Dow Chemical Gets Chinese Registration for Arylex - Analyst Blog

Dow AgroSciences LLC, a unit of chemical giant Dow Chemical DOW, has secured Chinese registration for its Arylex active herbicide. This represents the first registration of this novel weed resistance management tool.

Arylex, a low-use rate herbicide, has been geared to help growers manage hard-to-control broadleaf weeds and protect their cereal crops. This innovative tool is the first member of a new structural class of synthetic auxin herbicides and has utility in multiple crops.

Dow AgroSciences has also received Chinese registration for the Quelex herbicide, a combination of Arylex and florasulam for use in cereals. The company expects continued registration of products with Arylex in 2014 and beyond in key cereal herbicide markets including Canada, Australia, the U.S. and most European nations. The regulatory process is nearing completion in Canada.

Indiana-based Dow AgroSciences, which raked in global sales of $7.1 billion last year, is a leading provider of crop protection and plant biotechnology solutions. The launch of the Arylex active herbicide is expected to reinforce its leadership position in the cereal herbicide market.

Revenues from Dow's crop protection business rose 4% in first-quarter 2014 on higher sales of herbicides in Europe, Middle East and Africa (EMEA) and insecticides in Latin America. New crop protection revenues jumped 28% in the quarter.

Dow should gain from healthy fundamentals in the agriculture market. A string of innovative products in its pipeline adds to its strength.

Dow is a Zacks Rank #2 (Buy) stock.

Other chemical stocks worth considering include Compass Minerals International Inc. CMP, L'Air Liquide SA (AIQUY) and Kronos Worldwide, Inc. KRO. While Compass Minerals holds a Zacks Rank #1 (Strong Buy), both L'Air Liquide and Kronos carry a Zacks Rank #2 (Buy).