Life’s Leukemia Test in Europe – Analyst Blog

Life Technologies (LIFE) and Asuragen Inc. have achieved the CE Mark for BCR/ABL1 Quant Test to determine the most effective treatment option for patients suffering from chronic myeloid leukemia (CML). Subsequently, the test has been launched in Europe. While Asuragen manufactures the test, it is distributed by Life and runs on its 7500 Fast Dx Real-Time PCR Instrument.

 

We believe the test has great potential since it enables the monitoring of disease progression. Both Asuragen and Life are working towards getting the test approved in the US.

 

Life Technologies is a global biotechnology tools company. The company delivers a broad range of products and services, including systems, instruments, reagents and custom services. Its products include innovative technologies for capillary electrophoresis based sequencing, next generation sequencing, mass spectrometry, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications and water testing analysis.

 

Life operates primarily in the life sciences research and the biopharmaceutical production markets. Over the past few years, the company has been expanding its product portfolio through acquisitions. The latest was the acquisition of a majority stake in Geneart AG, a leading player in the synthetic gene market segment in May 2010. Synthetic genes are a rapidly growing area, which find applications in improving human health and environment.

 

The company enjoys a strong position in the life sciences market and robust performance of the core business and new product launches will help drive revenues. We are impressed with Life’s strategy of expanding its research in stem cell therapies, an area which holds immense potential in the long term. The company is also poised to benefit from the government’s economic stimulus package in excess of $10 billion for the life science research market. However, challenges remain in the form of integration risks, increased competition and declining demand due to the economic slowdown.

 

We are currently Neutral on the stock.