SAFC, the custom manufacturing and services business unit of
) has entered into an agreement with Seoul, South Korea-based
CrystalGenomics to develop active pharmaceutical ingredients
(API) for next-generation non-steroidal anti-inflammatory drugs
BAYER A G -ADR (BAYRY): Free Stock Analysis
SIGMA ALDRICH (SIAL): Free Stock Analysis
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According to the agreement, CrystalGenomics will deploy SAFC's
Pharmorphix pre-formulation technology to study active
pharmaceutical ingredients. The services of SAFC will also help
in maintaining efficacy and safety of the patients. With the drug
development processes becoming complex, the pre formulation
services provided by SAFC will enable the pharmaceutical and
biopharmaceutical companies to speed up their pipeline projects.
CrystalGenomics is a clinical stage biopharmaceutical company and
is developing three clinical stage products. The company's lead
candidate is the next-generation NSAID for osteoarthritis, which
is in phase 3 development. The company is also developing other
products focusing on inflammation, oncology, central nervous
system and infection.
Sigma-Aldrich is a leading life science and high technology
company. It released its third quarter 2012 results last month.
The company posted adjusted earnings (excluding restructuring
charges) of 94 cents per share in the third quarter of 2012,
below the year-ago earnings of 96 cents. The results were in line
with the Zacks Consensus Estimate.
Profit, as reported, fell roughly 4% year over year to $112
million (or 92 cents per share) in the quarter from $117 million
(or 95 cents) a year ago. Unfavorable currency reduced earnings
per share by 11 cents.
Revenues inched up 2% year over year to $639 million in the
quarter, but trailed the Zacks Consensus Estimate of $661
million. Acquisitions added 6% to the growth while foreign
exchange swings had a negative impact of 6%.
Sigma-Aldrich expects organic growth to be 3% in 2012, within its
earlier low-to-mid single digits growth expectation. The
acquisitions of BioReliance and Research Organics are expected to
boost sales by 6%. However, unfavorable currency impact is
expected to reduce sales by 3%.
Sigma-Aldrich, a close peer of
), maintains a Zacks #3 Rank, which translates into a short-term
(1 to 3 months) Hold rating. We currently have a long-term (more
than 6 months) Neutral recommendation on the stock.