Cepheid (CPHD), Qiagen NV (QGEN), Hologic, Inc. (HOLX): A Growth Story in Molecular Diagnostics

By performance, Qiagen NV (NASDAQ:QGEN) reported net sales of $316.4 million, up by 3% at constant currency (CER) in the second quarter. The growth was led by molecular diagnostic (+4% CER, 49% of sales), pharma (+4% CER) and academia (+3% CER). The adjusted gross margin was 71% while the adjusted net income was $64.2 million, or $0.27 per share. The company’s cash balance as of June 30 was $299.4 million. Qiagen NV (NASDAQ:QGEN) expects to generate sales growth of nearly 5% with adjusted earnings per share of $1.13 in the 2013 fiscal year.

Similarly, Hologic, Inc. (NASDAQ:HOLX) expects revenue growth of 2%-4% in the coming period as a result of the impact of Gen-Probe. Hologic primarily develops, manufactures, and markets medical imaging systems, diagnostics, and surgical products. The company specifically focuses on health care needs of women.

During the third quarter that ended on June 29, revenues were $626.1 million, up by 33% over last year. Diagnostic (47% of total revenues) improved significantly in the quarter with the inclusion of Gen-Probe (up to $146.9 million.) The company’s adjusted gross margin was 62.4% and its adjusted net income was $103.2 million, or $0.38 per diluted share.

The company’s cash balance was $964.4 million. The addition of Gen-Probe will further enhance Hologic, Inc. (NASDAQ:HOLX)’s performance, and the company expects to generate revenue of $2.50 billion-$2.52 billion in the 2013 fiscal year with a bottom line (adjusted earnings per share) growth of $1.46-$1.47.

Going ahead
Cepheid has a comprehensive range of products for separate analysis, including delivery systems from laboratories to hospitals or remote locations. The company’s continued investment in R&D will strengthen its product portfolio. The evaluation of products in additional analysis such as protein detection, paraffin extraction, and high-level multiplexing will create growth opportunities for the company.

The article A Growth Story in Molecular Diagnostics originally appeared on Fool.com and is written by Kanak Kanti De.

Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends Qiagen.

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