LONDON (Alliance News) - Abcam PLC said Wednesday that it has acquired Massachusetts-based Firefly BioWorks Inc for GBP18.5 million in cash, and it expects to meet its full year revenue target after revenue rose 7.7% in the first half of its financial year at actual exchange rates.
The life science research tools company said that after an "initial period of modest investment", Firefly is expected to generate "attractive returns in the longer term." The acquisition will be funded from Abcam's existing resources, and is expected to close by the end of January.
Abcam said its revenue growth in the half year to end-December 2014 had been capped by adverse exchange rates, and on a constant currency basis revenue growth was 13.8%. Gross margins for the first half are likely to be slightly less than those in the previous year, Abcam said, as it sold a greater proportion of less-profitable products.
The company reported revenue growth of 67.2% in China, boosted by the opening of its new office in Shanghai last February. It expects these growth levels to moderate as its business in China becomes more established, it said.
Revenue in its catalogue products business rose 16.7%, Abcam said, as revenue from its rabbit monoclonal antibody products increased 19.4%, and revenue from its its non-primary antibody products were up 29.3%.
Shares in Abcam are trading down 0.9% at 475.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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