Next-generation sequencing is a much sought after area in the life science tools space. Life Technologies (LIFE) is, therefore, keen on enhancing adoption of this technology through development of applications for its Ion Personal Genome Machine (“PGM”) in HLA (human leukocyte antigen) through key partnerships.
The company plans to enter into a Sponsored Research Agreement with the Histocompatibility, Immunogenetics, and Disease Profiling Laboratory at the Stanford Department of Pathology.
The analysis of HLAs, which are found on the surfaces of all cells in the body, is significant as it determines organ and bone marrow transplant compatibility between donors and patients. Moreover, with individuals varying widely in the combination of HLA sub-types found in their tissues, it is imperative to have accurate tissue typing to reduce the possibility of transplant rejection or the risk of graft versus host disease.
Researchers are pleased with the speed and flexibility of the PGM that is helping them to develop HLA sequencing strategy. According to estimates, the global transplant diagnostics field has potential worth of about $400 million and Life Technologies is working to further penetrate this market.
Over the recent past, Life Technologiesbrought about expansion of the Ion portfolio, the latest being Ion AmpliSeq Custom Panel, which helps researchers to study samples that even contain minute traces of the DNA, all in a single day.
Additionally, in October 2011, Life Technologies had launched Ion AmpliSeq Cancer Panel to help scientists to sequence dozens of genes in cancer research samples using a simple workflow. In addition to confirmation of mutations within one day, the system also makes DNA extraction possible from fixed, frozen or fresh tissue.
The Ion franchise was inducted into Life Technologies’ portfolio with the acquisition of Ion Torrent, a DNA sequencing company, in October 2010. Besides, for the past few quarters, the company has been recording robust growth from its Ion personal genome machine (“PGM”) that was launched in December 2010, taking the total number of system placements to 700 in 2011.
Life Technologies is satisfied with the progress made so far with Ion Torrent technologies and expects the growth momentum to continue. This will be supported by more PGM placements and the scheduled launch of the Ion Proton Benchtop sequencer in mid 2012. The DNA sequencing market is likely to get more competitive as San Diego-based Illumina (ILMN) is also looking forward to the launching of its HiSeq 2500 in the second half of 2012.
We have a Neutral recommendation on Life Technologies. The stock retains a Zacks #3 Rank (Hold) in the short term.
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