Synthetech Announces Bankruptcy Court Approval of Merger With W. R. Grace Subsidiary
Date : 10/18/2010 @ 9:02PM
Source : PR Newswire
Stock : W.R. Grace (GRA)
Quote : 29.5 -0.01 (-0.03%) @ 8:04PM


Synthetech Announces Bankruptcy Court Approval of Merger With W. R. Grace Subsidiary
W.R. Grace (NYSE:GRA)
Intraday Stock Chart

Today : Monday 18 October 2010
Click Here for more W.R. Grace Charts.

W. R. Grace & Co. (NYSE: GRA) has received approval from the United States Bankruptcy Court for the District of Delaware of the previously announced transactions contemplated by the Agreement and Plan of Merger dated as of September 13, 2010 pursuant to which W. R. Grace & Co.-Conn, a wholly-owned subsidiary of W. R. Grace & Co., will purchase Synthetech, Inc. (OTC Bulletin Board: NZYM), a manufacturer of fine chemicals specializing in organic synthesis, biocatalysis and chiral technologies.

In addition to obtaining Bankruptcy Court approval, the boards of directors of both companies have approved the transaction. However, the merger remains subject to approval by Synthetech's shareholders and the satisfaction of other closing conditions.

About Synthetech

Synthetech, Inc., based in Albany, Oregon, is a fine chemicals company specializing in organic synthesis, biocatalysis and chiral technologies. Synthetech develops and manufactures amino acid derivatives, specialty amino acids, peptide fragments and proprietary custom chiral intermediates primarily for the pharmaceutical industry. Synthetech produces advanced pharmaceutical intermediates in accordance with current Good Manufacturing Practices (cGMP) and in compliance with U.S. Food and Drug Administration (FDA) regulations. Synthetech's products support the development and manufacture of therapeutic peptides and peptidomimetic (peptide-like) small molecule drugs from early stages of a customer's clinical development through market launch and into commercial production. Synthetech's products also support the production of chemically-based medical devices. Synthetech's domestic and international customer base includes major and mid-size pharmaceutical, contract drug synthesis, emerging and established biotechnology and medical device companies. Synthetech also supplies catalog quantities of specialty amino acids to research institutions, universities and drug discovery firms.

About Grace

Grace is a leading global supplier of catalysts and other products to petroleum refiners; catalysts for the manufacture of plastics; silica-based engineered and specialty materials for a wide range of industrial applications; sealants and coatings for food and beverage packaging, and specialty chemicals, additives and building materials for commercial and residential construction. Founded in 1854, Grace has operations in over 40 countries. For more information, visit Grace's web site at www.grace.com.

This announcement contains forward-looking statements, that is, information related to future, not past, events, including the proposed acquisition of Synthetech by W. R. Grace & Co.-Conn. For these statements, Synthetech claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements, including as a result of the failure to be satisfied of any closing conditions to the proposed acquisition of Synthetech, including any failure of Synthetech's shareholders to approve the transaction. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. Synthetech undertakes no obligation to publicly release any revisions to the forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.

Additional Information

In connection with the proposed merger, Synthetech, Inc. ("Synthetech") will file with the Securities and Exchange Commission
(the "SEC") a definitive proxy statement. Synthetech will mail the proxy statement to each of its shareholders. Synthetech urges shareholders to read the proxy statement regarding the proposed merger when it becomes available because it will contain important information. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC's website (www.sec.gov). You can also obtain free copies of the proxy materials from Synthetech by contacting Gary Weber, at Synthetech's offices at 1290 Industrial Way, Albany, Oregon 97322, at (541) 967-6575. You may also call our proxy solicitor, Georgeson Inc., at (888) 867-6963, toll free, to request a separate copy of these materials.

Synthetech and its directors, executive officers and various other members of management and employees may be soliciting proxies from Synthetech shareholders in favor of the merger agreement. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Synthetech shareholders in connection with the proposed merger will be set forth in the proxy statement when it is filed with the SEC. You can find information about Synthetech's executive officers and directors in its Annual Report on Form 10-K for the year ended March 31, 2010 filed with the SEC on June 10, 2010. You can obtain free copies of this document from Synthetech using the contact information above. Additional information regarding the interests of these potential participants will be included in the proxy statement and the other relevant documents filed with the SEC when they become available.

