NEWS & COMMENTS

PROHOST    FILTER

LUCRATIVE ACQUISITIONS

CRUCELL (CRXL) AND ILLUMINA (ILMN)

CRUCELL

     Reading Crucell’s mind, we see the firm whispers, let investors play the game of the angry, but let us do the right thing at the right time. For the second time this year, Crucell (CRXL) acquires a company that fits its programs, its markets and strategy. The target this time is a Stockholm-based company called SBL Vaccine AB (SBL). The price is EUR 39.4 million in cash. If you see it too much, others see it too little to pay for a company that’s generating revenues from its oral anti-cholera vaccine in 50 countries and from distributing vaccines made by other vaccine companies, including Crucell itself. The temporary anger game will be played also because Crucell intends to raise EUR 80 million through issuing new ordinary shares to fund the acquisition of SBL, refinance the Berna’s acquisition and repay outstanding debt of Berna.   

WHY?

There is a lot to say about Crucell, most is positive.

READ MORE: Crucell Announces Acquisition of SBL Vaccin AB and Offering of New Ordinary Shares

ILLUMINA

      Acquiring Solexa (SLXA) in a stock-for-stock merger is a good step taken by Illumina. It is a step in the right direction, as it expands Illumina’s disciplines by adding gene sequencing. ILMN had both gene expression and geneotyping, but no gene sequencing, which is a natural extension of genotyping. After genotyping, one must find the actual sequence of what he discovered.

The deal makes Illumina a much stronger life science company and expands its tool sector. (Please read Prohost E-Letter #247 about Illumina’s current valuation.)

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