Qiagen reported strong Q3 results, with robust demand for non-COVID offerings. Interestingly, even COVID-19 testing solutions witnessed slower-than-expected sales erosion. With a slew of (newer) offerings in its kitty and re-emerging (though again temporary) COVID-19 testing tailwinds, management upgraded its 2021 sales growth and adjusted EPS guidance. Also, with re-emerging M&A speculations, Qiagen’s attractiveness is re-inforced.
Companies: QIAGEN NV (QGEN:NYSE)QIAGEN NV (QGEN:NYS)
Q2 21 beat was led by the robust demand for non-COVID products. However, given the faster adoption of vaccines, demand for COVID-19 tests has faded earlier than expected and thus management has trimmed its full-year sales outlook. Earnings are also expected to come in at the lower end of the guidance range and we won’t be surprised if talks resurface for the shake-up of the company’s board. However, the new $100m share buy-back programme reflects management’s confidence in its five strategic pil
Benefiting from strong demand for sample technology solutions and the QuantiFERON-TB test, Qiagen’s non-COVID-19 business was back in the black in Q1 21. Expectedly, COVID-19 products witnessed a sustained high level of demand during the quarter, though it is expected to slowdown in the subsequent quarters. Nonetheless, the acceleration in the non-COVID-19 business – driven by new product launches and the normalisation of the market as people get vaccinated – should ensure that the FY21 targets
Benefiting from the extraordinary demand for COVID-19 products and improved momentum in the non-COVID-19 business, Qiagen reported its best quarterly sales performance in Q4 20. Interestingly, profitability improved on the back of strict cost management, and all FY20 financial targets were exceeded. Management anticipates double-digit growth in FY21, weighed towards H1, but, given the current trend of vaccination and emergence of new virus variants, COVID-19 testing demand could remain high in H
Companies: QIAGEN NV
Thanks to better-than-expected demand for COVID-19 products and improved sales momentum for non-COVID-19 solutions, Qiagen has upgraded its FY20 outlook. Management anticipates double-digit growth in FY21 as well arguing vaccination doesn’t kill testing and a ‘test and treat’ strategy is the best way to deal with COVID-19. Accelerated instrument placement amidst the pandemic has laid a strong foundation and the focus now shifts towards test menu expansion to propel growth in the post-pandemic wo
The better-than-expected Q3 results were driven by ongoing increased demand for COVID-19 solutions and improved trends in the non-COVID business. Robust sales growth and prudent cost management translated into a higher operating margin. With COVID cases on the rise and new products on the market, sales could accelerate in Q4. Thus, the FY20 guidance has been raised. Management has shortlisted five growth pillars for the post-pandemic world. More details at the upcoming investor day.
Although Thermo Fisher sweetened the takeover bid by c.10% last month, Qiagen’s shareholders have still rejected the deal – only 47% of the shareholders voted in favour, compared to a minimum threshold of 66.7%. Considering that valuations in the diagnostics space are extremely expensive, higher bids are doubtful. Moreover, Qiagen could prefer to sail independently to cash-in on the unprecedented demand for COVID-19 solutions.
Sales momentum accelerated in Q2 20, benefiting from robust demand for COVID-19 solutions. Q3 is expected to be strong and, given the improved business dynamics, Thermo Fisher increased the takeover price by c.10% in July – the US firm says that this is its best and final offer. However, some shareholders still consider the ungraded offer as inadequate and will not tender their shares. If the 66.7% minimum threshold limit is not achieved, Thermo Fisher’s offer will terminate automatically.
After a strong Q2 and encouraging guidance for Q3 and FY20, it was becoming evident that Qiagen’s shareholders want a better takeover price. In order to rescue the deal, Thermo Fisher has increased the offer price by 10%. Also, as a step to lower the probability that a deal would fail to secure shareholder support, the minimum acceptance threshold has been reduced to 66.7%. However, one of Qiagen’s shareholders still considers the offer as inadequate.
