Thursday, October 27, 2005

Invitrogen Misses... Ouch!

Invitrogen reported today after the bell and the results fell well short of expectations. The company reported revenues of $289.6 millions and earnings per share of $0.80. The stock is trading a $63.20 (down ~11%)in after hours. Well, sometimes I do make a mistake, but fortunately this is only a small mistake. I sold a chunk of the stock from my retirement account in the mid 80's. I haven't had a chance to listen in on the conference call, but it looks like weakness in bio production contributed to the miss. Bio production is basically custom made media used to grow cells in bio reactors. I doubt this is due to competitive forces. If a company receives FDA approval to use a custom made media for cell culture production, it's very difficult to switch vendors. The company would have to go through a full validation process, which would be time consuming and expensive. I would not jump in and purchase here yet, but let the stock settle down a bit. I still like this company.

EDIT: I'm just listening in on the conference call. They lost a big order from Biogen due to the withdrawal of Tysabri from the market. Also a lot of media orders were pushed into Q4.


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