Affymetrix-eBioscience Deal Delayed - Analyst Blog
December 29 2011 - 9:45AM
Zacks
Affymetrix
(AFFX), a leading provider of microarray-based
products and services, recently announced that its proposed merger
with eBioscience will be completed in January 2012 against the
original expectation of fourth quarter of the current fiscal. The
company has cited additional work associated with debt financing
for the merger as the reason behind the delay.
Last month, Affymetrix announced
its intention of acquiring privately held eBioscience for $330
million in cash. The San Diego, California-based company is a
leading player in the field of flow cytometry and immunoassay
reagents for immunology and oncology research, and diagnostics.
The acquisition will significantly
boost Affymetrix’s foothold in the fast-growing immunology,
oncology and translational medicine markets, representing an annual
opportunity nearing $3 billion. It will diversify the company’s
revenue base, expand its product range (to include a vast array of
reagents) and reinforce its growing molecular diagnostics
business.
Affymetrix is a leading provider of
microarray-based products and services to the global research
community. Along with Illumina (ILMN), it is one
of the two major providers of microarray technologies, primarily
used in the field of genetic research. Affymetrix holds a leading
position in the gene expression products and services market.
Affymetrix is pursuing a number of
strategies (including expansion into new markets such as
cytogenetics and cancer research) aimed at expanding its top line.
The company is shifting its R&D focus from discovery and
exploration markets to the faster-growing validation and routine
testing markets.
However, Affymetrix is operating in
an intensely competitive industry and faces risks associated with
lower R&D spending by its customers due to a soft economy and
government actions including budget cuts. Affymetrix is exposed to
a volatile funding environment.
Decline in government research
grants have had an adverse impact on the Life Science Tools segment
across the board affecting major players such as Life
Technologies (LIFE) and Thermo Fisher
Scientific (TMO).
We are currently Neutral on
Affymetrix, in line with the short-term Zacks #3 Rank (Hold).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
ILLUMINA INC (ILMN): Free Stock Analysis Report
LIFE TECHNOLOGS (LIFE): Free Stock Analysis Report
THERMO FISHER (TMO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Jul 2023 to Jul 2024