After a strong show in Q1, momentum accelerated in Q2 driven by the solid demand for COVID-19 testing solutions, particularly RNA extraction kits, third-party reagents and cartridges for QIAStat-Dx. However, momentum was partly offset by weaker customer demand trends in other product areas due to lower patient traffic in hospitals and the resulting decline in routine testing. Higher sales also led to a higher than expected increase in earnings. Unsurprisingly, rival bioMerieux also witnessed a s
While Q1 was strong, driven by the sale of products used in COVID-19 testing, Q2 is likely to be stronger on the back of ongoing significant demand for such products/solutions. Growth trends are also likely to continue in H2 as Qiagen ramp-ups production of key COVID-19 solutions and invests in R&D to develop additional/new solutions.
Despite weaker demand for key products, Qiagen’s Q1 20 sales and profitability numbers came in significantly ahead of management’s pre-set targets, thanks to sales of products used in COVID-19 testing. While robust demand for RNA extraction kits led to the outperformance in Q1, we believe that the recently-approved COVID-19 test, QIAstat-Dx, would be the key growth contributor in the coming quarters.
In an environment where the majority of the MedTech stocks have been bashed relentlessly in the past month, Qiagen has been an exception. A takeover bid by Thermo Fisher took the scrip to lifetime highs in early March 2020. Moreover, the spread of COVID-19 globally, which opened a window of opportunity for the in-vitro diagnostics firm, further bolstered the momentum. Ergo, we view Qiagen as a good cash proxy in the current volatile environment.
After months of takeover speculations, Qiagen has finally been grabbed – Thermo Fisher is paying $11.5bn (c.23% premium) in an all-cash deal. The implied EV/EBITDA multiple is in line with the historical transaction multiple of the industry and, considering that Qiagen was going through a tough phase, the deal seems fairly-priced. A nod from 75% of Qiagen’s shareholders is a key prerequisite for the deal closure. Interestingly, this friendly takeover (approved by both the boards) reduces the pos
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Today’s update reveals many of the challenges flagged in September have persisted. Alongside rising input/logistics costs, and volatile customer ordering, revenue guidance has been reduced by 10%. We have rippled a similar reduction through to FY22, leading to EPS downgrades of 27% this year and 38% next year. The company continues to look to 2022 with confidence, and maintains its medium term ambitions for profitable expansion.
Companies: Venture Life Group Plc
Venture Life Group has provided a trading update and details of changes to the company's board. While the recent acquisitions are integrating as planned, COVID-related challenges have persisted including pricing pressure, freight charges and Chinese sales. The company now expects FY21E revenues to be not less than £32m and we have moved our forecasts in-line with this guidance. Venture Life has also announced Dr Drummond and Mr Waters, Chair and CFO, respectively, will retire from the board and
OptiBiotix has announced the launch of a new sports nutrition product range, LeanBiome, which has been licensed to a leading global player in the beauty & nutrition market. The partner's new product line, containing LeanBiome, is scheduled to be rolled out from January 2022 in Europe and Asia and could be introduced in North America in due course. First orders worth £200k have been placed and the agreement is expected to generate a minimum of £1m in annualised recurring revenues to OptiBiotix. T
Companies: OptiBiotix Health PLC
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Interim results to 30 September were marked by a return to pre-pandemic sales levels for the core business, with revenues rising 81% to £5.7m, which included c.£1.2m of COVID-related revenues. An adjusted EBITDA loss of £2.4m reflected the incremental costs of gearing up to supply the DHSC with COVID-19 antigen tests, which did not materialise. With the contract with DHSC now having expired, focus turns to other commercial opportunities. The core Health & Nutrition EBITDA of £1.15m covered the c
Companies: Omega Diagnostics Group PLC
ECO’s overweight exposure to China continues to have a bearing on the short term outlook, with volatile pork prices impacting on demand and forward visibility. Whilst prices have rebounded strongly off their lows, stability is needed to restore the market to equilibrium. Trading in the rest of the world remains more positive and in line with expectations. After downgrading at the AGM in September, we push through further China-related downgrades, the net impact is -37% at the EPS level this year
