Back to top

Agilent (A) to Acquire ProZyme, Expand Glycan Market Share

Read MoreHide Full Article

Agilent Technologies Inc. (A - Free Report) has agreed to acquire a privately-held company, ProZyme, Inc. The financial details of the acquisition have not been disclosed yet.

Founded in 1990, ProZyme develops and manufactures glycan reagents, kits, and standards.  These are required for efficient sample preparation in the analysis of free glycans.

The acquisition will allow Agilent widen growth prospects and further expand its biopharma consumables in the fast-growing glycan market. The deal complements Agilent's product portfolio and will help it to offer better services to customers.

Shares of Agilent have slightly underperformed its industry on a 12-month basis. The stock has registered a gain of 4.23% compared with the industry’s growth of 11.97%.

Market Growth

Glycobiology is fast emerging as a primary field of interest for biomolecular and biomedical research around the globe. The study of the structure, function and biology of carbohydrates is also known as glycans.

According to a new report from Grand View Research, the global glycomics or glycobiology market is expected to reach USD 2.1 billion by 2025.

There are many factors driving the growth of glycan analysis market. Firstly, increasing investment in R&D by research institutes, and pharmaceutical & biotechnology companies has been a major factor driving its market growth. In addition, technological advancement has led to increased demand for advanced glycomics products for drug discovery & development, diagnostics, and oncology research. Also, increasing prevalence cancer, auto-immune or other life threatening disease and use of specifically targeting biopharmaceutical products are driving the growth of this glycan market.

We believe Agilent is well positioned to benefit from this growth. Agilent is already a major player dominating the global glycobiology market and the ProZyme deal will further expand its share in the growing glycan market.

Acquisitions — Key Catalyst

Since the past few years, strategic acquisitions have been playing an important role in shaping Agilent’s growth trajectory. The buyouts of Lasergen (April 2018), Advanced Analytical Technologies (March 2018), Multiplicom NV (January 2017), Cobalt Light Systems (July 2017), Seahorse Bioscience and iLab Solutions (2016) have expanded its product portfolio.

These deals have supplemented the company’s organizational growth. The deals have either complemented one of Agilent’s many product lines or round out its portfolio.

We remain optimistic about Agilent's broad-based portfolio and increased focus on the segments with higher growth potential.

Zacks Rank & Stocks to Consider

Currently, Agilent carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Groupon (GRPN - Free Report) , PetMed Express (PETS - Free Report) and Expedia (EXPE - Free Report) . While Groupon sports a Zacks Rank #1 (Strong Buy), PetMed and Expedia both hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Groupon, PetMed and Expedia is currently projected to be 6.5%, 10% and 14.5%, respectively.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>



More from Zacks Analyst Blog

You May Like