Sigma-Aldrich is a leading supplier for Life Science applications. Our
sales in the sector are $900 million. We supply the world's largest range
of high quality biochemical and organic chemicals on both a small and
large scale. These products are used in academic research and the health
care industry, particularly by Pharmaceutical and Biotechnology companies.
Research
Life Science is a fast-growing area. The momentum in fundamental and Genomic
research and the race, especially by Pharmaceutical companies, to discover
how genes influence disease, offers tremendous opportunities for Sigma-Aldrich.
Genome Research |
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At Sigma-Aldrich we are already making a major contribution by supplying
all the basic research organic chemicals and biochemicals required to
advance knowledge in Life Science. Our sales in this area are about $650
million.
Our research divisions supply a broad spectrum of products with Scientific
Research mainly focused on reagents and Biotechnology on kits. But there
is a considerable overlap in activities. Our major sales base is in reagents.
But certainly we're rapidly moving into kits because of the large product
markets and higher growth potential.
Our Scientific Research division had a good year in 2001 by focusing on
the basics - adding new products (over 5,000) and improving service worldwide.
We also distributed a new Fluka/Riedel-de Haën catalog containing over
15,000 products which was extremely well received by the research community.
The Biotechnology division met expectations particularly due to strong
demand for our Molecular Biology and "synthetic" DNA products.
In both divisions, we expanded our sales force to build stronger, more
collaborative relationships with our customers. At the same time, we are
increasing ties with industrial and academic institutions to add to our
over 150 patents and 400 licensing agreements. We believe these measures
will help us attain our ultimate goal of becoming a premier supplier of
innovative solutions for Life Science research.
The diversity of biochemistry and organic chemistry capabilities within
our Scientific Research division is truly remarkable. It ranges from isolating
milligrams of biochemicals from animal or plant tissue to extremely complex
organic synthesis. And we make every effort to be at the forefront. In
2001, we produced many new biochemical products. We've also developed
a whole range of organic products for "Suzuki Coupling" (we
show the reaction scheme for the pleasure of chemists with apologies to
others!). Such chemistry is widely used in organic synthesis. The 2001
acquisition of Isotec makes us the world's largest producer of stable
isotopes.
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X=Halide
“Suzuki Coupling” |
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Isotec makes isotopes (C13, N15, and O18) by cyrogenic distillation
in columns that reach as far as 600 feet underground. |
Apart from use in pure research, our products are also used "as is"
to help discover new drugs. Pharmaceutical companies often want to quickly
obtain and produce as many new chemical compounds as possible. The compounds
are then screened for drug activity. Sigma-Aldrich, with over 85,000 products,
is the leader in supplying these needs. In addition, our "Rare Chemical
Library," with over 125,000 compounds, provides another valuable
resource. Newer trends in drug discovery involve combinatorial chemistry
and high throughput screening techniques that enable scientists to screen
even more chemicals. Again, we supply a wide variety of products.
Much of the fundamental Life Science research is increasingly related
to Genomics. We now know the sequence of the roughly 3 billion chemical
"letters" (A, C, G, T) that make up our human DNA - life's instruction
booklet. About 5% of our total DNA makes up the all-important genes. It's
a sobering thought that humans with 30,000 genes have not many more than
worms or the common mustard weed. In fact, humans are 99.9% the same genetically.
And most of the 0.1% difference pre-existed in our African ancestors 100,000
years ago. It's the drive, especially by drug and Biotechnology companies,
to uncover these minute differences that will dramatically influence the
future diagnosis and treatment of disease. The DNA code of various bacteria,
plants and animals is now also being actively studied. This broader understanding
of genetics will play a major role in feeding the world by improved breeding
of animals and higher yielding plant crops.
Sigma-Aldrich Worldwide R & D |
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75 % USA
10 % Israel
5 % Switzerland
5 % UK
5 % Other
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A wide variety of Sigma-Aldrich products are specifically designed for
pure genome research. Here our sales already exceed $100 million. We play
a major role in providing Cell Culture products to grow the cells from
which DNA is extracted. Our new DNA extraction kits have great performance
characteristics. Sigma specialty enzymes are used to make (amplify) more
DNA, a process which also requires "synthetic" DNA supplied
by Sigma-Genosys (we're a major supplier). And, our S-Galª enables
the ready identification of the required cloned cells. We're involved
in the whole process of Genome research.
Sigma Genosys Oligo Libraries™ |
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Now that the Human Genome has been sequenced, the task becomes figuring
out how the genes work and, in particular, what proteins (the building
blocks of life) they produce. We are already providing gene arrays for
humans/mice/microorganisms and "synthetic" DNA (oligos) to help
discover what triggers gene activity. The new area of Proteomics (the
study of a cell's protein produced by the genes) again offers tremendous
opportunities for our Company. Our Flag™ protein expression and detection
system has been a great success. And we've launched unique Protein Purification
kits by collaborating with Proteome Systems (Australia) and Shimadzu Biotech
(Japan) to stay at the forefront. We have a long history in the protein
analysis and characterization areas, including immunochemicals, so we
already have a broad range of products and a head start.
However, we should not underestimate the scientific challenges. The unit
of life is not the gene but the cell - and we humans have 5 trillion in
our bodies! Particularly the brain (over 1 trillion connections) is tremendously
complex and we have little understanding of what causes such diseases
as Parkinson's or Alzheimer's. But, here again, Sigma-Aldrich plays a
leadership role in Cell Signaling and Neuroscience research with sales
of $100 million.
The complexity of the research becomes very evident when one considers
the intricate interrelationship of cell signaling (influenced by internal
and external events), genes and proteins. It's worth noting embryonic
stem cells have the staggering potential power to replace diseased brain
and body tissues and even grow distinct new organs.
Life Science & High Technology Center |
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Lab Facility |
Learning Center |
All these developments, unthinkable a few years ago, present major opportunities
for our Company.
The completion at the end of 2001 of our new $55 million, world-class
Life Science and High Technology Center in St. Louis, the largest project
in Sigma-Aldrich's history, and increased R&D expenditures, will considerably
expand the flow of new and innovative products. The facility is now the
proud home of over 100 scientists and we'll be hiring more.
Expansion is also underway at our Sigma-RBI plant in Natick, Massachusetts,
which specializes in the products used for Cell Signaling and Neuroscience.
We are also ramping up our "synthetic" DNA manufacturing capabilities
for our Sigma-Genosys products worldwide.
Clearly, we are at the beginning of a major Life Science adventure. And
the Human Genome with its approximately 30,000 genes and the up to a million
related proteins, all potential targets for discovery, leaves no shortage
of opportunities for Sigma-Aldrich.
Furthermore, we are also collaborating with and licensing technologies
from academic and industrial partners throughout the world. And, of course,
patents play an increasingly important role. All these activities will
make us an even stronger player.
The Complexity of Life |
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Looking ahead, Life Science research stands on the edge of tremendous
discoveries with huge commercial opportunities. Governments and companies
will be investing heavily.
The Pharmaceutical industry particularly has much to gain from the use
of Genomic research to develop more effective drugs, including those that
will be tailor-made to fit a person's genetic makeup, increasing effectiveness
and decreasing side effects. Drugs are the fastest growing segment of
the health care budgets, so there is no doubt that Pharmaceutical and
Biotechnology companies will continue to invest heavily in this area in
search of the next blockbuster drug.
The Diagnostics industry will also experience major developments coming
out of the Human Genome and Biotechnology advancements i.e. which genes
influence disease. We are well- positioned to meet our customers' needs
for their research.
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