On Jan 7, 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.
QIAGEN has outperformed its industry over the past three months. The stock has dipped 1.3%, narrower than its industry’s 11.7% decline.
QIAGEN registered a better-than-expected third-quarter 2018 with strong segmental growth. The company is advancing its Sample to Insight portfolio for address opportunities across the continuum from basic life sciences research to routine clinical healthcare. We are upbeat about QuantiFERON-TB test maintaining a growth pace at mid-teen CER, well achieving the company’s set target.
Among other highlights, the company is optimistic about its key strategic collaborations with Hamilton and DiaSorin. It has launched a CE-marked DiaSorin automation solution in Europe to use the LIAISON system for the test read-out. Introduction of the same in the United States is on track for 2019.
The company is moving ahead with new placements of the QIAsymphony automation platform. Overall, QIAGEN is on track with its target of $300 million in annual sales by 2020. Meanwhile, the company’s commitment to return more to shareholders through increased repurchases reflects its solid cash position.
QIAGEN currently offers one of the broadest molecular technology portfolios for human healthcare catering to very large market opportunities. The strategic partnership with NeuMoDx announced last September added two new fully integrated testing platforms. This alliance will enable QIAGEN to offer the ease of clinical chemistry testing automation to molecular diagnostic laboratories.
Earlier this year, QIAGEN announced the receipt of Japan’s Ministry of Health Labor and Welfare approval 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 (IPPA) will provide an impetus to the growing popularity of proactive latent TB screening and treatment. In July 2018, QuantiFERON-TB Gold Plus (QFT-Plus) was adopted by the International Organization for Migration (IOM) to be used in screening migrants regarding the infection.
Declining HPV sales in the United States persist to be a drag for QIAGEN. Moreover, the company is exposed to stiff competition. It is facing a severe rivalry from firms providing similar pre-analytical solutions and other products used by its customers. This incites a fierce cut-throat contest within the industry. QIAGEN's woes are further aggravated by the highly aggressive and price sensitive markets for some of its products. Also, a heavy reliance on tie-ups and soft HPV (Human papillomavirus) sales in the United States act as headwinds for this industry player.
Zacks Rank & Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) , Surmodics, Inc. (SRDX - Free Report) and athenahealth, Inc. (ATHN - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is predicted at 10%. The stock carries a Zacks Rank #2 (Buy).
athenahealth’s long-term earnings growth rate is projected at 17.7%. The stock has a Zacks Rank of 2.
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