Bruker Corporation, listed on NASDAQ under the ticker BRKR, through its Energy & Supercon Technologies (BEST) division, announced on Friday the execution of two significant multi-year supply contracts with prominent international radiology companies. These agreements are associated with the provision of Bruker's latest generation of superconductors, specifically engineered for use in magnetic resonance imaging (MRI) magnets. Collectively, these contracts are anticipated to generate approximately $500 million in future revenues for the BEST division. The agreements include varied contract durations, with one agreement extending up to seven years.
These newly expanded supply arrangements build upon existing framework agreements, underscoring the sustained and expanding demand for advanced superconducting materials essential to the next generation of MRI technology. The superconductors supplied will be designed to comply with rigorous performance and quality standards critical for MRI magnet functionality.
Logistics for these deliveries will primarily support manufacturing facilities dedicated to MRI magnet production located in the United States and the United Kingdom. Bruker will utilize its manufacturing infrastructure across Europe and the U.S. to fulfill these obligations, highlighting the company’s established superconducting production footprint in these regions.
One of the key technological facets of these advanced superconductors is their application in helium-free MRI magnet designs. These designs require exceptional magnetic field stability and homogeneity, factors crucial for producing high-quality MRI images. Importantly, helium-free architectures present significant advancements in reducing operational costs and enhancing the sustainability profile of MRI installations, a growing concern in healthcare technology.
Beyond MRI applications, BEST's superconducting technologies encompass a variety of fields. These include low-temperature superconductors (LTS) and high-temperature superconductors (HTS), employed in proton therapy, nuclear magnetic resonance (NMR), electron paramagnetic resonance (EPR) spectroscopy, preclinical MRI research, magnetic confinement fusion processes, superconducting wind turbines, and high-energy physics experiments. This breadth demonstrates the versatility of Bruker’s superconducting solutions across both medical and scientific disciplines.
In remarks regarding the agreements, Burkhard Prause, President and CEO of BEST, emphasized the importance of innovation and supply chain resilience. Prause stated that original equipment manufacturer (OEM) customers rely on performance-leading MRI systems that deliver state-of-the-art imaging quality with minimized downtime and competitive total cost of ownership. He noted that the expanded agreements reflect these OEMs' confidence in Bruker’s capabilities in superconductor innovation, quality control, and steadfast supply chains. Furthermore, he indicated that these partnerships are integral to ensuring ongoing stability and growth within Bruker’s superconductor business for the foreseeable future.
Market reaction to this announcement was positive, with Bruker shares rising by 2.57% to $53.83 during Friday trading hours, according to Benzinga Pro data. This movement signals investor approval of the company's strategic positioning and the anticipated revenue impact of these new contracts.
Overall, the agreements signify a milestone for Bruker's BEST division as it secures substantial long-term revenue streams through the supply of advanced superconducting materials vital to next-generation MRI systems and other cutting-edge applications. The focus on helium-free MRI technology also positions Bruker as a contributor to more sustainable healthcare imaging solutions.