Supplier Blow-Out

Tarred & feathered

News of Applied Biosystems' reduced growth rate wiped out $3.4 billion (41 percent) of its market cap last week, and sent shock waves through the laboratory equipment provider space. ABI shares fell $11.45 (33 percent) to $23 on 22.8 million shares on Thursday, and closed Friday at $23.25, down $16 on the week (see BioCentury Extra, Wednesday March 21 & Thursday March 22).

At least six other research tool providers fell 13 percent or more on Thursday, and the group of 10 lab supply companies tracked by BioCentury lost $6.3 billion (22 percent) of their market cap on the week (see "Caught in the Crossfire"). The supply group's decline far outpaced the 6 percent drop in the BioCentury 100.