$375MM+ Ion Torrent Acquisition. Consideration is 60% cash 40% stock (offset by new buyback). $350MM in technical milestone payments could be made through 2012.
Based on recent comparable deals, we believe LIFE is likely expecting Ion Torrent to contribute at least $40-70MM in sales over the next 12 months. The deal is expected to be only $0.02/share dilutive in 2010, neutral in 2011. 2010 & 2011 EPS guidance was reiterated.
Showing posts with label healthcare. Show all posts
Showing posts with label healthcare. Show all posts
Wednesday, August 18, 2010
LIFE: Barclay's Positive on Ion Torrent acquisition
LIFE (1-OW/Pos, $44.11, PT $60, $8.1b) T Butler - Positive on Acquisition - To acquire private sequencing co for $375m in cash & stock plus $350m in milestones through '12; structure provides optionality, new technology provides reduced cost of instruments & size of data output; cut eps '10 $3.46 to $3.43 (inline), '11 $3.82 to $3.79 (v $3.81).
Wednesday, July 21, 2010
LIFE comment by Jeffries
Life Technologies (LIFE, $47.11, Buy, PT $60, Mkt Cap $8.6B) - Jon Wood
-With ~80% of composite revenue attributable to higher-margined recurring consumables and service revenue streams, LIFE’s defensive business mix characteristics are a compelling investment merit in current market conditions, in our view. Additionally, we believe LIFE is capable of growing organic revenues at a 1% to 2% premium to its end-markets annually over the intermediate-term, owing to its entrenched presence in higher-growth life science product niches, superior pricing power, elevated new product vitality and ongoing synergies from the ABI merger
-With ~80% of composite revenue attributable to higher-margined recurring consumables and service revenue streams, LIFE’s defensive business mix characteristics are a compelling investment merit in current market conditions, in our view. Additionally, we believe LIFE is capable of growing organic revenues at a 1% to 2% premium to its end-markets annually over the intermediate-term, owing to its entrenched presence in higher-growth life science product niches, superior pricing power, elevated new product vitality and ongoing synergies from the ABI merger
Friday, July 16, 2010
Life Technologies JP Morgan update
For LIFE, following the recent underperformance, we believe the stock could set up well into 2H given the upside potential to EPS this year and stability in the core (80% consumables and service) business. ILMN remains, by far, the best growth story in the space, and we see little risk to revenues this year (JPMe +21%) from continued uptake of HiSeq and a partial recovery in the GWAS markets, although as we have previously noted, gross margins could see some modest 2H weakness, depending on magnitude of the upgrade cycle, although we have factored this into our current estimates.
Company reports 2Q 7/29
Company reports 2Q 7/29
Wednesday, July 7, 2010
LIFE
PRESS RELEASE: Life Technologies Releases Global Citizenship Report with Product Sustainability Information (DJ)
Products Now Incorporate Design-for-Environment Principles to Reduce Impact
CARLSBAD, Calif.--(BUSINESS WIRE)--July 07, 2010-- Life Technologies Corporation (NASDAQ:LIFE), a provider of innovative life science solutions, has released its 2009 Global Citizenship Report, highlighting Life Technologies' organization-wide initiatives to be a leading corporate citizen and balance environmental and social issues with its overall mission to shape biological discovery and ultimately improve life.
Featuring product-level information about the company's redesigned and environmentally sensitive development, manufacturing and distribution processes, the report also highlights Life Technologies' efforts to be on the cutting edge of conservation while remaining a global leader in corporate social responsibility.
"We believe that for our business to revolutionize science, we must balance that with a commitment to leadership in environmental and social issues," said Cristina Amorim, Vice President of Global Citizenship at Life Technologies. "We continue to pursue new ways to help our customers and our company conserve resources, showing how global citizenship and responsibility can drive operational efficiency."
This report highlights the company's Product Stewardship program and Design-for-Environment principles that have helped drive major changes throughout a product's life cycle. Life Technologies recently launched its Re:sponsibility Program, which provides customers with detailed information to help them identify and choose products that can help reduce their environmental impact. These product development initiatives include:
-- Revisited shipping conditions and new, more sustainable packaging for certain consumables-- Based upon extensive research into product stability, quality and performance, Taqman(R) Genomic Assays now ship at ambient temperatures rather than frozen, eliminating more than 100,000 Styrofoam(R) coolers and approximately 500,000 pounds of dry ice per year (White Paper PDF).
-- Reduced use of hazardous material-- Many instruments and consumables have been designed to use less hazardous material and generate less waste than comparative products during their usage life.
-- Reengineered instruments for energy and space consumption-- Many systems
have been designed to be more energy and space efficient and use less raw materials than their predecessors, including several new Real-Time PCR Systems that have been designed to be over 50 percent more energy efficient than their predecessors.
