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Why Investors Support Life Sciences Research Inc. (LSR) Stock

Success in the Healthcare Sector makes more stock market news than failures. Investors are fed with dollops of information about blockbuster drugs and regulatory approvals for new ones. The truth is that few candidate products ever make it to market.

Outsourcing services to the Biotechnology & Drugs Industry are safer, if modest, options to making celebrity medicines. This small capital corporation from East Millstone, NJ specializes in pre-clinical testing. Most of its business is from pharmaceutical companies, but it can serve all clients in any branch of the Life Sciences. The important thing is that the revenues to service the stock do not depend on the outcome of experiments.

Outsourcing of clinical trials is expected to grow. Research-based companies can save on their fixed costs, and regulators should also prefer quality-controlled, independent test results. A major advantage of this small-capital stock is that its established test capacities have not been fully used until now. The corporation is in an enviable position of ramping up business without commensurate cost expansion.

The mid-June 2008 stock price at $29.82 is within sniffing distance of the 52-week high of $30.00. Research and regulatory circles in both the United States and Europe rate the business prospects of the stock very highly.

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