In addition to a steep slide in the company's share price, Raymond James lowered its rating for Cepheid's stock to Market Perform.
For the quarter ended Sept. 30, Cepheid reported preliminary revenue of approximately $126.5 million, shy of the Wall Street estimate of $127.8 million.
A number of firms now have FDA-approved Group A Strep assays, but end users may be hesitant to adopt them until Infectious Disease Society of America guidelines are updated.
The investment firm has added the three companies to its US Life Science Tools & Diagnostics coverage while upping Hologic to an Equal Weight rating.
The letter informed the firm that its production of Xpert Norovirus assays at the Solna, Sweden site does not conform to good manufacturing practice requirements.
The Xpert Omni platform will launch in 2016 running Cepheid test cartridges on a compact battery-operated device that is anticipated to cost less than $3,000.
The firm saw 24 percent growth in commercial clinical reagents revenues, while clinical systems revenue was down 23 percent.
Bio-Reference Laboratories, Cepheid, Exact Sciences, and NanoString all saw their shares rise in June. Sequenom topped the list of decliners.
Deals with Quest and LabCorp and an expanded product offering also spurred the investment bank to increase its price target on Cepheid's stock to $75 per share from $52.
A study of more than 700 samples showed pooling detected 96 percent of the tuberculosis cases found via testing each patient sample individually, with 99 percent overall agreement between the methods.
Bloomberg reports that the DNA-for-cash deal reported in Kentucky might be a more widespread scam.
St. Jude Children's Research Hospital scientists have treated infants with X-linked severe combined immunodeficiency using gene therapy in an early phase study.
St. Louis Public Radio reports that some African Americans are turning to DNA ancestry testing to help guide genealogical searches.
In Nature this week: a genomic analysis of the snailfish Pseudoliparis swirei, ancient DNA analysis gives insight into the introduction of farming to England, and more.