AFFX Affymetrix, Inc.

Luminex Corporation (LMNX), a developer of biological testing technologies, has joined forces with global life sciences company Life Technologies Corporation (LIFE) to market its coveted MAGPIX analytical instrument. The entities have forged a global sales and distribution deal for this award-winning solution.

The MAGPIX system (launched in July 2010) leverages Luminex’s proprietary open-architecture xMAP technology and is capable of producing up to 50 tests on a single sample. The versatile multiplexing platform can be used to test both nucleic acids (DNA and RNA) and proteins, making it applicable across multiple research settings.

MAGPIX has been designed to offer fast, accurate and easily reproducible test results while enabling laboratories to save time and cost. Based on a comparative study, MAGPIX is shown to be more efficient and cost-effective than the legacy Enzyme-linked Immunosorbent Assay (“ELISA”) test method. Besides, it requires less sample input compared with the ELISA method.

Luminex received the prestigious Medical Design Excellence Award (“MDEA”) for MAGPIX in April 2011. MAGPIX was recognized in the “In Vitro Diagnostics” category of the award, through a comprehensive review by a multi-disciplinary jury panel, for its innovative design and contribution.

The collaboration (between Luminex and Life Technologies) represents a positive step as it will broaden the reach of the innovative MAGPIX instrument to scientists and research laboratories across the globe. Leveraging Life Technologies’ global exposure, Luminex can bring this state-of-the-art multiplexing solution to the right end-users.  

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 conduct and analysis of biological tests (bioassays).

Luminex continues to expand its xMAP technology-based installed instrument base. The company shipped 197 analyzers (including 38 MAGPIX analytical instruments) in first-quarter fiscal 2011, resulting in accumulated shipments of 7,897 (up 13% year over year).

Luminex has a strong international presence which has helped it to expand its product portfolio and customer base. The company’s collaborative agreements should also help expand the use of its products/technology.

However, Luminex operates in the highly competitive life sciences industry, characterized by rapid and continuous technological innovation. The company competes with Affymetrix (AFFX) and Sequenom (SQNM), among others.

Moreover, Luminex is challenged by sluggish growth in its core markets, faces regulatory uncertainties, and heavily depends on partners to market its instruments and assays, a strategy that has its risks. We are currently Neutral on the stock.

 
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