Cerner Acquires Labotix Automation - Analyst Blog
March 19 2013 - 8:20AM
Zacks
Leading healthcare information
technology (HCIT) solutions provider, Cerner
Corporation (CERN) recently revealed the acquisition of
Labotix Automation Inc. Labotix is a leader in providing flexible
and open automation solutions to the clinical laboratory setting.
This acquisition is likely to provide expertise for supporting the
high volume testing market.
According to Cerner, the
acquisition of Labotix has placed the company in a strategic
position from where it can focus on helping clients through
automation options, as well as reducing errors while upgrading
capacity of laboratory processing.
Labotix Automation, started in
1991, is an open automation solution, which functions with all
devices prevailing in the market. The company’s worldwide
installations have been operating and adapting to changes for more
than two decades. Through its worldwide operations, Labotix gained
proficiency, knowledge and trust to meet the needs of a laboratory,
irrespective of its size.
Now that the acquisition is
complete, Cerner aims to offer Labotix’s expertise to its global
client-base by enhancing operations in laboratories through
assimilation of Cerner’s platforms. According to Labotix the
commitment of Cerner combined with its expertise is likely to bring
about accuracy and better results.
Cerner remains the trendsetter
among pure-play, publicly traded healthcare IT (HCIT) vendors. The
company is diversified not only on a global basis but serves both
hospitals and ambulatory outfits. Its integrated solutions have
captured market share. While greenfield opportunities are
shrinking, the replacement market is growing.
We believe long-term investors may
consider Cerner, as it serves a sizeable installed hospital base
that requires composite clinically-oriented applications complying
with “meaningful use” requirements, reimbursement difficulties and
complicated coding challenges. The company has long-standing,
integrated and seamless solutions for both inpatient and ambulatory
settings.
On the negative side, the federal
Stimulus program is gradually winding down. Cerner faces stiff
competition from established HCIT players, such as
Athenahealth (ATHN). Cerner carries a Zacks Rank
#3 (Hold) . However, we are more positive about other stocks such
as Cyberonics Inc. (CYBX) and Given
Imaging Ltd. (GIVN) both of which carry a Zacks Rank #1
(Strong Buy) and are expected to do well.
ATHENAHEALTH IN (ATHN): Free Stock Analysis Report
CERNER CORP (CERN): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
GIVEN IMAGING (GIVN): Free Stock Analysis Report
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