The Next Generation for Qiagen NV (QGEN)’s Next-Gen Sequencing?

Page 1 of 2

Patient-specific pharmacology used to be a futuristic dream for researches and physicians, but the Human Genome Project has placed the framework for this revolution in patient care at our fingertips.

In research labs across the country, genomic studies are uncovering the small genetic changes that underlie countless diseases.  In the clinic, rapid genetic sequencing is contributing to unparalleled diagnostic capabilities.  But without the software to analyze sequencing results, researchers are left with an indecipherable jumble of A’s, T’s, G’s, and C’s.  UnitedHealth Group Inc. (NYSE:UNH) estimates that the market for decoding genes from individual patients may grow to $25 billion from $5 billion in the next decade.

Qiagen NV (NASDAQ:QGEN)

In its 2012 annual report released on May 15, Qiagen NV (NASDAQ:QGEN) stresses its plan to grow sustainably by reinforcing a “sample-to-results platform” with streamlined genomic analysis.  Qiagen is already an established supplier of laboratory consumables used for various genetic techniques in research, clinical, and forensic settings.

However, the sequester and NIH spending cuts have hurt Qiagen’s revenues from academic institutions, which fell 4% in the last quarter.  It is therefore appropriate that Qiagen NV (NASDAQ:QGEN) focus more heavily on molecular diagnostics and clinical tools that improve patient specific pharmacology.  Diagnostics accounted for 50% of revenue last quarter, and its Therascreen platform of diagnostics is expanding to new diseases including non-small cell lung cancer, pending FDA approval.

Riding the demand wave

Qiagen first entered the “next generation sequencing” field when it acquired Intelligent Bio-systems in 2012.  It recently made another move to profit from the growing demand for accessible, efficient genomic analysis software with its acquisition of privately owned Ingenuity Systems.  Ingenuity boasts a powerful literature-based network for genomic analysis, with customers ranging from big pharma to academia.

The acquisition of Ingenuity Systems accomplishes a major component of Qiagen NV (NASDAQ:QGEN)’s growth strategy – it enhances the sample-to-results workflow that seeks to provide an ecosystem of sample preparation, data collection, and analysis.  The question is: can this ecosystem compete with similar services offered by other contract research companies with sequencing services?

Can Qiagen keep pace?

Qiagen NV (NASDAQ:QGEN)’s acquisition is a clear attempt to keep pace with Thermo Fisher Scientific Inc. (NYSE:TMO), which recently acquired Life Technologies Corp. (NASDAQ:LIFE) for $13.6 billion.  With Life Technologies comes its Ion Torrent sequencing technology and Applied Biosystems’ analytical tools.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!