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PerkinElmer's (PKI) New Deal to Improve Single-Cell Profiling

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PerkinElmer, Inc. (PKI - Free Report) recently collaborated with Honeycomb Biotechnologies, Inc. to commercially introduce the first of its kind HIVE scRNAseq Solution for single-cell isolation and analysis. This unique product advances single-cell profiling, thereby enabling scientists to capture, store and study fragile cell types.

Per management at Honeycomb Biotechnologies, the HIVE scRNAseq Solution merges sample storage into the single-cell workflow, thereby decoupling the site and time of sample collection from sample processing and analysis. Management is of the opinion that this flagship product will enable the next generation of single-cell profiling, while reducing variability and batch effects particularly for multi-site studies like distributed clinical trials, collaborations and service providers with remote customers.

This collaboration is likely to provide a boost to PerkinElmer’s product portfolio and Diagnostics business.

Significance of the Collaboration

Per management at PerkinElmer, the company continues to move forward with respect to expansion of its core abilities in cellular analysis and applied genomics. Management is excited to partner with companies such as Honeycomb Biotechnologies that have the capability to transform the field of single-cell analysis.

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With the rapid growth of single cell research and clinical markets, launching this product to market can broaden the number of labs, types of samples and range of cells, which can be analyzed with the HIVE platform.

On the back of potential applications in diagnostics and therapeutics development, the HIVE platform streamlines single-cell profiling and enables labs to better understand health and disease at the single-cell level.

Industry Prospects

Per a report by Grand View Research, the global single-cell analysis market was worth $2.2 billion in 2020 and is projected to witness a CAGR of 15% during the forecast period (2021-2028). Growing investments and government funds for research and development in the medical diagnostics space, availability of technically advanced products, and increase in adoption of single-cell analysis devices are some of the factors driving this market’s growth.

Hence, this collaboration comes at an opportune time for PerkinElmer.

Recent Developments

This month, the company announced that it has received Emergency Use Authorization (EUA) from the FDA for the PKamp Respiratory SARS-CoV-2-RT-PCR Panel 1 assay. Following this announcement, qualified laboratories can commence using this single test immediately for the simultaneous qualitative identification and differentiation of SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus (RSV) — separated from nasopharyngeal swabs, anterior nasal swabs and mid-turbinate swabs.

Again, this month, PerkinElmer’s company, EUROIMMUN, announced that it has received FDA’s EUA for its Anti-SARS-CoV-2 S1 Curve ELISA (IgG). This assay enables the qualitative and semi-quantitative detection of IgG antibodies produced against the SARS-CoV-2 S1 antigen in human serum and plasma.

In September, the company completed its buyout of BioLegend for a total consideration of approximately $5.25 billion. The latest acquisition, which is historically the largest for the company, is expected to further expand its life science business into high-growth areas like cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing.

Price Performance

Shares of this currently Zacks Rank #3 (Hold) company have gained 38.2% in the past year compared with the industry’s growth of 47%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are West Pharmaceutical Services, Inc. (WST - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Patterson Companies, Inc. (PDCO - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical’s long-term earnings growth rate is estimated at 27.3%.

Henry Schein’s long-term earnings growth rate is estimated at 13.9%.

Patterson Companies’ long-term earnings growth rate is projected at 9.6%.