Contact:


Gary Weber


(541) 967-6575


SOURCE Synthetech, Inc.

NZYM 1.075, this is so healthy to me.

Ok I am at 11K but price is 1.04 on bid, my finger is so touchin trigger as it would release nice beans to make me get more bingo setups. but over 1.10 is in cards say soothsayer who may be hororable but has limp which makes him no can deliver?

Was hopen for more add-ons in low 90's but had the unforchenits stike me bad for unspeakable missed trades, and that would have solved this greedy puzzle.

NZYM 29719 1.00 0.04 29,719.00 0.00 20,114.86 9,604.14

Waiting for the $11K

GRACE TO ACQUIRE SYNTHETECH, INC.
FOR SINGLE-SITE CATALYST PRODUCTION




Columbia, Maryland – September 13, 2010 – W. R. Grace & Co. (NYSE:GRA) and Synthetech, Inc. (NZYM.OB) today announced that they have entered into a definitive merger agreement under which Grace will purchase Synthetech, a manufacturer of fine chemicals specializing in organic synthesis, biocatalysis and chiral technologies. The aggregate purchase price for the transaction is approximately $19.2 million , less Synthetech’s unpaid debt and transaction costs at closing, and subject to a minimum cash balance of $600,000. The acquisition will provide Grace with capacity for the manufacture of specialty single-site and polypropylene catalysts used to produce plastics. In addition, Synthetech’s fine chemicals expertise in chiral and peptide intermediate synthesis will expand Grace’s discovery sciences offerings to the pharmaceutical sector.


“The addition of Synthetech’s technical expertise and its manufacturing assets is an important step in building our polyolefin catalysts business,” said Greg Poling, Vice President of W. R. Grace & Co. and President of Grace Davison. “Synthetech gives us immediate production capacity for specialty single-site and polypropylene catalysts, which significantly enhances our ability to supply our large global customers with these specialized catalysts. The acquisition eliminates the need for investing in a grass-roots facility."


Mr. Poling added, "Synthetech’s established relationships with pharmaceutical companies and their expertise in the development-stage of patented drugs also will broaden our portfolio of products and services in our discovery sciences business."


Dr. Gregory R. Hahn, Synthetech’s President and CEO, noted, “The employees at Synthetech have worked hard over the past four years to successfully turn around the company. With the Grace agreement, we believe we have created additional value for all Synthetech stakeholders, including employees, customers, and particularly shareholders. We look forward to building a new future as part of Grace.”



Corporate Communications
W. R. Grace & Co.-Conn.
7500 Grace Drive
Columbia, MD 21044
Page of 1 of 3
--------------------------------------------------------------------------------





Single-site and polypropylene catalysts are used in the production of plastics for automobile parts, household appliances, and consumer product packaging. Grace’s line of polypropylene and polyethylene catalysts includes POLYTRAK ® , SYLOPOL ® and MAGNAPORE ® . Grace recently announced a multi-year agreement to supply polypropylene catalysts to Borealis AG, a leading provider of chemicals and innovative plastics solutions. The previously announced expansion of Grace's polypropylene catalyst manufacturing capacity at its Worms, Germany facility is expected to be in operation in mid-2011.


The transaction has been approved by the boards of directors of both companies, but is subject to approval by Synthetech’s shareholders and the U.S. Bankruptcy Court and the satisfaction of other closing conditions. Grace anticipates completing the transaction during the fourth quarter of 2010.


Synthetech, Inc. has 63 employees. The primary facility in Albany, Oregon includes production and R&D. A second location in San Diego, California is dedicated to R&D. The company will be integrated into Grace Davison’s Specialty Technologies business.


*******
About Grace
Grace is a leading global supplier of catalysts and other products to petroleum refiners; catalysts for the manufacture of plastics; silica-based engineered and specialty materials for a wide range of industrial applications; sealants and coatings for food and beverage packaging, and specialty chemicals, additives and building materials for commercial and residential construction. Founded in 1854, Grace has operations in over 40 countries. For more information, visit Grace's web site at www.grace.com.

