Diagnostic testing technologies company, Luminex Corporation (LMNX - Free Report) 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 adverse events.
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 efficiency.
In the last quarter, Luminex had entered into a collaboration and license agreement with Merck & Co. (MRK - Free Report) . 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 Natus Medical (BABY - Free Report) and Heartware International are expected to well. BABY carries a Zacks Rank #1 (Strong Buy), while HTWR carries a Zacks Rank #2 (Buy).