The general thesis across the life sciences and diagnostic tools segments has been to find companies with better visibility than the group, or compelling new product stories that can help them to have some predictability in their earnings, which has led to a focus on the the larger companies, says Amit Bhalla, a Director at Citi Investment Research & Analysis.
“They have broader geographic and product diversification than some of smaller companies in the space. It is a slightly a more cautious approach in picking stocks in the group, but if you take each one of the companies, they do have some pretty compelling reasons to own them,” he said.
Bhalla likes Life Technologies Corporation (LIFE) and has a “buy” rating on the company. He believes Life Technologies has one of the most exciting new product launches in the sequencing space, the Ion Proton System, which is set to launch in September of this year.
“The company has already taken 100 orders for the system. There are already 1,000 Ion PGM systems in place, and we think these next-generation benchtop sequencing systems are going to change the landscape in sequencing in both price as well as throughput,” Bhalla said.
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