GE Healthcare, a unit of
General Electric Company
) has signed an agreement to acquire Xcellerex, Inc., a supplier of
innovative manufacturing technologies for the fast-growing
biopharmaceutical industry. Through this acquisition, GE intends to
expand its Healthcare offering of products and services for the
manufacture of biopharmaceuticals such as recombinant proteins,
antibodies and vaccines.
The financial terms of the deal were not disclosed; however the
deal is expected to close by the second quarter of 2012, subject to
Xcellerex is a leading developer and producer of turn-key
bio-manufacturing systems and production-scale bioreactors based
around single-use components. These products provide major
advantages such as faster installation, lower capital investment,
reduced risk of cross-contamination and huge flexibility unlike the
traditional manufacturing technologies.
Xcellerex has a modular technology that can be well integrated
with GE Healthcare's cell culture products. Also being of a modular
nature they will go down well with customers because of easier
installation. This in turn will speed up deployment, thus showing
quickly on GE Healthcare's top line.
For fiscal 2011, GE's Healthcare segment reported revenue growth
of 7% and operating profit growth of 2% year over. Revenue growth
for the year was primarily driven by increased volume from higher
equipment sales and services and the effects of the weaker U.S.
dollar. Geographically, the revenue growth was strongest in the
emerging markets, followed by the U.S. and other international
GE Healthcare (comprising 12.3% of the total revenue in fiscal
2011) is one of the world's leading providers of essential
healthcare technologies to developed, developing and emerging
countries. Its Medical diagnostics and life sciences segment
develops and manufactures diagnostic imaging agents used in medical
scanning procedures, drug discovery, biopharmaceutical
manufacturing and purification and tools for protein and cellular
analysis for pharmaceutical and academic research.
General Electric currently holds a Zacks #3 Rank, which implies
a short term Hold' rating.
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