NEW YORK (GenomeWeb News) – The stocks of Luminex, PerkinElmer, Thermo Fisher Scientific, and Waters were all hit hard in Friday trade after investment bank Leerink Swann warned this morning that cuts in academic research budgets are likely to hurt capital equipment vendors in the life sciences research industry.
“Unfortunately, tighter budgets mean that certain research tools, even those that add value, will go by the wayside,” according to the Leerink Swann research note. “Not surprisingly, capital equipment was most often cited as the first thing to go.
Luminex was one of the firms that the bank downgraded from “outperform” to “market perform,” and its shares closed down around 9 percent at $21.09 in late afternoon trade on the Nasdaq. It had traded as low as $19.96 during the day.
The bank also lowered its revenue estimates for fiscal 2009 for PerkinElmer and Thermo Fisher. PerkinElmer’s shares closed down 18 percent at $13.36 and Thermo Fisher’s shares closed down 9 percent at $30.38 on the New York Stock Exchange.
Shares of Waters, which cautioned last night that its fourth-quarter revenues would fall short of previous guidance, dropped around 11 percent to $37.18.