Qiagen: Molecular Diagnostics & Expansion Plans On Track

On Sep 13, 2016, we issued an updated research report on Netherlands-based molecular diagnostics provider Qiagen NV (NASDAQ:QGEN) . The company offers innovative technologies and products for pre-analytical sample preparation and molecular diagnostics solutions.

The company’s promising second-quarter results reflect Qiagen’s constant efforts to strengthen its molecular diagnostics test menu. Notably, given the advantages of precise genetic information over traditional tests, Qiagen’s molecular diagnostics customer class succeeded in delivering high single-digit growth during the second quarter, excluding HPV headwind in the U.S.

Also, the huge potential of the global in-vitro diagnostics market buoys optimism. The company has witnessed growth across all international regions, with the Europe, Middle East, Africa region leading the show. Although Qiagen continued to face declining sales during the second quarter in Japan, management expects the trend to reverse in the second half of 2016.

Further, Qiagen is forging ahead with its test menu expansion strategy. Recently Qiagen added liquid biopsy as a sample type option for its QIAact actionable insights tumor panel, which is the first in a family of panels designed for use on the GeneReader system. This is the first targeted gene sequencing panel that can be used with either liquid biopsy or tissue samples.

On the flip side, Qiagen faces a tough competitive landscape, considering the wide gamut of services it provides. Moreover, the markets for some of Qiagen’s products are rather competitive and price sensitive. As a result, similar manufacturers may have significant advantages in terms of financial, operational, sales and marketing resources as well as experience in research and development.

Additionally, strong reliance on its tie-ups with companies to co-develop companion diagnostics paired with drugs that those companies either market currently or are developing for future use, js another downside for Qiagen. This is because future sales of companion diagnostics depend to a high degree on the commercial success of the related medicines for which the tests have been designed for determining their use in patients.

Currently, Qiagen carries a Zacks Rank #2 (Buy).

Key Picks in the Sector

Some other favorably ranked med-biomed/generic stocks are ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) , Anika Therapeutics Inc. (NASDAQ:ANIK) and Heska Corporation (NASDAQ:HSKA) . All the three stocks hold a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

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