CALP’s Divestiture Of Xenogen Biosciences A Positive

Analysts at Leerink Swann & Co maintain their "outperform" rating on Caliper Life Sciences Inc (NASDAQ: CALP), while reducing their estimates for the company.

CALP has announced the divestiture of its Xenogen Biosciences subsidiary to Taconic Farms Inc for approximately $11 million. The analysts believe that the divestiture will have a positive impact on CALP’s long term growth and profitability. The deal reflects the company’s strategy of focusing on higher growth/margin products and services, the analysts add.

Caliper Life Sciences expects its cash balance to exceed $34 million by the end of FY09. The analysts expect the company to see mid-to-single digit organic growth and EBITDA profitability during FY10.

Leerink Swann & Co has reduced its EPS estimate for 2010 from $0.06 to $0.11.