2invest AG
Original-Research: SYGNIS AG (von GBC AG):
Original-Research: SYGNIS AG – von GBC AG
Einstufung von GBC AG zu SYGNIS AG
Unternehmen: SYGNIS AG
ISIN: DE000A1RFM03
Anlass der Studie: GBC Managementinterview – SYGNIS AG
Letzte Ratingänderung:
Analyst: Cosmin Filker
‘The synergies between the two companies are perfect’
Today, SYGNIS AG announced a big corporate transaction. It is planned to
acquire Expedeon Ltd., a British company that develops and sells products
in the field of proteomics. This would allow Sygnis to broaden its own
product range, which is traditionally centered around genomics. This should
also significantly strengthen the sales channels. GBC-Analyst Cosmin Filker
talked to Pilar de la Huerta (CEO) about the upcoming transaction.
GBC AG: Mrs. de la Huerta, Expedeon Ltd. is a spin-out of Cambridge
University. Could you elaborate on the background about the company?
Pilar de la Huerta: Expedeon is a UK company that develops and
commercializes tools and reagents for the proteomic market (scientist that
research in proteins). It started as a Cambridge University spin-out,
founded in 2003 by Heikki Lanckriet, the current CEO, and Daniel Jones,
currently Expedeon COO.
The Company started with their commercialization strategy in 2007, and
since then, they have grown the company, maintaining an excellent
EBITDA-margin of 13%, and creating their own sales force in the main
markets. Expedeon then acquired PageGel Inc in 2009, which established a
base in San Diego, California and enables better penetration in the vast US
market. In 2011 the company acquired the protein fractionation technology
from Protein Discovery, a Tennessee based company. In 2013 the company
expanded eastwards with the opening of a sales office in Singapore, to
better serve the emerging markets.
In addition to direct sales through its sales forces and the distribution
network the company also has several OEM agreements in place with key
suppliers in the market. Most notably they have strong partnership with a
tier 1 global supplier of life science reagents for supply of precast gels
and more recently, in December 2015, another OEM agreement was signed with
the Chinese market leader in gel documentation systems, (systems used to
photograph and analyze the gels Expedeon manufactures).
GBC AG: With the acquisition of Expedeon Ltd. the product range of SYGNIS
AG will be expanded by the field of proteomics, which is a new business
sector for SYGNIS AG. How are the two business sectors related?
Pilar de la Huerta: Well, Sygnis products are targeting the ‘genetic’
market and Expedeon products are targeting the ‘proteomic’ market. Both
markets are the two main markets of the molecular biology, and, covering
both, we will cover all users in the molecular biology environment. Our
product ranges are completely complementary; they don’t have any overlap.
We have a perfect vertical integration, for many applications. From a
workflow point of view, Expedeon products sit just downstream from the
Sygnis products. For this reason, the synergies between the two companies,
from a product point of view, are perfect.
GBC AG: What are the key fields of application for the products of Expedeon
Ltd. and who are the primary customers of the company?
Pilar de la Huerta: Expedeon’s products are mainly targeted towards
separation, purification and analysis of proteins, the end product of DNA.
Electrophoresis, which means separating proteins in an electric field, is a
key application area where Expedeon has world leading knowledge,
technology, expertise and products. This is a technique used routinely in
every life science laboratory with huge market potential, currently in
excess of $ 1.4bn per annum but also has clinical applications and is for
instance used for the evaluation of the kidney function and monitor for
protein content in urine.
Expedeon sells its products to a variety of customers. Life Sciences
researchers in academic institutes, pharma companies, CRO and biotech
companies are the main customers for the company. They have a very loyal
customer base that will be targeted by Sygnis products.
GBC AG: Expedeon Ltd. has numerous sales channels and an excellent standing
in the USA. What does the new access to the USA, UK, and Asia mean for
SYGNIS AG?
Pilar de la Huerta: This is a fantastic opportunity for us to enter our
products more directly in these main markets. Up to now, we don’t have any
direct salesforce. All our sales are done through distributors and online
shop. But our products are based on a new technology and, whenever you
introduce a new technology in the reagent environment, the direct relation
and support between the customers and the company is a key factor. We don’t
have the possibility of having this direct contact and support and this is
the main weakness of our company at this moment. To invest money in
creating our own sales force to cover the main markets (EU, USA and Asia)
is too expensive and not so efficient, unless you have a huge portfolio,
which is not our case. Expedeon sales force is the way to acquire a
profitable sales force, very well positioned, with a high level of
performance, to enter our products very strongly in the key markets for our
company. They have the experience to promote and allocate our portfolio in
the main markets and with the key customer, so we expect to increase our
revenues level fast to reach profitability in a very near future.
