Sigma Inks Deal with AB Sciex - Analyst Blog

By Zacks.com September 10, 2012, 10:34:43 AM EDT

Sigma-Aldrich Corporation ( SIAL ) announced the signing of an agreement with AB Sciex to distribute its portfolio ofmass spectrometry-based tagging chemistries. The consumables, sold as SCIEX iChemistry Solutions, are used inproteomics applications in basic research and applied markets. AB SCIEX is a global leader in mass spectometry products and helps scientists and laboratory analysts to address complex challenges in this field.

Sigma Aldrich expects the agreement to be a shot in the arm for the research work on mass spectrometry-based protein as the scientists will get access to high-quality solutions for workflows to enable the study of the proteome. This will be particularly helpful in the Asia-Pacific region.

Sigma-Aldrich will be able to provide a complete suite of solution to mass spectrometry users as well as biologists and chemists to adopt mass spectrometry to improve their analyses. The company has already added 60,000 antibodies that will enable the researchers to accurately discern dynamic states of proteins in key pathways throughout the proteome.

Sigma-Aldrich, a life science and specialty chemical company, released its second-quarter 2012 earnings in July 2012. The company posted adjusted earnings of 97 cents per share in the quarter, in line with the Zacks Consensus Estimate but ahead of the year-ago earnings of 93 cents per share. Profit, as reported, marginally increased to $115 million or 94 cents per share in the quarter from $113 million or 91 cents a year ago.

Revenues came in at $664 million in the quarter, up 4% year over year but below the Zacks Consensus Estimate of $673 million. Acquisitions contributed 6% to the growth while foreign exchange translation had an unfavorable impact of 5%. The company saw growth across its Research Chemicals and Fine Chemicals ("SAFC") divisions.

Moving ahead, Sigma-Aldrich expects organic growth to be in low-to-mid single digits in 2012, down from the earlier expectation of mid single-digits. Macroeconomic uncertainties may hinder its Research Chemicals business whereas growth in Bioscience and Hitech is expected to drive SAFC sales for the remainder of the year. The acquisitions of BioReliance and Research Organics are expected to boost sales by 6%.

Sigma-Aldrich, a close peer of Bayer AG ( BAYRY ), currently maintains a Zacks #4 Rank, which translates into a short-term (1 to 3 months) Sell rating. We have a long-term Neutral recommendation on the stock.


 
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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: BAYRY, SIAL



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