Hologic's (Nasdaq:HOLX)
difficult midlife crisis continues. With its core cervical cancer
screening business struggling in response to new recommended testing
intervals and the 3D tomo mammography business slow to ramp up, Hologic
is a distressing mix of sluggish organic growth
and a debt-laden balance sheet. While some investors seemed encouraged
by the company's move to bring back its former CEO, there's a lot of
work to be done to carve out an attractive growth path for this company.
Please read the full article here:
http://www.investopedia.com/stock-analysis/080713/hologic-struggling-find-new-path-holx-dgx-ge-bdx.aspx
Showing posts with label Quest Diagnostics. Show all posts
Showing posts with label Quest Diagnostics. Show all posts
Wednesday, August 7, 2013
Friday, June 22, 2012
Investopedia: Bio-Reference Labs Taking Advantage Of Esoteric Opportunities
Bio-Reference Labs (Nasdaq:BRLI)
is an odd diagnostics company. It combines a somewhat sleepy
conventional diagnostics business centered on the Northeast (New York
City, in particular) with a nationwide esoteric testing business. The
company has had a less-than-spectacular record of cash flow generation
and cash conversion, but it has improved significantly in recent times.
While its smaller scale and fierce competition from Quest (NYSE:DGX) and LabCorp (NYSE:LH) are risk factors, growth in the esoteric testing business could make this a name worth following.
Please read more here:
http://stocks.investopedia.
Please read more here:
http://stocks.investopedia.
Wednesday, June 20, 2012
Investopedia: Want A High-Yield Healthcare Stock? Look To Canada
Canada doesn't factor into discussions about healthcare very often
outside of its national single-payer system. Nevertheless, investors
looking for rich dividend payers in healthcare have to be willing to go
the extra mile, and Canada rewards that search. While CML HealthCare (TSE:C.CLC)
is not the easiest stock for American investors to buy or follow, the
rich 8% yield, strong margins and growth potential make it worth the
effort to consider.
Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.
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To read more, please follow this link:
http://stocks.investopedia.
Tuesday, November 1, 2011
Investopedia: Biogen Idec Has Built A Valuable Franchise
Diversification is all well and good, but there's nothing wrong with a well-run company that does a few things very well. With an enviable franchise in multiple sclerosis, a promising pipeline and a host of pharmaceutical giants desperate for growth and operating leverage, Biogen Idec (Nasdaq:BIIB) could yet have a few surprises left for shareholders.
Steady Progress in Q3
Third quarter results did not have a lot of financial surprises, but Biogen Idec continues to grow nicely. Total revenue rose 11%, with Tysabri, which the company sells in partnership with Elan (NYSE:ELN), growing 26% and key drug Avonex showing 6% sales growth. Although Avonex seems to be showing some wear with Novartis's (NYSE:NVS) drug Gilenya on the market, it still represents over half of the company's sales.
Read the full article here:
http://stocks.investopedia.
Steady Progress in Q3
Third quarter results did not have a lot of financial surprises, but Biogen Idec continues to grow nicely. Total revenue rose 11%, with Tysabri, which the company sells in partnership with Elan (NYSE:ELN), growing 26% and key drug Avonex showing 6% sales growth. Although Avonex seems to be showing some wear with Novartis's (NYSE:NVS) drug Gilenya on the market, it still represents over half of the company's sales.
Read the full article here:
http://stocks.investopedia.
Tuesday, October 18, 2011
Seeking Alpha: Lincare - Unreasonably Cheap For A Good Reason
On first blush, Lincare LNCR) would look like one of those great undervalued GARP companies that famous investors like Peter Lynch gush about in their memoirs. The thing is, while Lincare may well have a lot of value in it, that value is a little like a bag of gold resting atop a pedestal … in a minefield … surrounded by razorwire … and on fire. Lincare management has indeed done a great job over the years of running this business, but it seems like government price cuts are going to be an unrelenting drag on the company.
A Pretty Mixed Third Quarter
Lincare's third quarter highlights some of the challenges that the company has to deal with now and in the near future. Reported revenue growth of over 13% sounds great, as does the little note that growth would have been nearly 16% without the impact of negative Medicare changes. Unfortunately, the organic growth was more on the order of 6% and that growth was not especially profitable.
Continue on here:
Lincare: Unreasonably Cheap For A Good Reason
A Pretty Mixed Third Quarter
Lincare's third quarter highlights some of the challenges that the company has to deal with now and in the near future. Reported revenue growth of over 13% sounds great, as does the little note that growth would have been nearly 16% without the impact of negative Medicare changes. Unfortunately, the organic growth was more on the order of 6% and that growth was not especially profitable.
Continue on here:
Lincare: Unreasonably Cheap For A Good Reason
Tuesday, July 5, 2011
Investopedia: Immucor Passes Its Last Test
Perhaps moreso than in any other industry, there are companies in medical technology that just seem destined to eventually get bought out. A leading player in immunohematology, Immucor (Nasdaq:BLUD) was a very good example of this type of company and the Immucor announced on Tuesday morning that it had accepted a bid from private equity group TPG Capital.
