Investors are often surprised at the relatively low growth rates that
are available in the life sciences industry. While there are indeed
segments that offer exceptional top-line growth prospects (like genetic
sequencing), the sheer size of the sector and the fact that many new
offerings simply supplant older technologies and products means that the
overall growth rates are more moderate.
It's important to understand that backdrop when looking at
Life Technologies (Nasdaq:
LIFE). Life Tech is indeed a very good life sciences company, but serious competition in sequencing from
Illumina (Nasdaq:
ILMN) and
Oxford Nanopore
does challenge the company's ability to outgrow the broader market, as
does the less-desirable state of government-sponsored research funding
in the U.S.
Please click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Is-There-Enough-Growth-To-Really-Push-Life-Technologies-LIFE-ILMN-A-TMO0629.aspx
No comments:
Post a Comment