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QIAGEN (QGEN) Banks on Molecular Diagnostics, Global Growth

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On Jun 18, we issued an updated research report on QIAGEN N.V. (QGEN - Free Report) . The company’s business is expected to get a boost from its flourishing molecular diagnostic market, international expansion, extended test menu and growth-driving strategic collaborations. 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. Shares of the company have outperformed the broader industry over the past six months. The stock has rallied 14.6% versus the 8% decline of the industry.

 

QIAGEN ended the first quarter of 2018 on a solid note. We are impressed with the year-over-year growth across most segments. The company also delivered a strong performance with respect to the operating margin. Meanwhile, its commitment to return more to shareholders through increased repurchases reflects its sturdy cash position. Expectations of a favorable currency movement in the ongoing year also buoy optimism among investors.

We are also upbeat about QIAGEN’s progress with the test menu expansion strategy. In April, the company announced the receipt of FDA’s pre-market approval for PartoSure. In the same month, it launched QIAstat-Dx in Europe following the closure of the recently-announced Stat-Dx acquisition and the completion of defined development activities by Stat-Dx. The company is planning to launch the test in the United States as well as across other geographies in 2019. QIAGEN also launched two novel liquid biopsy panels, namely AdnaTest ProstateCancerPanel AR-V7 Kit and AdnaTest LungCancer Kit.

During the first quarter, QIAGEN announced receiving an approval from Japan’s Ministry of Health Labor and Welfare for QuantiFERON-TB Gold Plus (QFT-Plus) as an in vitro diagnostic to detect tuberculosis (TB) infection. Further, the recently-changed guidelines issued by the World Health Organization, U.S. Centers for Disease Control and International Panel Physicians Association will add new impetus to the rising popularity of proactive latent TB screening and treatment.

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

Meanwhile, QIAGEN is exposed to stiff competition. The company is facing severe rivalry from firms providing competitive pre-analytical solutions and other products used by QIAGEN’s customers. The fact that markets for some of the company’s products are highly aggressive and price sensitive, further aggravates the company’s woes. Also, a heavy reliance on collaborations and declining HPV (Human papillomavirus) sales in the United States are other negatives for this industry player.

Zacks Rank & Key Picks

QIAGEN currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) , Illumina, Inc (ILMN - Free Report) and Amedisys, Inc. (AMED - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Illumina expects long-term earnings growth of 19.3%.

Amedisys has an expected long-term earnings growth rate of 18.6%.

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