Global lab chemical and life sciences company Sigma-Aldrich Corporation (SIAL) has recently introduced a new cell expression system which enables rapid, simpler selection and scale-up of high-producing clones for making recombinant protein drugs. The system was launched through the company’s custom manufacturing and services division “SAFC.”
The new CHO (Chinese Hamster Ovary) cell expression platform dubbed “CHOZN” has been geared to offer an off-the-shelf production solution for the developers of biopharmaceuticals who do not have a cell line platform. The CHOZN platform has been proven to shorten drug development timelines, thereby allowing the developers expedite their time-to-market.
Sigma-Aldrich makes and distributes various biochemicals and organic chemicals that are used in scientific and genomic research, biotechnology, pharmaceutical development, diagnosis of diseases and chemical manufacturing. The company’s significant investments in sales, marketing and R&D initiatives are generating demand for its products.
SAFC is focused on biochemical production and manufacturing of complex organic compounds. The division posted revenues of $185 million in the fourth quarter of 2011, a 7% year-over-year organic growth. Sigma Aldrich expects low-to mid-single-digit growth for the unit in first-half 2012 and low double-digit growth in the second half due to additional capacity in China and Taiwan.
Sigma-Aldrich’s significant investments in sales, marketing and R&D initiatives are generating demand for its products. To boost growth, the company plans to increase its focus on marketing, business development and R&D, while continuing with its efforts to improve process and operations management. Moreover, Sigma Aldrich is seeking to take advantage of country-specific opportunities by expanding its presence in high-growth emerging markets.
However, the company’s core Research Business is expected to face economic challenges in 2012 given the uncertainties across the U.S. and Europe. We are currently Neutral on Sigma-Aldrich. The stock currently holds a Zacks #4 Rank, which translates into a short-term Sell rating.
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