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Bruker's (BRKR) New Buyout to Advance Digital Transformation

Bruker Corporation BRKR recently acquired ZONTAL — a cutting-edge platform supplier of integrated biopharma technical data solutions and for the digital transformation of the analytical laboratory. Financial terms of the acquisition were kept under wraps.

This acquisition fortifies Bruker BioSpin's Integrated Data Solutions (IDS) software group, which includes Mestrelab Research, Arxspan and Optimal.

More on the News

ZONTAL provides the first enterprise-class GxP-compliant data platform that maintains data throughout the lifecycle of a product. The ZONTAL patented tools improve connectivity between IT systems and lab instruments, preserve digital assets from any source on an enterprise scale, remove manual procedures through regulatory automation and enable AI/ML assisted advanced analytics.

The Bruker IDS division expands its unique vendor-agnostic software solutions portfolio by integrating ZONTAL with the Mestrelab Research and Arxspan scientific software solutions and the Optimal process analytical technology software. The integration will enable global life-science, biopharma and specialty chemicals customers to advance research, product development and process optimization.

Strategic Implications

Strong scientific equipment and software products from Bruker are complemented by ZONTAL's distinctive data platform for the life sciences sector. ZONTAL and Bruker will develop new levels of end-to-end solutions that will revolutionize the way customers in the life sciences and biopharma industries do business.

By transforming data into FAIR (Findable, Accessible, Interoperable and Reusable), companies will be able to remove the main obstacle to digital transformation in sectors reliant on scientific research. The majority of laboratory equipment types can communicate in bi-directional with all downstream applications, leading to an increase in the usage of artificial intelligence in optimizing laboratory workflow.

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The two businesses will be able to improve the biopharmaceutical process and create a remarkable solution for vendor-neutral digital laboratories, while strengthening their current client relationships. With the help of this service, businesses will be able to successfully combine various life-science technologies to provide integrated data solutions to more researchers and analytical scientists and realize the ambition of completely-automated, integrated laboratories and production facilities.

Industry Prospects

Per a report by Future Market Insight, the global digital transformation in healthcare market is estimated at $65.2 billion in 2023 and is expected to reach $253.6 billion by 2033, at a CAGR of 14.5%.  The increase in the adoption of cutting-edge and sophisticated technologies is driving the market.

Recent Developments

In April 2023, Bruker announced innovations for NMR spectroscopy in life science, pharma and cleantech research to enable discoveries in functional structural biology, drug discovery and battery research at the Experimental Nuclear Magnetic Resonance Conference (ENC 2023). Bruker also launched the Ascend Evo 400 new standard 400 MHz NMR magnet with a liquid helium hold-time of a year to reduce the cost of ownership and enhance operational convenience.

In the same month, Bruker partnered with Enable Medicine to provide Enable Medicine’s advanced analysis pipelines for spatial omics data with the Canopy CellScape system for quantitative high-plex spatial biology. The partnership adds to the analytic capabilities of the CellScape system by providing options to use Enable Medicine’s advanced spatial analyses, including cluster analysis, neighborhood analysis and advanced data visualization and efficient cloud-based computing, sharing and data storage.

Price Performance

Shares of the company have gained 30.6% in the past year compared with  the industry’s rise of 3.1%.

Zacks Rank and Key Picks

Bruker currently carries Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Edwards Lifesciences Corporation EW, Intuitive Surgical, Inc. ISRG and Johnson & Johnson JNJ.

Edwards Lifesciences, carrying a Zacks Rank #2 (Buy), reported first-quarter 2023 adjusted earnings per share (EPS) of 62 cents, beating the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in two of the trailing four quarters, missed the same in one and broke even in the other, the average being 1.2%.

Intuitive Surgical, having a Zacks Rank #2, reported first-quarter 2023 adjusted EPS of $1.23, which beat the Zacks Consensus Estimate by 3.4%. Revenues of $1.70 billion outpaced the consensus mark by 6.9%.

Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 1.9%.

Johnson & Johnson reported first-quarter 2023 adjusted earnings of $2.68 per share, beating the Zacks Consensus Estimate by 6.8%. Revenues of $24.75 billion surpassed the Zacks Consensus Estimate by 5%. It currently carries a Zacks Rank #2.

Johnson & Johnson has a long-term estimated growth rate of 5.5%. JNJ’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.9%.

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