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Research Tree provides access to ongoing research coverage, media content and regulatory news on QIAGEN N V. We currently have 5 research reports from 1 professional analysts.
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QIAGEN N V
QIAGEN N V
Back on track
30 Sep 16
Qiagen reported a strong set of Q2 16 numbers, beating both the market’s expectations and its own guidance. NB all sales growth numbers at CER, unless specified otherwise. Net sales growth of 6% (vs company guidance: 4%) was a mix of 5% organic growth and a 1% contribution from the acquisition of Mo Bio Laboratories. Sequential moderation of currency headwinds meant that forex had just a 1% negative impact (vs. 2% negative impact in Q1 16), resulting in the reported net sales growth of 5% to $334m. Profitability, however, was as expected weaker – company-defined adjusted operating income and adjusted diluted EPS were down 12% and 8%, respectively (operating margin down c.4ppt to 20.7%) – due to the higher marketing expenses and enhanced R&D efforts. Management has upgraded its FY 16 net sales growth outlook to 6-7% from 6% earlier to factor in the Exiqon acquisition (completed on 28 June 2016; expected to contribute c.$10m in H2 16), but maintained adjusted diluted EPS guidance at $1.10-1.11 at CER (Exiqon acquisition will have a neutral impact on earnings for the year). Based on 1 July 2016 exchange rates, it sees forex headwinds of 1-2ppt on net sales (vs. the previous 2ppt) and $0.01-0.02 on adjusted diluted EPS (vs. earlier $0.02). For Q3 16, management guides for net sales growth of 8-9% (forex headwinds of 1ppt) and adjusted diluted EPS of $0.28 at CER (forex headwinds of $0.01). The company has enhanced its capital return commitment to shareholders from $100m (announced in April 2016) to $300m; it will return $250m through a synthetic share repurchase programme (combines direct capital repayment with a reverse stock split) in early 2017 and the remaining $50m through share repurchases in 2017. It will have a capital markets day on 15 November 2016.
In line results; FY 16 heavily weighted towards H2
29 Jun 16
Qiagen’s Q1 16 results came out in line with management’s guidance (at CER) as well as market expectations, although currencies had a lower-than-anticipated negative impact. Net sales were up 2% yoy (all sales growth numbers at CER, unless specified otherwise) to $298.4m (flat in reported terms; marginally higher than the consensus estimate), while adjusted diluted EPS at CER (and on a reported basis) came in at $0.19 (down from $0.22 in Q1 15), primarily impacted by costs of relocation of manufacturing of some products to Hilden, Germany, a lower gross margin from companion diagnostic partnerships as well as planned higher investments to support key growth drivers and geographic expansion. Segment-wise, while both Molecular Diagnostics and Academia increased 2%, Pharma grew 7%. Applied Testing, on the other hand, declined 5%. Management reiterated its FY 16 guidance of net sales growth of 6% and adjusted diluted EPS of $1.10-1.11 (both at CER), but slightly reduced the forex headwind expectation on net sales to 2ppts (from 3ppts) and on adjusted diluted EPS to c.$0.02 per share (from c.$0.03 per share). For Q2 16, management sees net sales growth of c.4% at CCR (c.2% on a reported basis) and adjusted diluted EPS of c.$0.22 at CER (c.$0.21 on a reported basis), implying that FY 16 is heavily skewed towards the second half and any slip up here could result in a guidance miss. The company also announced its fourth $100m share buy-back programme.
Q4 15 misses guidance; forex, incremental investments to weigh on FY 16
22 Feb 16
*Q4 15 (and FY 15) misses “own” guidance* In line with the preliminary results announced on 10 January 2015, Qiagen reported weak Q4 15 and FY 15 numbers, with both top-line and bottom-line failing to meet the company’s own guidance given at the time of the Q3 15 results. Net sales were up 3% (all sales growth numbers at CER, unless otherwise specified) in both Q4 15 and FY 15, below management's guidance of 5% for Q4 15 and 4% for FY 15. While acquisitions contributed c.2ppts to growth in both Q4 15 and FY 15, headwinds on account of the US HPV business knocked off c.1ppt in Q4 15 and c.3ppts in FY 15. The key Molecular Diagnostics division acted as a drag (Q4 15: flat; FY 15: +1%), while other divisions reported strong performances - Applied Testing (+7% in both Q4 15 and FY 15), Pharma (Q4 15: +6%; FY 15: +5%) and Academia (Q4 15: +7%, FY 15: 5%). Currency wiped out c.6ppts from Q4 15 and c.8ppts from full-year sales growth, pulling down the reported growth to -3% in Q4 15 to $349m and -5% in FY 15 to $1,281m (vs. our estimate of $1,289m). Adjusted diluted EPS came in at $0.31 for Q4 15 and $1.05 for FY 15 (against our expectation of $1.07), again missing management's guidance of $0.33 and $1.07, respectively. *FY 16 guidance lower than expected* The company largely maintained its FY 16 guidance given at the time of preliminary results – net sales growth of 6% at CER and adjusted diluted EPS growth in line with sales growth to $1.10-1.11 at CER, slightly below our expectations. Sales growth includes c.1ppt of contribution from the recently acquired (in late Q4 15) US-based private company MO BIO Laboratories (specialised in sample technologies for metagenomics and microbiome analyses) and c.1ppt of headwinds from the US HPV business. However, based on 1 February 2016 exchange rates, it now expects currency to have a negative impact of c.3ppts (c.2ppts headwind according to the preliminary release) on sales and c.$0.03 per share on an adjusted diluted EPS. Q1 16 is going to be another soft quarter for the company (due to tougher comps along with a weak Japan and emerging markets) – management guides for sales growth of 2% at CER (-2% in $) and adjusted diluted EPS of $0.19-0.20 at CER ($0.18-0.19 in $).
