Sector News

Qiagen rebuffs takeover offers, sending its stock back down

December 26, 2019
Life sciences

After fielding multiple takeover offers over the past month, Qiagen has instead decided to go it alone—and investors are less than pleased.

The stock price of the diagnostics developer dropped by about 25% over the Christmas holiday after the company said it would move forward with its current business plans.

In October, Qiagen announced it would reorganize itself around a 15-year partnership with Illumina and its hardware instead of continuing to develop its own next-generation sequencing instruments. That news came after the company missed its third-quarter targets and alongside the departure of its long-time CEO Peer Schatz.

Håkan Björklund, chairman of Qiagen’s supervisory board, said the company’s management decided its “ongoing transformation provides the best means for creating future value for shareholders and other stakeholders.”

Following reports in mid-November that it was being pursued by Thermo Fisher Scientific, Qiagen disclosed that it had received several “conditional, non-binding indications of interest” regarding a full acquisition of the $8 billion company.

Qiagen’s supervisory and management boards said they had held several discussions with potential suitors, but found them “not compelling.”

“We have a strong and differentiated portfolio of molecular testing solutions that provide opportunity for significant growth,” Björklund said in a statement. The stock market drop rewinds the company’s share price to about $31, near where it was before the initial reports of Thermo Fisher’s interest.

Qiagen’s new partnership with Illumina will see the Dutch diagnostics maker develop test kits for the sequencing giant’s hardware, spanning multiple disease areas. This will include companion tests to evaluate tumors for immunotherapies, based on Illumina’s TruSight Oncology assays, as well as other in vitro diagnostics for its MiSeq Dx and NextSeq 550Dx systems.

By Conor Hale

Source: Fierce Biotech

Related News

October 24, 2020

Neutralising the gluten threat: are we on the cusp of a coeliac disease breakthrough?

Life sciences

Coeliac disease causes long-term damage to patients’ small intestine and puts them at risk of other medical conditions. Treatment options are urgently needed. Allie Nawrat explores the promise of larazotide, the drug in development currently leading the pack.

October 24, 2020

Bone Therapeutics showcases allogeneic cell therapy data

Life sciences

Bone Therapeutics has announced positive 24-month follow-up results from its phase IIa study of Allob, its allogeneic cell therapy, in patients undergoing lumbar spinal fusion procedures.

October 24, 2020

UCB acquires new campus to support UK operations

Life sciences

Belgian pharma company UCB has agreed to acquire a new campus to further support its operations in the UK.

Send this to a friend