Haemonetics HAE recently completed the sale of its whole blood assets to GVS, S.p.A ("GVS"), a leading provider of advanced filtration solutions for highly critical applications. With this development, GVS now has the company’s portfolio of proprietary whole blood collection, processing and filtration solutions, along with its manufacturing facility in Covina, CA and related equipment and assets at its Tijuana, Mexico manufacturing site.

The transaction was announced last month and comprises a total cash consideration of up to $67.8 million, including $45.3 million upfront after giving effect to certain customary adjustments and up to $22.5 million in contingent earn outs over the next four years.

Potential Trend of HAE Stock Following the News

Since the announcement on Jan. 14, shares of Haemonetics have dropped 8.1%, closing at $73.49 last Friday. On a positive note, the latest development is backed by Haemonetics’ strong focus on portfolio evolution to enhance its leadership in commercial and non-commercial plasma and expand its presence in high-growth hospital markets. Accordingly, we expect the news to boost the market sentiment toward HAE stock.

Haemonetics has a market capitalization of $3.69 billion. The company’s earnings yield of 6.25% compares favorably with the industry’s 0.52% yield. In the trailing four quarters, it delivered an average earnings surprise of 2.82%.

More on HAE’s Asset Sale to GVS

The deal with GVS follows a long-standing partnership, which saw Haemonetics agreeing to sell its Fajardo, Puerto Rico, manufacturing operations to GVS in 2020. Another long-term supply and development agreement granted GVS exclusive rights to manufacture and supply the proprietary blood filters produced at the Fajardo facility for Haemonetics.

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Meanwhile, the latest development will facilitate a smooth transition for Haemonetics' whole-blood customers worldwide while supporting the company's goals. Haemonetics' Blood Center business will continue to manufacture and provide customers with 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.

Haemonetics aims to use the proceeds from this transaction for general corporate purposes and further investments in growth initiatives. The company will share more details on the financial impact of this transaction on its fiscal year 2025 guidance during its third-quarter earnings call.

Industry Prospects Favoring HAE Stock

Per a research report, the global apheresis market was valued at $2.4 billion in 2021 and is expected to grow at a compound annual rate of 8.3% through 2031. The market’s growth is being driven by the increase in demand for blood components globally and the surge in government initiatives toward blood donation.

More Updates From Haemonetics

Earlier in August 2024, the company announced that the newest addition to its VASCADE portfolio, the VASCADE MVP XL mid-bore venous closure system, is now available to all hospitals in the United States. The system features an innovative collapsible disc technology and a proprietary resorbable collagen patch designed to promote rapid hemostasis.

HAE Stock Price Performance

In the past sixmonths, shares of HAE have declined 18.6% against the industry’s rise of 9.5%.

HAE’s Zacks Rank and Other Key Picks

Haemonetics currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Penumbra PEN and Abbott Laboratories ABT. While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy) at present, Penumbra and Abbott carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Phibro Animal Health’s shares have risen 86.2% in the past year. Estimates for the company’s fiscal 2025 earnings per share have remained constant at $1.62 in the past 30 days. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.47%. In the last reported quarter, it posted an earnings surprise of 52.17%.

Estimates for Penumbra’s 2024 earnings per share have remained constant at $2.81 in the past 30 days. Shares of the company have surged 4.3% in the past year compared with the industry’s 7.2% rise. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 10.54%. In the last reported quarter, it delivered an earnings surprise of 23.19%.

Estimates for Abbott’s 2024earnings per share have remained constant at $4.67 in the past 30 days. Shares of the company have declined 0.7% in the past year against the industry’s growth of 11.6%. ABT’s earnings surpassed estimates in three of the trailing four quarters and broke even in one, the average surprise being 1.64%. In the last reported quarter, it delivered an earnings surprise of 0.83%.

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