Over the recent past
) has been focusing on expanding its diagnostics portfolio. To
achieve this objective, the company strengthened its portfolio with
the launch of Pervenio Lung RS, a risk stratification test for
early stage lung cancer. This 14-gene panel test has been developed
by Pinpoint Genomics, which Life Technologies acquired in July,
This test will provide immense help to a huge patient base by
identifying lung cancer patients, who are at a high risk for
mortality following surgery,in the early stages. In addition, the
test will also aid prevention and disease management.
With a survival tenure of only 5 years for almost 50% of the
early stage patients, the identification for patients at high-risk
becomes crucial. This is significant as these patients have
approximately 25-65% chances of dying even after a successful
surgery as the disease often spreads early. It is estimated that
the early stage molecular test market is around $120 million in the
US and $500 million globally.
Life Technologies also acquired Navigenics in July that has
brought in an established, CLIA-certified laboratory licensed
throughout the US. This facility will be employed for design and
validation of new diagnostic assays.
Earlier this month, Life Technologies entered into a Master
Development Agreement with
) for companion diagnostic projects. The collaboration with
Bristol-Myers is in line with the company's strategy to build
partnerships with pharmaceutical majors for companion diagnostic
development including participation in early-phase clinical trials.
Other partnerships include those with
) for MAGE-A3 cancer immunotherapy and with Gen-Probe, which was
recently acquired by
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. However, economic
uncertainties in Europe and unfavorable currency were the major
headwinds for the company during the last reported quarter.
We have a Neutral recommendation on Life Technologies. The stock
carries a Zacks #3 Rank ('Hold') in the short term.
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