GBC AG: What synergetic effects do you expect on the level of technology
and, more important, on the business level?
Pilar de la Huerta: As I have mentioned, we have several fields with
synergies. On one hand, our product portfolio is completely synergistic, as
we are covering the two main markets of the molecular biology. Their sales
force is perfect to commercialize and market our products, as they have a
very technical sales force, very well prepared to understand and provide
support to our customers. We also have synergies from a customer point of
view, as most of the Sygnis customers will use Expedeon products, and some
of Expedeon customers, will use Sygnis products. Sygnis products can be a
‘sexy’ hook to catch the attention of potential customers that at the end
could acquire Expedeon products. Anyhow, we see a lot of synergies in this
field. On top of this, as in all acquisitions, we will make some
optimizations in the expenses side. They have two manufacturing facilities,
one in UK and another one in USA, very well prepared and with a high level
of automatization, so we can move Sygnis manufacturing process there to
reduce the cost of production and therefore increase margins. At the end,
all will ‘push’ the business up to grow and reach profitability in a very
near future.
GBC AG: What measures will be taken to successfully integrate the new
company?
Pilar de la Huerta: Well, the first issue will be to train Expedeon sales
force into the Sygnis portfolio. Our priority this year is to push, through
Expedeon sales people, our products into UK, USA and the rest of Europe,
aiming to speed up the ramp up period. We will move the manufacturing
facilities to USA and UK in order to increase margins as soon as possible.
In parallel Expedeon and Sygnis R&D people will have to understand each
other’s side to build a potent R&D global team to create the new portfolio
that the combo company will launch in 2017 and future years.
GBC AG: Expedeon Ltd. is already profitable. What does the acquisition mean
for the operative development of SYGNIS AG?
Pilar de la Huerta: As some structural expenses of the combo will be
optimized, gross margin on Sygnis products will be increased, revenues will
speed up, we expect to get profitability in a near future. This will move
the combo to a different scenario, where the company could cover their cash
needs for their current business framework. In this situation, we expect to
grow our business faster and became an important player in the reagent
arena.
GBC AG: What is the planned timetable for the forthcoming months regarding
the transaction?
Pilar de la Huerta: Well, after the announcement we need to wait for our
AGM for the formal approval. We will hold our AGM on June 20th, after that,
and after the approval of the prospectus by BaFin, we will open a two weeks
subscription period to allow all current shareholders to subscribe their
rights. In this period of time, Expedeon shareholders will subscribe, with
a contribution in kind, the shares not subscribed by current shareholders
(at least all key shareholders will resign their rights to allow Expedeon
shareholders to subscribe new shares). After that two weeks, we will still
have some additional days to do private placements in case we need it. At
the end, we expect to have the transaction closed by mid-July. The
registration process could take some time, so probably the new shares will
not be registered until mid-August.
GBC AG: Regarding the acquisition, you also announced a capital increase of
20.0m new shares. Can you elaborate on the details about the transaction?
Pilar de la Huerta: The transaction with Expedeon is going to be done
through a capital increase process. Sygnis will issue up to 20m shares to
be able to obtain 96% of Expedeon through a contribution in kind, and some
additional money to pay 4% of the transaction to Expedeon plus some cash to
finance the integration process and the expenses (legal, banks, auditors
etc) produced with the transaction. At the end the main part of this
capital increase is the acquisition of Expedeon.
GBC AG: Mrs. de la Huerta, can you summarize where SYGNIS AG will stand
after the successful transaction?
Pilar de la Huerta: We will be a lead reagent company targeting the
molecular biology market (globally) with a broad of innovative, high
margins and patented portfolio, our own sales force in the main markets,
and a well optimized cost structure. Let’s say it with other words, ‘we
will be ready to become one of the leaders in reagent arena’.
GBC AG: Mrs. de la Huerta, thank you for the interview.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/13809.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,5b,6a,7,10,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++
——————-übermittelt durch die EQS Group AG.——————-
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Aktuelle News
Aktuelle Berichte
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden