Luminex Corporation (LMNX - Analyst Report) recently revealed that it won clearance from the FDA for its xTAG Gastrointestinal Pathogen Panel, which is a complete molecule-based diagnostic assay. It tests for over 90% of parasitic, bacterial and viral reasons for gastroenteritis in one assay. The xTAG Gastrointestinal Pathogen Panel has been commercialized in the U.S. It is believed that its use will permit better detection of pathogens.
The xTAG Gastrointestinal Pathogen Panel is a complete multiplexed offering. The assay concurrently tests for as many as eleven of the most frequently occurring causes of gastroenteritis. The xTAG Gastrointestinal Pathogen Panel is able to provide outcomes in less than five hours. The assay is meant for the Luminex 100/200 system.
Earlier, Luminex accomplished the takeover of U.S.-based diagnostic testing company, GenturaDx on July 11, 2012. The GenturaDx deal is in line with Luminex’s strategy of pursuing acquisitions to drive growth. Its technology when combined with Luminex’s MultiCode chemistry will enable the company to develop user-friendly advanced products for its customers.
Luminex possesses an extensive product portfolio and a strong pipeline of novel assays, which are expected to support growth going ahead. The company is awaiting FDA approval for its NeoPlex4 assays to drive future growth. It may benefit from its latest acquisitions if it maintains integration synergies.
However, Luminex operates in a highly competitive life sciences industry. The company competes with Affymetrix , Life Technologies Corporation (LIFE - Snapshot Report) and Sequenom , among others. Moreover, sluggish growth in its core markets as well as the ongoing European austerity measures are challenges faced by Luminex. We are currently Neutral on the stock, which carries a short-term rating of Zacks Rank #3 (Hold).