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Maravai to acquire Officinae Bio's DNA, RNA business

Published 11/08/2024, 05:10 AM
MRVI
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SAN DIEGO - Maravai LifeSciences, Inc. (NASDAQ:MRVI) announced its plans to acquire the DNA and RNA business of Officinae Bio, a Venice-based technology company specializing in AI-enabled nucleic acid sequence design. The acquisition aims to enhance Maravai's mRNA manufacturing capabilities through its TriLink BioTechnologies division, a provider of life science reagents and services.

Officinae Bio's proprietary digital platform is known for its rapid prototyping of mRNA candidates, offering a range of services that include testing combinations of CAP analogs, chemistry modifications, and sequence designs. This technology is expected to complement Maravai's existing nucleic acid production services and provide customers with advanced tools for developing nucleic acid-based therapies.

Trey Martin, CEO of Maravai LifeSciences, highlighted the strategic benefits of the acquisition, stating that Officinae Bio's approach to sequence design would bring a cutting-edge advantage to Maravai's Nucleic Acid Production business. He also praised the Officinae Bio team's dedication to leveraging AI for scaling and innovation.

Justin Barbosa, GM and Vice President of TriLink Discovery (NASDAQ:WBD), remarked on the acquisition's potential to solidify TriLink's expertise in mRNA design and customization, while enhancing the digital customer experience.

Davide De Lucrezia, CEO and co-founder of Officinae Bio, expressed confidence in joining forces with Maravai and TriLink, citing their shared commitment to quality and leadership in life sciences. He also anticipated that the transaction would reinforce their contribution to the GMP manufacturing of key enzymes for nucleic acid vaccine and therapeutic applications.

The transaction is subject to customary closing conditions and regulatory approvals, with an expected completion date in early 2025.

Maravai LifeSciences is recognized for providing essential products for drug therapies, diagnostics, novel vaccines, and research on human diseases. Officinae Bio's Vulcanus and Mercury platforms are instrumental in supporting gene-modified cell therapy, gene therapy, and RNA therapeutic research.

This article is based on a press release statement and reflects current plans and expectations, which are subject to change.

In other recent news, Maravai LifeSciences and its subsidiaries, Cygnus Technologies and TriLink BioTechnologies, have launched the Cygnus AccuRes Host Cell DNA Quantification Kits. These kits aim to enhance the safety and stability of biologic drugs by improving the detection and quantification of residual host cell DNA. In partnership news, Repligen (NASDAQ:RGEN) Corporation is in potential acquisition talks with Maravai LifeSciences, a development that has led KeyBanc to maintain its Overweight rating and a $220.00 price target for Repligen. Stifel also reaffirmed its Buy rating for Repligen, with a $207.00 price target. However, Morgan Stanley (NYSE:MS) has downgraded Maravai LifeSciences' stock from Overweight to Equalweight, setting the price target at $10.00.

Maravai LifeSciences also reported steady Q2 growth with revenues of $73 million and an adjusted EBITDA of $17 million. The company has established a new mRNA research center at Johns Hopkins University and expects revenue growth from new products. These are recent developments for Maravai LifeSciences and Repligen Corporation.

InvestingPro Insights

As Maravai LifeSciences (NASDAQ:MRVI) moves forward with its acquisition plans, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $2.03 billion, reflecting its significant presence in the life sciences sector.

Despite the strategic acquisition, InvestingPro Tips indicate that analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year. This aligns with the current P/E ratio of -8.98, suggesting challenges in near-term profitability.

However, it's worth noting that Maravai has seen a significant return over the last week, with a 1-week price total return of 8.37%. This recent uptick could be related to positive market reception of the acquisition news. Additionally, the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, which may provide financial flexibility as it integrates Officinae Bio's DNA and RNA business.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Maravai LifeSciences, providing a deeper understanding of the company's financial position and market outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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