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Bruker (BRKR) Partners With NovAliX to Boost Drug Discovery
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Bruker Corporation (BRKR - Free Report) has announced a strategic partnership with NovAliX, a leading preclinical Contract Research Organization (CRO) based in Strasbourg, France. This collaboration is set to accelerate innovation in drug discovery by leveraging Bruker's advanced biophysical technologies and NovAliX's expertise in drug discovery services. The partnership aims to enhance the development, incubation and deployment of novel drug discovery methods, with a focus on improving target identification and drug candidate optimization, and understanding therapeutic mechanisms.
Significance of the Announcement
Per Bruker, this strategic investment in NovAliX marks a significant step toward advancing drug discovery through innovative biophysical methods. This collaboration targets the development of novel drug discovery technologies, focusing on key areas such as functional structural biology, molecular dynamics, and interactions, as well as drug candidate binding and therapeutic mechanisms of action (MoA). The partnership aims to accelerate the discovery of new drug targets, optimize drug candidates and predict potential failures earlier in the drug development process.
Leveraging Bruker’s advanced technologies, including ultra-high field NMR, mass spectrometry and single-cell biology tools, NovAliX will enhance its services in drug discovery, particularly in Europe and the United States. However, there is still work to be done in fully integrating these biophysical methods across all stages of drug discovery, from target assessment to lead optimization. The Biophysics Institute for Biomedical Research in Strasbourg, set to open in 2026, will further support this mission by fostering innovation and collaboration among biotechs, start-ups, and academic groups.
Overall, the partnership is poised to make a substantial impact on the drug discovery process, with the long-term goal of developing new, effective treatments for patients globally.
More on the News
NovAliX has been growing its revenues through collaborations with biopharma customers and drug-discovery partners primarily in Europe and now also in the United States and Japan. The company employs over 430 people across its European R&D and CRO service sites, with an additional medicinal chemistry site in North Africa.
Industry Prospects
Per a report in Research and Markets, the drug discovery market was expected to be worth $111.48 billion in 2023. It is anticipated to reach $192.2 billion by 2032 at a CAGR of 14.6%.
The robust growth is likely to be primarily driven by rising research and development (R&D) expenditure in the pharma-biotech sector. The investments are crucial for advancing disease mechanism understanding, conducting pre-clinical testing and progressing through clinical trials. By prioritizing R&D, the industry can discover and develop new pharmaceutical products and technologies, ultimately leading to the creation of new medicines and treatments, thus driving the market's expansion.
Price Performance
Shares of Bruker have decreased 13.8% so far this year against 5.6% rise of the industry. The S&P 500 has witnessed an 11.8% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Bruker carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) , and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% increase.
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Bruker (BRKR) Partners With NovAliX to Boost Drug Discovery
Bruker Corporation (BRKR - Free Report) has announced a strategic partnership with NovAliX, a leading preclinical Contract Research Organization (CRO) based in Strasbourg, France. This collaboration is set to accelerate innovation in drug discovery by leveraging Bruker's advanced biophysical technologies and NovAliX's expertise in drug discovery services. The partnership aims to enhance the development, incubation and deployment of novel drug discovery methods, with a focus on improving target identification and drug candidate optimization, and understanding therapeutic mechanisms.
Significance of the Announcement
Per Bruker, this strategic investment in NovAliX marks a significant step toward advancing drug discovery through innovative biophysical methods. This collaboration targets the development of novel drug discovery technologies, focusing on key areas such as functional structural biology, molecular dynamics, and interactions, as well as drug candidate binding and therapeutic mechanisms of action (MoA). The partnership aims to accelerate the discovery of new drug targets, optimize drug candidates and predict potential failures earlier in the drug development process.
Leveraging Bruker’s advanced technologies, including ultra-high field NMR, mass spectrometry and single-cell biology tools, NovAliX will enhance its services in drug discovery, particularly in Europe and the United States. However, there is still work to be done in fully integrating these biophysical methods across all stages of drug discovery, from target assessment to lead optimization. The Biophysics Institute for Biomedical Research in Strasbourg, set to open in 2026, will further support this mission by fostering innovation and collaboration among biotechs, start-ups, and academic groups.
Overall, the partnership is poised to make a substantial impact on the drug discovery process, with the long-term goal of developing new, effective treatments for patients globally.
More on the News
NovAliX has been growing its revenues through collaborations with biopharma customers and drug-discovery partners primarily in Europe and now also in the United States and Japan. The company employs over 430 people across its European R&D and CRO service sites, with an additional medicinal chemistry site in North Africa.
Industry Prospects
Per a report in Research and Markets, the drug discovery market was expected to be worth $111.48 billion in 2023. It is anticipated to reach $192.2 billion by 2032 at a CAGR of 14.6%.
The robust growth is likely to be primarily driven by rising research and development (R&D) expenditure in the pharma-biotech sector. The investments are crucial for advancing disease mechanism understanding, conducting pre-clinical testing and progressing through clinical trials. By prioritizing R&D, the industry can discover and develop new pharmaceutical products and technologies, ultimately leading to the creation of new medicines and treatments, thus driving the market's expansion.
Price Performance
Shares of Bruker have decreased 13.8% so far this year against 5.6% rise of the industry. The S&P 500 has witnessed an 11.8% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Bruker carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) , and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% increase.