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QIAGEN Test-Menu Expansion on Track, Low HPV Sales a Woe


On Jul 12, we issued an updated research report on QIAGEN N.V. QGEN. 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.

Meanwhile, over the past month, shares of QIAGEN have underperformed its industry. The stock has lost 1.37% versus the industry’s 3.7% increase.

Declining HPV sales in the United States persist to be a drag for QIAGEN. Slowing APAC sales also remain soft due to sluggish applied testing business.

Moreover, QIAGEN is exposed to stiff competition. The company 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 collaborations and declining HPV (Human papillomavirus) sales in the United States act as other negatives for this industry player.

On a positive note, we are upbeat about QIAGEN's progress with the test menu expansion strategy. In April, the company announced the receipt of FDA's pre-market approval for PartoSure. In the same month, it launched QIAstat-Dx in Europe following the closure of the recently-announced Stat-Dx acquisition and the completion of defined development activities by Stat-Dx. The company is planning to launch the QIAstat-Dx test in the United States as well as across other geographies in 2019. Additionally, QIAGEN introduced two novel liquid biopsy panels, namely AdnaTest ProstateCancerPanel AR-V7 Kit and AdnaTest LungCancer Kit.

During the first quarter of 2018, QIAGEN announced receiving an approval from Japan's Ministry of Health Labor and Welfare 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 will add an impetus to the rising popularity of proactive latent TB screening and treatment.

We also look forward to the implementation of the recently-drawn strategies to boost top-line contributions from the NGS (Next Generation Sequencing) portfolio.

Zacks Rank & Key Picks

QIAGEN currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks from the broader Medical space include Genomic Health GHDX, Align Technology, Inc. ALGN and Stryker Corporation SYK.

Genomic Health has an expected earnings growth rate of 187.5% for the quarter to be reported. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has a projected long-term earnings growth rate of 28.4% and a Zacks Rank #2 (Buy).

Stryker has an estimated long-term earnings growth rate of 9.7% and a Zacks Rank of 2.

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