QIAGEN & Bristol-Myers Squibb Partner On Cancer Research

Leading life science research company QIAGEN N.V. (NASDAQ:QGEN) has made significant advancement in the field of cancer research through the use of its revolutionary next-generation sequencing (NGS) technology. The company recently collaborated with global biopharmaceutical company, Bristol-Myers Squibb Company (NYSE:BMY) for the utilization of next-generation sequencing (NGS) technology to develop gene expression profiles (GEPs). Here, NGS will be used as predictive or analytical tools for use with Bristol-Myers Squibb immuno-oncology (I-O) therapies in cancer treatment.

Under this agreement, QIAGEN and Bristol-Myers Squibb intend to develop GEPs for several Bristol-Myers Squibb I-O molecules. Also, the companies have decided to enter into a collaboration to develop diagnostic products using the GEPs and expand the use of NGS technology with other Bristol-Myers Squibb I-O therapies.

According to the companies, the partnership is a strategic fit. QIAGEN’s portfolio of NGS technologies will compliment Bristol-Myers Squibb’s portfolio of I-O therapies. Also, through the alliance, the latter will benefit from QIAGEN’s proven track record in developing and commercializing companion and complementary diagnostics.

Notably, I-O therapies offer a way to treat cancer by using drugs that help the body’s immune system fight the disease.

QIAGEN’s management claims that the tie up will help create the first-ever NGS-based companion diagnostic test to improve outcomes for cancer patients.

This deal will help Bristol-Myers Squibb develop better diagnostic tools to target advanced immunotherapies across a number of different tumor types. This will also help in providing more accurate cancer treatment enabling faster decision making to identify patients who may get the benefit from immuno-oncology agents.

Huge Market Prospects

According to markets and markets, the global next-generation sequencing market is projected to reach a worth of $12.45 billion by 2022, at a CAGR of 20.5% in the forecast period (2017–2022).

Also, the global cancer immunotherapy market is likely to reach $119.39 billion by 2021 from $61.9 billion in 2016, at a CAGR of 14.0% from 2016 to 2021.

Recent Developments in Cancer Reasearch

Recently, QIAGEN's GeneReader NGS System gained validation in oncology research applications with new independent performance review data which reaffirm the analytical performance and ease in using the world's first complete Sample to Insight solution that makes the benefits of next-generation sequencing (NGS) accessible to any laboratory even with limited resources.

Also, QIAGEN recently announced the receipt of a worldwide license from The Johns Hopkins University for biomarkers that have been shown to play key roles in identifying patients who could benefit from immune-oncology (I-O) therapies in cancer treatment.

This apart, QIAGEN announced the formation of a joint venture named MAQGEN with China-based Maccura Biotechnology. This tie-up is aimed at accelerating local adaptation, development and commercialization of the GeneReader NGS System in China. The company is making strategic moves to expand its foothold internationally.

Zacks Rank & Key Picks

QIAGEN carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Align Technology, Inc. (NASDAQ:ALGN) , Inogen, Inc. (NASDAQ:INGN) and Accelerate Diagnostics, Inc. (NASDAQ:AXDX) . Notably, Align Technologyand Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technologyhas an expected long-term adjusted earnings growth of almost 22.8%. The stock added roughly 45.7% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 79.7%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 14% over the last three months.

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