QIAGEN Inks Three New Deals - Analyst Blog
January 10 2013 - 10:00AM
Zacks
In a bid to enhance its
Personalized Healthcare diagnostic pipeline,
QIAGEN (QGEN) inked three new deals to include
multiple biomarkers in its portfolio. The biomarkers will guide
treatment on the basis of the patient’s genomic information.
Per one of the agreements, QIAGEN
acquired the rights to RET, ROS1 and DEPDC1 biomarkers from Insight
Genetics Inc., a Nashville, Tennessee-based molecular diagnostics
company. These biomarkers will find application in companion
diagnostics for lung cancer. The company also invested in Drug
Response Dx’s novel companion diagnostic. Currently under
developmental stages, this diagnostic will forecast the efficiency
of TNF-alpha inhibitors in patients suffering from rheumatoid
arthritis.
QIAGEN also acquired new tests from
Inserm. These test for mutation of HSP110 gene target diagnostic
data on certain types of colorectal cancer and will complement the
companion diagnostic menu.
The agreements underline QIAGEN’s
effort to expand its portfolio of biomarkers. The new agreements
for these biomarkers will support the development of new
diagnostics to oversee treatment decisions for rheumatoid
arthritis, lung cancer and colorectal cancer among others.
Following the deals, a majority of the designed assays will be
compatible with the QIAsymphony RGQ modular laboratory workflow
automation system as well as the innovative sequencing workflows of
the company. The use of these biomarkers will optimize use of
healthcare resources along with improved treatment decisions and
clinical results.
Given the substantial potential of
the molecular diagnostic market globally, QIAGEN is currently
focusing on diagnostics products for expansion. The company’s focus
on rheumatoid arthritis and expansion of the oncology pipeline is a
positive development for its molecular diagnostic segment. QIAGEN
currently derives 48% of its revenues from the segment, which is
likely to increase in the future on the back of such deals.
The growing molecular diagnostic
menu is expected to catalyze growth for the company. Though
acquisitions remain an important part of QIAGEN’s strategy, we
expect the company’s organic growth to improve in the near future
on the back of a solid pipeline.
We currently have a long-term
Neutral recommendation on QIAGEN. The stock carries a Zacks Rank #2
(Buy). Other companies in the medical device space worth a look are
Intuitive Surgical (ISRG) and Cantel
Medical Corp. (CMN), each carrying a Zacks Rank #1 (Strong
Buy).
CANTEL MED CORP (CMN): Free Stock Analysis Report
INTUITIVE SURG (ISRG): Free Stock Analysis Report
QIAGEN NV (QGEN): Free Stock Analysis Report
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