ( ZEP ) with all holding a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

INTL F & F (IFF): Free Stock Analysis Report

SIGMA ALDRICH (SIAL): Free Stock Analysis Report

SENSIENT TECH (SXT): Free Stock Analysis Report

ZEP INC (ZEP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: IFF , SIAL , SXT , ZEP

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

How to Fire Your Adviser
How to Fire Your Adviser            

Stocks

Referenced

Most Active by Volume

64,159,633
  • $100.86 ▼ 0.76%
63,552,623
  • $16.71 ▼ 0.18%
60,140,251
  • $42.71 ▲ 0.38%
52,385,870
  • $17.51 ▲ 5.86%
50,329,585
  • $13.75 ▲ 29.84%
43,337,551
  • $16.16 ▼ 1.40%
40,126,911
  • $3.605 ▲ 0.56%
39,836,742
  • $3.81 ▼ 2.56%
As of 9/16/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com