In sync with the strategy to grow inorganically, QIAGEN N.V. (QGEN - Free Report) recently announced its partnership with Novartis for a clinical development program.The companies are working to introduce molecular test as a companion diagnostic for guiding the usage of the investigational compound BYL719 (alpelisib) in combination with fulvestrant for men and postmenopausal women having PIK3CA mutated hormone receptor positive, human epidermal growth factor receptor-2 negative (HR+/HER2-) advanced or metastatic breast cancer.
QIAGEN plans to provide its companion diagnostic to clinical laboratory partners. This will ensure that the test is immediately accessible on receipt of potential regulatory approvals of BYL719 and QIAGEN’s test. Notably, the company’s companion diagnostic (CDx) for PIK3CA mutations will provide the physicians with a comprehensive Sample to Insight workflow, comprising DNA extraction, detection of the clinically-related mutations and final reporting.
Developments in CDx Suite
QIAGEN has been partnering with pharmaceutical companies to provide CDx solutions for immune-oncology drugs since long. The company received the third FDA approval for the therascreen EGFR kit that runs on QIAsymphony in the CDx suite in the recently reported quarter.
We are currently upbeat about QIAGEN’s master service agreement with NeoGenomics, Inc. (NEO - Free Report) to enable confirmed Day-One patient access to FDA-approved molecular tests that are paired with newly-approved drugs for cancer. Per QIAGEN, the partnership will allow the company and its pharmaceutical partners to streamline the development and introduction of targeted drugs and CDx to guide treatment decisions.
Market Trends Buoy Optimism
Also, per a report by GBI Research, the global breast cancer treatment market will reach $17.2 billion by 2021, at a CAGR of 7.3%.
Per a report by DPI Research on Medium, the breast cancer screening market in the United States is expected to reach roughly $5.8 billion by 2022.
Given the bountiful opportunities in this niche market, we expect the buyout to boost QIAGEN’s growth and expand the CDx portfolio.
Strategic Collaborations to Drive Growth
QIAGEN’s long-term business strategy involves entering into strategic alliances as well as marketing and distribution arrangements with academic, corporate and other partners. The strategyalso includes the development, commercialization, marketing as well as distribution of potential products.
Of the notable ones, the company’s recent partnership with Hamilton and DiaSorin buoys optimism. With the DiaSorin partnership, the company is significantly improving automated TB testing. It is not only providing the current market leading screening test for latent TB but also the best-in-class automation solution. Meanwhile, the new pre-analytical workflow option with Hamilton will boost growth.
QIAGEN has been gaining investors’ confidence on consistently encouraging results. In the past year, the company’s shares have outperformed its industry. The stock has gained 12.8%, against the industry’s 16.9% decline.
Zacks Rank & Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) and Veeva Systems (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2 (Buy).
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