(I found this story from the business pages, an interesting look at the
formula industry.  This drop in Martek shares is significant - this story
showed up in numerous business pages of newspapers, today.  The other
stories just quoted Martek, explaining that the downturn in sales was just
caused by the fact that manufacturers had overstocked the oils, and sales
were temporarily off while these inventories were drawn down.  The analysts
interviewed below give completely other reasons.

When they mention "food programs" in the article, do you think they mean
WIC?  What is WIC buying these days - the supplemented formula, or the old
basic ones?  Perhaps WIC didn't take up the new formulas as widely as
expected?

Janice Reynolds)

Martek Biosciences shares off 14 percent

http://www.businessweek.com/ap/financialnews/D8EG6LRO4.htm?campaign_id=apn_home_down&chan=db

Martek Biosciences Corp., a maker of nutritional oils used in baby formula
and dietary supplements, saw its shares slide 14 percent Wednesday on a
bleak quarterly outlook

<snip>

First Albany's David Webber cut his first-quarter estimate for adjusted
profit to 13 cents a share and predicted "modest" growth for all of fiscal
2006. He cited an apparent slowing in growth of U.S. infant formula sales,
uncertainty about overseas launches of fortified formula and "serious
competition for food supply contracts."

Merrill Lynch analyst David Munno expressed similar concerns about a lack of
guidance from Martek about the timing or scale of food program launches. He
reiterated his "Sell" rating for the stock and suggested $19 to $21 as a
fair value.

Citigroup analyst Elise Wang was less pessimistic about the company, noting
that Martek is still negotiating new agreements with key infant formula
manufacturers and food companies. She said these contracts may result in
product sales growth once finalized.

"We continue to believe the market demand for Martek's products in the
infant formula area remains intact," Wang wrote. She argued that large
formula makers such as Mead Johnson & Co., Ross Laboratories, Wyeth and
Nestle SA have sufficient profit incentives to join with Martek in its
efforts for market expansion in the U.S. and abroad.

(see link for full article)

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