Life Technologies Corporation (LIFE) recently entered into a global sales and distribution agreement with Luminex Corporation (LMNX) to access the latter’s award-winning multiplexing instrument MAGPIX to analyze proteins for research. This partnership is expected to be beneficial for MAGPIX as Life caters to scientists and researchers worldwide. On the other hand, Life expects MAGPIX to expand its cutting-edge antibody content across a broad range of protein quantitation needed in basic and clinical research.
MAGPIX (launched in July 2010) is a compact, multiplex analyzer that helps efficient detection of 50 different analytes on a single sample, including proteins and nucleic acids. This product received the Medical Design Excellence Award in 2011 for its innovative design and contribution and recently received CE IVD mark in Europe.
Life earns revenues from three divisions – Molecular Biology Systems (MBS), Genetic Systems (GS) and Cell Systems (CS). Over the past few years, Life has developed a portfolio of innovative products, weighed toward high-margin consumables. During the recently concluded quarter, the company introduced more than 20 new consumable products including addition to the TaqMan family of products, designed to detect mutations in cancer-related genes.
Additionally, in order to drive growth in emerging markets, Life Technologies has adopted strategies such as investing in infrastructure, increasing sales force and maximizing eCommerce capability. To achieve these objectives, the company has expanded its distribution network in Singapore, China and India. The company is satisfied with the ongoing integration and has successfully built a direct sales and support infrastructure in the region.
Life enjoys a strong position in the life sciences market and we believe robust performance from its core business along with new product launches will help drive revenues going forward. Moreover, the company is undertaking additional steps to expand margins going forward. With a strong balance sheet, the company primarily focuses on suitable acquisitions and enhancing shareholders’ value.
However, challenges remain in the form of increased competition from players such as Illumina (ILMN) and Qiagen (QGEN), economic uncertainty and unfavorable currency fluctuations. We have a ‘Neutral’ recommendation on the stock.
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