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Thermo Fisher to Acquire BD’s Advanced Bioprocessing Unit


Becton, Dickinson and Company BDX, popularly known as BD, recently announced that Thermo Fisher Scientific Inc. TMO will acquire BD's Advanced Bioprocessing business.

The transaction is expected to close by early 2019.Financial terms are of the agreement have been kept under wraps.

BD’s Advanced Bioprocessing Business

The Advanced Bioprocessing business generates revenue worth $100 million annually and will be integrated into Thermo Fisher's Life Sciences Solutions Segment.

The business has been a leading provider of biopharmaceutical applications. Currently, its products are used in the manufacturing of more than 110 animal and human health biopharmaceuticals in the market. The offerings include cell culture media and supplements.

For fiscal year 2018, BD estimates earnings per share (EPS) of 13-15 cents from the Advanced Bioprocessing business. Further, the company expects significant tax gain on the transaction while closing.

How will Thermo Fisher Gain?

Thermo Scientific already offers a broad portfolio of purification products supporting biopharmaceutical development. The addition of the new capabilities will boost its bioproduction offering, which will enhance large-scale production.

Not to forget, the company’s Gibco Cell Culture for Bioprocessing, Chromatography and Protein Purification are already in high demand.

Favorable Price Performance

In the past year, BD has outperformed the industry. The company’s shares have returned 24.8% compared with the industry’s rise of 9.5%. BD has a Zacks Rank #3 (Hold).

Meanwhile, Thermo Fisher's shares have gained 21.9% in a year’s time. The current return is relatively higher than the S&P 500’s addition of 17.9%. The company also carries a Zacks Rank #3.

Want More From the Industry?

A few better-ranked stocks in the MedTech space are Penumbra, Inc PEN and Illumina, Inc ILMN. The companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra has a long-term expected earnings growth rate of 20%, while the same for Illumina is pegged at 22.1%, respectively.

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