Abzena’s £4.98m cash acquisition of PacificGMP is a logical and positive move as the group seeks to enhance its downstream biomanufacturing capabilities and build out its US operations. With PacificGMP generating FY15 revenues of $3m (£1.9m), the deal is priced at just 2.6x sales and is expected to be immediately accretive to earnings (before amortisation of acquired intangible assets). We place our financial forecasts and valuation under review to assess the full impact of the deal, but see PacificGMP adding significantly to Abzena’s value proposition for its partners.
