Yahoo Finance QIAGEN (QGEN) Acquires the Forensics NGS Firm Verogen
QIAGEN N.V. QGEN recently announced the completion of the acquisition of Verogen — a provider of next-generation sequencing (NGS) technologies to increase its position in human identification and forensics. The acquisition of Verogen fortifies QIAGEN’s position in the fast-growing field of Human ID and forensics anchored by sample collection and preparation, genetic testing analysis and workflow automation.
For investors’ note, the deal was built on a partnership launched in 2021 to distribute Verogen’s Illumina MiSeq FGx sequencer, NGS-based panels and GEDmatch bioinformatics solutions.
Transaction Details
QIAGEN acquired Verogen for $150 million in cash, which was paid from existing reserves. Currently, the company expects about $20 million of sales from the Verogen portfolio in 2023, building on about $5 million that it booked in 2022 from the distribution agreement. The transaction is expected to be dilutive to full-year 2023 adjusted EPS by about $0.03 per share and neutral to adjusted EPS in 2024.
About Verogen
Founded in 2017, Verogen is a privately held company based in San Diego. The company supports the global human identification community with NGS tools and professional services to help resolve criminal and missing persons cases.
Strategic Implications
Per QIAGEN’s management, bringing Verogen and QIAGEN develops a unique opportunity to help investigators and researchers to accelerate forensic science and to find missing persons, accurately spot suspects and exonerate the innocent. The power of NGS has formed so many applications that were not possible before, and its usage in forensics is another prospect for QIAGEN to offer the complete workflow and help enhance the lives of people around the world.
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Verogen’s sequencing and analysis solutions are intended for use on the MiSeq FGx Sequencing System from Illumina, Inc. With this acquisition, QIAGEN obtains exclusive distribution rights for this version of the MiSeq sequencer developed specifically for forensics applications.
With acquisition, Qiagen also gains complete access to Verogen’s revolutionary GEDmatch database and GEDmatch PRO portal. GEDmatch enables users to upload genetic profiles developed by other genealogy sites in order to expand the search for familial links and is intended to aid police and forensic teams with investigative comparisons to data uploaded by consenting GEDmatch users.
Industry Prospects
Per a report by Grand View Research, the global forensic technology market size was $4.30 billion in 2021 and is expected to expand at a CAGR of 10.2% by 2030. The rising number of cases of homicide, robbery, rape, and murder are the factors driving the market.
Recent Developments
This month, QIAGEN entered into a strategic partnership with Helix to advance companion diagnostics for hereditary diseases. The partnership is intended to leverage the Helix Laboratory Platform powered by QIAGEN’s biopharma relationships, NGS capabilities, and global regulatory expertise.
Last month, QIAGEN announced the receipt of the FDA approval for its therascreen KRAS RGQ PCR kit (therascreen KRAS kit). The kit is approved as a companion diagnostic to support detecting non-small cell lung cancer (“NSCLC”) patients eligible for treatment with KRAZATI (adagrasib).
Price Performance
Shares of the company have gain 0.5% in a year against the industry’s fall of 18%.
Zacks Rank and Other Key Picks
Currently, QIAGEN carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Boston Scientific Corporation BSX and Merit Medical Systems, Inc. MMSI.
AMN Healthcare, carrying a Zacks Rank #2, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 10.6% compared with the industry’s 30.3% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2, has an estimated long-term growth rate of 10.3%. BSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 1.9%.
Boston Scientific has gained 6.8% against the industry’s 42.6% decline over the past year.
Merit Medical, carrying a Zacks Rank #2, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 13.7% against the industry’s 8.7% decline over the past year.
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