DOW Agrosciences & Gowan Join Hands - Analyst Blog
December 08 2011 - 3:00AM
Zacks
Dow AgroSciences LLC, a wholly
owned subsidiary of The Dow Chemical Company (DOW)
along with Gowan has entered into a new development and marketing
license agreement, allowing the later to license the novel active
fungicide meptyldinocap. Based in Arizona, Gowan is the
marketer of crop protection products.
As per the agreement, Gowan will
develop the fungicide meptyldinocap active for use in fruits and
vines in the U.S. and Canada. Further, it will provide growers with
a new, unique and highly effective tool for powdery mildew
management. However, the financial terms of the agreement were not
disclosed.
Meptyldinocap is a novel powdery
mildew (Erysiphe necator) fungicide with a "multisite" mode of
action. It is the resolved isomer of dinocap with a more favorable
toxicological profile. It shows protectant and post-infective
activities on various powdery mildew species. Meptyldinocap acts as
an uncoupler of oxidative phosphorylation, upsetting the
electrochemical balance of the cell while preventing the formation
of energy-rich ATP. It will not only be used for the control of
powdery mildew in grapevine, but also developed for use on
cucurbits and strawberries. Due to its "multisite" mode of action,
the resistance risk is judged to be quite low. Therefore,
meptyldinocap is considered to be of particular interest as a tool
for the management of powdery mildew strains resistant to other
fungicides.
Recently, DOW earned 69 cents per
share in the third quarter of 2011, ahead of the Zacks Consensus
Estimate of 64 cents per share as well as last year’s 45 cents per
share. However, including one-time charges, the company earned 62
cents per share compared with 54 cents per share in the year-ago
quarter.
Quarterly revenues jumped 17% year
over year to $15.1 billion, above the Zacks Consensus Estimate of
$14.7 billion, driven by double-digit gains in all operating
segments and geographic areas, with the largest growth in Latin
America (21%) and Europe, Middle East and Africa (EMEA) (19%). In
the emerging geographies, sales reached $5 billion, a new quarterly
record for the company.
Dow anticipates demand to improve
further, especially in Asia with the global economic recovery. The
US and European markets have also started showing signs of
improvement. Dow is also optimistic on major consumer-markets,
including electronics, coatings, automotive and packaging. However,
construction markets are expected to remain weak.
DOW faces stiff competition from
EI DuPont de Nemours & Co. (DD).
Currently, DOW has a short-term (1
to 3 months) Zacks #3 Rank (Hold), but a long-term Neutral
recommendation.
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
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