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Illumina Ranks the Highest in Terms of Operating Margin in the Life Sciences Tools & Services Industry (ILMN, MDZ, WX)

Published on Mon, 12/31/2012 - 11:15
By Robert Cotter

Below are the three companies in the Life Sciences Tools & Services industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.

Illumina (NASDAQ:ILMN) is highest with an operating margin of 23.8%. Illumina, Inc. develops, manufactures and markets integrated systems for the large scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that currently serve the sequencing, genotyping and gene expression markets for genomic research centers, pharmaceutical companies, academic institutions and biotechnology companies.

Illumina (NASDAQ:ILMN) is currently priced 5.9% above its average consensus analyst price target of $51.78. The stock should discover initial support at its 50-day moving average (MA) of $50.57 and subsequent support at its 200-day MA of $46.14.

MDS (NYSE:MDZ) is next with an operating margin of 23.7%.

Finishing up the top three is WuXi PharmaTech Cayman (NYSE:WX), with an operating margin of 17.0%.

By Robert Cotter