About Synthetech
Synthetech, Inc., based in Albany, Oregon, is a fine chemicals company specializing in organic synthesis, biocatalysis and chiral technologies. Synthetech develops and manufactures amino acid derivatives, specialty amino acids, peptide fragments and proprietary custom chiral intermediates primarily for the pharmaceutical industry. Synthetech produces advanced pharmaceutical intermediates in accordance with current Good Manufacturing Practices ( cGMP ) and in compliance with U.S. Food and Drug Administration ( FDA ) regulations. Synthetech's products support the development and manufacture of therapeutic peptides and peptidomimetic (peptide-like) small molecule drugs from early stages of a customer's clinical development through market launch and into commercial production. Synthetech's products also support the production of chemically-based medical devices. Synthetech's domestic and international customer base includes major and mid-size pharmaceutical, contract drug synthesis, emerging and established biotechnology and medical device companies. Synthetech also supplies catalog quantities of specialty amino acids to research institutions, universities and drug discovery firms.



Corporate Communications
W. R. Grace & Co.-Conn.
7500 Grace Drive
Columbia, MD 21044
Page of 2 of 3
--------------------------------------------------------------------------------





This announcement contains forward-looking statements, that is, information related to future, not past, events. Such information generally includes the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “anticipates,” “continues”, “outlook” or similar expressions. For these statements, Grace and Synthetech claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Grace and Synthetech are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements or that could cause other forward-looking information to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements include: the fulfillment of the conditions to the closing of the transactions described in the merger agreement, Grace’s bankruptcy and proposed plan of reorganization, and those factors set forth in Grace’s and Synthetech’s respective most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. Grace and Synthetech undertake no obligation to publicly release any revisions to the forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.


###



Corporate Communications
W. R. Grace & Co.-Conn.
7500 Grace Drive
Columbia, MD 21044
Page of 3 of 3

Up $16K but failed to add on 88 cent low execution, need 1.10 to parley thoughts about letting some go.

Have had so little of these buyouts failed to add on below $1 below value buys, but recollect stock should hit close to real value less 5%?

News! buy out looks like $1.00 plus
MK

NZYM looking at "strategic alternatives"


With a book value of $.70+ and peak earnings power of perhaps $.15/share, I'd say NZYM could, in a buyout, fetch quite a bit more than the current $.60 stock price.


PRW: Synthetech Announces Engagement of Financial Advisor to Evaluate Strategic
Alternatives

ALBANY, Ore., June 28 /PRNewswire-FirstCall/ -- Synthetech, Inc. (OTC
Bulletin Board: NZYM) today announced that it has engaged Brocair Partners,
LLC to conduct a comprehensive review of strategic alternatives aimed at
enhancing shareholder value. Strategic alternatives Synthetech may pursue
could include, among others, execution of Synthetech's operating plan, the
sale or acquisition of assets or businesses, partnering or other
collaboration agreements or arrangements, a merger or sale of the company or
other strategic transactions. The exploration of strategic alternatives may
not result in any agreement or transaction and, if completed, any agreement
or transaction may not be successful or on attractive terms. Synthetech does
not intend to disclose developments with respect to this process unless and
until the evaluation of strategic alternatives has been completed or it
enters into definitive agreements for a specific, material transaction.
About Synthetech
Synthetech, Inc., based in Albany, Oregon, is a fine chemicals company
specializing in organic synthesis, biocatalysis and chiral technologies.
Synthetech develops and manufactures amino acid derivatives, specialty amino
acids, peptide fragments and proprietary custom chiral intermediates
primarily for the pharmaceutical industry. Synthetech produces advanced
pharmaceutical intermediates in accordance with current Good Manufacturing
Practices (cGMP) in compliance with U.S. Food and Drug Administration (FDA)
regulations. Synthetech's products support the development and manufacture
of therapeutic peptides and peptidomimetic (peptide-like) small molecule
drugs from early stages of a customer's clinical development through market
launch and into commercial production. Synthetech's products also support
the production of chemically-based medical devices. Synthetech's domestic
and international customer base includes major and mid-size pharmaceutical,
contract drug synthesis, emerging and established biotechnology and medical
device companies. Synthetech also supplies catalog quantities of specialty
amino acids to research institutions, universities and drug discovery firms.


