AFFX Affymetrix, Inc.

Luminex Corporation (LMNX), a developer of biological testing technologies, recently reported that its new xTAG Gastrointestinal Pathogen Panel (“GPP”) test has been successfully used at German hospital, Kliniken der Stadt Koln, as a first-line screen for patients suspected of having the Escherichia coli (E. coli) infection.

The E. coli is a common bacterium that lives in the intestines of humans and many animals.  

The diagnostic test detected hemolytic-uremic syndrome (“HUS”) caused by Shiga toxin producing E. coli (“STEC”), a type of E. coli bacteria, responsible for the current E. coli crisis in Germany.

HUS, which predominantly affects children, is a life-threatening condition which typically occurs when an infection in the digestive system produces toxic substances that destroy red blood cells, leading to kidney failure.

Luminex worked with the Kliniken der Stadt Koln, Institute of Pathology, to deploy the xTAG GPP based on its ability to accurately detect the disease-causing pathogens in patient samples.

Europe has been severely hit by the worst E. coli outbreak in recent history. According to the World Health Organization (“WHO”), 3,256 people across the continent have been sickened by E. coli as of June 12. Moreover, there have been 812 reported cases of HUS and 35 deaths.

Luminex received the European CE mark approval for xTAG GPP in May 2011. Based on the company’s proprietary xMAP multiplexing platform, the novel molecular test has been geared to simultaneously detect 15 parasitic, bacterial and viral pathogens (including E. coli) from a single sample and deliver results within 5 hours.

The xTAG GPP allows fast and simultaneous detection of 95% of acute gastroenteritis pathogens. As such, patients infected with STEC strain (or the outbreak strain) can be rapidly identified, closely monitored and appropriately managed.

Luminex’s open-architecture xMAP technology enables fast, cost-effective and accurate conduct and analysis of biological tests.The company continues to expand its xMAP technology-based installed instrument base.

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 faces the challenge of sluggish growth in its core markets, faces regulatory uncertainties, and heavily depends on partners to market its instruments and assays, a strategy that has inherent risks. We are currently Neutral on the stock, which is in agreement with a short-term Zacks #3 Rank (Hold).

 
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