With an aim to expand in the field of genomic-based diagnostic
tools,
Illumina Inc.
(
ILMN
), a major developer of life science tools for large-scale genetic
analysis, recently acquired UK based BlueGnome Ltd. However,
financial terms of the deal were not disclosed.
BlueGnome is a provider of Cytogenetics and In Vitro
Fertilization (IVF) screening solutions for genetic abnormalities
associated with developmental delay, cancer and infertility. As a
wholly owned subsidiary of Illumina, we expect it to support
Illumina in the creation of integrated solutions in the field of
reproductive health and cancer.
BlueGnome, one of the frontrunners in the field of IVF, has a
comprehensive set of solutions for microarray and sequencing
platforms for next generation products. The acquisition of
BlueGnome will enable Illumina to access the company's
pre-implantation genetic screening (PGS) test 24sure, which it
developed in collaboration with some of the world's leading IVF
centers. This test, by way of counting the chromosomes in a single
human cell, improves upon the success rate of the IVF procedure,
increasing pregnancy rates while reducing the possibilities of a
miscarriage.
Further, BlueGnome's CytoChip, an advanced test for the
detection of genetic abnormalities in developmental delay or
complex leukemias, is another major factor that encouraged Illumina
to purchase the company. Currently, this cytogenetic test, already
used by over 200 labs across 40 countries, is a famous assay
worldwide. This test replaced the traditional G-band
karyotyping.
Apart from its strong foothold in UK, BlueGnome has also
established itself in Virginia and Singapore. Thus, this
international presence is expected to add further synergies to
Illumina's progress in this segment.
The ongoing difficulties in obtaining research funding in the
backdrop of continuing economic uncertainty have not been enough to
deter Illumina from working on several growth avenues to improve
its performance going forward. Earlier this month, Illumina also
entered into a strategic alliance with Partners HealthCare, a
healthcare system developed by the Brigham and Women's Hospital,
and Massachusetts General Hospital in order to develop improved
infrastructure and networking tools for the interpretation and
reporting of genetic sequencing data.
The company also entered into a partnership with Siemens
Healthcare Diagnostics to use the MiSeq platform for Siemens'
molecular HIV tests. Furthermore, the company expanded its Genome
Network with the inclusion of the British Columbia Cancer Agency to
its existing list. Illumina experiences tough competition from
players like
Life Technologies
(
LIFE
) and
Thermo Fisher Scientific
(
TMO
), among others.
Currently, Illumina retains a Zacks #2 Rank (short-term Buy).
Over the long term, we have a 'Neutral' recommendation on the
stock.
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