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DuPont, Arcadia Jointly Develop ARA Oil from Safflower Plants

DuPont’s DD unit DuPont Pioneer and Arcadia Biosciences, Inc. announced that they have successfully completed a field-trial validation of safflower plants that produce high levels of arachidonic acid (ARA) oil, which is a high-value, specialty nutritional oil, for global consumer markets. Achievement of this major milestone reflects a significant step taken jointly by the companies to develop a new plant-based and cost-effective source of oil with high levels of ARA.

ARA is an omega-6 fatty acid that plays a crucial role in the neural and visual development of infants, along with some omega-3 fatty acids. It is highly beneficial for infants. The U.S. Food and Drug Administration, the Food and Agriculture Organization of the United Nations and the World Health Organization have reviewed and supported its usage in nutritional products.

Safflower plants with high ARA will be instrumental in improving manufacturing economics and encouraging wider use of ARA by providing a better alternative and a more efficient source for the ingredient. Since only sunlight is required for the production of ARA in safflower seed oil, it will be a very cost-effective method of production unlike current commercial methods.

The development of ARA in safflower oil will enable Arcadia to expand its nutritional oil offerings and help DuPont to build its experience in the development, regulatory management, production and marketing of these high-value products.

Arcadia’s ARA safflower oil is in the late stages of product development. Regulatory approval will be required before commercialization of the oil.
DuPont recorded higher profits in first-quarter 2016, supported by cost-management actions. Adjusted earnings for the quarter topped the Zacks Consensus Estimate. Revenues declined year over year due to unfavorable currency impact, but beat expectations. The company raised its earnings guidance for 2016.

While DuPont still faces a number of challenges, it is poised to gain from new product launches and productivity actions. Moreover, it remains committed to maximize shareholder value.

DuPont currently holds a Zacks Rank #2 (Buy).

Other well-ranked companies in the chemicals industry include Innophos Holdings Inc IPHS, Innospec Inc. IOSP and Asahi Kasei Corp. AHKSY, all sporting a Zacks Rank #1 (Strong Buy).

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DU PONT (EI) DE (DD): Free Stock Analysis Report
ASAHI KASEI CP (AHKSY): Free Stock Analysis Report
INNOPHOS HLDGS (IPHS): Free Stock Analysis Report
INNOSPEC INC (IOSP): Free Stock Analysis Report
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