Companies: ECO Animal Health Group plc
SkinBioTherapeutics has released its FY21A results for the 12-months to June 21. Calendar 21 has been a landmark year for SkinBioTherapeutics, capped by the launch of the company's first product, AxisBiotix-Ps in October. For FY21A, the pre-tax loss was c£1.5m versus our forecast loss of c£2.4m, which along with lower CAPEX, resulted in a stronger year-end cash balance of £4.6m than we had forecast. We believe the development of the two lead commercial pillars, SkinBiotix and AxisBiotix, is prog
Companies: SkinBioTherapeutics Plc
Interims results reflect the high level of Group corporate activity, but also a better performance on cash preservation with the Group incurring lower expenditure. In H1, focus was on evolving the business with a NASDAQ listing and the collective £23.8m (net) refinancing; in H2 attention turns back to the clinical pipeline. We await important topline efficacy Part A data from the Phase I/II of MRx-4DP0004 in asthma - a moment that may validate the live biotherapeutic approach in asthma. We also
Companies: 4d Pharma PLC
A positive AGM update from CVS this morning shows an excellent start to FY22, reporting strong 12.4% LFL sales growth. This reflects both the secular tailwind from a growing UK pet population and the continuing focus on optimal patient care/working-up of cases. The company does not comment on the CMA enquiry relating to a recent small acquisition. This is to be expected given the restriction terms under CMA guidelines. The transaction itself is not material in terms of scale. Importantly, the pr
Companies: CVS Group plc
NetScientific (NSCI), the international life sciences and sustainability technology investment and commercialisation group, has arranged an investment of $1m (ca. £0.75 million) into EpiBone Inc, a Life sciences portfolio company. EpiBone is an innovative regenerative medicine company developing a pioneering technology offering a transformational approach to personalised bone graft development for skeletal repair. NSCI's latest investment in EpiBone comprises $734k from its own balance sheet and
Companies: NetScientific plc
H1 EBITDA declined by 45% YoY, albeit this was slightly better than we had anticipated after the pre-close update in August. The beat was cost related (efficiencies/savings). There was a significant gross margin drag though and, while transitory in nature and diminishing in H2, this means further savings need to be realised to hit full year forecasts. This is our view and we retain a good level of confidence in next year’s forecasts. Having de-rated, valuation looks very undemanding now on just
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Hostmore plc (MORE.L) has demerged from Electra Private Equity PLC, and the shares admitted to the Premium Segment of the Main Market.. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st.
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Ashtead Tech, subsea equipment rental and solutions provider for the g
Companies: VAL ALNOV GMR
On track to meet FYApr22E profit forecasts, as investment in chronic condition management solutions accelerates
The digital clinical decision support company has announced its unaudited interim results for the half year ending 31 October 2021. Revenue for the six-month period has held well at £1,618,439 (2020: £1,716,424). Profit before tax is £21,427 (2020: £150,556) and profit after tax £137,352 (2020: £224,825). DXS finished the period with cash on hand of £543,000.
DXS commented that result
Companies: DXS International Plc
Novo Nordisk reported strong Q3 results, with growth again driven by the GLP-1 diabetes portfolio and launch euphoria for Wegovy (obesity drug). Interestingly, management upgraded its 2021 guidance for the third straight quarter. While the group continues to make sound progress in the diabetes market, with its ever-increasing global market share, lack of immediate growth catalysts beyond the largely mature diabetes market is a key impediment. Hence, our recommendation remains cautious.
Companies: Novo Nordisk (NOVO-B:CPH)Novo Nordisk A/S Class B (NOVO.B:CSE)
In Q2, Astra reported strong sales growth momentum, (again) driven by a strong showing in oncology, diabetes drug Farxiga and COVID-19 vaccine sales. Although there were some issues in R&I and CVRM. More importantly, at cost vaccine sales and mandatory VBP discounts in China weighed on profitability. While the profitability strain can sustain in H2 as well, one should find confidence from the robust potential of core pharma offerings and the addition of high-growth and excellent-margin Alexion,
Companies: AstraZeneca PLC