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Luminex (LMNX) Banks on FDA Approvals & Portfolio Strength

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Luminex Corporation , manufacturer and marketer of proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry, is focusing on augmenting its portfolio strength through new FDA approvals.

The Austin, TX-based company witnessed favorable tidings at the regulatory front in recent times. In this regard, the recent CE-IVD mark for the ARIES Norovirus Assay, the FDA approval of ARIES C. difficile Assay and the reimbursement approval of VERIGENE assay in Japan are noteworthy. Luminex is on the verge of completing its clinical study for Group A Strep.

The company has a diverse product portfolio that comprises the advanced xMAP, xTAG and MultiCode technology. Moreover, Luminex has collaborative agreements with several companies, which should help expand the utilization of its technology. Luminex had earlier announced the signing of a new supply and distribution agreement with Bio-Techne Corp (TECH - Free Report) , through 2020. The company also inked a similar deal with Affymetrix. Under the terms of the agreement, eBioscience, a business division of Affymetrix, will commercialize MAGPIX, Luminex 200 and FLEXMAP 3D multiplexed assay platforms in select countries of the Americas, Asia and Europe.

Earlier, Luminex’s second-quarter results witnessed strong top-line performance, solid cash flow and soaring profits. The company’s Assay business is likely to be its key growth driver over the long term. Luminex reported earnings of 26 cents per share in the second quarter of 2017. Revenues in the quarter increased almost 19.2% year over year.

Although the company reiterated its 2017 annual revenue guidance, it has projected third-quarter 2017 revenues in the range of $73 million and $75 million, down from the previously issued band of $74 million to $76 million. Luminex expects revenues at the segment to be affected by funding challenges related to a multi-year bulk bead contract from a life science customer.

On the flipside, reimbursement landscape and cutthroat competition from players like EnteroMedics Inc and LeMaitre Vascular, Inc. (LMAT - Free Report) continue to be major challenges.

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