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Agilent (A) Bolsters NTD Research With SIDC Partnership

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Agilent Technologies (A - Free Report) signed a Memorandum of Understanding with the Sarawak Infectious Disease Centre (SIDC) to provide its 6475 triple quadrupole LC/MS system for neglected tropical diseases (NTD) research.

Notably, Agilent's 6475 LC/MS, which utilizes iFunnel technologies, will aid SIDC's research on tropical medicines and infectious diseases, enabling rapid outbreak response through extensive research and diagnostic capabilities.

Further, the 6475 LC/MS system enhances signal response and optimizes research outcomes through technology and knowledge transfer, capacity building, research programs and human capital development.

SIDC plans to use Agilent's capabilities as it prepares for facility completion by December 2025.

We note that the latest move has expanded the customer base of Agilent’s liquid chromatography mass spectrometry (LC/MS) systems. This, in turn, will strengthen Agilent’s Life Sciences & Applied Markets Group (LSAG) segment.

Moreover, the deal will also strengthen Agilent’s footprint in Asian markets.

Growth Prospects

We believe that the latest move will strengthen the company’s footing in the global neglected tropical diseases diagnosis market.

Per an MMR research report, the global NTD diagnosis market size is expected to reach $8.97 billion by 2029, exhibiting a CAGR of 4.5% between 2022 and 2029.

A Grand View Research report predicts the global NTD diagnosis market size to witness a CAGR of 4.5% during the forecast period of 2023-2030.

We believe the company’s solid prospects in the promising NTD diagnosis market are expected to instill investor optimism in the stock.

However, it has been suffering from macroeconomic uncertainties, weak momentum in China, rising inflationary pressure and geo-political tensions.

Agilent has lost 25.6% in the year-to-date period, underperforming the industry’s growth of 0.8%.

LSAG Segment in Focus

The latest move is in sync with the company’s growing efforts toward bolstering its LSAG segment.

Apart from the latest move, Agilent Technologies showcased its expanded InfinityLab GPC/SEC Solution at the HPLC Conference 2023 in Düsseldorf. The solution includes a dedicated column thermostat, multi-angle light scattering detector, GPC/SEC-Ready Kit, and WinGPC Software for advanced material characterization.

Additionally, Agilent's 1260 Infinity II Hybrid Multisampler, 1290 Infinity II Bio Online Sample Manager and Revident Quadrupole Time-of-Flight LC/MS System were also displayed at the HPLC 2023 conference.

Further, Agilent Technologies introduced new liquid chromatography mass spectrometry systems, Agilent 6495D LC/TQ and Revident LC/Q-TOF, along with new software for profiling and library management, ensuring high analytical sensitivity and efficiency for fast, high-quality data and early maintenance feedback for optimal performance.

Also, Agilent launched the Agilent 8697 Headspace Sampler -XL Tray, offering 120 vial capacity and enhanced instrument intelligence features for increased uptime and operator ease of use compared to its predecessor.

All these endeavors are likely to aid the performance of the LSAG segment in the days ahead.

However, the sluggish pharma market continues to remain a concern.

Our model estimate for LSAG revenues for fiscal 2023 is pegged at $3.85 billion, indicating a decline of 3.9% from the fiscal 2022 level.

Zacks Rank & Stocks to Consider

Currently, Agilent carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader technology sector are Asure Software (ASUR - Free Report) , Applied Materials (AMAT - Free Report) and Arista Networks (ANET - Free Report) . While Asure Software and Applied Materials sport a Zacks Rank #1 (Strong Buy) each, Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software shares have lost 2% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.

Applied Materials shares have gained 43.9% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.

Arista Networks shares have gained 61.8% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%

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