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PerkinElmer (PKI) to Boost Portfolio via SIRION Acquisition

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PerkinElmer, Inc. recently inked a deal to acquire SIRION Biotech GmbH, which is expected to close during the third quarter of 2021. SIRION, a global provider of viral vector-based technologies, is expected to significantly boost PerkinElmer’s Horizon Discovery portfolio.

For investors’ note, the latest buyout is likely to be an important addition to the company’s growing cell and gene therapy research and development activities.

PerkinElmer is aiming to solidify its position in the global gene therapy market via the buyout of the renowned viral vector gene delivery player.

Rationale Behind the Buyout

Per PerkinElmer’s management, presently, majority of gene therapy trials leverage viral vector approaches, which is expected to remain strong on the back of robust demand for targeted, high-payload delivery in treating diseases like cancer. Hence, by combining SIRION’s payload transport technology with its existing Horizon genetic material editing tools and phenotypic research solutions, PerkinElmer expects to be able to support its cell and gene therapy workflows.

Moreover, the acquisition will further expand PerkinElmer’s existing cell and gene research solutions.

Industry Prospects

Per a report by The Business Research Company, the global cell and gene therapy market is expected to grow from $6.69 billion in 2020 to $17.32 billion in 2025 at a CAGR of 21%. Factors like increasing incidences of cancer and other chronic diseases, and rising number of clinical trials are likely to drive the market.

Given the market potential, the latest buyout is expected to significantly strengthen PerkinElmer’s global business.

Notable Deals

Of late, PerkinElmer has entered into a few strategic deals across its businesses.

In May, the company announced that its contract to operate the NHS Test and Trace Newport Lighthouse laboratory has been extended through March 2022.

The same month, PerkinElmer announced its plans to acquire in-vitro diagnostics company Immunodiagnostic Systems Holdings PLC. The buyout is expected to boost PerkinElmer’s overall Diagnostics business, specifically the immunodiagnostics segment.

Also in May, PerkinElmer entered into an agreement to acquire Nexcelom Bioscience, which is expected to close during the second quarter of 2021.

Price Performance

Shares of the company have gained 59.6% in the past year compared with the industry’s 76.8% growth and the S&P 500's 41.3% rise.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, PerkinElmer carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Veeva Systems Inc. (VEEV - Free Report) , AMN Healthcare Services Inc (AMN - Free Report) and National Vision Holdings, Inc. (EYE - Free Report) .

Veeva Systems’ long-term earnings growth rate is estimated at 15.8%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 6.5%. It currently carries a Zacks Rank #2.

National Vision’s long-term earnings growth rate is estimated at 23%. It currently sports a Zacks Rank #1.

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