GE Healthcare, a unit of
General Electric Company
) completed its acquisition of Xcellerex, Inc., a supplier of
innovative manufacturing technologies for the fast-growing
Through this acquisition, GE will 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.
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
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
up 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 GE's 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.
GE's primary competitors in the Healthcare segment are
). GE currently has a Zacks Rank #3 which implies a short term Hold
rating on the stock.
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