Life Technologies Corporation (LIFE) recently launched Ion AmpliSeq Cancer Panel to help scientists to sequence dozens of genes in cancer research samples using a simple workflow. In addition to confirmation of mutations within one day, the system also makes DNA extraction possible from fixed, frozen or fresh tissue. The Cancer Panel sequences 46 cancer-related genes for over 700 known cancer mutations.
The Ion AmpliSeq kits, scalable to hundreds of genes, also prepare targeted regions for sequencing in 3.5 hours, in line with standard PCR. This method scores better than current processes that require several weeks to generate hundreds of gene regions.
Life Technologies is confident that the improvement in timeframe should improve cancer research. Moreover, small labs will also be able to run thousands of research samples a year.
Over the past few years, Life Technologies has been expanding its product portfolio through acquisitions, such as Ion Torrent, a DNA sequencing company clinched in October 2010. The acquisition of Ion Torrent will further strengthen Life Technologies’ Genetic Systems, which contributes about 26% to the company’s top line.
In December 2010, the company launched its Ion PGM sequencer, the first product to use semiconductor sequencing technology. The company believes that PGM will have the highest installed base of any next-generation sequencing instrument within the next 12 months.
Along with the launch of Ion AmpliSeq Cancer Panel, Life Technologies launched 8 new research products, including the Ion Sequencing 200 Kit, which enables 200 base pair reads. According to the company, the Ion PGM sequencer is now the only next-generation sequencer capable of delivering millions of highly accurate long reads in a single day.
Life Technologies enjoys a strong position in the life sciences market. However, the reported quarter was disappointing because of tighter budgets for academic and government-funded research in both the US and Europe, delays in the launch of the 5500 Genetic Analyzer in Japan due to the earthquake and a temporary slack in business in China.
However, the company is addressing these challenges and expects to recover in the second half of 2011. Life Technologies is also adopting a number of cost-saving initiatives and faces stiff competition from players such as Illumina (ILMN) and Qiagen (QGEN) among others.
We are currently Neutral on Life Technologies, corresponding with the Zacks #3 Rank (Hold) in the short term. We also have Neutral recommendations for both Illumina and Qiagen, despite their short-term Zacks #4 Ranks.
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