Agilent Completes Acquisition of BIOVECTRA
Agilent Technologies Inc. (NYSE: A) has completed its acquisition of BIOVECTRA, a Canada-based contract development and manufacturing organization (CDMO) specializing in biologics, highly potent active pharmaceutical ingredients, and other molecules for targeted therapeutics. The acquisition, now part of Agilent's Diagnostics and Genomics Group, expands Agilent's portfolio of CDMO services and adds rapidly growing modalities to support gene editing.
Agilent CEO Padraig McDonnell emphasized the company's commitment to providing advanced capabilities for accelerating therapeutics programs. The transaction is expected to be $0.05 dilutive to non-GAAP earnings per share (EPS) in the first full year after closing but is projected to deliver a double-digit return on invested capital (ROIC) by year five. Agilent funded the acquisition using a mix of cash on hand and debt financing.
Agilent Technologies Inc. (NYSE: A) ha completato l'acquisizione di BIOVECTRA, un'organizzazione canadese di sviluppo e produzione a contratto (CDMO) specializzata in biologici, principi attivi farmaceutici altamente potenti e altre molecole per terapie mirate. L'acquisizione, ora parte del Gruppo Diagnostica e Genomica di Agilent, amplia il portafoglio di servizi CDMO di Agilent e aggiunge modalità in rapida crescita per supportare l'editing genetico.
Il CEO di Agilent, Padraig McDonnell, ha sottolineato l'impegno dell'azienda a fornire capacità avanzate per accelerare i programmi terapeutici. Si prevede che la transazione sarà $0.05 diluitivo all'utile per azione non-GAAP (EPS) nel primo anno completo dopo la conclusione, ma si prevede di offrire un ritorno a due cifre sul capitale investito (ROIC) entro il quinto anno. Agilent ha finanziato l'acquisizione utilizzando una combinazione di liquidità disponibile e finanziamenti a debito.
Agilent Technologies Inc. (NYSE: A) ha completado la adquisición de BIOVECTRA, una organización canadiense de desarrollo y fabricación por contrato (CDMO) especializada en biológicos, ingredientes farmacéuticos activos de alta potencia y otras moléculas para terapias dirigidas. La adquisición, ahora parte del Grupo de Diagnósticos y Genómica de Agilent, amplía la cartera de servicios CDMO de Agilent y agrega modalidades de rápido crecimiento para apoyar la edición genética.
El CEO de Agilent, Padraig McDonnell, enfatizó el compromiso de la compañía de proporcionar capacidades avanzadas para acelerar los programas terapéuticos. Se espera que la transacción sea $0.05 dilutiva a las ganancias por acción no-GAAP (EPS) en el primer año completo después del cierre, pero se proyecta que ofrecerá un retorno de dos dígitos sobre el capital invertido (ROIC) para el quinto año. Agilent financió la adquisición utilizando una combinación de efectivo disponible y financiamiento de deuda.
Agilent Technologies Inc. (NYSE: A)는 BIOVECTRA를 인수하였습니다. BIOVECTRA는 생물학적 제제, 고효능 활성 제약 성분 및 표적 치료를 위한 기타 분자에 전문화된 캐나다 기반의 계약 개발 및 제조 조직 (CDMO)입니다. 이번 인수는 Agilent의 진단 및 유전체 그룹의 일부가 되어 Agilent의 CDMO 서비스 포트폴리오를 확장하고 유전자 편집을 지원하는 빠르게 성장하는 모달리티를 추가합니다.
Agilent의 CEO인 Padraig McDonnell은 치료 프로그램을 가속화하기 위한 고급 기능 제공에 대한 회사의 의지를 강조하였습니다. 이번 거래는 첫 해 전체에 대해 비-GAAP 주당순이익 (EPS) 기준으로 $0.05 희석될 것으로 예상되지만, 5년 차에는 투자자본수익률 (ROIC)이 두 자릿수에 이를 것으로 예상됩니다. Agilent는 현금과 부채 금융의 혼합을 사용하여 인수를 자금 조달하였습니다.
Agilent Technologies Inc. (NYSE: A) a acheté BIOVECTRA, une organisation canadienne de développement et de fabrication sous contrat (CDMO) spécialisée dans les biologiques, les ingrédients pharmaceutiques actifs hautement puissants et d'autres molécules pour des thérapies ciblées. Cette acquisition, désormais intégrée au groupe Diagnostics et Génomique d'Agilent, élargit le portefeuille de services CDMO d'Agilent et ajoute des modalités à forte croissance pour soutenir l'édition génétique.
Le PDG d'Agilent, Padraig McDonnell, a souligné l'engagement de l'entreprise à fournir des capacités avancées pour accélérer les programmes thérapeutiques. La transaction devrait entraîner une dilution de 0,05 $ des bénéfices par action non-GAAP (EPS) au cours de la première année complète après la clôture, mais devrait également offrir un retour à deux chiffres sur le capital investi (ROIC) d'ici la cinquième année. Agilent a financé cette acquisition par une combinaison de liquidités disponibles et de financement par emprunt.
Agilent Technologies Inc. (NYSE: A) hat die Übernahme von BIOVECTRA abgeschlossen, einem in Kanada ansässigen Unternehmen für Vertragsentwicklung und -produktion (CDMO), das sich auf Biologika, hochwirksame Arzneiwirkstoffe und andere Moleküle für zielgerichtete Therapien spezialisiert hat. Die Akquisition, die nun Teil von Agilents Diagnostik- und Genomik-Gruppe ist, erweitert das Portfolio der CDMO-Dienstleistungen von Agilent und fügt schnell wachsende Modalitäten zur Unterstützung der Genbearbeitung hinzu.
Der CEO von Agilent, Padraig McDonnell, betonte das Engagement des Unternehmens, fortschrittliche Fähigkeiten zur Beschleunigung therapeutischer Programme bereitzustellen. Man erwartet, dass die Transaktion im ersten vollen Jahr $0.05 auf das Non-GAAP Ergebnis pro Aktie (EPS) verwässernd sein wird, prognostiziert jedoch auch einen zweistelligen Return on Invested Capital (ROIC) im fünften Jahr. Agilent finanzierte die Übernahme mit einer Mischung aus verfügbaren liquiden Mitteln und Fremdfinanzierung.
- Expansion of CDMO services portfolio
- Addition of rapidly growing modalities for gene editing support
- Projected double-digit return on invested capital (ROIC) by year five
- $0.05 dilutive to non-GAAP earnings per share (EPS) in the first full year
- Increased debt due to acquisition financing
Insights
Agilent's acquisition of BIOVECTRA is a strategic move to expand its CDMO capabilities, particularly in high-growth areas like biologics and targeted therapeutics. While the
The mixed financing approach, using cash and debt, indicates prudent capital management. However, investors should monitor how this impacts Agilent's balance sheet and future financial flexibility. The acquisition's success will largely depend on effective integration and leveraging BIOVECTRA's specialized capabilities to capture market share in the rapidly growing CDMO sector.
Agilent's acquisition of BIOVECTRA significantly enhances its position in the CDMO market, particularly in biologics and highly potent APIs. This move addresses the growing demand for specialized manufacturing capabilities in targeted therapeutics and gene editing, two rapidly expanding areas in drug development.
The integration of BIOVECTRA's expertise with Agilent's existing portfolio could create a more comprehensive offering for pharmaceutical clients, potentially accelerating drug development timelines. This acquisition aligns with the industry trend of larger companies acquiring specialized CDMOs to offer end-to-end solutions. It's a strategic step that could strengthen Agilent's competitive position in the evolving pharmaceutical services landscape.
The CDMO market is experiencing robust growth, driven by increasing outsourcing in drug development and manufacturing. Agilent's acquisition of BIOVECTRA is timely, tapping into high-growth segments like biologics and gene editing. This move could potentially increase Agilent's market share and revenue streams in the pharmaceutical services sector.
However, the CDMO space is becoming increasingly competitive, with several large players making similar acquisitions. Agilent will need to differentiate its offerings and demonstrate clear value to clients to succeed. The projected double-digit ROIC by year five suggests confidence in synergies and market opportunities, but investors should closely monitor integration progress and market reception in the coming quarters.
Pharmaceutical customers will benefit from a broader set of specialized CDMO capabilities
(Graphic: Business Wire)
All closing conditions are completed, including receipt of regulatory approvals. BIOVECTRA is now part of Agilent’s Diagnostics and Genomics Group.
“We are delighted to officially welcome the BIOVECTRA team to Agilent,” said Agilent President and CEO Padraig McDonnell. “This acquisition demonstrates our commitment to providing customers the most advanced capabilities to accelerate their therapeutics programs, including best-in-class cGMP pharmaceutical manufacturing.”
With the addition of BIOVECTRA, Agilent will expand its portfolio of CDMO services, add rapidly growing modalities, and bring world-class capabilities to support gene editing. Additional details are available in the news release announcing the acquisition agreement.
Agilent expects the transaction will be
Additional Information
FAQs for customers
Highlights for Investors
About Agilent’s Oligonucleotide GMP Manufacturing
About BIOVECTRA
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent’s full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of
Forward Looking Statements
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, statements regarding the capabilities the acquisition brings and the assets’ future uses and the effects of the transaction on our EPS and future ROIC. These forward-looking statements involve risks and uncertainties that could cause Agilent’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent’s customers’ businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended July 31, 2024. Forward-looking statements are based on the beliefs and assumptions of Agilent’s management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240919413644/en/
INVESTOR CONTACT:
Parmeet Ahuja
+1 408-345-8948
Parmeet_Ahuja@agilent.com
MEDIA CONTACT:
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Source: Agilent Technologies Inc.
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