Morningstar Rating

Stock Research and Analysis

by Meera Venu
With the strength of Invitrogen's consumables and Applied Biosystems' instrumentation under one roof, Life Technologies has become one of the largest manufacturers of life science products. The merger of these two firms has also granted Life Technologies   Read more 

Bulls Say

Stimulus money to the National Institutes of Health could increase grants to academic and government-funded customers, boosting demand for the firm's products.
Life Technologies has one of the largest patent portfolios in the industry, which can prevent firms from entering some of its niches without paying a licensing or royalty fee.
The product offerings and strong brand names of Invitrogen and Applied Biosystems fit well together and could create excellent cross-selling opportunities. Read more 

Bears Say

The rapid growth of next-generation sequencing may invite more entrants to the market, in addition to competition from Roche RHHBY, Illumina ILMN, and Helicos HLCS, and drive revenue down.
Life Technologies receives one third of its revenue through pharmaceutical and biotech customers. Given the tough economic climate and increased acquisition activity, demand could decline.
Revenue and cost synergies from the merger may come in below expectations, which could result in lower-than-expected operating margins. Read more 

Strategy

Life Technologies aims to continue integrating its two predecessor companies and realize cost synergies from the merger. The firm has targeted high-growth segments of the genetic analysis market, such   Read more 

Management

We think Life Technologies has fair corporate governance, and we give it a C Stewardship Grade. CEO and chairman Greg Lucier had served as CEO of Invitrogen for five years before the merger and of GE Medical Systems for three years before that. Several   Read more 

Profile

Life Technologies emerged from the merger of Invitrogen and Applied Biosystems in 2008. The firm develops, manufactures, and sells biotechnology tools for the academic,   Read more 

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