Following the success of the Culex Automated
sampling system, recently, pharmaceutical development company,
Bioanalytical Systems Inc.
) launched the next-generation in vivo automated sampling system
known as Culex NxT. The company has already started accepting
orders for this new system and expects to start shipping any day
Based on the fact that the Culex system is currently used by 9
out of the top 10 pharmaceutical companies, universities,
and contract research organizations worldwide to collect
pharmacokinetic and pharmacodynamic data, the company expects
further growth prospects following the launch of this newest
version of the in vivo automated sampling system.
BASi encouragingly noted that Culex NxT with its improved
hardware-software features and its user-friendly characteristics
has the ability to run trials any time instead of just during
business hours. Thus, the company is certain of this innovation
to increase clients' efficiency and productivity in the early
stages of drug discovery, including safety pharmacology. The
company expects all these to bolster its performance further in
the instruments division.
We are also encouraged with the fact that BASi recently
announced the first of a number of collaborative research
projects. This first project is a safety pharmacology study that
combines Culex with the company's partner's latest large animal
telemetry technology. This way, it also develops BASi's CRO
services skill. Also, currently the company is negotiating on
preferred provider partnerships and expects this to complete it
in another few months.
Although the company may take some time to recompense the last
quarter's loss of revenue, we are encouraged with the company's
various approaches, which are expected to drive revenue growth
and increase profitability in fiscal 2013. These initiatives
include aggressive sales and marketing strategies; focus on
competitive strengths, especially in the field of specialty
assay, discovery capabilities and the development of Culex
However, the competitive landscape is tough with the presence
of players like
Charles River Laboratories, International Inc.
). We currently have a Neutral recommendation on BASi over the
long term. The stock retains a short-term Zacks #3 Rank
(BASI): ETF Research Reports
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