PiperJaffray analyst gives Sterigenics a strong buy.
CHICAGO, Dec 2 (Reuters) - Shares of Steris Corp (Nasdaq:STRL - news) and SteriGenics International Inc
(Nasdaq:STER - news) traded higher on Tuesday after the U.S. Food and Drug Administration (FDA) approved the
irradiation of beef, opening an opportunity for the companies that offer irradiation services to the medical industry.
SteriGenics shares gained 2-3/4 to 21-1/2. The stock of Steris, which earlier this year bought Isomedix Inc, which offers
sterilization services to health care and consumer products companies, gained 1-5/16 to 49-5/16.
Piper Jaffray analyst Thomas Gunderson said the FDA approval of irradiation of beef, lamb and pork to control food-borne
illnesses offers an opportunity for both Steris and SteriGenics.
''There will be a lot more irradiation of food,'' Gunderson said, adding Steris and SteriGenics have the technology that can be
adapted for use in food.
Isomedix, which is now part of Steris, petitioned the FDA to approve irradiation of red meat in 1994.
Gunderson rates Steris a buy and SteriGenics a strong buy.
Shares of Food Technology Service Inc (Nasdaq:VIFL - news), which irradiates poultry, rose 4-15/16 to 10-1/8. |
