Key Takeaways:
Activist investor Elliott Investment Management has built a sizable stake in Bio-Rad Laboratories Inc. (NYSE:BIO), a supplier of life-science tools, and intends to push for changes to boost the company’s underperforming stock.
"Elliott is a large investor in German lab equipment maker Sartorius AG, in which Bio-Rad also has a strategic investment," people familiar with the matter said.
The exact size of Elliott’s stake has not been disclosed, but the move follows a roughly 70 percent drop in Bio-Rad's share price from its peak in 2021. The stock is down about 18 percent year-to-date. The company's market capitalization is approximately $8.5 billion.
The activist's involvement introduces a new layer of complexity to Bio-Rad's situation, which includes its own investment in Sartorius. Elliott's presence on both shareholder registers could lead to a push for a strategic realignment or other measures to unlock value. Bio-Rad's post-pandemic struggles, including waning demand for its COVID-19 testing products and a decline in the value of its Sartorius stake, have weighed on its financial performance.
This article is for informational purposes only and does not constitute investment advice.
