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QIAGEN (QGEN) Completes Buyout of NeuMoDx, Expands Portfolio
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QIAGEN N.V. (QGEN - Free Report) announced the completion of the buyout of NeuMoDx Molecular, Inc., a diagnostics instruments company, by acquiring the remaining 80.1% stake of the latter. The transaction was completed by paying $248 million in cash. For investors’ note, the company plans to provide further information on the financial impact of this transaction during its third-quarter earnings call in early November.
The buyout of NeuMoDx completes QIAGEN’s portfolio of automated molecular testing solutions based on the polymerise chain reaction (“PCR”) technology. Notably, the buyout was completed after the receipt of the U.S. regulatory clearance for the full acquisition.
With the latest addition to QIAGEN’s portfolio, the company aims to solidify its foothold in the global Molecular Diagnostics business.
Background of the Acquisition
QIAGEN had purchased 19.1% stake in NeuMoDx along with the right to acquire the company’s remaining stake at a price of $234 million in 2018. Also, per the 2018 agreement, QIAGEN has distributed the high-throughput NeuMoDx 288 and the medium-throughput NeuMoDx 96 platforms in Europe and other markets worldwide.
For investors’ note, NeuMoDx 288 and NeuMoDx 96 (as rapid integrated PCR-based devices) currently offer 13 CE-IVD-marked assays for different infectious diseases in Europe. These include a dedicated COVID-19 test, which has also received FDA Emergency Use Authorization for the U.S. market, complementing the FDA-approved group B Streptococcus assay. A new multiplex test for influenza, respiratory syncytial virus and the SARS-CoV-2 virus is scheduled for launch in the fourth quarter of 2020.
Rationale Behind the Buyout
Per QIAGEN’s management, NeuMoDx’s automated molecular testing platforms offers a wide variety of benefits for molecular diagnostics assays, including laboratory-developed tests. Apart from expanding QIAGEN’s portfolio of automated testing solutions, the testing platforms will provide a boost for future growth.
QIAGEN’s management also believes that the full integration of the NeuMoDx systems will allow QIAGEN to address laboratory needs in almost any setting for molecular diagnostics. This will enable QIAGEN to build on NeuMoDx’s success, along with jointly working on expanding product portfolio and global distribution.
Industry Prospects
Per a report by Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, at a CAGR of 9%. Factors like increasing prevalence of infectious diseases and technological advancements in molecular diagnostics are expected to drive the market.
Given the market potential, the buyout is expected to significantly boost QIAGEN’s Molecular Diagnostics business.
Recent Developments in Molecular Diagnostics
Of late, QIAGEN has witnessed a series of developments in its Molecular Diagnostics business.
This month, the company announced its plans to launch its rapid portable test, Access Anti-SARS-CoV-2 Antigen Test.
QIAGEN, in August, planned the U.S. launch of its antibody test, Access Anti-SARS-CoV-2 Total test, in late August.
Further in August, the company launched the QIAseq SARS-CoV-2 Primer Panel for next-generation sequencing of the coronavirus genome (the complete set of genes or genetic material present in a cell or organism).
Price Performance
Shares of the company have gained 47.6% in the past year compared with the industry’s 15.5% rise and S&P 500’s 12.1% growth.
Zacks Rank & Other Key Picks
Currently, QIAGEN sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the broader medical space include Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 15.5%. It currently carries a Zacks Rank #2 (Buy).
Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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QIAGEN (QGEN) Completes Buyout of NeuMoDx, Expands Portfolio
QIAGEN N.V. (QGEN - Free Report) announced the completion of the buyout of NeuMoDx Molecular, Inc., a diagnostics instruments company, by acquiring the remaining 80.1% stake of the latter. The transaction was completed by paying $248 million in cash. For investors’ note, the company plans to provide further information on the financial impact of this transaction during its third-quarter earnings call in early November.
The buyout of NeuMoDx completes QIAGEN’s portfolio of automated molecular testing solutions based on the polymerise chain reaction (“PCR”) technology. Notably, the buyout was completed after the receipt of the U.S. regulatory clearance for the full acquisition.
With the latest addition to QIAGEN’s portfolio, the company aims to solidify its foothold in the global Molecular Diagnostics business.
Background of the Acquisition
QIAGEN had purchased 19.1% stake in NeuMoDx along with the right to acquire the company’s remaining stake at a price of $234 million in 2018. Also, per the 2018 agreement, QIAGEN has distributed the high-throughput NeuMoDx 288 and the medium-throughput NeuMoDx 96 platforms in Europe and other markets worldwide.
For investors’ note, NeuMoDx 288 and NeuMoDx 96 (as rapid integrated PCR-based devices) currently offer 13 CE-IVD-marked assays for different infectious diseases in Europe. These include a dedicated COVID-19 test, which has also received FDA Emergency Use Authorization for the U.S. market, complementing the FDA-approved group B Streptococcus assay. A new multiplex test for influenza, respiratory syncytial virus and the SARS-CoV-2 virus is scheduled for launch in the fourth quarter of 2020.
Rationale Behind the Buyout
Per QIAGEN’s management, NeuMoDx’s automated molecular testing platforms offers a wide variety of benefits for molecular diagnostics assays, including laboratory-developed tests. Apart from expanding QIAGEN’s portfolio of automated testing solutions, the testing platforms will provide a boost for future growth.
QIAGEN’s management also believes that the full integration of the NeuMoDx systems will allow QIAGEN to address laboratory needs in almost any setting for molecular diagnostics. This will enable QIAGEN to build on NeuMoDx’s success, along with jointly working on expanding product portfolio and global distribution.
Industry Prospects
Per a report by Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, at a CAGR of 9%. Factors like increasing prevalence of infectious diseases and technological advancements in molecular diagnostics are expected to drive the market.
Given the market potential, the buyout is expected to significantly boost QIAGEN’s Molecular Diagnostics business.
Recent Developments in Molecular Diagnostics
Of late, QIAGEN has witnessed a series of developments in its Molecular Diagnostics business.
This month, the company announced its plans to launch its rapid portable test, Access Anti-SARS-CoV-2 Antigen Test.
QIAGEN, in August, planned the U.S. launch of its antibody test, Access Anti-SARS-CoV-2 Total test, in late August.
Further in August, the company launched the QIAseq SARS-CoV-2 Primer Panel for next-generation sequencing of the coronavirus genome (the complete set of genes or genetic material present in a cell or organism).
Price Performance
Shares of the company have gained 47.6% in the past year compared with the industry’s 15.5% rise and S&P 500’s 12.1% growth.
Zacks Rank & Other Key Picks
Currently, QIAGEN sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the broader medical space include Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Globus Medical, Inc. (GMED - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 16.4%. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15.5%. It currently carries a Zacks Rank #2 (Buy).
Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>