Life Technologies' 2009 Global Citizenship Report (PDF) also includes broader information on all of the company's corporate environmental and social responsibility initiatives. This is Life Technologies' first citizenship report to be prepared within the Global Reporting Initiative Generation 3 framework, with expanded transparency into the company's goals and progress in science, ethics, people, environment and community.
The report includes information on:
-- Company-wide facility conservation initiatives that resulted in substantial 2009 reductions, including a six percent reduction in energy use, a five percent reduction in greenhouse gas emissions and a 19 percent reduction in water intake, saving the company more than $4 million.
-- Continued pursuit of LEED (Leadership in Energy and Environment Design)certification at the Carlsbad headquarters, which is set to save 20 million gallons of water this year through a program with the San Diego County Water Authority. The Pleasanton and Shanghai Demonstration Lab facilities are already LEED certified.
-- Retrofitting building and product refrigeration systems with high-efficiency motors for energy conservation and reengineering facilities to recycle water.
-- New employee programs in safety, health and wellness emphasizing better lifestyle choices and exercise that have helped reduced sick time among employees by 14 percent this year.
-- A new Giving Back at Life program aimed at facilitating community service participation in Life Technologies' workforce, with employees on track to donate more than 25,000 volunteer hours this year.
-- More than $300 million invested annually in research and development that addresses some of the most pressing issues of the 21st Century, such as scarcity of resources, water and food security, disease and biodiversity loss, areas where biotechnology can help make life even better.
Products Now Incorporate Design-for-Environment Principles to Reduce Impact
CARLSBAD, Calif.--(BUSINESS WIRE)--July 07, 2010-- Life Technologies Corporation (NASDAQ:LIFE), a provider of innovative life science solutions, has released its 2009 Global Citizenship Report, highlighting Life Technologies' organization-wide initiatives to be a leading corporate citizen and balance environmental and social issues with its overall mission to shape biological discovery and ultimately improve life.
Featuring product-level information about the company's redesigned and environmentally sensitive development, manufacturing and distribution processes, the report also highlights Life Technologies' efforts to be on the cutting edge of conservation while remaining a global leader in corporate social responsibility.
"We believe that for our business to revolutionize science, we must balance that with a commitment to leadership in environmental and social issues," said Cristina Amorim, Vice President of Global Citizenship at Life Technologies. "We continue to pursue new ways to help our customers and our company conserve resources, showing how global citizenship and responsibility can drive operational efficiency."
This report highlights the company's Product Stewardship program and Design-for-Environment principles that have helped drive major changes throughout a product's life cycle. Life Technologies recently launched its Re:sponsibility Program, which provides customers with detailed information to help them identify and choose products that can help reduce their environmental impact. These product development initiatives include:
-- Revisited shipping conditions and new, more sustainable packaging for certain consumables-- Based upon extensive research into product stability, quality and performance, Taqman(R) Genomic Assays now ship at ambient temperatures rather than frozen, eliminating more than 100,000 Styrofoam(R) coolers and approximately 500,000 pounds of dry ice per year (White Paper PDF).
-- Reduced use of hazardous material-- Many instruments and consumables have been designed to use less hazardous material and generate less waste than comparative products during their usage life.
-- Reengineered instruments for energy and space consumption-- Many systems
have been designed to be more energy and space efficient and use less raw materials than their predecessors, including several new Real-Time PCR Systems that have been designed to be over 50 percent more energy efficient than their predecessors.
Life Technologies' 2009 Global Citizenship Report (PDF) also includes broader information on all of the company's corporate environmental and social responsibility initiatives. This is Life Technologies' first citizenship report to be prepared within the Global Reporting Initiative Generation 3 framework, with expanded transparency into the company's goals and progress in science, ethics, people, environment and community.
The report includes information on:
-- Company-wide facility conservation initiatives that resulted in substantial 2009 reductions, including a six percent reduction in energy use, a five percent reduction in greenhouse gas emissions and a 19 percent reduction in water intake, saving the company more than $4 million.
-- Continued pursuit of LEED (Leadership in Energy and Environment Design)certification at the Carlsbad headquarters, which is set to save 20 million gallons of water this year through a program with the San Diego County Water Authority. The Pleasanton and Shanghai Demonstration Lab facilities are already LEED certified.
-- Retrofitting building and product refrigeration systems with high-efficiency motors for energy conservation and reengineering facilities to recycle water.
-- New employee programs in safety, health and wellness emphasizing better lifestyle choices and exercise that have helped reduced sick time among employees by 14 percent this year.
-- A new Giving Back at Life program aimed at facilitating community service participation in Life Technologies' workforce, with employees on track to donate more than 25,000 volunteer hours this year.
-- More than $300 million invested annually in research and development that addresses some of the most pressing issues of the 21st Century, such as scarcity of resources, water and food security, disease and biodiversity loss, areas where biotechnology can help make life even better.
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