** Brokerage Leerink Partners says that about $4 billion of expected cost cuts at the National Institutes of Health will disproportionately impact large private academic institutions, research centers and medical schools
** NIH, the U.S. government's largest source of federal funds for medical research, plans to reduce indirect costs across both existing and future grants related to biomedical research
** The "U.S. academic system has not experienced such a magnitude of funding cuts and at such a speed" - Leerink
** Brokerage sees the worst sales impact for life sciences technology firms 10x Genomics TXG.O and Quanterix QTRX.O in Q1 as researchers get cautious and pause purchases of instruments dramatically
** Gene sequencing equipment maker Illumina ILMN.O, already on China's "unreliable entity" list, could also see "meaningful impact" as academic and research institutes make up a major part of its customer base
** Medical device maker Thermo Fisher Scientific TMO.N will face more impact than rival Danaher DHR.N due to a relatively higher exposure to institutions
** In the last 12 months, TGX stock fell 69.51%, QTRX fell 66.11%, ILMN fell 18.27%, BRKR fell 35.76%, DHR fell 18.32% and RGEN fell 19.55%
(Reporting by Siddhi Mahatole)
((siddhiprabhanjan.mahatole@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.