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Response Genetics, Inc Message Board

  • frankfrazzano frankfrazzano Apr 10, 2010 6:40 AM Flag rgdx a possible takeover candidate?

    ...grytas article seems to indicate Quiagen is not through and.."Schatz said the debt-free company could use its $200 million to $300 million in annual cash flow to make $100 million to $200 million in acquisitions a year, with deals generally below $100 million." we shall see...

    Qiagen CEO Prefers Organic Growth, Sees Smaller Deals

    By Thomas Gryta

    NEW YORK (Dow Jones)--Qiagen N.V. (QGEN, QIA.XE) Chief Executive Peer Schatz is ready to expand the diagnostics company organically, or from within, because he is no longer looking for large deals.
    Qiagen spent $2 billion in deals over the past three years, including a $1.4 billion acquisition of Digene in 2007. Last year, half of the company's $1 billion in sales came from acquired companies. Now, Schatz said, he is focused on the company's core business of technologies that essentially isolate molecules for analysis or studying.
    "There is nothing we have to fix, nothing we absolutely need," he said, noting 12% to 13% growth in organic sales in 2009 and projecting a similar level in 2010. Analysts, on average, project revenue to rise 15% this year to $1.16 billion, according to Thomson Reuters.
    Qiagen, based in the Netherlands but with a stock listed in both Germany and the U.S., sells its equipment and tests to hospitals and laboratories, but also to drug makers and academia to assist in research.
    The company is also aggressively moving into so-called companion diagnostics, which are tests that can show whether a drug would be useful in a given patient. Its test for a mutation in the KRAS gene is being used to determine if certain cancer patients can benefit from Erbitux, sold by Eli Lilly & Co. (LLY) and
    Bristol-Myers Squibb Co
    (BMY), and the similar Vectibix, sold by
    Amgen Inc
    . (AMGN).
    The use of such biomarkers is expected to play a wider role in future drug development because they cut costs and increase the overall effectiveness of a therapy by eliminating those that won't benefit.
    Although it isn't looking for major deals, Schatz said the debt-free company could use its $200 million to $300 million in annual cash flow to make $100 million to $200 million in acquisitions a year, with deals generally below $100 million.
    Qiagen also has been mentioned as a takeover target, especially as larger health-care companies search for growth opportunities.
    "Have people looked at the company? Absolutely," Schatz said. "But that isn't part of our plan." Schatz argued there is an advantage in Qiagen staying independent, for itself and its business partners, and that could change if the company became part of a larger drug maker.
    Schatz sees big things for the diagnostic sector, comparing it to the personal computing industry in the 1970s and 1980s, where integration of technology platforms led to more uses for PCs and wider markets.
    In the next 10 to 15 years, he expects it will be common for houses to have a molecular testing system, the way most people have a home computer now. Such a machine could used for health applications, to see if a child has a virus or infection, as well as environmental uses, including testing food.
    But with all of this technology, it will likely bring an increased role for physicians who will be needed to help process all the new data.
    "Information is going to be the next wave of healthcare," he said.

    -By Thomas Gryta, Dow Jones Newswires; 212-416-2169;

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    • bump...

    • Give me a break...what in the world would a $5.5B Company want with a little $30M money losing Company in RGDX?

      Keep pumping Franckapotomous. RGDX will continue to dilute and dilute and dilute. They'll never make a profit.

      Just wait when the dumping starts...the bid/ask spread is so large and it's so thinly traded that it will go below a $1 in a heart beat. You'll have no chance to get out....but you get what you deserve when you play with fire....LOL!

    • Frank, again you dig up great information on this company's possibilities on both as being an acquisition for another company or the most important aspect is the future of their products.


      • 1 Reply to aleghappy
      • aleghappy...thanx for the plug!

        I only follow Quiagen now because PFE partnered them to develop a test for the CLDX GBM drug called CDX-110! This is a vaccine for glioblastoma but the vaccine has an affinity for EGFRvIII or a mutant of EGFR and this shows up about 40% of the time in GBM! So a test to find the mutant is nescessary and PFE has contracted Quiagen to develop it! This is the promise of designer therapy and companion diagnostics!

        I think this little co. is 10 bagger!

        I have bet 14,000 shares on it!


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