MORE INFORMATION:
Web site: www.synthetech.com
E-mail: investor@synthetech.com

CONTACT:
Gary Weber, CFO
PO Box 646 Albany, Oregon 97321
541 967-6575


SOURCE Synthetech, Inc.
/CONTACT: Gary Weber, CFO of Synthetech, Inc., +1-541-967-6575
/Web site: http://www.synthetech.com

lol pe at 5.45 and no volume???

I just listened to the call and actually found the things they said regard Hep-C quite useful. If they are giving us up-to-date info then neither Vertex nor Schering are customers as they are both (far along) in Phase 3. They also mentioned no significant Hep-C revenue till 2011.

Appreciate the call notes KIK. I think I will move listening to the call a little lower on my priority list .

I listened to the call...

Overall, certainly no need to run out and buy the stock for awhile. However, there were some positives:

-backlog rose sequentially from $1.9M to $2.7M

-Q3 book-to-bill was 1.33 ($3.2M in orders vs $2.4 in revenues)

-Q4 profitability should be at least $.01/share if they hit their forecast of FY10 earnings matching FY09

-they described the disappointing Q3 results as "quite an anomaly" and blamed the disruptive impact of "the healthcare initiative"

-they seemed quite optimistic about their new research center in San Diego, which will be fully operational in the June quarter. It's designed to serve low-volume, rapid turnaround clients

Summing up, with a book value of $.72/share, expected FY10 EPS of $.08, and past earnings power of $.05-.07 quarterly, I view NZYM shares as undervalued at current prices.

As for HepC, there was little commentary positive or negative, IMO.

Did anyone catch the call? I had another call at the same time and didn't see the replay on the website. I'll call in tomorrow (later today) if its not available on-line but was wondering if anyone caught it if they said anything worthwhile particularly regarding the Hep-C opportunity. TIA

The numbers were actually a lot better then I would have guessed (revenue and loss).

I will try to hear the call later today to see if they give any further hints at any of their customers in HCV and prospects in that area.

I would also want to see how their backlog looks before considering an investment.

re NZYM: don't know either way...

about whether they supply Vertex.

KIK thanks for the link to your post. I haven't followed them very closely to know how much a weak quarter could effect them but I wouldn't disagree on the lottery ticket analogy.

Would you happen to know if they supply Vertex (J&J is Vertex's partner in Europe)? I heard them mention Roche/InterMune in passing while not directly saying they supply them (but they are only in Phase 2 right now). I think that is by far the most lucrative (near term) opportunity for them.

ghmm, NZYM looks like a lottery-ticket-type opportunity at current price levels...

here's a post I made about the company after the last CC....

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43437549&txt2find=nzym

Yeah their backlog was down pretty low and in the conference call it was basically implied this quarter would be very weak.

My interest stems from the high POSSIBILITY that they could get some significant orders for the API they supply for Protease Inhibitors. I haven't dug deeply enough to see if they supply Vertex. In their (Synthetech) presentations they have talked about supplying 4 or so companies that have HCV products in development (they talked on a less technical level then the Biotech's I follow but I am certain they were referring to Protease Inhibitors and possibly Polymerase Inhibitors as well). If Vertex is one (or becomes one) this could be an extremely large order for them as Vertex's Protease is completing Phase 3 and they will need to ramp up production and get longer term supply agreements in place BEFORE approval (probably sometime in '11) and there will be a lot more drug needed for sale then used in the trials. Schering Plough (now part of Merck) also is in Phase 3 and while their compound has some issues even small sales here could be significant for NZYM if they supply them but I would much prefer to see NZYM be supplying Vertex.

If it tanks after next earnings I may try to dig around more to see if they are/how likely they are to supply either and to what extent (Bio/Pharma's usually have multiple suppliers). While I could guess potential sales its beyond my science capability to know what that would translate to in sales of the API Synthetech would could supply then there is the additional guess of how big a supplier Synthetech would be.

I picked them in the charity contest because I thought it was an interesting speculation that could be a huge windfall for them and could occur this year (certainly at least the order). And being as the competition is for charity it only costs me the amount I pledged to the winner.

So I guess bottom line is I doubt I'll buy but never say never

I am long out of here as well

I have played this one on and off for years. I expect some weak performance in the forseeable future so no reason to own it right now.

