Haemonetics Corporation HAE recently entered into a definitive agreement with GVS, S.p.A ("GVS") to sell its whole blood assets. Haemonetics intends to use the proceeds from this transaction for general corporate purposes and additional investments in growth initiatives.
The transaction comprises a total cash consideration of up to $67.1 million, which includes $44.6 million in upfront and up to $22.5 million in contingent earn-outs over the next four years.
HAE’s Likely Stock Trend Following the News
Subsequent to the news, the share price of HAE remained unchanged at $85.26 in Tuesday’s after-market trading.
Haemonetics is continuously focusing on portfolio evolution to enhance leadership in commercial and non-commercial plasma and expand its presence in high-growth hospital markets through various sell-offs. The latest transaction is followed by Haemonetics' agreement in 2020 to sell its Fajardo, Puerto Rico manufacturing operations to GVS and enter a long-term supply and development agreement granting GVS exclusive rights to manufacture and supply the proprietary blood filters produced at the Fajardo facility for Haemonetics. The latest agreement with GVS should enable a smooth transition for Haemonetics' whole blood customers worldwide while supporting the company's goals. Accordingly, we expect the market sentiment to turn in favor of HAE stock in the upcoming days.
Haemonetics currently has a market capitalization of $4.39 billion. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average earnings surprise of 2.82%.
More on HAE’s Sell-Off Agreement
Under the terms of the agreement, GVS will acquire Haemonetics' complete portfolio of proprietary whole blood collection, processing and filtration solutions. GVS will also acquire Haemonetics' manufacturing facility in Covina, CA, and related equipment and assets at its manufacturing facility in Tijuana, Mexico.
Following the transaction, Haemonetics' Blood Center business will continue to manufacture and provide its full line of apheresis solutions for automated blood collection. These include devices and disposable kits that support a variety of apheresis collections, including platelets, plasma and red cells, and ensure efficient blood center operations.
The transaction is expected to be closed in the first quarter of calendar 2025, subject to the satisfaction of customary closing conditions.
Industry Prospects
Per a Grand View Research report, the global blood processing devices and consumables market is valued at $51.6 billion in 2024 and is anticipated to grow at a compound annual rate of 7.1% from 2025 to 2030. This growth can be attributed to the rising prevalence of infectious diseases necessitating increased blood transfusions and surgical interventions, while an aging population increases the demand for medical processes requiring blood. In addition, technological advancements improve device performance, safety and accuracy, thereby driving market growth.
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Recent Development by HAE
In August, Haemonetics launched the VASCADE MVP XL mid-bore venous closure system. The VASCADE MVP XL system is the latest addition to Haemonetics' VASCADE portfolio of vascular closure systems featuring an innovative collapsible disc technology and a proprietary resorbable collagen patch designed to promote rapid hemostasis.
HAE’s Price Performance
In the past year, shares of HAE have risen 3.9% compared with the industry’s 21.3% growth.
HAE’s Zacks Rank and Other Key Picks
Haemonetics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Omnicell OMCL, ResMed RMD and Penumbra PEN. While Omnicell sports a Zacks Rank #1 (Strong Buy) at present, ResMed and Penumbra carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicell has an earnings yield of 72.7% compared with the industry’s 63.1%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 121.7%. The company’s shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for OMCL’s 2024 EPS have moved north 8.4% to $1.66 in the past 30 days.
Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.
Estimates for Penumbra’s 2024 EPS have moved north 8.1% to $2.79 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 10.54%.
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