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QIAGEN (QGEN) Faces Declining HPV Sales, Intense Competition

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On Nov 9, we issued an updated research report on QIAGEN N.V. (QGEN - Free Report) . The stock currently carries a Zacks Rank #4 (Sell).

This Netherlands-based molecular diagnostics provideroffers innovative technologies and products for pre-analytical sample preparation and molecular diagnostics solutions. The stock has been trading below the broader industry over the last six months. As per the latest share price, it has lost 1.4% as against the 1.1% gain of the broader industry. The company ended the third quarter on a mixed note with earnings beating and revenues missing the Zacks Consensus Estimate.

We note that the company has been facing considerable negative impact from the timing of national tender that is leading to a decline in HPV test sales in the rest of the world.

QIAGEN’s Personalized Healthcare business relies on formation of projects with pharmaceutical and biotechnology companies to co-develop companion diagnostics paired with drugs that such companies either market currently or are developing for future use. Thus, QIAGEN is exposed to the risk of not being able to maintain these relationships with collaborative partners pursuing or developing competitive products or technologies, either on their own or in collaboration with others.

 

 

Moreover, QIAGEN has been facing intensifying competition from firms that provide pre-analytical solutions and other products. Also, the price sensitivity of the market poses a threat.

We are however impressed with balanced growth across all of the company’s business segments. On the profitability front, QIAGEN performed well in terms of operating margin. We are also upbeat about the company’s partnership and co-marketing agreement with CENTOGENE AG to boost its bioinformatics portfolio. Moreover, the company’s focus to drive growth through Sample-to-Insight offerings buoys optimism.

Key Picks

A few better-ranked stocks in the broader medical sector are PetMed Express, Inc. (PETS - Free Report) , Luminex Corporation and Intuitive Surgical, Inc. (ISRG - Free Report) . Notably, PetMed and Luminex sport a Zacks Rank #1 (Strong Buy), while Intuitive Surgical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 12.7% over the last six months.

Luminex has a long-term expected earnings growth rate of 16.3%. The stock has gained 2.1% in the last six months.

Intuitive Surgical has a long-term expected earnings growth rate of 9.1%. The stock has gained 38.5 % over the last six months.

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