Waters (WAT) Boosts Mass Spectrometry Clientele With Latest Move
Waters WAT collaborated with the University of San Agustin to equip the latter’s new mass spectrometry imaging center with its advanced technologies.
Per the terms, the MALDI/DESI Mass Spectrometry Imaging Laboratory in the Philippines will be equipped with Waters’ ACQUITY UPLC System and SYNAPT High-Definition Mass Spectrometer (HDMS) technologies.
Notably, this newly established imaging center will provide effective therapeutics for treating cancer and other infectious diseases through drug discoveries.
Further, Waters’ SYNAPT HDMS with Matrix-Assisted Laser Desorption Ionization (MALDI) and Desorption Electrospray Ionization (DESI) technologies for molecular visualization in tissue samples will enable accurate biodistribution, metabolism, accumulation and evaluation of promising drug compounds from natural sources.
We note that the latest collaboration highlights strength in Waters’ mass spectrometry portfolio. Also, it is likely to accelerate sales growth within the Waters Operating segment.
Waters Corporation Price and Consensus
Waters Corporation price-consensus-chart | Waters Corporation Quote
Growth Prospects
The latest collaboration bodes well for the company’s growing focus to strengthen its footing in the global mass spectrometry market.
Per a Mordor Intelligence report, the global mass spectrometry market size is expected to hit $6.37 billion in 2023 and reach $8.63 billion by 2028, witnessing a CAGR of 6.25% between 2023 and 2028.
A Markets and Markets report suggests the global spectrometry market to register revenues of $5.4 billion in 2023. Notably, the figure is expected to reach $7.8 billion by 2028, indicating a CAGR of 7.5% during the forecast period of 2023-2028.
Strength in the promising mass spectrometry market will aid the company in winning investor optimism in the stock.
However, sluggish demand and unfavorable foreign exchange fluctuations are concerns.
Notably, WAT has lost 21.8% in the year-to-date period compared with the industry’s decline of 9.9%.
Strength in Waters Operating Segment
The latest move is in sync with Waters’ growing efforts to strengthen its Waters Operating segment.
Notably, Waters introduced new bioprocess walk-up solutions by integrating Waters’ BioAccord liquid chromatography-mass spectrometry (LC-MS) system and Andrew+ robot into its OneLab software to simplify biologic sample prep and analysis, allowing upstream bioprocess development to be accelerated by up to six weeks.
Further, the company launched XBridge Premier GTx BEH, a new line of size exclusion chromatography columns to improve gene therapy analysis and reduce costs, specifically for adeno-associated viral vectors, by doubling the speed of measurement and optimizing manufacturing.
Additionally, Waters Corporation updated its SELECT SERIES MRT System, enhancing its specificity and utility for UPLC-MS/MS metabolomics, drug discovery, and mass spectrometry imaging experiments.
All the above-mentioned portfolio offerings will further expand the company’s customer base, enhancing its Waters Operating segment’s performance.
In the second quarter of 2023, the Waters Operating segment (88% of net sales) generated sales worth $653.23 million, up 3% from the year-ago quarter’s level.
Our model estimates the Waters Operating segment’s 2023 revenues to reach $2.7 billion, indicating year-over-year growth of 3%.
Strength in the underlined segment will likely aid the company’s overall financial performance as the segment accounts for the majority of the total sales.
Our model estimates 2023 sales of $3.06 billion, indicating 3.2% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, Waters carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical market sector are Elanco Animal Health ELAN, Achilles Therapeutics ACHL and Alcon ALC. While Elanco Animal Health sports a Zacks Rank #1 (Strong Buy), Achilles Therapeutics and Alcon carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Elanco Animal Health shares have lost 16% in the year-to-date period. ELAN’s long-term earnings growth rate is currently projected at 1.77%.
Achilles Therapeutics shares have lost 4.4% in the year-to-date period. ACHL’s long-term earnings growth rate is currently projected at 7.6%.
Alcon shares have gained 9.3% in the year-to-date period. The long-term earnings growth rate for ALC is currently projected at 14.88%.
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