Recently, Life Technologies Corp. (LIFE) completed the tender offer to acquire a majority stake in Geneart AG, a leading player in the synthetic gene market segment. Synthetic genes are a rapidly growing area of biology, which find applications aimed at improving human health and environment.
Earlier, in April 2010, Life Technologies purchased about 59% of Geneart’s shares subsequent to which the company initiated a voluntary public tender offer to purchase the remaining shares. Following the completion of the offer, Life now owns a 74% stake in Geneart. This deal is unlikely to have a significant effect on Life’s business in 2010.
Life has been very active on the acquisition front over the past few years. Since early 2003, the company has expanded its product offering by completing over fifteen acquisitions, including the acquisition of BioTrove and the 2008 acquisition of CellzDirect and Visigen Biotechnologies. The company focuses on acquiring companies with complementary products and technologies, trusted brand names, strong market positions and strong intellectual property rights. We believe Life will continue pursuing acquisitions to supplement organic growth.
Life, in order to be more focused on the high growth molecular and genomics markets, sold its ownership stake in its Mass Spectrometry business earlier this year to Danaher Corp. (DHR). The $3 billion molecular diagnostics market is expected to grow at 15% annually and represents significant commercial opportunity for the company.
Life enjoys a strong position in the life sciences market and we believe robust performance of the core business and new product launches will help drive revenues going forward. Meanwhile, lower expenses and cost cutting along with increased revenues should help drive the bottom-line. We have a Neutral recommendation on the stock.
Read the full analyst report on “LIFE”
Read the full analyst report on “DHR”
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