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DowDuPont Unit Sets Up Microbiome Venture to Drive Growth

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DowDuPont Inc.’s unit DuPont Nutrition & Health has established a Microbiome Venture to spearhead the creation of new microbiome science-based solutions. The move is expected to play a significant role in DuPont’s business growth strategy.
 
With the Microbiome Venture, the company will be able to develop new microbiome science-based solutions for health and wellness. The Microbiome Venture investment is in sync with DuPont’s existing product portfolio, especially in the areas of probiotics and prebiotics, including human milk oligosaccharides.
 
In order to accelerate product development the Microbiome Venture will engage in strategic partnerships with other microbiome science leaders in academia and industry. Its first major partnership with the APC Microbiome Institute in Cork, Ireland, will focus on maternal and infant microbiomes, which plays a critical role in infant development and long-term health. The goal is to develop solutions for establishing a healthy microbiome in early life.
 
DowDuPont has underperformed the industry it belongs to over the last three months. The company’s shares have moved up around 7.1% over this period compared with roughly 10.2% gain recorded by the industry.
 
 
 
DowDuPont, during third-quarter 2017 earnings call, said that demand outlook remains positive for most of its key end-markets. It will remain focused on executing its near-term priorities that include delivering earnings and cash flow growth, executing its $3-billion cost synergy initiatives and advancing activities to create three growth companies in Agriculture, Materials Science and Specialty Products.
 
DowDuPont also declared it will take actions to enable cost savings of $3 billion. These include workforce reductions, buildings and facilities consolidations and select asset shutdowns. DowDuPont recorded pre-tax charges of $180 million in third-quarter 2017 in connection with the actions that are approved so far. It expects to record total pre-tax charges of around $2 billion, with around $1 billion expected in fourth-quarter 2017.
 
Dow Chemical Company (The) Price and Consensus
 

Dow Chemical Company (The) Price and Consensus | Dow Chemical Company (The) Quote

 

Zacks Rank & Stocks to Consider

DowDuPont currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Ingevity Corporation (NGVT - Free Report) , Koppers Holding Inc. (KOP - Free Report) and Westlake Chemical Corporation (WLK - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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