A global leader in life science research PerkinElmer (PKI) has planned to unveil its new set of drug discovery technologies and applications at the Society for Biomolecular Science 2011, Florida.
The company will also showcase its new generation products based on Alpha Technology and a series of epigenetics-based detection reagents in the meet which are effective in drug discovery and life sciences research for cancer, neurodegenerative and metabolic disorders, as well as applications for stem cells and immunology.
Moreover PerkinElmer will also demonstrate its first and only benchtop detection platform EnSpire Multimode Plate Reader that works jointly with Corning Epic label-free technology and traditional biological tests in order to diagnose and meet the new therapeutic targets.
The Human Health segment of PerkinElmer includes products and services that address the genetic screening and bio-discovery markets. The company has established itself as a market leader, particularly in the genetic screening segment, and holds one of the top two positions in terms of market share in several important subsets of the life sciences technology and genetic screening businesses. In the fourth quarter of fiscal 2010, the company witnessed a 12% year over year increase in this segment.
PerkinElmer is showing a good performance for all its life science products aided by rebounding markets and cost containment efforts. The company has increased its productivity and has created a better product mix in favor of higher value-added products. A significant stream of recurring revenue is another pillar of strength for the company.
The company continues to gain momentum in important emerging markets such as China, India and Brazil. Moreover, its interest in exhibiting its new products is expected to boost the top line further.
However, the company operates in a highly competitive industry characterized by rapid technological change and evolving industry standards. As a result, it must make large investments in R&D in order to maintain a competitive pipeline. PerkinElmer competes with Thermo Fisher Scientific (TMO) among others.
We are also concerned about the company’s exposure to non-health care end-markets, such as non-medical imaging and industrial, which tend to be more cyclical in nature. Our ‘Neutral’ recommendation on the stock is supported by a short-term Zacks #3 Rank (Hold).
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