Developer and manufacturer of purified proteins,
) recently acquired Littleton, CO-based Novus Biologicals for $60
million in cash. Novus Biologicals is a supplier of both outsourced
and in-house developed antibodies and other reagents for life
The acquisition is expected to complement TECH's expanding
portfolio of products, primarily sold to biomedical researchers and
clinical research laboratories. The news, however, failed to
impress investors as the stock price fell approximately 3.2% since
the acquisition was announced.
The inclusion of Novus Biologicals is expected to strengthen TECH's
antibody business. More specifically, Novus Biological will provide
access to a wide range of high quality antibody content for
potential inclusion in TECH's new assays and kits.
Novus Biologicals' antibody content will also be available for use
with instruments that TECH intends to offer following completion of
a pending acquisition transaction. Furthermore, TECH plans to
combine Novus Biologicals' digital marketing competence with its
strong management team.
Novus Biologicals has a collection of more than 250,000 products
that are delivered through a digital commercial platform. The
acquisition of Novus Biologicals is in sync with TECH's objective
of expanding its product offering and providing its customers with
the most comprehensive products for research needs.
The combined entity, providing a wide array of technical solutions
and tools, will represent a unique one-stop-shop for its worldwide
The Novus Biologicals transaction has been financed with cash on
hand and closed on Jul 2. This latest deal comes close on the heels
of a series of acquisitions and investments made by TECH.
Last month, TECH acquired Santa Clara, CA-based developer of
proprietary systems and consumables for protein analysis,
ProteinSimple, for $300 million in cash.
In Apr 2014, R&D Systems China Co. Ltd. (R&D China), a
subsidiary of the TECH group, entered into an agreement to acquire
100% ownership interest in Shanghai PrimeGene Bio-Tech Co. - a
developer, manufacturer and distributor of recombinant proteins for
research and diagnostic applications.
Earlier in the same month, TECH announced a $10 million investment
in CT-based CyVek Inc., with plans to eventually acquire the entire
company if certain milestones are met.
Currently, TECH carries a Zacks Rank #3 (Hold). Better-ranked
stocks in the medical instruments industry include
Alphatec Holdings, Inc.
). While Masimo sports a Zacks Rank #1 (Strong Buy), both Alphatec
Holdings and Hologic carry a Zacks Rank #2 (Buy).
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