Luminex, One Lambda Renew Tie - Analyst Blog

Luminex Corporation (LMNX), a developer of biological testing technologies, has renewed its long-standing strategic collaboration with leading transplant diagnostic products maker One Lambda Inc. The partnership, which began in 2000, focuses on developing technologies for human leukocyte antigen (“HLA”) testing and antibody screening for the organ transplantation market.

HLA testing (also called HLA typing) detects antigens (genetic markers) on white blood cells. The test is used to provide evidence of tissue compatibility for organ transplantation. HLA test and antibody screening are vital in matching organ donors and organ recipients, thereby minimizing transplant rejection.

The 10-year collaboration between Luminex and One Lambda has resulted in the development of several novel products and technologies that have reduced the cost and complexity of HLA testing and antibody screening. By renewing their partnership, the companies will continue to pursue this strategy by combining their technologies and expertise with a broader goal for advancing the care for organ transplant patients.   

California-based One Lambda, which specializes in HLA typing and antibody screening tests, leverages Luminex's proprietary xMAP Technology to develop a broad range of innovative assays to make transplant diagnostics fast and cost-effective. The company's assays, which include LABType SSO HLA typing and LABScreen antibody detection tests, are used in more than 80 countries globally.

The flexible xMAP technology allows the execution of multiple tests simultaneously on a single sample, which eliminates the need to run multiple tests. Luminex continues to expand its xMAP technology-based installed instrument base. As part of this initiative, it launched the MAGPIX analytical instrument July 2010, which is capable of executing up to 50 tests on a single sample.

Luminex operates in the highly competitive life sciences industry, characterized by rapid and continuous technological innovation. The company competes with Affymetrix (AFFX), Life Technologies (LIFE) and Sequenom (SQNM) and heavily depends on its partners to market its instruments and assays.

Moreover, Luminex is susceptible to regulatory delays and demand for research and diagnostics applications is expected to remain lackluster over the next few quarters given the soft macroeconomic backdrop. We currently have an Underperform rating on Luminex.