Martek Biosciences Corp.

6480 Dobbin Rd.

Year founded: 1985

Industry: Biotechnology

Post 200 Category: Top 125 Companies

Revenue: $184.49 Million

Net Income/Loss: $47.05 Million

Earnings per share: $1.55

Dividend: n/a

Stockholder equity: $346.16 Million

Auditor: Ernst & Young LLP

Stock: MATK

Assets: $501.40 Million

Market capitalization: $1.84 Billion

52-week high: 72.69 5/13/2004

52-week low: 38.5 11/12/2004

Chairman and CEO: Henry Linsert Jr.

President: Steve Dubin

Employees: 598

Local employees: 115

Description: Martek Biosciences uses algae to produce two nutritional oils, docosahexaenoic acid, or DHA, and arachidonic acid, or ARA, that have become popular infant formula additives. DHA is also gaining popularity as an adult nutritional supplement.

Developments: Martek recorded its third straight year of operating profits and continues to enjoy strong growth. Revenue for the fiscal year that ended Oct. 31 was up 61 percent to $184.5 million, and the company is predicting revenue of $300 million this year, said President Henry "Pete" Linsert Jr. Last year, demand far outstripped supply because a power failure in Italy and a fire in New Jersey affected plants run by the subcontractor that produces AHA. Profit margins, which slipped a bit in 2004 because of the supply problems and the dollar's decline against the euro, are expected to climb now that a $180 million expansion of the firm's manufacturing stock is nearing completion, said Chief Financial Officer Peter L. Buzy. Martek's additives are used in 75 percent of U.S. infant formula and 25 percent worldwide. The company's plans for international expansion were dealt a blow in November when the European Patent Office revoked one of its blended oil patents. The blend patent remains in effect while the company appeals, a process that could take more than a year. Martek won a similar case on appeal several years ago. The company got some good news in early February, when the company signed a 15-year deal to supply DHA to Kellogg Co. for use in a variety of food products, and company executives are predicting $500 million in sales for 2006. "We're not a one-trick pony. It's not just an infant formula company," Buzy said.