DiaSorin Has Record Quarter Driven by COVID-19 Tests; Higher MDx Capacity Is a Positive Development

Narrow-moat DiaSorin had a good second quarter fueled by COVID-19 molecular and serology antibody testing, with revenue up 8.7% at constant currencies, and net profit up 12.8% to EUR 95 million. We are maintaining our EUR 101 fair value estimate, though we may tweak our model to account for higher-than-expected sales. The stronger results on the top line are likely to be offset by slow immunodiagnostic sales in 2021, and we therefore do not expect a material change to our fair value estimate. Financial guidance remains withdrawn, and we emphasize that DiaSorin still faces a high degree of uncertainty related to both the benefits (COVID-19 testing) and drawbacks (decline in demand for other immunoassays) of the current pandemic.