Transitory weakness but fundamentals remain strong
18 Nov 15
Coming after a stellar Q2 (a beat on consensus and management's guidance), Qiagen reported a soft Q3 15, below our as well as the market's expectations. Net sales were up 2% yoy at CER to $315m (Q2: +5%), falling short of management guidance of 3%. While acquisitions added 2ppts to the top-line, headwinds from the US HPV testing business shaved off a higher 3ppts (in line with management's guidance). Forex continued to be unforgiving, knocking off 9ppts from the top-line growth (higher than management’s anticipation of 7-8ppts) resulting in a decline of 7% on a reported basis. The under-performance largely stemmed from the core Molecular Diagnostics segment, which was down 3% at CER, offsetting the otherwise strong performance (6% CER growth) in the remaining segments - Applied Testing, Pharma and Academia. Adjusted operating income fell c.11% to $49m (margin declined by 90bp) as savings from lower R&D and efficiency gains from General & Administrative were offset by enhanced sales and marketing efforts to support new launches and expansion of e-commerce channels. Adjusted diluted EPS (company defined) of $0.29 at CER, came in at the lower end of management guidance of $0.29-0.30. Management reiterated its full-year net sales growth outlook of 4% at CER, but narrowed its adjusted EPS guidance at CER to $1.16 (the lower end of previous guidance of $1.16-1.18). Separately, in a positive development following the results, the company announced the launch of its long-awaited (and much delayed) GeneReader next-generation sequencing (NGS) system, marking its foray into the concentrated (market leaders Illumina and Thermo Fisher hold a c.90% share) and fast-growth segment in the genomics space (currently worth $2.5bn and estimated to reach c.$9bn by 2020).
Strong results; growth drivers on track
11 Aug 15
Despite being pulled down by currency headwinds and the US HPV overhang, Qiagen’s Q2 15 results managed to beat not only market expectations (albeit marginally) but also the company’s own guidance for the quarter – revenue grew 5% CER (2% contribution from acquisitions), ahead of the 4% CER guidance and better than the 2% and 4% CER growth reported in Q1 15 and Q2 14, respectively. Currency and US HPV issues, while significant, were also lower than guided – currency impact a negative 9ppts vs the 10ppts guidance, HPV headwind 3ppts vs the 4-5 pts guidance – resulting in an overall 4% decline in the top-line to $319.5m. The five growth drivers continued to be strong (double-digit growth, 32% revenue contribution vs. 29% in Q2 14), in particular Personalised Healthcare, which grew >20% on the back of solid momentum in Pharma co-development contracts and companion diagnostic sales. However, profitability was impacted negatively (despite a modest currency benefit) — adjusted EBITDA and operating margins were down 200bp and 150bp, respectively — due to a higher contribution from the lower margin instrument sales (18% yoy growth, 13% top-line contribution). In addition to reaffirming its full-year outlook (4% CER growth in FY 15), management has guided for 3% CER revenue growth in Q3 15 (including a 3ppt headwind from US HPV). The currency impact is anticipated to be in the range of 7–8%.
20 Apr 17
Although the last two months have seen a broadly neutral performance from the UK healthcare sector compared to a significantly more volatile 6 months prior, we continue to expect macro-events and increased geo-political risk to result in an overall neutral performance from the sector over the next period. However, company specific news is likely to drive a strong outperformance from selected mid-market companies. We retain our neutral sector stance whilst highlighting those we expect to outperform.
N+1 Singer - Morning Song 24-04-2017
24 Apr 17
First Derivatives (FDP LN) FY slightly ahead as strong trading momentum continues | Goals Soccer Centres (GOAL LN) A potentially exciting corporate development | mporium Group (MPM LN) 2016 results: course set for exciting 2017 | Vectura Group (VEC LN) VR315 risk outweighs longer-term potential
Positive top-line results in first iclaprim phase III clinical trial (REVIVE-1)
18 Apr 17
Motif Bio (LSE: MTFB, NASDAQ: MTFB), a late clinical stage antibiotic development company, announced positive results this morning in the first of its two iclaprim phase III clinical trials, REVIVE-1, comparing iclaprim to vancomycin in the treatment of acute bacterial skin and skin structure infections (ABSSSI). Iclaprim, a next-generation antibiotic targeting an underutilised mechanism of action which causes rapid killing of bacteria, is being developed for the treatment of serious and life threatening bacterial infections. On the key primary endpoint in the study, early clinical response at 48-72 hours after drug treatment began, 80.9% of patients on iclaprim achieved a positive response compared to 81.0% of patients on vancomycin, well within the 10% non-inferiority margin required by the FDA. Iclaprim was also shown to be safe and well-tolerated compared to vancomycin. With these positive results from REVIVE-1 we have increased the probability of success for the iclaprim development program from 65% to 75% raising our risk-adjusted NPV for Motif Bio to almost £240m or 122p per share (previously £210m and 107p per share).
N+1 Singer - Sinclair Pharma - EBITDA upgrade for 2017, but lower TP due to warranty claim and costs
19 Apr 17
We have updated product-level forecasts and included the £10m SVB debt facility and £5m warranty claim settlement with Alliance Pharma in our forecasts. The 6.3% upgrade to our FY2017 sales estimate (from £46.0m to £48.9m) brings expected EBITDA profitability forward by one year (to FY2017 from FY2018). We remain positive on the ongoing rollout of Silhouette Instalift® in particular and retain our Buy recommendation. However, higher expected sales & marketing costs and the warranty claim weigh on our valuation: we downgrade our target price from 42p to 37p.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)