Bruker (BRKR) Set to Acquire PhenomeX in an All-Cash Deal
Bruker Corporation BRKR recently signed a definitive agreement to acquire the functional cell biology company, PhenomeX. The acquisition signifies Bruker’s entry into single-cell biology research solutions, which highly complement the company’s emerging spatial biology business in support of the Project Accelerate 2.0 strategy.
The proposed acquisition values PhenomeX at a total equity value of approximately $108 million. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions. However, it is not subject to any financial clause.
About PhenomeX
Formed in early 2023 through the combination of Berkeley Lights and IsoPlexis, PhenomeX provides single-cell biology tools to deliver deep insights into cellular function and new perspectives on phenomes and genotype-to-phenotype linkages. The company currently has an installed base of more than 400 instruments.
PhenomeX’s key products include the Beacon Optofluidic platform, as well as the IsoLight and IsoSpark proteomics barcoding platforms. The Beacon Optofluidic system enables researchers to accelerate biologics product development through the functional characterization of tens of thousands of single cells in parallel. At the same time, the cells are maintained in a healthy state for further genomic and proteomic profiling, connecting phenotype with genotype and other multiomic information.
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More on the News
PhenomeX’s unique single-cell analysis platforms enable researchers to rapidly and precisely unlock new insights in functional cell biology research. This leads to important discoveries across the large, growing markets of antibody therapeutics, cell line development, cell therapy and gene therapy. The PhenomeX buyout is likely to be significant for Bruker’s Project Accelerate 2.0 strategy, particularly in spatial biology.
Bruker will commence a tender offer to acquire all outstanding shares of PhenomeX for a purchase price of $1.00 per share in cash. Following the close of the tender offer, PhenomeX will merge into a wholly owned subsidiary of Bruker.
PhenomeX shares not tendered in the offer will be converted into the right to receive the same per-share consideration as paid in the tender offer.
Industry Prospects
Per a Research report, the global single-cell analysis market was valued at $3.90 billion in 2022 and is expected to witness a CAGR of 18.3% by 2030.
Recent Developments
In June 2023, BRKR launched the SciY platform of advanced, vendor-agnostic software solutions for data analysis, data management, research lab and bioproduction QC digitalization and workflow automation in the life science industry and for biopharma companies. The platform was introduced in collaboration with majority-owned software companies — Mestrelab Research, Arxspan, Optimal Industrial Technologies and ZONTAL — along with the biopharma automation company, Optimal Industrial Automation.
In addition, Bruker announced the new D6 PHASER X-Ray Diffraction (“XRD”) system, which is designed with the analytical flexibility typically only available in larger, floor-standing systems. Built on the success of the D2 PHASER, the D6 PHASER will enable more XRD applications for new markets and user communities with its wide range of capabilities.
Price Performance
In the past six months, shares of the company have decreased 14.6% compared with the industry’s decline of 18.6%.
Zacks Rank and Key Picks
Bruker Corporation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Align Technologies ALGN and SiBone SIBN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’stock has risen 13.5% in the past year. Earnings estimates for Haemoneticshave increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Align Technologies’2023 EPS have increased from $8.31 to $8.75 in the past 30 days. Shares of the company have increased 24% in the past year compared with the industry’s rise of 10.5%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed the same in one. In the last reported quarter, it posted an earnings surprise of 9.9%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 15.1% in the past year against the industry’s fall of 5.1%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBonedelivered an earnings surprise of 26.83%.
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