Back to top

Analyst Blog

Given the recent flurry of activities, it seems that Life Technologies Corporation 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 - Analyst Report), Illumina (ILMN - Analyst Report), among others.

We have a Neutral recommendation on Life Technologies. The stock retains a Zacks #3 Rank (hold) in the short term.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIM'S P… PPC 31.52 +3.72%
CLAYTON WIL… CWEI 138.97 +3.55%
FLAMEL TECH… FLML 14.02 +3.16%
CALLON PETE… CPE 11.50 +3.14%