SANTA CLARA, Calif. - Agilent Technologies Inc. (NYSE: NYSE:A), a global leader in analytical and clinical laboratory technologies, has announced the signing of a definitive agreement to acquire BIOVECTRA, a specialized contract development and manufacturing organization (CDMO), for $925 million.
The acquisition is aimed at expanding Agilent's end-to-end biopharma solutions, which are crucial in accelerating drug discovery, development, and manufacturing.
BIOVECTRA, based in Canada, is recognized for producing biologics, highly potent active pharmaceutical ingredients (APIs), and other molecules for targeted therapeutics.
With this acquisition, Agilent will enhance its portfolio of services, including sterile fill-finish services, pDNA, mRNA capabilities, and lipid nanoparticle (LNP) formulation. The addition of BIOVECTRA is expected to bolster Agilent's capabilities in growing segments such as antibody drug conjugates (ADCs), highly potent APIs, and GLP-1.
Both Agilent and BIOVECTRA are fully integrated CDMOs with facilities that adhere to current Good Manufacturing Practices (cGMP), ensuring high standards in manufacturing, processing, and packaging of pharmaceutical ingredients. Agilent's President and CEO, Padraig McDonnell, expressed enthusiasm for the acquisition, noting BIOVECTRA's innovation record and shared commitment to delivering value to biopharma customers.
BIOVECTRA has served biotech and pharmaceutical companies in North America and Europe, supporting early-stage clinical development to large-scale commercial manufacturing. In 2023, the company reported $113 million in revenue and anticipates double-digit growth in 2024.
The acquisition, however, is expected to be $0.05 dilutive to Agilent's non-GAAP EPS in the first full year after the transaction closes. Agilent plans to fund the acquisition using cash on hand and debt financing.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before 2025. Upon closing, BIOVECTRA will become part of the Agilent Diagnostics and Genomics Group.
This strategic move is based on a press release statement and aligns with Agilent's revenue of $6.83 billion in fiscal 2023 and its global workforce of approximately 18,000. Agilent's commitment to providing solutions across a range of instruments, software, services, and expertise is aimed at delivering trusted answers to customers' most challenging questions. The acquisition of BIOVECTRA is a step further in enhancing Agilent's integrated solutions for the biopharma industry.
In other recent news, Agilent Technologies reported mixed results for the second quarter of 2024, with a 7.4% decline in revenue, totaling $1.573 billion, but an earnings per share (EPS) of $1.22 that exceeded expectations.
The full-year core revenue outlook has been revised, projecting a decrease between 4.3% and 5.4%, with EPS anticipated to be between $5.15 and $5.25. The company also announced its plan to repurchase $750 million of its common stock in the latter half of the year.
Agilent Technologies appointed Bret DiMarco as Senior Vice President and Chief Legal Officer, aiming to enhance its customer focus and agility in the marketplace. Wolfe Research downgraded Agilent's stock rating to peerperform, while Citi reaffirmed its neutral stance on Agilent, citing potential revenue boost from positive trial results from Alnylam Pharmaceuticals' HELIOS-B clinical study.
The company launched two new mass spectrometry products, the Agilent 7010D Triple Quadrupole GC/MS System and the Agilent ExD Cell, aimed at addressing the needs of various sectors including bio/pharma, life science research, food, and environmental sectors. These are the recent developments for Agilent Technologies.
InvestingPro Insights
As Agilent Technologies Inc. (NYSE: A) moves to strengthen its position within the biopharma sector through strategic acquisitions, its financial health and market performance remain key factors for investors to consider. The company's proactive management approach is reflected in their share repurchase initiatives, as noted in one of the InvestingPro Tips, indicating a confidence in the company's value and a commitment to returning value to shareholders.
InvestingPro Data highlights Agilent's robust market capitalization of $38.45 billion, showcasing its significant presence in the industry. Furthermore, the company's P/E Ratio stands at 30.93, suggesting that investors are willing to pay a higher price for earnings, possibly due to expected growth or a strong track record. This is further substantiated by the company's Gross Profit Margin for the last twelve months as of Q2 2024, at a healthy 50.63%, reflecting efficient operations and a solid competitive edge in its market.
Investors looking for stability may take note of Agilent's consistent dividend payments over the past 13 years, a testament to its financial reliability and investor-friendly approach. Additionally, considering the company's dividend yield of 0.72% and a positive dividend growth of 4.89%, Agilent appears to balance growth with rewarding its shareholders.
To gain deeper insights and explore additional InvestingPro Tips, such as the company's low price volatility and its ability to cover interest payments with cash flows, interested parties can visit the InvestingPro platform for Agilent Technologies. For those considering a subscription, use coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. In total, there are 11 additional InvestingPro Tips available, which provide a comprehensive analysis to help investors make informed decisions.
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