We believe that the acquisition of PacificGMP (for 2.8x EV/Sales) represents a positive move by Abzena. In our view, the addition of biopharmaceutical manufacturing capability expertise significantly strengthens the offering for the company’s customers on both sides of the Atlantic. In addition, the expected cross-selling of Abzena’s biologics development expertise to PacificGMP’s current (mainly US-based) customers represents an exciting opportunity. We re-iterate our Buy recommendation.
