Luminex Upgraded to Neutral - Analyst Blog
Recently, we upgraded Luminex Corp. (LMNX) to Neutral from Underperform. Our decision to upgrade the stock was based on the company’s wide range of products and its significant international presence. These positive factors should drive growth in the coming quarters. Additionally, Luminex has an interesting pipeline. Should the pipeline develop successfully, the company can look at further growth.
We are pleased with the company's broad product portfolio. Luminex’s instrument base consists of the Luminex 100 (LX100), Luminex 200 (LX200) and FlexMap 3D systems. The Luminex 100 and 200 are compact analyzers that integrate fluidics, optics and digital signal processing to perform up to 100 bioassays simultaneously in a single tube or well of a microtiter plate using only a small amount of sample. By combining small diode lasers with digital signal processors and microcontrollers, these systems perform rapid, multi-analyte profiles under the control of a Windows-based personal computer as well as the company’s proprietary software. During the third quarter of 2009, Luminex received clearance from the U.S. Food and Drug Administration (FDA) for the new version of its xTAG Cystic Fibrosis Test designed to address end-user needs of ease-of-use and simplicity.
The company’s strong international presence, which has helped it to expand its product portfolio and customer base is encouraging. During the third quarter of 2009, Luminex established offices in Shanghai and Tokyo, thus enhancing the company’s presence in Asia. The company owns an interesting pipeline and is working on developing several new assays including those for animal health, newborn screening, a next-generation respiratory panel, a gastrointestinal (GI) panel, a fungal panel, a meningitis panel and bio-threat assays. Successful pipeline development would facilitate further growth of the company.
However, we remain concerned about the company’s dependence on partners, which is inherently risky and the highly competitive industry. Luminex competes with players such as Affymetrix Inc. (AFFX), Life Technologies Corp. (LIFE) and Sequenom Inc. (SQNM).
Read the full analyst report on "LMNX"
Read the full analyst report on "AFFX"
Read the full analyst report on "SQNM"
Read the full analyst report on "LIFE"
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