There next quarter should be pretty bad (I just went over their conference call) baring any big surprise orders (and they don't pr much so who knows). I think I will look into them after they report especially if the stock gets hammered more . I picked them in a charity contest because their ties to some Hep-C compounds if Vertex is one I would be more inclined to buy.

I already sold out.
Was playing them for a small trade tied to their big bump in revs.
Didn't look at it too heavily backthen but it does seem cheap superficially right now.

Their next Q I would think should be out before long, maybe there's some pessimism form that dropping this now? My guess is with backlog down so much thta they will ahve a couple weak Qs ahead. I'll try to keep an eye on it though.

Wow surprised to see you and Gilead here! I had this on my follow list from the biotech/pharma side of my investing interests. I saw it dropped to a very attractive price range and was doing some DD on it.

Did you look into it much?

NZYM........very nice numbers reported last week. This was posted a few weeks ago at .59 and should have some legs after reporting net income of .07 per share for the first quarter.

http://finance.yahoo.com/news/Synthetech-Reports-First-prnews-1462496361.html?x=0&.v=1

Synthetech Reports First Quarter Fiscal 2010 Results

Commenting on the financial results, Dr. Gregory Hahn, President and CEO, stated, "It is a great start for fiscal year 2010. First quarter revenues of $4.7 million, operating profit of 22% and net income of $969,000 further exemplify the benefits of our actions aimed at expanding markets, improving production efficiencies, and reducing costs. We remain guardedly optimistic about overall performance for the balance of fiscal year 2010 based on a reasonable $4.6 million order backlog, a robust project pipeline providing us with additional market opportunities, and better than expected strength in our biopharmaceutical customer base. In addition, the full benefit of our cost reduction plan implemented in the first quarter begins in the second quarter."

Is anyone here familiar with the "medical devices" NZYM is involved with? I saw their revenues in this area jumped 1,000% YOY from 2008 to 2009. I have sent the company two e-mails and am waiting to hear back.

Thanks for any insight.

Gilead, I nibbled today (finally got just a little).
For one, the big order didn't completely ship this Q (although after seeing margins this Q I am wondering if the big order is all that lucrative).

In January 2009, Synthetech received a $2.0 million advance from a major pharmaceutical company in support of a large order placed in November 2008, and which currently is scheduled to ship during the fourth quarter of fiscal 2009 and the first quarter of fiscal 2010, which begins on April 1, 2009.


I am hoping (not necessarily guessing) that some of the bigger SGA was associated with the big order and was charged mostly in this most recent Q reported so the rest of the order being rcognized in the upcoming Q will have lower overhead SGA with it.
I only bought a little, and this is just a hope not a guess. Plus I want to review the whole 10Q when it gets out tonight.
OK off for the day.

I come in a little late and it looks as though I ate the whole thing.. hank

06/04/09 9:32 AM EDT Buy 3 NZYM Executed @ $0.8828 Details | Edit
06/04/09 9:31 AM EDT Buy 8735 NZYM Executed @ $0.8828 Details | Edit
06/04/09 9:31 AM EDT Buy 188 NZYM Executed @ $0.9228 Details | Edit
06/04/09 9:31 AM EDT Buy 3700 NZYM Executed @ $0.9228 Details | Edit

Synthetech Announces Fiscal 2009 Results
Jun 3, 2009 4:05:00 PM


Email Story Discuss on ZenoBank

View Additional ProfilesALBANY, Ore., June 3 /PRNewswire-FirstCall/ -- Synthetech, Inc. (OTC Bulletin Board: NZYM) today announced financial results for its fiscal fourth quarter and fiscal year, which ended March 31, 2009.


For the fourth quarter ended March 31, 2009, revenue was $6.6 million, a 45% increase from revenue of $4.6 million for the same period last year. Gross income for the current quarter was $2.0 million, compared to gross income of $1.1 million for the same period last year. Operating income for the current quarter was $704,000, compared to $128,000 for the same period last year. Net income for the fourth quarter ended March 31, 2009 was $657,000, or $0.04 per share, compared to $113,000, or $0.01 per share, in last year's corresponding period.


