USA —In a significant move to expand its scientific instrument offerings, Bruker has entered into an agreement to acquire PhenomeX for approximately US$108 million.
This strategic acquisition marks Bruker’s foray into the functional single-cell biology research systems market, a sector poised for growth in the life sciences industry.
PhenomeX specializes in providing an advanced analysis platform that empowers researchers to simultaneously characterize tens of thousands of individual cells.
With an existing base of over 400 instruments, PhenomeX serves as Bruker’s gateway into the realm of single-cell research, complementing its ongoing spatial biology initiatives.
The technology acquired from PhenomeX is expected to bolster Bruker’s capabilities in antibody discovery, as well as expedite the development and production of cell and gene therapies.
This move aligns with a broader trend in the medical sector, where mergers and acquisitions serve as vehicles for incorporating innovative technologies without the risk of inflated research and development costs.
PhenomeX, formed earlier this year through the merger of Berkeley Lights and IsoPlexis, has positioned itself at the forefront of functional cell biology research.
Its platforms have found adoption across the top pharmaceutical companies globally and have a significant presence in leading U.S. comprehensive cancer centers.
However, PhenomeX has faced challenges due to a slowdown in significant capital investments across the research laboratory sector.
A recent announcement revealed a second-quarter net loss of US$50.2 million, prompting the initiation of a strategic exploration process to navigate the evolving landscape.
Mark Munch, President of Bruker’s NANO Group, emphasized the complementarity of PhenomeX’s single-cell analysis platforms with Bruker’s emerging spatial biology business.
Munch highlighted the potential of these platforms to accelerate important discoveries in antibody therapeutics, cell line development, and gene therapy applications.
Industry analysts from TD Cowen recognize PhenomeX’s functional biology platform as a compelling and validated technology, evidenced by numerous publications generated from its instruments.
The acquisition is anticipated to conclude in the fourth quarter of this year. Mark Munch’s affirmation of the newfound synergy echoes Bruker’s determination to harness the power of single-cell analysis to unlock novel insights in functional cell biology research, resonating across the dynamic markets of antibody therapeutics, cell therapy, and gene therapy.
Expanding Bruker’s reach in single-cell analysis and spatial Biology
PhenomeX’s innovative platforms for single-cell analysis have rapidly emerged as key tools for researchers delving into functional cell biology.
This capability has been instrumental in unearthing crucial insights across a spectrum of fast-growing domains, including antibody therapeutics, cell line development, cell therapy, and gene therapy.
Bruker’s decision to acquire PhenomeX is poised to significantly bolster its Project Accelerate 2.0 strategy, particularly in the realm of spatial biology.
Under the proposed acquisition, Bruker will initiate a tender offer to acquire all outstanding shares of PhenomeX at a price of US$1.00 per share in cash.
Upon the completion of the tender offer, PhenomeX will be integrated into a wholly-owned subsidiary of Bruker.
The deal ensures that PhenomeX shareholders who do not partake in the tender offer will receive the same per-share compensation as those who participated.
Industry experts anticipate substantial growth in the global single-cell analysis market, projected to experience a remarkable compound annual growth rate (CAGR) of 18.3% by 2030, according to a recent Grandview Research report.
In recent developments, Bruker unveiled the SciY platform in June 2023. This platform introduces advanced, vendor-agnostic software solutions designed to enhance data analysis, data management, and workflow automation across the life science industry and biopharmaceutical sector.
This initiative emerged from collaborations with majority-owned software entities such as Mestrelab Research, Arxspan, Optimal Industrial Technologies, ZONTAL, and Optimal Industrial Automation.
Moreover, Bruker introduced the D6 PHASER X-Ray Diffraction (XRD) system, a versatile analytical tool designed to offer the flexibility typically associated with larger systems.
Building on the success of the D2 PHASER, the D6 PHASER is poised to expand the horizons of XRD applications across various markets and user communities.
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