1. $TMO acquires viral vector manufacturer Brammer Bio for $1.7b cash. Company on track for $250m in Revs in 2017 (6.8x). $0.10 EPS accretion implies ~$40m of Net Income (16% margins). Will grow 25% over the mid-term.
2. This implies ~$750m in Revenues in five years. Margins will expand within TMO. 25% Net Income margins in five years would generate $190m of Net Income. Good for an 11% ROIC.
3. Strategically this is an important acquisition for $TMO in response to the pending $GE/ $DHR deal. Viral vectors are the delivery vehicle for Regenerative Medicine. They enable therapy to target specific cells within the body.
4. $GE/ $DHR products are more centered around bioreactors, filtration, and cryo/thaw. This is the nuts and bolts of the manufacturing process. Will be interesting to see whether this leadership is more valuable than $TMO's position as a manufacturer.
5. $TMO with a pitchbook about capabilities within Regen Med Space. Dynabeads are currently being used in 30 different trials.
6. Regen Med is clearly area of focus for LS Tools players and they are willing to pay for that exposure. Has to be viewed as a positive for $BRKS $BLFS $CYRX $LONN CH
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Very interesting amendment to merger between $ILMN and $PACB. $ILMN paying $6m a month to extend. The way I am reading it, Financing is non-recourse unless they raise $100m within two years. Plus they owe $PACB $98m if deal gets terminated? Sound right?
Indicates two things: 1) $ILMN is very motivated to close this deal. 2) Management believes the deal gets approved.
Why fund a competitor for up to 6 months if they aren't having constructive dialogue with regulators?