March 5, 2008 - Invitrogen Corp. (IVGN-NASDAQ) makes kits that not only simplify but also speed up gene cloning, expression, and analysis. Its TOPO TA Cloning Kit reduces one step in the cloning process that once took 12 hours to just five minutes. This and other products make up its BioDiscovery segment, which serves the functional genomics, cell biology, and drug discovery markets. Its Cell Culture Systems segment sells blood, cell, and tissue culture media used in life sciences research and to produce and test the purity of pharmaceuticals. Customers include corporate, academic, and government research facilities.

While the economy in general struggles with higher gas prices, lower house prices and other problems, life sciences enjoy continued support from biomedical research. In Europe, Invitrogen sees increased spending over last year. As of 2007, the company sales to China and India only accounted for 5% of total revenues. The salesforce is expanding in those 2 countries to increase IVGN's market share in a region that has ever larger expenditures in biomedical technologies.

Invitrogen acquired assay technology developer Sentigen in 2006. Analysts believe the company will be making more specialty acquisitions to complement its current products, not enter into new markets. As such, they expect these to be smaller add ons. In January of this year, IVGN bought CellzDirect for $57 million. It offers primary cell products and services.

The company's been buying in its own shares. It had about $100 million left on its original program at the end of last year. Cash is about $670 million so there's plenty of funding available for buying stock and other companies.

More numbers: Market cap is $4 billion on 46.75 million shares. Current assets are more than 4 times current liabilities. Net profit margin is 10%. There are no dividends. Debt is 39% of capital. Return on equity is 8.4%. At the end of last year, the stock hit $99.10 a share. It's down about 15% since then.

There isn't much bad to read about or into IVGN except that investors already love the stock. The P/E (price to earnings) ratio is a hefty 34. Price to Book is a little over 2 times. While the stock has come down from even higher valuations, any investor would be wise to be cautious at these levels, if the stock fits their criteria.

- Company Web site: www.invitrogen.com

- Ted Allrich