EPAM Expands in Life Sciences Space With Odysseus Buyout

EPAM EPAM is continuously expanding its footprint in the life sciences market. The company currently provides solutions, including organic chemistry software products, that are used across life science corporations, scientific institutes and universities.

EPAM recently acquired Odysseus Data Services, Inc. to enhance its life sciences value chain by leveraging the latter’s expertise in analytics, data methods and artificial intelligence (AI).

EPAM’s current offerings for the life science space include New Genome Browser, MRI Viewer and Editor, Indigo Organic Chemistry Toolkit, electronic lab notebook, Parso Java Library, chemical structure image recognition tool named Imago OCR, Bingo chemistry search engine, Miew - 3D molecular viewer and Ketcher molecular sketcher.

The company recently updated its Indigo, Bingo and Ketcher tools with the latest updates, including Indigo 1.19.0, Bingo 1.19.0 and Ketcher 2.20.0 versions.

The acquisition of Odysseus will add to EPAM’s capability in drug safety and efficacy, epidemiological research, quality checks and cost minimization. Odysseus will also provide EPAM direct access to Observational Health Data Sciences and Informatics, and Observational Medical Outcomes Partnership Common Data Model tools and methods.

EPAM Systems, Inc. Price and Consensus EPAM Systems, Inc. Price and Consensus

EPAM Systems, Inc. price-consensus-chart | EPAM Systems, Inc. Quote

EPAM Gains From Partnerships in Data and AI Space

In the past year, the tech giant has achieved numerous milestones in the AI space. EPAM became a Microsoft MSFT Globally Managed Enterprise Systems Integrator partner that expanded its AI capabilities.

EPAM has been a long-term collaborator of Microsoft for its cloud needs. The recent collaboration will enable EPAM to build cloud-based applications through Azure OpenAI Service.

The company also partnered with Salesforce CRM for the latter’s AI capabilities. In the realm of data management, EPAM has partners, including IQVIA IQV, Informatica, MicroStrategy and MongoDB.

EPAM’s partnership with CRM gave rise to the Salesforce Service Agent AI Coach. This AI-powered tool analyzes interactions between customer service agents and customers. The company takes data and advanced analytics solutions in the life science space from IQVIA.

To advance its footprint in the AI space, EPAM also launched the AI-powered DIAL Open Source Platform and DIAL Orchestration Platform in 2023.

EPAM Grapples With Macroeconomic Challenges

Shares of EPAM have plunged 40% in the year-to-date period against the Zacks IT Service Industry’s growth of 5.5%.

The lack of investors’ confidence in EPAM's shares can be attributed to the softening IT spending and high interest rate contributing to the tepid demand for its solutions.

The tech giant’s near-term prospects are also hurt by large enterprises postponing their IT plans and reducing IT spending due to the current geopolitical issues.

Negative effects of macroeconomic headwinds were also reflected in EPAM’s financial results for the first quarter of 2024. The company’s revenues declined 3.8% year over year in the quarter.

For 2024, the company expects revenues in the range of $4.575-$4.675 billion, indicating a year-over-year decline of 1.4% at the midpoint. The Zacks Consensus Estimate for the same is pegged at $4.62 billion, indicating a decline of 1.6% year over year.

The company expects non-GAAP diluted EPS in the range of $10-$10.30 for 2024. The Zacks Consensus Estimate for the same has been pegged at $10.11, indicating a decline of 4.5% year over year,

Given the company's near-term challenges, investors should consider waiting for a more favorable entry point for EPAM, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Salesforce Inc. (CRM) : Free Stock Analysis Report

EPAM Systems, Inc. (EPAM) : Free Stock Analysis Report

IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.