The Terms of the Deal
Immucor shareholders are going to get $27 in cash for each of their shares, a 30% premium to the stock price on Friday but still shy of the stock's all-time high in 2007 of $39.96. At this price, Immucor is going out at a reasonable price/sales multiple (a common metric for med-tech deals) and the company does not seem to be leaving much cash on the table with respect to a discounted cash flow model. (Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential. For more, see Using DCF In Biotech Valuation.)
Not that it will matter much to the selling shareholders, but this deal further extends TPG Capital's involvement in the health care sector. Arguably more known for involvement in deals for companies like Neiman Marcus, Univision and TXU, TPG has investment interests in other significant health care companies like Biomet, Quintiles and Surgical Care Affiliates.
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Thursday, May 26, 2011
Investopedia: Will Nestle Succeed Where Others Have Failed?
A curious announcement came out this week when Swiss food and nutrition giant Nestle (OTC:NSRGY) announced that it was acquiring U.S.-based medical therapeutics and diagnostics company Prometheus Laboratories. Nestle will fold Prometheus into its newly formed Nestle Health Science division and likely will guide the company's efforts toward more research into nutrition-based therapeutics as well as areas like metabolism. Although Prometheus' $250 million or so in ongoing annual revenue will not make a major dent in Nestle, it is an interesting deal on multiple levels. (For background reading, see Investing In The Healthcare Sector.)
To read the full piece, please click the link below:
http://stocks.investopedia.com/stock-analysis/2011/Will-Nestle-Succeed-Where-Others-Have-Failed-NSRGY-NVS-TMO-DD-PG-ABT-GNC0526.aspx?partner=YahooSA
What Nestle Is Getting
In acquiring Prometheus, Nestle is getting a business that has focused on diagnostics and therapeutics for indications in gastroenterology and oncology. Prometheus recently got approval to sell a Crohn's diagnostic test, and the company sells a variety of drugs for conditions like cancer and irritable bowel disease.
Nestle did not specify the price it is paying for Prometheus. Considering others deals like Novartis' (NYSE:NVS) acquisition of Genoptix, Quest's (NYSE:DGX) acquisition of Celera, and Thermo Fisher's (NYSE:TMO) acquisition of Phadia, Nestle likely paid at least $650 million, but that is purely speculation at this point.
To read the full piece, please click the link below:
http://stocks.investopedia.com/stock-analysis/2011/Will-Nestle-Succeed-Where-Others-Have-Failed-NSRGY-NVS-TMO-DD-PG-ABT-GNC0526.aspx?partner=YahooSA
Tuesday, March 22, 2011
Investopedia: Quest Diagnostics Opens Its Wallet One More Time
Quest Diagnostics (NYSE:DGX) is certainly not shy about spending shareholders' money to expand its business opportunities. Quest's latest deal, announced Friday morning, will have the company paying $8 per share in cash to acquire all of Celera (NYSE:CRA), a small company with a focus on molecular diagnostics and cardiovascular tests.
The Terms of the Deal
Quest Diagnostics will be paying $8 per share for Celera, a deal that has a sticker price of $671 million but a net cost of $344 million. Moreover, given the tax credits, loss carry-forwards, and capitalized R&D at Celera, the effective price of the deal will be even lower. Nevertheless, the deal represents a nearly 28% premium for Celera, nearly five times trailing sales, and a little more than four-and-a-half times forward sales.
At these prices, Quest is paying a premium similar to what Clarient received from General Electric (NYSE:GE) and superior to the deal Genoptix struck with Novartis (NYSE: NVS). Still, it might be a sobering reminder to MDx fans that the days of companies paying 10 times sales for molecular or esoteric test technology is long past.
To read the full piece, please continue here:
http://stocks.investopedia.
The Terms of the Deal
Quest Diagnostics will be paying $8 per share for Celera, a deal that has a sticker price of $671 million but a net cost of $344 million. Moreover, given the tax credits, loss carry-forwards, and capitalized R&D at Celera, the effective price of the deal will be even lower. Nevertheless, the deal represents a nearly 28% premium for Celera, nearly five times trailing sales, and a little more than four-and-a-half times forward sales.
At these prices, Quest is paying a premium similar to what Clarient received from General Electric (NYSE:GE) and superior to the deal Genoptix struck with Novartis (NYSE: NVS). Still, it might be a sobering reminder to MDx fans that the days of companies paying 10 times sales for molecular or esoteric test technology is long past.
To read the full piece, please continue here:
http://stocks.investopedia.
Wednesday, January 26, 2011
Investopedia: Novartis Building Itself Into One-Stop Shop
Monday's announcement that Novartis (NYSE:NVS) will acquire Genoptix (Nasdaq:GXDX) offers an interesting lesson in how quickly things can change in the medical technology market. It was not so long ago that Genoptix was a hot idea and analysts treated it as an example of how the practice and business of medicine was changing. At that same time, Novartis was seen as a sluggish pharmaceutical company and a lagging part of the old guard.
