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FUJIFILM Expands into Healthcare With Latest Acquisition
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FUJIFILM Holdings (FUJIY - Free Report) continues to focus on rapid expansion of its footprint in the fast growing healthcare sector.
Apart from investments in developing research & development (R&D) infrastructure and partnerships, the company is also making strategic acquisitions. These buyouts are expected to drive growth in the healthcare market.
FUJIFILM recently announced the buyouts of Irvine Scientific Sales (ISUS) and IS JAPAN (ISJ), both subsidiaries of JXTG Holdings Inc., for almost $800 million. The acquisition expands its product portfolio in the cell culture media market, which is projected to grow 10% annually.
We note that strong growth in the Imaging Solutions (19.8% of total revenues) and Information Solutions (39.8% of total revenues) segments has been the primary growth driver in the last reported quarter.
Information Solutions segment increased 12.3% year over year, primarily driven by stronger medical systems and electronic materials businesses. We believe the expanding product portfolio will boost company’s market share in the healthcare market, consequently driving top-line growth.
FUJIFILM has returned 2.3% in the past year, compared with the industry’s decline of 21.8%.
Acquisitions Expand Cell Culture Media Offering
Both ISUS and ISJ are well-known providers of cell culture media, which is essential for cell culturing in the R&D and manufacturing of biopharmaceuticals and regenerative medicine products.
Notably, FUJIFILM acquired Wako Pure Chemical Industries, a leading reagent manufacturer, in April 2017, to enter the cell culture media market. The company has also acquired Cellular Dynamics International, biotechnology firm, to expand its healthcare offerings.
Cell culture media market is anticipated to grow on solid demand for biopharmaceuticals that are focused on antibody drugs and the increasing need for treatments using cells.
The latest acquisitions will aid FUJIFILM to offer products for biopharmaceutical production, in vitro fertilization and cell therapy. Moreover, the buyout will increase the company’s distribution capabilities in the United States and Europe.
Healthcare Offers Strong Growth Opportunities
FUJIFILM has also forged partnerships to solidify its position in the healthcare market. Recently, the company collaborated with Takeda Pharmaceutical for inventing newfangled regenerative medicine therapies for the treatment of heart failure.
FUJIFILM is also set to invest ¥4 billion in the pharmaceutical manufacturing site of its group company, Toyama Chemical. Moreover, the company is launching the Bio-Science & Technology Development Center for conducting R&D activities for its biopharmaceuticals business.
Xerox Deal Remains an Overhang
In January 2018, FUJIFILM and Xerox Corporation (XRX - Free Report) inked a definitive deal worth $6.1 billion to combine the FujiXerox joint venture with Xerox. Per the deal, Fujifilm will own 50.1% shares of Fuji Xerox that will continue to trade with the same name on the NYSE.
However, the deal has been heavily criticised by activist investors — Carl Icahn and Darwin Deason — who own more than 10% of Xerox. Both the investors believe that the deal significantly undervalues Xerox.
The expected proxy fight between FUJIFILM and activist investors is likely to hurt share price momentum at least in the near term.
Long-term earnings growth rate for NVIDIA and Micron is currently pegged at 10.25% and 10%, respectively.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
FUJIFILM Expands into Healthcare With Latest Acquisition
FUJIFILM Holdings (FUJIY - Free Report) continues to focus on rapid expansion of its footprint in the fast growing healthcare sector.
Apart from investments in developing research & development (R&D) infrastructure and partnerships, the company is also making strategic acquisitions. These buyouts are expected to drive growth in the healthcare market.
FUJIFILM recently announced the buyouts of Irvine Scientific Sales (ISUS) and IS JAPAN (ISJ), both subsidiaries of JXTG Holdings Inc., for almost $800 million. The acquisition expands its product portfolio in the cell culture media market, which is projected to grow 10% annually.
We note that strong growth in the Imaging Solutions (19.8% of total revenues) and Information Solutions (39.8% of total revenues) segments has been the primary growth driver in the last reported quarter.
Information Solutions segment increased 12.3% year over year, primarily driven by stronger medical systems and electronic materials businesses. We believe the expanding product portfolio will boost company’s market share in the healthcare market, consequently driving top-line growth.
FUJIFILM has returned 2.3% in the past year, compared with the industry’s decline of 21.8%.
Acquisitions Expand Cell Culture Media Offering
Both ISUS and ISJ are well-known providers of cell culture media, which is essential for cell culturing in the R&D and manufacturing of biopharmaceuticals and regenerative medicine products.
Notably, FUJIFILM acquired Wako Pure Chemical Industries, a leading reagent manufacturer, in April 2017, to enter the cell culture media market. The company has also acquired Cellular Dynamics International, biotechnology firm, to expand its healthcare offerings.
Cell culture media market is anticipated to grow on solid demand for biopharmaceuticals that are focused on antibody drugs and the increasing need for treatments using cells.
The latest acquisitions will aid FUJIFILM to offer products for biopharmaceutical production, in vitro fertilization and cell therapy. Moreover, the buyout will increase the company’s distribution capabilities in the United States and Europe.
Healthcare Offers Strong Growth Opportunities
FUJIFILM has also forged partnerships to solidify its position in the healthcare market. Recently, the company collaborated with Takeda Pharmaceutical for inventing newfangled regenerative medicine therapies for the treatment of heart failure.
FUJIFILM is also set to invest ¥4 billion in the pharmaceutical manufacturing site of its group company, Toyama Chemical. Moreover, the company is launching the Bio-Science & Technology Development Center for conducting R&D activities for its biopharmaceuticals business.
Xerox Deal Remains an Overhang
In January 2018, FUJIFILM and Xerox Corporation (XRX - Free Report) inked a definitive deal worth $6.1 billion to combine the FujiXerox joint venture with Xerox. Per the deal, Fujifilm will own 50.1% shares of Fuji Xerox that will continue to trade with the same name on the NYSE.
However, the deal has been heavily criticised by activist investors — Carl Icahn and Darwin Deason — who own more than 10% of Xerox. Both the investors believe that the deal significantly undervalues Xerox.
The expected proxy fight between FUJIFILM and activist investors is likely to hurt share price momentum at least in the near term.
Zacks Rank & Stocks to Consider
FUJIFILM has a Zacks Rank #4 (Sell).
NVIDIA (NVDA - Free Report) and Micron (MU - Free Report) are stocks worth considering in the broader technology sector. Both sport Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for NVIDIA and Micron is currently pegged at 10.25% and 10%, respectively.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>