PerkinElmer (NYSE:PKI) today posted Street-beating second-quarter revenues and announced the $5.3 billion acquisition of BioLegend.
The Waltham, Mass.-based company posted profits of $245.9 million, or $2.19 per share, on sales of $1.2 billion for the three months ended July 4, 2021, for a 79.3% bottom-line gain on sales growth of 51.3%.
Adjusted to exclude one-time items, earnings per share were $2.83, 42¢ ahead of Wall Street, where analysts were looking for sales of $1.1 billion. PerkinElmer projected its full-year revenue to total $4.57 billion, with adjusted EPS coming in at $9.88 per share.
The company also announced the acquisition of antibody and reagent developer BioLegend for approximately $5.25 billion in a combination of cash and stock.
“The organization continues to perform extremely well through the first half of 2021. Underpinned by the strategic pillars we highlighted at our recent Analyst Day and now the exciting addition of BioLegend, PerkinElmer is well-positioned to execute on both our near- and long-term goals,” PerkinElmer president & CEO Prahlad Singh said in a news release. “The tremendous efforts by the more than 14,000 PerkinElmer employees across the globe have been instrumental in transforming the company into what it is today. I could not be more excited for what is to come in the years ahead.”
BioLegend develops antibodies and reagents in cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing. PerkinElmer said the acquisition will stand as the largest in its history, with expectations of closing the purchase by the end of the 2021 calendar year.
San Diego-based BioLegend has more than 700 employees based primarily in the U.S., plus estimated 2022 revenues of $380 million. Once a part of PerkinElmer, BioLegend will expand the company’s life science franchise into new segments, with its San Diego campus set to become PerkinElmer’s global center of excellence for research reagent content development for the combined company.
Singh said in a separate news release that the combination of companies “presents an incredible opportunity to accelerate discoveries” in life sciences.
“We are very excited to join the PerkinElmer family,” BioLegend president & CEO Gene Lay said in the release. “The combination will afford us the opportunity to continue to build on our two-decade foundation of innovative science and scale in new and highly attractive PerkinElmer areas such as clinical diagnostics and food safety testing. The BioLegend team is eager to enter this new chapter with PerkinElmer, furthering our mission of enabling legendary discovery from research to cure.”
PKI shares were up 0.6% at $165.33 in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.9%.