The Company reported revenue of $19.9 million for fiscal 2009, a 36% increase from revenue of $14.6 million in fiscal 2008. Gross income in fiscal 2009 was $5.5 million, compared to gross income in fiscal 2008 of $2.9 million. Operating income in fiscal 2009 was $1.3 million, compared to an operating loss in fiscal 2008 of $1.1 million. Net income for fiscal 2009 was $1.2 million, or $0.08 per share, compared to a net loss for fiscal 2008 of $1.2 million, or $0.08 per share.


International sales, principally to Western Europe, were $11.1 million and $5.7 million in fiscal 2009 and 2008, respectively. International sales, like all of Synthetech's revenues, are subject to significant quarterly fluctuations based on the timing of customer's projects as they progress through the clinical trials process.


Revenue for the fourth quarter and full year of fiscal 2009 compared to the comparable periods of the prior year benefited from growth in existing large-scale projects and an increase in the number and average size of new projects. Fiscal 2009 gross income benefited from the increased level of sales. Additionally, in fiscal 2008 production process difficulties reduced revenue and increased per unit costs. Management estimates that manufacturing difficulties related to certain customer projects reduced fiscal 2008 gross margins by approximately $1.7 million. Production processes improved in fiscal 2009.


Fiscal 2009 cost of revenue, research and development and selling, general and administrative expenses include $185,000, $81,000 and $384,000, respectively, of charges for employee incentives pursuant to Synthetech's Key Employee Performance Plan (KEPP), the Company's primary bonus program. There were no employee incentives accrued pursuant to the KEPP in fiscal 2008.


The Company's cash and cash equivalents were $588,000 at March 31, 2009, compared to $1.1 million at March 31, 2008. As of March 31, 2009, Synthetech's working capital was $5.9 million, compared to $4.4 million at March 31, 2008. The increase in working capital between the two periods is primarily the result of fiscal 2009 net income. As of March 31, 2009, Synthetech had no outstanding borrowings under its line of credit, compared to $905,000 on March 31, 2008.


Synthetech, Inc.
Condensed Statements of Operations
(unaudited)

(in thousands, Three Months Ended Year Ended
except per March 31, March 31,
share data) 2009 2008 2009 2008

Revenue $6,617 $4,557 $19,862 $14,561
Cost of revenue 4,621 3,437 14,314 11,707
Gross income 1,996 1,120 5,548 2,854

Research and development 352 380 1,302 1,362
Selling, general and administrative 940 612 2,938 2,603

Operating income (loss) 704 128 1,308 (1,111)

Interest income 1 4 7 20
Interest expense (48) (19) (164) (83)
Income (loss) before income taxes 657 113 1,151 (1,174)

Income tax expense (benefit) - - - -
Net income (loss) $657 $113 $1,151 $(1,174)

Basic and diluted income (loss)
Per share $0.04 $0.01 $0.08 $(0.08)



Dr. Gregory Hahn, President and CEO, stated, "The recent downturn in the economic environment and resulting difficulties in the credit markets did not impact our business. Our third consecutive year of increased revenues combined with gains in production efficiencies and purchasing cost reductions resulted in a nicely profitable fiscal 2009. Repeat orders from major pharmaceutical companies for ongoing strategic projects in clinical studies comprised the bulk of revenue gains compared with fiscal 2008 performance. Two new medical device customers contributed $2.3 million of revenue, up from $278,000 in fiscal 2008. We saw significant contributions to income from resolution of various production difficulties Synthetech experienced in the previous year. We also operated safely, ending the year with over two years without a recordable incident. Overall, it was a very good year."


Looking forward, Dr. Hahn notes "we are seeing some weakness in the emerging biopharmaceuticals market, where difficulty raising funds impairs ongoing drug development projects. In addition, some major pharmaceutical companies appear to be reducing their outsourcing expenditures. Both of these issues also impact our contract drug synthesis market where our traditional peptide building block products are sold. Despite potential adverse effects on our future revenues as a result of these issues, we continue to receive orders from both our emerging biopharmaceutical and contract drug synthesis customers and are not able to determine if the poor economic environment will have a significant unfavorable effect on our fiscal 2010 operating results. Due to demand issues for the products of both of our existing medical device customers, we expect that any meaningful revenue from either of these customers would be generated only in late fiscal 2010. Despite these challenging economic and market conditions, we remain guardedly optimistic as we enter fiscal 2010. Synthetech's order backlog as of March 31, 2009, was approximately $6.8 million, with most of these orders scheduled to ship during the first half of fiscal 2010."


