Summary
As pharmaceutical and biotechnology companies continue to outsource their array production and research projects, future growth prospects look bright for the ever expanding companies that provide these and other related research services. Both privately held Expression Analysis and Applied Microarrays indicated multiple growth strategies in a recent Bioarray News article. This growth should provide new opportunities for companies that provide analytical array-based equipment, reagents and software solutions.
Analysis
Expression Analysis and Applied Microarrays both announced strategies for growth in a February 17 BioArray News article. Companies cited reasons that include the current economic environment, capital preservation and the availability of arrays and antibodies. As the number of companies that provide out-sourced services to pharma and biotech, there could be consolidation opportunities.
In the gene sequencing area, a recent survey by the Association of Biomolecular Resource Facilities' DNA Sequencing Research Group revealed that gene sequencing system owners plan to buy one or more systems within the next two years. This could be a positive factor for gene sequencing companies such as Life Technologies (NASDAQ:LIFE), Illumina(NAS:ILMN), Roche(SWX:RO) (SWX:RO)(NAS:RHHBF.PK) and others.
In a related development, Illumina (NAS:ILMN) announced plans to transition into the $52 billion dollar global diagnostics market.
For more information on the high level of activity in the life science market segments, companies mentioned above and the $52 billion dollar global clinical diagnostics market, please contact your GLG representative to schedule an individual consult.
