Recently, Life Technologies (LIFE),a global biotechnology tool company, announced the initiation of clinical trials to find out the effectiveness of its DNA sequence-based typing (SBT) platform while analyzing the Human Leukocyte Antigen (HLA) system. Subsequent to the successful completion of these trials, the company expects to submit for 510(k) clearance of the SBT platform.
The HLA typing being one of the main determinants for individuals diagnosed with leukemia and other blood cancers, identifies the most variable gene HLA gene array in human genome. This gene identification is needed when physicians opt for bone marrow transplantation.
A successful and unambiguous operation of this entire HLA system needs sequence-based analysis based on Life’s 3500 Dx Genetic Analyzer and SeCore kits. This trial is expected to be completed by mid of 2011.
Life’s Genetic Systems division includes all product lines including the sequencing systems and reagents, developed specifically for applied markets, such as forensics, food safety and pharmaceutical quality monitoring. During the fourth quarter of fiscal 2010, this division recorded revenues of $246 million, representing a significant 11% growth.
Organic revenue growth was 11%, driven by strong double-digit growth in next generation sequencing and forensics and 4% growth in CE instruments and consumables. Life has been aiming big in this field further with the completion of the clinical trial followed by the 510(k) clearance.
The company’s strong position in the life sciences market along with robust performance by the core business and new product and technology development will help drive revenues. Moreover, the company’s focus on emerging markets of Latin America, the Middle-East, China and Indiashould also help it record remarkable growth in revenues.
Also the company is focusing on suitable acquisitions the latest being Ion Torrent.However, challenges remain in the form of increased competition, economic uncertainty and currency movement.
We maintain our ‘Neutral’ recommendation on the stock.
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