In an attempt to manage its growing volume of genomic data,
) recently acquired Calif.-based privately owned company,
Ingenuity Systems, Inc. Through the acquisition, Qiagen will have
access to Ingenuity's proprietary Ingenuity Knowledge Base and
software applications, which is an advanced knowledge system and
analysis solution for complex biomedical information. However,
financial terms of the deal were not disclosed.
Over the recent past volume of data generation through
next-generation sequencing (NGS) has been increasing. This has
compelled Qiagen to realize the need for advanced solutions of
Ingenuity. These solutions, according to the company, will act as
a critical success factor in analysis and interpretation of
complex biological data.
Qiagen claims that, with the Ingenuity products, the company
will be able to widen its scope in the rapidly growing market of
sequencing with faster and efficient data analysis. Ingenuity
stated that, while an entire human genome sequence takes only 2
days to complete, the data analysis can take months and years.
However, the Ingenuity product line needs some time (may be some
minutes) for data interpretation.
Viewing the substantial potential of the molecular diagnostic
market globally, Qiagen is currently focusing on expanding its
diagnostics products offering. The company currently derives
around 50% of its total revenue from this segment, which is
likely to increase with this acquisition. Qiagen has acquired
several companies to expand its product portfolio, the
significant ones are Cellestis and Ipsogen in 2011.
We are encouraged by Qiagen's focus on strategic initiatives
to drive growth and profitability in the molecular diagnostics
market. Its innovative tests in the genomic/esoteric arena, with
a focus on the high-margin esoteric testing business, are
expected to accelerate the company's sales growth on the back of
growing market demand, not only domestic but worldwide.
This is also provoking several small laboratory companies to
introduce their comprehensive portfolio of genetic tests.
Major Peers in Molecular Diagnostics Space
Qiagen is facing intense competition in the molecular
diagnostic space, especially from
Laboratory Corporation of America Holdings
). Currently, Qiagen retains a Zacks Rank #3 (Hold). However,
other stocks in the medical device sector, carrying a Zacks Rank
#1(Strong Buy), like
) appear impressive.
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