Recently,
Life Technologies Corporation
(
LIFE
) announced the launch of its Applied Biosystems QuantStudio Dx
Real-Time PCR Instrument. The QuantStudio Dx is an in-vitro
diagnostic (IVD) medical device which has the European CE Mark
Approval. The company plans to submit the QuantStudio Dx to the
U.S. Food and Drug Administration (FDA) for 510(k) clearance in
December 2012.
The QuantStudio Dx is being marketed with the CE marked Quidel
Molecular Assay for C. difficile, used for the detection of
hospital-acquired infections. Life Technologies currently
distributes the Quidel Molecular Assay.
The unique features of the QuantStudio Dx will improve the
standard of care by increasing the accuracy of various diagnostic
functions such as pathogen detection, gene expression analysis,
SNP genotyping, copy number analysis, mutation detection,
micro-RNA and other non-coding RNA analysis, and high-resolution
melt analysis.
According to DeciBio, the market size for IVD in Europe is
currently $14 billion and $52 billion globally. By 2015, it is
projected to increase to $17 billion in Europe and $70 billion
worldwide. Also worth mentioning in this context is that the
European market contributes 30% to company-wide revenues. Thus,
the launch of QuantStudio Dx presents a significant opportunity
for Life Technologies to garner incremental revenues in the
European market.
Moreover, the market for molecular tests is the fastest growing
segment of the diagnostic market. As a result, the launch will
enable the company to expand its foothold in the high-growth
avenue. Life Technologies already markets the CE-IVD marked
Applied Biosystems 3500 Dx Genetic Analyzer as well as the
AcroMetrix line of quality controls for molecular diagnostic
assays.
Our Take
Life Technologies enjoys a strong position in the life sciences
market. We are optimistic about the company's focus on its
diagnostics franchise, which holds potential. We also note Life
Technologies' efforts to expand its footprint in high-growth
markets through partnerships, acquisitions and product
innovation.
Life Technologies has been working on enhancing its diagnostic
franchise over the recent past, both organically and
inorganically. The company expects compounded annual growth rate
(CAGR) of 15% for its molecular diagnostic franchise through
2016.
However, the competitive landscape is tough with the presence of
players such as
Illumina
(
ILMN
), and
Thermo Fisher Scientific
(
TMO
) among others. Economic uncertainties lowering discretionary
spending and currency are the major headwinds for Life
Technologies, as reflected in the company's third quarter 2012
results.
We currently have a 'Neutral' recommendation on Life
Technologies. The stock carries a Zacks #2 Rank (Buy) in the
short term.
ILLUMINA INC (ILMN): Free Stock Analysis
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LIFE TECHNOLOGS (LIFE): Free Stock Analysis
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