In an attempt to develop its diagnostics business,
) entered into a Master Development Agreement with
) for companion diagnostic projects. This represents the second
collaboration between the two players, who would work in the areas
of oncology and other therapeutic areas. Several ongoing trials in
oncology reflect the segment's immense potential.
The collaboration with Bristol-Myers is in line with the
company's strategy of building partnerships with pharmaceutical
majors for companion diagnostic development including participation
in early-phase clinical trials. Life Technologies has strengthened
its diagnostics franchise with two recent tuck-in acquisitions -
Navigenics and Pinpoint Genomics.
The acquisition of Pinpoint Genomics provides Life Technologies
with its early-stage non-small cell lung cancer test that can help
doctors identify early-stage patients who are at high risk for
progression into the late-stage disease. Lung cancer is currently
the leading cause of cancer deaths worldwide, claiming close to 1.5
million lives every year. This 14-gene panel test has been
developed to run on the qPCR platform. The company plans to launch
the test as a laboratory developed test later in 2012.
On the other hand, the Navigenics deal brings in an established,
CLIA-certified laboratory licensed throughout the US. This facility
will be employed for design and validation of new diagnostics
assays. In October 2011, the company formed a partnership to
develop a companion diagnostic for
) MAGE-A3 cancer immunotherapy. The company also has an assay
development partnership with Gen-Probe, which was recently acquired
). Life Technologies also announced collaborations with Boston
Children's Hospital and the Hospital for Sick Children in Toronto
to develop the company's next generation sequencers for clinical
research in pediatric diseases.
Life Technologies enjoys a strong position in the life sciences
market. We are optimistic about its recent acquisitions, which we
believe will strengthen its diagnostics franchise. However,
economic uncertainties in Europe and unfavorable currency were the
major headwinds for Life Technologies during the last reported
Our Neutral recommendation is backed by a Zacks #3 Rank ('Hold')
in the short term.
BRISTOL-MYERS (BMY): Free Stock Analysis Report
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HOLOGIC INC (HOLX): Free Stock Analysis Report
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
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