Diagnostic testing technologies company,
) has entered into a multi-year collaboration and license
agreement with leading pharmacogenomic testing company Natural
Molecular Testing Corporation (Natural Molecular, NMTC). NMTC has
launched a laboratory-developed panel, Personalized Medicine
Panel, based on Luminex's xMAP Technology.
The collaboration has granted NMTC the access to Luminex's
flexible and high throughput platform to improve workflow
efficiency as well as patient outcome at a cheap rate. The
financial terms of the deal were not revealed.
According to a research conducted by Mayo Medical Laboratories,
more than 2 million Americans are hospitalized due to adverse
drug reaction every year. Some cases are so severe that 5% of the
total number results in fatality. Molecular testing helps doctors
detect patient-specific genetic abnormalities, so that they can
prescribe proper medicines and dosage to avoid the occurrence of
Texas-based Luminex develops and markets proprietary biological
testing technologies, which have applications across the life
sciences industry. Its proprietary open-architecture xMAP
technology enables fast, cost-effective and accurate analysis of
biological tests (bioassays).
Luminex possesses an extensive product portfolio and a healthy
pipeline of novel assays, which are expected to support growth
going ahead. Moreover, Luminex is developing innovative platforms
by combining resources from its latest acquisitions. The
company's initiative to establish a direct sales force for its
molecular diagnostics customers will likely improve operating
In the last quarter, Luminex had entered into a collaboration and
license agreement with
Merck & Co.
). As per the agreement, the company will develop a companion
diagnostic device that will assist in screening patients into
Merck's pivotal study for Alzheimer's disease.
However, Luminex operates in a highly competitive life sciences
industry. Sluggish growth in its core markets as well as the
ongoing global austerity measures are challenges faced by the
company. In addition, the loss of its assay distributors is
affecting the bottom line.
The stock carries a Zacks Rank #3 (Hold). Medical instrument
companies, such as
) are expected to well. BABY carries a Zacks Rank #1 (Strong
Buy), while HTWR carries a Zacks Rank #2 (Buy).
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