Danaher Corporation (DHR) is down 12.45% in the after-market trading session at the price of $276.01 despite any recent news.
Investment of 1.5 billion USD in Biotechnology Sector
On 27th July 2021, DHR announced the ongoing strategic extension plans of Cytiva and Pall, parts of the Danaher Corporation. They will altogether extend production capacity and services across geographies for global life sciences customers. Their capacity enlargement will increase the production of raw materials used to make biological drugs. Construction of new sites and expansion at existing factories are parts of investment plans. It follows five acquisitions made by the companies this year. The total capacity investments of Cytiva are estimated to be 500 million USD through 2022.
Above 600 million USD is invested in chromatography resins. It’s a field for analyzing or purifying biomolecules. New manufacturing sites planned to establish in the US. An investment of near 400 million USD was made in cell culture media. It contains raw material in liquid or powder form used to grow and cultivate cells. Operations have extended in the US, UK, and Austria. Above 300 million USD allocated for single-use technologies. Moreover, 200 million USD was allocated for expansion work in Cytiva and Pall Corporation’s sites across China, Europe, and the US.
Danaher Group Executive of DHR, Emmanuel Ligner remarked that their customers tell them about the need for access to manufacturing agility, a robust global supply chain, and more regional options. This investment also improves their expansion program to meet the current and future demands of customers and patients.
Distribution of BNP Cardiac Assay
On 26th July, DHR declared it has entered into definitive deals with Quidel Corporation to acquire all rights related to the production, distribution, and trade of a BNP assay for Beckman Coulter analyzers. Following the terms of the agreements, Quidel will continue to manufacture and supply ingredients to Beckman Coulter related to the assay. Beckman Coulter will produce and sell to customers the BNP assay under the brand name Access BNP. In addition, the contracts have fully resolved conflicts and ongoing litigation between Beckman Coulter and Quidel.
President of Beckman Coulter Julie Sawyer Montgomery commented that they are delighted to add Access BNP to Beckman Coulter’s line of high-quality cardiac assays and render a smooth customer experience for customers interested in such assays. Successful surveillance of CVD lessens the risk of hostile events by making the right decisions quickly. Their panel of CVD assays maintains advancing care for cardiac patients, he added.
The ventricular musculature discharges a BNP protein in response to volume and pressure overload on the heart. This is a crucial biomarker to diagnose heart failure and left ventricular dysfunction, Dr. Anagh Vora, the chief medical officer of DHR commented.
DHR Reported Second Quarter 2021 Results
On 22nd July 2021, DHR published results for the second quarter of 2021. Net earnings were $1.7 billion or $2.28 per diluted common share for the quarter ended 2nd July 2021. It represents an 84.0% year-over-year gain from the same quarter of 2020.
CEO Rainer M. Blair of DHR commented that broad-based strength across the portfolio helped them deliver above 30% core revenue growth and outstanding earnings per share growth. They continued to make significant growth investments during the quarter. They strengthened their organic growth trajectory and enhanced their portfolio with the announcement of the pending acquisition of Aldevron.
