Waters (WAT) Walk-Up Solutions Boost Bioprocess Development
Waters WAT has introduced new bioprocess walk-up solutions to streamline biologic sample prep and analysis.
Notably, the bioprocess walk-up solutions are created by integrating Waters’ BioAccord liquid chromatography-mass spectrometry (LC-MS) system and Andrew+ robot into its OneLab software.
These solutions allow upstream bioprocess development to be accelerated by up to six weeks using the updated version of Waters OneLab laboratory automation software.
Further, the walk-up solutions enable bioprocess engineers to access critical quality attribute data for drug product and cell culture analysis with just a few clicks.
We note that the abovementioned move strengthens the company’s Waters Operating segment’s portfolio offerings.
Waters Corporation Price and Consensus
Waters Corporation price-consensus-chart | Waters Corporation Quote
Growth Prospects
We believe that the latest move positions the company well to strengthen its footprint in the global biopharmaceutical market.
Per a Mordor Intelligence report, the biopharmaceuticals market size is expected to hit $478.20 billion in 2023 and reach $704.91 billion by 2028, witnessing a CAGR of 8.07% between 2023 and 2028.
An Expert Market Research report suggests the global biopharmaceuticals market size to reach a value of $788.4 billion by 2031, witnessing a CAGR of 7.6% during the forecast period 2023-2031.
We believe that strength in this booming market will likely help it win investors’ confidence in the days ahead.
However, demand softness and unfavorable foreign exchange fluctuations are concerns.
Notably, WAT has lost 24% in the year-to-date period compared with the industry’s decline of 4.1%.
Expanding Waters Operating Segment
Apart from the latest move, Waters recently 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.
Further, the company launched Alliance iS, an advanced High-Performance Liquid Chromatography system to enhance its Waters Operating segment, reducing common errors, managing operational risk and increasing productivity.
The aforementioned moves are likely to strengthen Waters Operating segment’s portfolio offerings, which will drive the segmental performance.
For second quarter 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 third-quarter 2023 revenues to hit $638.5 million, indicating year-over-year growth of 2.4%.
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.
It expects third-quarter 2023 sales to grow in the 1-3% band on a reported basis.
Our model estimates third-quarter 2023 sales of $723.6 million, indicating 2.1% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, Waters carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical market sector are Encompass Health EHC, Achilles Therapeutics ACHL and Alcon ALC. While Encompass 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.
Encompass Health shares have gained 14.2% in the year-to-date period. EHC’s long-term earnings growth rate is currently projected at 11.81%.
Achilles Therapeutics shares have lost 3.3% in the year-to-date period. ACHL’s long-term earnings growth rate is currently projected at 7.6%.
Alcon shares have gained 21% in the year-to-date period. The long-term earnings growth rate for ALC is currently projected at 14.88%.
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