To continue to the full piece, please click below:
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More recently, though, Genoptix appeared to have hit a wall in its near-term growth and management seemed to have a nearly empty bag of tricks to change that. Novartis, though, has remade the investment community's vision of the company, with more credit being given to its attractive pipeline and growing generics business. To that end, Monday's deal gives Genoptix shareholders a decent exit strategy, while giving Novartis yet another growth option for the future. (For more, see The Latest Greatest Corporate Mergers And Acquisitions.)
The Terms of the Deal
Novartis announced that it will acquire Genoptix for $25 in cash, a 27% premium to Friday's price, but still a relative bargain on an EV/revenue or EV/EBITDA basis. Even acknowledging the low apparent valuation ratios on the deal, the terms were in line with the recent General Electric (NYSE:GE) acquisition of Clarient (a similar business) and reasonable relative to Genoptix's own near-term growth outlook. (For more, see Investment Valuation Ratios: Enterprise Value Multiple.)
What Novartis Is Getting
Genoptix is a specialized lab services provider that targets community-based oncologists and hematologists with its specialized diagnostic services in leukemias and lymphomas. In very simple terms, an oncologist will send a patient sample to Genoptix, who will perform a variety of advanced tests on it to determine whether the sample is cancerous (and if so, what type).
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Friday, October 22, 2010
GE Goes Outside The Box In Healthcare
There is an old saying that if you are going to make predictions, you may as well make a lot of them. Even though I recently laid out multiple medical technology acquisition prospects for General Electric (NYSE:GE), GE managed to go off the board with an interesting purchase.
On Friday morning, GE announced an agreement to acquire Clarient (Nasdaq:CLRT), a specialist in oncology diagnostics services. GE is paying cash in this deal, giving common shareholders $5 a share (versus Thursday's close of $3.74) and preferred shareholders $20 per share. That is a total deal value of $580 million for a company with about $100 million in trailing revenue.
As a major holder (more than 30 million shares as of September), Safeguard Scientifics (NYSE:SFE) will benefit significantly from this deal, booking roughly a $145 million gain in the transaction. (For more, see Is GE About To Stir Up The Medical Arena?)
Please click the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/General-Electric-Goes-Outside-The-Box-In-Healthcare-GE-CLRT-LH-DGX-SFE-GXDX1022.aspx
On Friday morning, GE announced an agreement to acquire Clarient (Nasdaq:CLRT), a specialist in oncology diagnostics services. GE is paying cash in this deal, giving common shareholders $5 a share (versus Thursday's close of $3.74) and preferred shareholders $20 per share. That is a total deal value of $580 million for a company with about $100 million in trailing revenue.
As a major holder (more than 30 million shares as of September), Safeguard Scientifics (NYSE:SFE) will benefit significantly from this deal, booking roughly a $145 million gain in the transaction. (For more, see Is GE About To Stir Up The Medical Arena?)
Please click the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/General-Electric-Goes-Outside-The-Box-In-Healthcare-GE-CLRT-LH-DGX-SFE-GXDX1022.aspx
Tuesday, September 14, 2010
Lab Corp And Genzyme Find Some Common Ground
Apparently Genzyme (Nasdaq:GENZ) is not adverse to all deals, just the current deal that Sanofi-aventis (NYSE:SNY) is offering. On Monday morning, Genzyme announced that it had reached an agreement to sell Genzyme Genetics to Laboratory Corporation (NYSE:LH) for $925 million in cash. It had been widely known that Genzyme was looking to sell some non-core businesses (including a diagnostics product and pharmaceutical intermediaries), and Genyzme did not waste a lot of time finding a buyer.
A Buyer's Market for Labs
Although this division goes by the name of "Genzyme Genetics", it is basically a laboratory testing business; one that has a rather strong brand in prenatal and hematopathology testing. Accordingly, it fits in pretty well with Lab Corp.'s stated interest in expanding its genetic and esoteric testing business.
Genzyme made the unfortunate decision to sell in the middle of a tough market. Labs are struggling with weak volume as doctor visits are down and people seem to be foregoing health care during the current economic troubles. With weak volume and strong competition from major players like Lab Corp., Quest (NYSE:DGX) and Bio-Reference Laboratories (Nasdaq:BRLI), a lot of labs are choosing to sell out and routine deals are going for about 1.5x sales.
Click below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Lab-Corp-And-Genzyme-Find-Some-Common-Ground-GENZ-LH-SNY-DGX-BRLI-LMNX-GXDX0914.aspx
A Buyer's Market for Labs
Although this division goes by the name of "Genzyme Genetics", it is basically a laboratory testing business; one that has a rather strong brand in prenatal and hematopathology testing. Accordingly, it fits in pretty well with Lab Corp.'s stated interest in expanding its genetic and esoteric testing business.
Genzyme made the unfortunate decision to sell in the middle of a tough market. Labs are struggling with weak volume as doctor visits are down and people seem to be foregoing health care during the current economic troubles. With weak volume and strong competition from major players like Lab Corp., Quest (NYSE:DGX) and Bio-Reference Laboratories (Nasdaq:BRLI), a lot of labs are choosing to sell out and routine deals are going for about 1.5x sales.
Click below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Lab-Corp-And-Genzyme-Find-Some-Common-Ground-GENZ-LH-SNY-DGX-BRLI-LMNX-GXDX0914.aspx
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