Management anticipates that Synthetech's revenue will continue to be volatile from period to period. Variability in Synthetech's level of revenue is based primarily on its participation in large-scale customer projects and the timing of shipments arising from these projects. Synthetech operates in a challenging business environment, characterized by the unpredictable dynamics and life cycle of pharmaceutical projects, which can lead to rapid fluctuations in the mix of projects and revenues. As the uncertainties inherent in drug development projects remain outside of Synthetech's control, it is difficult to predict the progress, timing and revenue potential of these projects.


About Synthetech

Synthetech, Inc., based in Albany, Oregon, is a fine chemicals company specializing in organic synthesis, biocatalysis and chiral technologies. We develop and manufacture amino acid derivatives, specialty amino acids, peptide fragments and proprietary custom chiral intermediates and specialty resins, primarily for the pharmaceutical industry. Synthetech produces advanced pharmaceutical intermediates in accordance with Current Good Manufacturing Practices (cGMP) in compliance with U.S. Food and Drug Administration (FDA) regulations. Our products support the development and manufacture of therapeutic peptides and peptidomimetic (peptide-like) small molecule drugs from early stages of a customer's clinical development through market launch and into commercial production. Synthetech's products also support the production of chemically-based medical devices. Synthetech's domestic and international customer base includes major pharmaceutical, contract drug synthesis firms, emerging biotechnology (virtual pharmaceutical) and medical device companies. We also supply catalog quantities of specialty amino acids to research institutions, universities and drug discovery firms.


Forward-Looking Statements

This press release contains "forward looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking, including, without limitation, statements regarding: future operating results; market conditions and opportunities; the timing and amount of shipments; the resolution of manufacturing difficulties; the impact of the recent economic and credit crises on the Company's business and customers; and revenue from medical device customers in fiscal 2010. Words such as "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result," or words or phrases of similar meanings identify forward-looking statements. Forwardlooking statements reflect management's current expectations, plans or projections and are inherently uncertain and actual results could differ materially from such expectations, plans or projections. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Risks and uncertainties that could cause actual results to differ significantly from management's expectations include, but are not limited to, the following: Synthetech's limited financial and other resources; the uncertain market for Synthetech's products; potential loss of a significant customer; customer concentration; potential termination or suspension by customers of significant projects or orders; potential period-to-period revenue or expense fluctuations; production factors and timely access to raw materials; industry cost factors and conditions; competition; government regulation; labor disputes; technological changes; and international business risks. Investors are urged to read Synthetech's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2008, for a further description of risks and uncertainties related to forward-looking statements made by Synthetech as well as to other aspects of Synthetech's business. Those reports describe, some, but not all of the factors that could cause actual results to differ significantly from management's expectations. Additional risks and uncertainties not presently known to Synthetech or which Synthetech currently deems immaterial also may impair its business or operations. Synthetech does not intend to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


MORE INFORMATION: Web site: www.synthetech.com
E-mail: investor@synthetech.com

CONTACT: Gary Weber, CFO
PO Box 646
Albany, Oregon 97321
541 967-6575


SOURCE Synthetech, Inc.



----------------------------------------------
Gary Weber
CFO of Synthetech
Inc.
+1-541-967-6575
investor@synthetech.com

Thats all I found..hank

06/01/09 2:20 PM EDT Buy 2000 NZYM Executed @ $0.78 Details | Edit
06/02/09 10:17 AM EDT Buy 2150 NZYM Executed @ $0.802 Details | Edit

Thats all I found..hank

06/01/09 2:20 PM EDT Buy 2000 NZYM Executed @ $0.78 Details | Edit
06/02/09 10:17 AM EDT Buy 2150 NZYM Executed @ $0.802 Details | Edit

Let me know what you think

I am torn between whether its an investment or quick trade but I am willing to start with the trade hypothesis and see how their business looks going forward.

not me, but I did see your post on the other board and will book mark this one. Interesting company.

question now is who picked up the 2500 at .78?

You?
KIK?
SSkillz?

