BILLERICA, Mass. - Bruker (NASDAQ:BRKR) Corporation (NASDAQ:BRKR) announced today that it has posted a bond to suspend an injunction against its NanoString business, allowing the sale of CosMx Spatial Molecular Imager (SMI) products in Germany. This move follows a decision by the Munich Higher Regional Court, which found potential oversights in a previous ruling by the lower Munich Regional Court.
In May 2024, the German Federal Patent Court declared the patent in question invalid. Subsequently, in December 2023, the Munich Higher Regional Court granted NanoString the right to lift the injunction on CosMx product sales, contingent on posting a bond. The higher court's decision to suspend the injunction came after it identified that the lower court had not fully considered all aspects of the case, including a disputed feature of the patent.
Todd Garland, President of the NanoString division, expressed enthusiasm about the development, stating, "We are thrilled that our customers in Germany have regained access to our full suite of products for the CosMx instrument."
Bruker Corporation, through its NanoString business, provides advanced scientific instruments and solutions for molecular and cellular biology research, with applications across life sciences and industry. The CosMx SMI is part of NanoString's spatial biology offerings, which include tools for spatial transcriptomics and proteomics, enabling researchers to gain insights into the biological context of cellular environments.
This latest development allows Bruker to continue offering its CosMx products to the German market during the ongoing appeal process in the patent litigation with 10x Genomics (NASDAQ:TXG). The information for this article is based on a press release statement from Bruker Corporation.
In other recent news, Bruker Corporation has announced a public offering of 6 million shares to reduce its debt, following its recent acquisitions, with BofA Securities and J.P. Morgan serving as underwriters. Furthermore, the company has provided a revenue guidance for the year 2027, projecting revenues between $4.2 billion and $4.4 billion.
Analyst firms have responded to these developments with Citi reaffirming its Buy rating on Bruker's stock, BofA Securities reducing the price target to $90 while retaining a Buy rating, and Stifel lowering its price target to $77, maintaining a Hold rating.
Additionally, Bruker has adjusted its fiscal year 2024 guidance following the early closure of the ELITech Group acquisition, increasing its constant exchange rate revenue growth guidance to 12-14%. The company's acquisitions, including Chemspeed and ELITech, have been recognized as strategic additions, although concerns were raised about the revenue trajectory of NanoString Technologies due to legal and competitive challenges.
InvestingPro Insights
Amidst the legal developments for Bruker Corporation (NASDAQ:BRKR) and the continued sale of its CosMx Spatial Molecular Imager (SMI) products in Germany, the company's financial metrics reveal a robust business performance. InvestingPro data indicates a healthy revenue growth, with the last twelve months as of Q1 2024 showing a 14.49% increase, showcasing the company's ability to expand its income streams. The P/E ratio stands at 24.19, suggesting that the market values the company's earnings quite highly.
InvestingPro Tips highlight that Bruker has been trading at a low P/E ratio relative to near-term earnings growth, which may indicate an investment opportunity for those looking at earnings potential. Moreover, analysts predict the company will be profitable this year, an assertion backed by the company's performance over the last twelve months. These insights could be particularly relevant for investors considering Bruker's growth prospects and financial health in the context of its recent legal challenges.
For further in-depth analysis and additional InvestingPro Tips, including management's share buyback strategy and the company's ability to cover interest payments with cash flows, visit https://www.investing.com/pro/BRKR. There are 7 additional InvestingPro Tips available for Bruker Corporation, which can provide a more comprehensive understanding of the company's financial nuances. Interested readers can utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to valuable insights that could inform investment decisions.
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