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Bruker's Buyout of Canopy Biosciences Enhances Portfolio

Zacks Equity Research
·4 mins read

Bruker Corporation BRKR recently announced the acquisition of Canopy Biosciences, LLC. The buyout of the renowned high multiplex biomarker imaging enhances Bruker’s portfolio of targeted multi-omics and fluorescence-based imaging techniques.

However, the financial details of the deal have been kept under wraps.

With the latest buyout, Bruker aims to strengthen its position in immunology, immuno-oncology and cell therapy. Canopy Biosciences business will be integrated within Bruker Scientific Instruments ("BSI") Nano segment.

Rationale Behind the Deal

Per management, the buyout of Canopy Biosciences incorporates the latter’s multi-omics and high-content cytometry expertise as well as its ChipCytometry platform. This will enable Bruker to enhance its own portfolio.

Bruker’s global presence, complementary technologies and applications knowledge will be beneficial for both the companies. Meanwhile, Canopy Biosciences’ products enable cell and tissue-based discovery and validation in immunology and targeted proteomics. It also offers a suite of complementary multi-omics services, which will add to Bruker’s existing imaging techniques.

The buyout will enable a greater number of researchers to gain access to the high-plex ChipCytometry platform, which has been designed for accelerating basic immunology and clinical research along with biopharma drug development.

Industry Prospects

Per a report by Polaris Market Research, the global immuno-oncology market was estimated at $12 billion in 2019 and is expected to see a CAGR of 21.8% between 2020 and 2025. Per a Grand View Research report, the global cell therapy market size was valued at $5.8 billion in 2019 and is expected to reach $8.8 billion by 2027, at a CAGR of 5.4%.

Factors like rising incidence of cancer and technological advancements made with respect to treating the same are likely to drive the market.

Given the market prospects, the acquisition seems to have been timed well.

Recent Developments

Of late, Bruker has witnessed some important business developments.

The company, in August, entered into a collaboration with Utrecht University to advance the study of the 3-D structures and interactions of proteins by mass spectrometry.

In July, Bruker launched the high-speed NanoRacerhigh-speed atomic force microscopy (“AFM”) system, which sets a new milestone in high-speed scanning capabilities to enable true real-time visualization of dynamic biological processes using AFM.

In the same month, the company launched its FluoroType SARS-CoV-2 plus next-generation 6-plex polymerase chain reaction assay for higher specific detection of the SARS-CoV-2, the COVID-19-causing virus.

Further, in July, Bruker announced the successful installation and customer acceptance of the Avance NEO 1.2 GHz NMR system at the Department of Chemistry and Applied Biosciences of the Eidgenössische Technische Hochschule Zürich in Switzerland.

The company, in May, launched the world’s first commercial MALDI-2 post-ionization source, which is currently available as an option on the timsTOF fleX ESI/MALDI mass spectrometer.

Price Performance

Shares of the company have lost 8.5% in the past year against the industry’s 10.9% rise and the S&P 500’s 13.7% rally.

Zacks Rank & Key Picks

Currently, Bruker carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc. TMO and Hologic, Inc. HOLX.

QIAGEN’s long-term earnings-growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings-growth rate is estimated at 15.5%. It currently sports a Zacks Rank #1.

Hologic’s long-term earnings-growth rate is estimated at 15.5%. The company presently flaunts a Zacks Rank #1.

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