Leerink Swann on Life Science Tools and Diagnostics: Read-through from BLUD Acquisition
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Price: $26.81 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Leerink Swann on Life Science Tools and Diagnostics: Read-through from BLUD Acquisition
Leerink analyst said, "Immucor (Nasdaq: BLUD) announced it has accepted an offer to be acquired by TPG (a buyout firm) for $27/share (30% premium to Friday's close). Multiples are 5.1x TTM revenues, 11x EBITDA (ex options), and 22x TTM EPS. BLUD sells instruments and reagents to the blood banking industry."
"We view the acquisition as a small positive for Bio-Rad Laboratories (NYSE: BIO), one of BLUD's competitors in blood banking (~16% of BIO sales), on the assumption that the acquisition could create a small disruption in BLUD's business, opening the door for BIO to gain additional share."
"Market might view this deal as an incremental negative for Gen-Probe (Nasdaq: GPRO) - We assume BLUD was shopped, and strategic acquirers passed, suggesting a lack of interest from the strategic community in blood banking. Recall that GPRO, in partnership with NVS, sells tests that screen for HIV/HCV/HBV and West Nile Virus to blood banks. While this is a different product set than reagents used for blood typing, it nonetheless falls in the same sandbox. Like GPRO's blood screening business, BLUD has struggled to grow revenues of late."
Leerink analyst said, "Immucor (Nasdaq: BLUD) announced it has accepted an offer to be acquired by TPG (a buyout firm) for $27/share (30% premium to Friday's close). Multiples are 5.1x TTM revenues, 11x EBITDA (ex options), and 22x TTM EPS. BLUD sells instruments and reagents to the blood banking industry."
"We view the acquisition as a small positive for Bio-Rad Laboratories (NYSE: BIO), one of BLUD's competitors in blood banking (~16% of BIO sales), on the assumption that the acquisition could create a small disruption in BLUD's business, opening the door for BIO to gain additional share."
"Market might view this deal as an incremental negative for Gen-Probe (Nasdaq: GPRO) - We assume BLUD was shopped, and strategic acquirers passed, suggesting a lack of interest from the strategic community in blood banking. Recall that GPRO, in partnership with NVS, sells tests that screen for HIV/HCV/HBV and West Nile Virus to blood banks. While this is a different product set than reagents used for blood typing, it nonetheless falls in the same sandbox. Like GPRO's blood screening business, BLUD has struggled to grow revenues of late."
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