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Product Innovation Drives Illumina, Downbeat Margins a Woe
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On Dec 26, we issued an updated research report on Illumina, Inc. (ILMN - Free Report) . The stock carries a Zacks Rank #3 (Hold).
Over the last three months, shares of this San Diego, CA-based company have been trading above the broader industry. The stock has rallied 7.6% versus the broader industry’s decline of 9.5% during the period.
We are encouraged to note that the company’s third-quarter 2017 performance was quite promising. The top line was driven by a solid uptake of sequencing consumables and instruments as well as microarray portfolios. Meanwhile, the company’s raised 2017 guidance indicates that this bullish trend is here to stay.
Management is hopeful that recent launches from the company’s product portfolio including NovaSeq S4 flow cell and the reagent kit for its NovaSeq 6000 System will drive demand for NovaSeq. We also look forward to the introduction of NovaSeqXp workflow. Besides, the company’s launch of Nextera DNA Flex buoys optimism. Moreover, it has recently partnered with Telegraph Hill Partners to set up an independent entity.
We are also curious about GRAIL’s prospects, Illumina’s venture in the cancer screening market. Importantly, the company has started a detailed planning to embark on a large-scale clinical trial in 2017.
Illumina is currently keeping pace with its goals to strengthen foothold in the multi-billion gene sequencing market with some highly competitive products in its existing portfolio and the pipeline. For its market expansion, the company’s primary focus was on reproductive and genetic health space, for which, Illumina seeks to widen its portfolio by providing the verifi laboratory-developed non-invasive prenatal test (“NIPT”).
This market is rapidly developing on a global scale, allowing the company to witness consistent growth in the number of NIPT samples. Good news is that positive NIPT reimbursement trends have been observed within the United States during the third quarter. Incidentally, the rate of NIPT adoption is equally high beyond the country’s periphery.
We are particularly upbeat about the strong uptake of VeriSeq NIPT CE-IVD solution in third-quarter 2017. On a positive note, countries like The Netherlands and Denmark too have started covering the test since the first quarter, followed by England and France. Hence, the company continues to see positive reimbursement trends in Europe as well.
On the flip side, weak margins due to the NovaSeq launch, higher array service revenues and product mix within sequencing consumables continue to raise concerns. Also, the National Institutes of Health funding issue and a tough competitive landscape are a few more challenges to deal with.
Key Picks
Some of the top-ranked medical stocks are Bio-Rad Laboratories (BIO - Free Report) , Baxter International Inc. (BAX - Free Report) and ICU Medical Inc. (ICUI - Free Report) . Notably, Bio Rad Laboratories sports a Zacks Rank #1 (Strong Buy) while Baxter International Inc. and ICU Medical Inc. carry a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank stocks here.
Bio-Rad has a long-term earnings growth rate of 140.65%. The stock has rallied roughly 33.2% over a year.
Baxter International has an earnings growth rate of 7.33% in the next quarter. The stock has surged roughly 45.9% over a year.
ICU Medical has a long-term growth rate of 40.63%. The stock has soared roughly 47.6% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Product Innovation Drives Illumina, Downbeat Margins a Woe
On Dec 26, we issued an updated research report on Illumina, Inc. (ILMN - Free Report) . The stock carries a Zacks Rank #3 (Hold).
Over the last three months, shares of this San Diego, CA-based company have been trading above the broader industry. The stock has rallied 7.6% versus the broader industry’s decline of 9.5% during the period.
We are encouraged to note that the company’s third-quarter 2017 performance was quite promising. The top line was driven by a solid uptake of sequencing consumables and instruments as well as microarray portfolios. Meanwhile, the company’s raised 2017 guidance indicates that this bullish trend is here to stay.
Management is hopeful that recent launches from the company’s product portfolio including NovaSeq S4 flow cell and the reagent kit for its NovaSeq 6000 System will drive demand for NovaSeq. We also look forward to the introduction of NovaSeqXp workflow. Besides, the company’s launch of Nextera DNA Flex buoys optimism. Moreover, it has recently partnered with Telegraph Hill Partners to set up an independent entity.
We are also curious about GRAIL’s prospects, Illumina’s venture in the cancer screening market. Importantly, the company has started a detailed planning to embark on a large-scale clinical trial in 2017.
Illumina is currently keeping pace with its goals to strengthen foothold in the multi-billion gene sequencing market with some highly competitive products in its existing portfolio and the pipeline. For its market expansion, the company’s primary focus was on reproductive and genetic health space, for which, Illumina seeks to widen its portfolio by providing the verifi laboratory-developed non-invasive prenatal test (“NIPT”).
This market is rapidly developing on a global scale, allowing the company to witness consistent growth in the number of NIPT samples. Good news is that positive NIPT reimbursement trends have been observed within the United States during the third quarter. Incidentally, the rate of NIPT adoption is equally high beyond the country’s periphery.
We are particularly upbeat about the strong uptake of VeriSeq NIPT CE-IVD solution in third-quarter 2017. On a positive note, countries like The Netherlands and Denmark too have started covering the test since the first quarter, followed by England and France. Hence, the company continues to see positive reimbursement trends in Europe as well.
On the flip side, weak margins due to the NovaSeq launch, higher array service revenues and product mix within sequencing consumables continue to raise concerns. Also, the National Institutes of Health funding issue and a tough competitive landscape are a few more challenges to deal with.
Key Picks
Some of the top-ranked medical stocks are Bio-Rad Laboratories (BIO - Free Report) , Baxter International Inc. (BAX - Free Report) and ICU Medical Inc. (ICUI - Free Report) . Notably, Bio Rad Laboratories sports a Zacks Rank #1 (Strong Buy) while Baxter International Inc. and ICU Medical Inc. carry a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank stocks here.
Bio-Rad has a long-term earnings growth rate of 140.65%. The stock has rallied roughly 33.2% over a year.
Baxter International has an earnings growth rate of 7.33% in the next quarter. The stock has surged roughly 45.9% over a year.
ICU Medical has a long-term growth rate of 40.63%. The stock has soared roughly 47.6% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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