Jacobs (JEC) Awarded EPCM Contract By Aerie Pharmaceuticals

Jacobs Engineering Group Inc. (NYSE:JEC) recently secured an engineering, procurement and construction management services (EPCM) contract from Aerie Pharmaceuticals Inc. (NASDAQ:AERI) , for an undisclosed amount.

Over the last month, shares of Jacobs yielded a return of 14.7%, outperforming 11.6% growth recorded by the industry.

This Zacks Rank #3 (Hold) company is poised to grow on the back of diligent business contracts and sound restructuring initiatives. Notably, Jacobs also signed an agreement (on Aug 7, 2017) to acquire CH2M HILL Companies Ltd., which is in sync with its efforts to become a $15-billion global solutions provider over the long run.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inside Story

Aerie Pharmaceuticals is a clinical-stage pharmaceutical company, focused on the development, discovery and commercialization of premium first-in-class therapies, for treating patients with glaucoma and other eye diseases. The company’s new pharmaceutical manufacturing plant will be located in the Industrial Development Authority’s technology building in Athlone, Republic of Ireland. This facility is being built to commercially process sterile ophthalmic solutions going forward. These solutions will also be sterile filtered, compounded and filled aseptically in the plant.

Leveraging the EPCM expertise for fill-finish facilities, Jacobs will support the design and construction activities of Aerie Pharmaceuticals’ Ireland based pharmaceutical manufacturing plant. Notably, Jacobs will provide further support to Aerie Pharmaceuticals for discovering premium therapies for the treatment of different types of eye diseases going forward.

Jacobs quotes competitive prices for its contracts and ensures that the number of contract receipts increases over time. In the last few months, the company has won a number of contracts from renowned institutions and public-sector agencies like the Chevron Corporation (NYSE:CVX) , Huntington Ingalls

Industries, Inc. (NYSE:HII) , National Aeronautics and Space Administration, and the U.S. Army. Notably, higher transportation spending of the government authorities of Australia, the U.K. and the United States has largely increased Jacobs’ contract winning opportunities in the near term.

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