We issued an updated research report on Qiagen N.V. QGEN, a global provider of sample and assay technologies, on Mar 31, 2015. Qiagen closed the year 2014 on a disappointing note with adjusted earnings and sales both considerably lagging the respective Zacks Consensus Estimate.
On a year-over-year comparison, the company reported deteriorating results on both its top and bottom line front in the fourth quarter of 2014. Qiagen delivered poor performance particularly in the Americas, wherein the sales figure dropped from the year ago number owing to declining HPV test product sales.
However, we are impressed with the company’s broad portfolio of molecular technologies for human healthcare. In 2014, the company received U.S. and European approvals for new kits in its artus line of diagnostic assays for healthcare-associated infections. We expect the company to capture a larger share in the fast growing molecular diagnostics market, which registered approximately $5–$6 billion in total sales in 2014.
Qiagen added 8 tests in 2014 in the U.S. and Europe on the Rotor-Gene Q. Its market-leading test for latent tuberculosis infection – QuantiFERON-TB Gold – continued to deliver strong growth in 2014, surpassing $100 million in sales. Qiagen has begun rolling out QuantiFERON-TB Gold Plus – the fourth generation assay of the QuantiFERON series that can deliver improved clinical performance with even higher sensitivity and accuracy of results. Encouragingly, the company has set a new goal to exceed 1,500 cumulative system placements by the end of 2015.
However, the company continues to face increasing competition from firms that provide competitive pre-analytical solutions and other products used by Qiagen’s customers. Also, Qiagen’s financial position may worsen with the strengthening of the domestic currency against high-focus nations, owing to its huge presence in the international market.
Over the past 60 days, the Zacks Consensus Estimate declined a respective of 1.8% and 1.6% to $1.12 per share and $1.24 per share for 2015 and 2016.
The stock currently carries a Zacks Rank #4 (Sell).
Key Picks from the Sector
Other Med-biomed/generic stocks such as Affymetrix Inc. AFFX, ANI Pharmaceuticals, Inc. ANIP and Cambrex Corp. CBM are worth a look. All these stocks sport a Zacks Rank #1 (Strong Buy).
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