Given the recent flurry of activities, it seems that
Life Technologies Corporation
(
LIFE
) is focused on strengthening its foothold in the field of stem
cell research. The company recently signed a non-exclusive
agreement with iPS Academia of Japan for its induced pluripotent
stem (iPS) cell patent portfolio. Based on this agreement,
the company will be able to expand its portfolio for the iPS cell
research community.
Besides, it is well placed to create iPS cells and differentiate
them into various cell types to be used in drug discovery and
pre-clinical research. The license also enables Life Technologies
to provide creation, differentiation and screening services of iPS
cell to scientists globally. We consider the agreement to be a
significant achievement for the company in the field of stem cell
research as iPS cells are gaining attention for use in the areas of
drug discovery, disease research and other areas of
biotechnology.
The agreement with iPS Academia of Japan comes on the heels of
the partnership with Cellular Dynamics International, the world's
largest producer of human cells derived from iPS cells. The
partnership will aim at commercializing a set of three new products
optimized to consistently develop and grow human iPS cells for both
research and bioproduction.
These initiatives undertaken by Life Technologies should
strengthen its Research Consumables segment. This segment includes
molecular and cell biology reagents, endpoint PCR and other
benchtop instruments and consumables. These products include RNAi,
DNA synthesis, sample prep, transfection, cloning and protein
expression profiling and protein analysis, cell culture media used
in research, stem cells and related tools, cellular imaging
products, antibodies and cell therapy related products. In the most
recent quarter, this division recorded a 4% year-over-year increase
in revenues to $420 million on the back of growth in cell culture
workflow products, endpoint PCR products and molecular and cell
biology consumables.
Life Technologies enjoys a strong position in the life sciences
market, though management prefers to maintain a cautious but
optimistic outlook for the remainder of the year. We are encouraged
by the improvement in margins amidst the tight competitive scenario
with the presence of players such as
Thermo Fisher Scientific
(
TMO
),
Illumina
(
ILMN
), among others.
We have a Neutral recommendation on Life Technologies. The stock
retains a Zacks #3 Rank (hold) in the short term.
ILLUMINA INC (ILMN): Free Stock Analysis Report
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
Report
THERMO FISHER (TMO): Free Stock Analysis Report
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