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Bio-Rad Clinches USDA Contract, Boosts Life Science Segment

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Strengthening the Life Science business, Bio-Rad Laboratories, Inc. (BIO - Free Report) recently announced a contract for iQ-Check real-time PCR pathogen detection test kits and the iQ-Check Prep Automation System from the United States Department of Agriculture’s Food Safety and Inspection Service (USDA FSIS).

Contract in Details

The USDA FSIS contract incorporates real-time PCR-based tests for pathogens which include Salmonella spp., Listeria monocytogenes, Campylobacter, Escherichia coli O157:H7, and Shiga toxin producing E. coli (STEC). These may be found in raw or ready-to-eat meat and poultry, processed egg products, and other types of food products and environmental samples.

In this regard, Bio-Rad’s iQ-Check real-time PCR test kits based on their proven real-time PCR technology were an ideal pick for the contract as they utilize highly specific patented DNA probes to discover pathogenic bacteria in a sample. Furthermore, based on raised traceability and high throughput sample processing, Bio-Rad’s iQ-Check Prep automation system will be included by the USDA FSIS.

Market Potential

Per a MarketsandMarkets report, the food pathogen testing market is expected to reach a worth of around $10.79 billion by 2020, at a CAGR of 7.8% between 2015 and 2020. The report further states rising incidences of foodborne diseases due to contaminated food, increasing consumer interest in safe food, expanding trade channels and implementation of strict food safety regulations are likely to continue stimulating growth in the food pathogen testing market.

A Glimpse of the Life Science Business

This segment designs, manufactures, markets and services reagents, apparatus and instruments utilized for biological research. The company believes Life Science Segment represents a global market opportunity of approximately $9 billion annually. Sales at the segment were up 7.1% year over year and revenues climbed 8% at constant currency. The upside was driven by higher sales in the cell biology, droplet Digital PCR and food safety product lines. Further, the company continues to see increased demand for its process media product lines.

The latest development is expected to boost top-line contributions from the segment.

Share Price Movement

Over the past year, Bio-Rad has outperformed its industry. The stock has gained 6.2% versus the industry’s 1.6% rise.

 

Zacks Rank & Key Picks

Bio-Rad has a Zacks Rank #5 (Strong Sell). 

A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .

Stryker has a long-term expected earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank #2.

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.

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