PEG still above 1 but how many biotechs are profitable?
Qiagen sees strong growth in next five years
Tuesday April 10, 9:02 am Eastern Time
biz.yahoo.com
FRANKFURT, April 10 (Reuters) - The chief financial officer of one of Europe's leading biotechnology companies, Qiagen (NasdaqNM:QGENF), on Tuesday forecast strong growth in the next five years as the market for genetic research expands.
Speaking in an interview with Reuters, Qiagen Chief Executive Peer Schatz said the company's sales could rise as much as 40 percent in 2001, and around 35 percent per year over the next five years, as research advances on drugs to treat the cause of diseases, and on plants to resist bacteria.
Schatz estimated that the market could reach $2.5 billion by 2005, from $1 billion now. Qiagen posted sales of $204 million lin 2001 and said all its rivals together, including Applied Biosystems and Roche Bioscience, generated only one-seventh of its revenue. It sees plenty of room to expand in the market.
``We can achieve high topline growth without even hitting penetration levels, which are difficult to exceed,'' said Schatz, forecasting operating profit (EBIT) margins of 30 percent of sales by 2005, from 20 percent at the moment.
Qiagen makes kits to separate, purify and handle nucleic acids, such as DNA and RNA, which make protein and carry genetic information. It has 300,000 customers, 400 patents and 300 products for samples ranging from blood to tissue and plants.
The company's white powders, membranes, beads or filters are increasingly used in commercial activities such as genomics, where companies try to identify genes and their functions, as well as molecular diagnostics, which includes the identification of DNA and a predisposition towards disease.
Qiagen's kits can be also used to purify DNA used in gene therapy, in which modified genes are inserted into cells to treat or cure disease. That therapy has yet to hit the market.
The Dutch-based biotech, listed on the Nasdaq and Neuer Markt exchanges, posted net income of $20.1 million last year, up 45 percent, while its operating profit rose 50 percent to $34.9 million. |