Random yahoo who likes stocks with the letter Z?

haven't done the r-squared's on this one but I doubt its like KEQU. A 90% correlation between inv/revs is just scary.

Ya well I don't own any yet (drat) and don't like paying up on big spreads.
The surprise to me was the ability to see how well the coming Q should be and the lack of reaction. Those are the kinds of situations I really like when they are found, but missed on this one. It gives confidence to a holder to have a very good idea of what the revs #s will look like.

At the very least what this will do is create a crowd to watch for earnings and then see reaction to that I would venture.
Considering last earnings went right by most everyone, I doubt that will happen this time.
I'm too lazy these days to get up early premarket to be ahead of/with the crowd on news. I'm mostly behind. Which isn't too good when my largest holding is a popular VMC holding!

So I'm trying to find new ideas outside what is talked about on the boards and keeping a lower profile (I'm too slow and old to keep up with all the news blurbs coming out on bunches of companies with the I-Hub crowds).

I even broke down and bought some BRK-B last week! True slothdom.

Good luck with this one, hopefully this Q is not only strong but backlogs stay reasonable. I haven't looked to see where backlogs figures were going into the last 4/5 Qs you mentioned. Might show something or maybe not.
Would be nice to have that stuff you work with that was showing the correlations with KEQ U.

Obviously word is not out yet. I always like to do these little posts on obscure boards to see who might catch them

EPS should be any day now

Big question is how sustainable revenues are

SSKILLZ and I exchanged emails on this. That was his general concern. My take is that they are profitable in the .04 range with revs of 5 million. They have hit 4.5 million plus in what will be 4/5 quarters after this Q so there is some trend to suggest revenues can be maintained at very profitable levels.

They also have a 3 year record of annualized revenue increases. My speculation is that bringing Farkas on is a primary reason for the margin bump. That was after all why he was signed up in the first place. Those better margins could mean a string of very nice quarters assuming they can continue to sign deals.

I wish I hadn't missed it myself. Oh well. I was too busy back in February to spend much time on stocks.

Probably get some interest after the next earnings report. A bit surprised though that last Q's report didn't drum up some interest. It went by me (oops).

seriously lacking activity here

NEWS 9/30/08:

Synthetech Announces New Director of Manufacturing

ALBANY, Ore., Sept 30, 2008 /PRNewswire-FirstCall via COMTEX/ -- Synthetech, Inc. (OTC Bulletin Board: NZYM) announced today the appointment of Dr. Frederic Farkas as Director of Manufacturing effective on October 1, 2008. Since May 2008, Dr. Farkas has provided consulting services to Synthetech. Dr. Farkas has over 13 years' experience with amino acid derivatives, peptides and API manufacturing from previous positions in manufacturing and supply chain management at Bachem Corporation, Novartis AG and Senn Chemicals Company, where he most recently served as Director of Manufacturing. Dr. Farkas earned a Bachelor of Science degree in Chemistry and a Doctor of Philosophy, Organic Chemistry, both from University Basel in Switzerland.
"We are very pleased to have Frederic join Synthetech and contribute his production skills and knowledge," stated Dr. Gregory R. Hahn, President and CEO. "Frederic brings extensive manufacturing management experience from both the pharmaceutical and fine chemical industries."

"I am pleased with the opportunity to improve production performance and continue the turnaround efforts at Synthetech," said Dr. Farkas. "Synthetech has developed an excellent reputation in unnatural amino acids, peptide chemistry and multi-step chiral organic synthesis. I am eager to build on Synthetech's strengths and look forward to meeting the challenge of improving manufacturing efficiencies and costs. I also look forward to working with the Synthetech team to meet both the short- and long-term challenges at Synthetech."

About Synthetech

Synthetech, Inc. is a fine chemicals company specializing in organic synthesis, biocatalysis and chiral technologies. Synthetech develops and manufactures amino acid derivatives, specialty amino acids, peptide fragments, proprietary custom chiral intermediates and specialty resins, primarily for the pharmaceutical industry. Synthetech's products support the development and manufacture of therapeutic peptides and peptidomimetic small molecule drugs at every stage of a customer's clinical development pipeline, and are used as ingredients in drugs for the treatment of AIDS, cancer, cardiovascular and other diseases.