Jacobs to Boost Organic Growth on Bristol-Myers Contract - Analyst Blog
Renowned technical services company Jacobs Engineering Group Inc. JEC recently secured a construction management services contract from Bristol-Myers Squibb Company BMY. With the agreement, Jacobs continues to ride on its organic growth track. Funding for the first phase of the project has already been finalized by Bristol-Myers, while the total cost would be confirmed in the second half of the current year.
The contract involves construction of a large-scale biologics production facility for Bristol-Myers at Cruiserath in County Dublin, Ireland. The new establishment would serve to augment the company’s biologics manufacturing competency and facilitate production of variable therapies to support growth in its portfolio of investigational and approved medicines. The structure would be huge in scale of its operations, comprising large bioreactors, adequate laboratory space, purification areas and offices. Management expects that the facility may be operationalized in 2019.
Jacobs, as a premium construction management service provider, would also provide certain engineering and architectural services for Bristol-Myers’ new biologics facility, apart from taking care of its construction.
Jacobs is one of the most popular providers of technical services and construction solutions to diversified public, industrial and commercial clients in the global forum. The company is always keen to improve its business through lucrative organic growth plans. Management believes that Bristol-Myers’ contract would strengthen the company’s existing growth trajectory as well as boost its revenue growth in the quarters ahead.
Jacobs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include AECOM ACM and VSE Corp. VSEC. Both the stocks hold a Zacks Rank #2 (Buy).
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