CryoPort agreed to acquire logistics solutions provider Cryopdp for approximately 49 million euros in cash sending shares up 14% on Friday.
CryoPort (CYRX), a leader in life sciences supply chain solutions, is buying Cryopdp to expand its global supply chain footprint in Europe, the Middle East and Africa, and the Asia Pacific regions. The acquisition, which is expected to close within 60 days, is slated to be immediately accretive to CryoPort’s earnings. Based in Paris, Cryopdp provides temperature-controlled logistics solutions to the clinical research, pharmaceutical, and cell and gene therapy markets.
Following the acquisition announcement, Stephens analyst Jacob Johnson raised the stock’s price target to $44 (13.3% upside potential) from $38 and maintained a Buy rating. Johnson noted that the deal “seems like a win-win-win” at “face value” and “essentially doubles” the company’s revenue base. The analyst believes that the deal would also significantly expand the company’s geographic footprint with added temperature capabilities.
On Aug. 6, CryoPort reported 2Q revenues of $9.4 million, higher than the Street estimates of $8.9 million, driven by biopharma revenues. It also reported a loss of $0.15 per share, versus analysts’ loss expectations of a loss of $0.11 per share. (See CYRX stock analysis on TipRanks).
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 4 unanimous Buys. The average price target of $42.50 implies upside potential of about 9.5%, with its shares trading about 136% higher on a year-to-date basis.
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