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Qiagen Posts 5 Percent Q3 Revenue Growth

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Qiagen reported after the close of the market Wednesday that its third-quarter revenues increased 5 percent, but only 1 percent at constant exchange rates, as the delay in a large HPV test contract affected its results.

The sample prep technologies and molecular diagnostics firm had total revenues of $288.9 million for the three months ended Sept. 30, compared to $274.3 million for the third quarter of 2010. It fell short of analysts' consensus estimate of $290.3 million.

Qiagen's molecular diagnostics sales fell 5 percent at constant exchange rates, affected by the timing of a "large national tender for HPV tests," which the firm said has been awarded for delivery in the fourth quarter. It said profiling sales were up on QIAsymphony platform expansion, while personalized healthcare sales increased, offsetting lower, timing-related milestone payments in the 2011 period from co-development projects with pharmaceutical partners.

Its applied testing sales were flat year over year, while its sales to pharma customers rose 6 percent and sales to academia grew 7 percent year over year.

Instrument sales were up 8 percent on a constant exchange rate basis, driven by the ongoing roll-out of the QIAsymphony platform, Qiagen CEO Peer Schatz said in a conference call Thursday morning. He said the firm is on track to reach more than 550 installed systems by the end of 2011, "and we are only in the early years of this decade-long product cycle."

The firm's consumables and related revenues were flat on a constant exchange rate basis.

Sales in Europe/Middle East/ Africa increased 15 at constant exchange rates, while the Asia-Pacific/Japan region had a 19 percent increase in revenues. Sales in the US declined 12 percent, with weaker HPV test sales.

"We've been saying 2011 is a transition year as we build our portfolio of molecular content and roll out QIAsymphony," said Schatz. "These actions will create growth opportunities in 2012 and beyond."

Initiatives in its personalized healthcare business during the quarter included the filing of its Pre-Market Approval applications with the US Food and Drug Administration for clearance of its KRAS tests. The firm hopes to have FDA clearance by mid-2012. In addition, during the third quarter Qiagen inked additional companion diagnostics projects with Eli Lilly and Pfizer.

Qiagen's adjusted net income for the quarter was $56.3 million, or $.24 per share, compared to $58.8 million, or $.25 per share, for Q3 2010. Its adjusted EPS of $.22 beat analysts' consensus EPS estimate of $.21.

"We achieved our targets for moderate sales growth against the background of a challenging business environment in the third quarter of 2011," Schatz said in a statement. "We are making good progress on strategic initiatives to drive growth at a stronger level in the second half of the year and in 2012. In particular, we strengthened our leadership position in Personalized Healthcare with new major companion diagnostic projects and expanded our test portfolio into hematology and latent diseases."

The company reiterated its previous guidance of 3 percent revenue growth, at constant exchange rates, for full-year 2011. It expects to report adjusted EPS of $.96-$.97.

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