ORLANDO, Fla., July 29, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has issued a fourth quarter 2008 research update for Synthetech, Inc. (OTCBB:NZYM), a fine chemicals company specializing in the development and manufacture of a wide array of products primarily for the pharmaceutical industry.
Abhinav Bhatnagar, MBA, RedChip Research Analyst, reported:
"Synthetech's previous two quarters were quite disappointing, with the Company reporting lower revenue. However, 4QFY08 results exceeded our estimates.
"The contract research organization (CRO) market is currently in the growth stage, and we believe NZYM is well-positioned to ride this growth curve with cash flows to sustain its capacity development. We believe growth in the CRO segment will further expand the opportunities in the biopharmaceutical sector, and the strategic decisions of large multinational pharmaceutical companies to outsource their manufacturing needs will allow NZYM to build up its already growing order book going forward. This growth will come as a result of an increasing complexity in drug development, continued research and development investment, and biotech funding, which is expanding the breadth and depth of clinical trials."
Bhatnagar continued: "This will benefit smaller, niche companies like Synthetech, Inc., by increasing their customer bases and revenues in the field of amino acid chemistry and multistep chiral organic synthetic chemistry. Recent studies have shown that the clinical trials conducted by CROs are 30% more efficient than those conducted in-house by pharmaceutical companies.
"NZYM is also continuously diversifying its customer base, which now includes two projects from customers in the medical device sector in addition to projects from traditional pharmaceutical customers. We project sustainable revenue growth over the coming quarters backed by an increase in the number of large-scale projects and continued development of the drug development sector."
"We reiterate our 'Buy' recommendation on Synthetech," he concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from Synthetech, Inc. or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities.