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    Home > Medical News > Medical Research Articles > PerkinElmer will acquire antibody manufacturer BioLegend for US$5.25 billion

    PerkinElmer will acquire antibody manufacturer BioLegend for US$5.25 billion

    • Last Update: 2021-07-30
    • Source: Internet
    • Author: User
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    PerkinElmer said on Monday that it has agreed to acquire BioLegend, a manufacturer of life science antibodies and reagents, for approximately $5.
    25 billion in cash and stock

    .

    This acquisition is the largest acquisition in PerkinElmer's history and is expected to be completed by the end of 2021
    .
    San Diego-based BioLegend provides antibodies and reagents for scientific research and biopharmaceutical customers for cell counting, multiplex detection, protein genomics, magnetic cell separation, and bioprocessing

    .
    Among them, TotalSeq antibody can combine next-generation sequencing and single-cell labeling technology, which is favored by researchers

    .

    BioLegend currently has more than 700 employees, most of them in the United States.
    It is estimated that operating income in 2022 will reach 380 million U.
    S.
    dollars

    .
    Through this transaction, PerkinElmer's business will expand into new life sciences, and BioLegend's San Diego campus will become PerkinElmer's global center of excellence for the development of scientific reagents

    .

    Prahlad Singh, President and CEO of PerkinElmer, said: “We believe that (BioLegend) joining our team provides a rare opportunity to help life science researchers use evolving technologies and novel methods to better understand and fight against Disease
    .
    "

    He added on the conference call that the merger of the two companies has created a "true powerhouse who will be able to accelerate scientific progress and new product innovation throughout the company and around the world
    .
    "

    PerkinElmer expects that this transaction will boost its existing revenue growth and provide $0.
    30 in earnings per share in the first year after the transaction is completed

    .
    In the second year after the transaction is completed, the transaction is expected to provide earnings per share of $0.
    50

    .
    It is expected that in the fifth year after the completion of the acquisition, the combined company will generate $100 million in revenue synergies each year

    .

    In addition, PerkinElmer also reported that its second-quarter revenue increased by 51% year-on-year
    .
    In the three months ending on July 4, its operating income reached US$1.
    23 billion, which was much higher than the US$812 million in the second quarter of 2020 and also exceeded Wall Street’s forecast of US$1.
    12 billion

    .

    Jamie Mock, PerkinElmer's chief financial officer, said that organic revenue growth has reached 41%
    .
    He pointed out that in the second quarter of 2021, all of the company's businesses and end markets have returned to the levels of 2019 before the new crown epidemic

    .

    According to Mock, in the second quarter of 2021, COVID-19-related products and services contributed $365 million in revenue because the market's demand for PCR testing and RNA extraction products did not decrease as the company expected
    .

    The immunodiagnostics business of the diagnostics department remained strong this quarter, with a year-on-year growth of more than 100%
    .
    Mock said Euroimmun’s non-COVID business continued to rebound “strongly”, while the reproductive health business was able to offset the birth rate pressure and achieve double-digit year-on-year growth

    .

    PerkinElmer said that the profit in the second quarter was $245.
    9 million, or $2.
    19 per share, compared with the profit of $137.
    2 million a year ago, or $1.
    23 per share

    .
    Adjusted earnings per share for the second quarter of 2021 were US$2.
    83, exceeding Wall Street’s consensus estimate of US$2.
    41

    .

    The company's R&D expenditures increased to US$65.
    8 million, a 33% increase from US$49.
    5 million a year ago, while operating and management costs increased to US$281.
    8 million from US$221 million a year ago

    .
    At the end of the second quarter, PerkinElmer had $572.
    8 million in cash and cash equivalents

    .

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