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QIAGEN (QGEN) Banks on Test Menu Expansion, Competition Stiff

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On May 16, we issued an updated research report on QIAGEN N.V. (QGEN - Free Report) . We are upbeat about the company progressing with the testing menu expansion strategy. However, a tough competitive landscape is a concern. The stock carries a Zacks Rank #3 (Hold).

This Netherlands-based molecular diagnostics provider offers innovative technologies and products for pre-analytical sample preparation and molecular diagnostics solutions. The stock has been outperforming its industry over the past six months. Per the latest stock movement, it has gained 12.2% against 8.1% decline of the broader industry.

QIAGEN ended the first quarter on a solid note. We are impressed with the year-over-year growth in majority of the segments. The company has been proceeding with its test menu expansion strategy. In this regard, in April, the company announced the receipt of pre-market approval by the FDA for PartoSure. In the same month, the company launched QIAstat-Dx in Europe following the closure of the recently-announced Stat-Dx acquisition and completion of defined development activities by Stat-Dx.

 

We are also upbeat about QIAGEN’s Molecular Diagnostics sales that have been growing significantly. During the first quarter, the company witnessed double-digit CER growth in revenues from the QuantiFERON latent TB test along with strength in Personalized Healthcare following rising sales of infectious disease testing products.

We also look forward to the implementation of the recently-drawn strategies to boost top-line contributions from the NGS portfolio.

Meanwhile, QIAGEN faces stiff competition from firms that provide competitive pre-analytical solutions and other products. The markets for some of the company’s products are very competitive and price sensitive, which add to the concerns.

Also, strong reliance on collaborations and declining HPV sales in the United States are other negatives.

A few better-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) , Illumina, Inc (ILMN - Free Report) and The Cooper Companies, Inc. (COO - Free Report) . While Intuitive Surgical and Illumina sport a Zacks Rank #1 (Strong Buy), Cooper Companies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical has a long-term expected earnings growth rate of 12.1%.

Illumina has a long-term expected earnings growth rate of 20%.

Cooper Companies has a long-term expected earnings growth rate of 10.8%.

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