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Diagnostic testing technologies company, Luminex Corporation (LMNX - Analyst Report) recently received a Technology Award from the Austin Chamber of Commerce. The company has been recognized for its superiority in innovation and technology in the large business category.

The Greater Austin Business Award organized by the Austin Chamber of Commerce honors businesses located in the Greater Austin region with excellent achievements in various categories such as Health and Wellness, Customer Service, Community Relations, Environment, Innovative Practices, Non-Profit, Technology, and Most Uniquely Austin. A total of 386 companies were nominated for the Business Awards this year. 

The Technology award is specifically given to the company which has undertaken product innovation initiatives to provide a unique and stimulating solution for an industry-specific problem. Luminex, a renowned leader in the local biotechnology community, was chosen as the winner out of the 5 large companies (selected from 100 finalists) nominated for this category.

Austin-based Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences industry. Its xMAP technology is sold worldwide and is used by leading research laboratories as well as major pharmaceutical, diagnostic and biotechnology companies.

Luminex has a broad product portfolio. The company’s latest offering, the xTAG Gastrointestinal Pathogen Panel (GPP) molecular test, is receiving excellent reviews for setting new standards in gastrointestinal diagnostic patient care. The device allows fast and simultaneous detection of 95% of bacterial, viral and gastroenteritis pathogens in a single test.

The xTAG GPP has already received CE Mark approval and is successfully gaining traction in Europe. However, it is not yet available in the U.S.

Every year about 2 billion people suffer from gastrointestinal infections, out of which 1.8 million cases are fatal. The xTAG GPP yielded successful results in managing life-threatening epidemics such as the cholera pandemic in Port-au-Prince Haiti and the malaria outbreak in Papua New Guinea. The device was also used for detecting E. coli which plagued Germany last year. Most recently, it was used by University Hospital of Wales during the 2012 Olympics Games.

In addition to a solid product portfolio, Luminex possesses a strong pipeline of novel assays, which are expected to support growth going ahead. The company’s strong international presence has helped it to further expand its product portfolio. Its customer base is also quite encouraging.

However, Luminex operates in the highly competitive life sciences industry. The company competes with Affymetrix (AFFX - Analyst Report) and Sequenom (SQNM - Snapshot Report), among others. Moreover, sluggish growth in its core markets is a challenge faced by Luminex. We are currently Neutral on the stock, which carries a Zacks #4 Rank (short-term Sell rating).

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