Company Reports

As we are refreshing our thoughts on BioMerieux, we are reinstating our narrow moat rating. BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and multiplex molecular diagnostics, which is also called syndromic testing. Our fair value estimate is EUR 114 per share, and we view the current market price as fairly valued.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and multiplex molecular diagnostics, or syndromic testing. The company also sells immunoassays. With over EUR 3.6 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies.

We are dropping coverage of BioMerieux. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

BioMerieux’s second-quarter results generally met our expectations, even with higher operating expenses that weighed on margin. We are maintaining our EUR 95 fair value estimate and narrow moat rating.

Narrow-moat BioMerieux faced headwinds in the first quarter from lower equipment placement and COVID-19-related labor shortages, though results were not far off from our forecast, and we maintain our EUR 95 fair value estimate. The shares look to be fairly valued, in our view, even after a year-to-date decline of 27%.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3.3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux had a solid end to the year, but light guidance for 2022 came as a surprise, and slowing demand for COVID-19 testing is likely to weigh on growth over the coming year. We intend to lower our fair value estimate by a mid-single-digit percentage. We see shares as about fairly valued following the 9% decline in the share price in trading on March 2.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3.3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux had a strong third quarter that exceeded management’s earlier targets, though revenue is on track to meet our full-year estimates, which aligns with new guidance. We are increasing our fair value estimate to EUR 92 per share from EUR 87. Time value of money accounts for the bulk of the increase; we’ve also modeled slightly higher installed base growth of the flagship multipanel FilmArray system.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux had a solid second quarter despite declining molecular biology sales from lower COVID-19 testing in the United States. While we may slightly increase our estimates to account for higher rates of testing driven by the delta variant surge, we don’t anticipate a material change to our EUR 87 fair value estimate.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3.1 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company also competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux reported strong first-quarter results, though management tempered growth expectations for the rest of the year with several tough comparable quarters ahead. The market reacted negatively to results, sending shares down over 7%. However, we are leaving our EUR 87 fair value estimate intact, and we don’t see results having a material impact on our longer-term projections.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company also competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux had a very strong fourth quarter and ended 2020 with record growth and profits driven by ongoing momentum in molecular diagnostic testing. We had expected the firm to report strong results, and there is no change to our longer-term expectations. We are maintaining our EUR 67 fair value estimate.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company also competes in immunoassays, giving it exposure to all types of in vitro diagnostics.

BioMerieux is a niche player in the fragmented in vitro diagnostic market and has specialty positioning in clinical and industrial microbiology and syndromic (multiplex) molecular diagnostics. With over EUR 3 billion in sales, BioMerieux is one of the largest global mid-cap diagnostic companies. In addition to microbiology and molecular, the company has an immunoassay diagnostic unit, giving it exposure to all types of in vitro diagnostics.

Narrow-moat BioMerieux reported strong third-quarter results, with reported growth of 21% (26.5% at constant currency) driven by 120% product line growth of BioFire respiratory panel 2.1, a syndromic approach to COVID-19 detection. We may tweak our model to account for the firm’s outperformance, but we do not anticipate a material change to our EUR 65 fair value estimate.

Narrow-moat BioMerieux reported first-half results, which followed the firm’s pre-announcement on July 9 of nearly 16% sales growth through the first two fiscal quarters. With sales and income tracking close to our full-year expectations, there was little in the earnings release that surprised us, and we are maintaining our EUR 65 fair value estimate.

BioMerieux preannounced second-quarter business results and reported strong first-half performance, with organic sales up 15.7% over the first half of 2020. We will be maintaining our EUR 65 per share fair value estimate and narrow moat rating as these preliminary results track closely to our full-year forecasts. The firm’s financial guidance remains withdrawn, and we do not expect guidance to be reinstated until the fourth quarter, at the earliest. BioMerieux will report full second-half financial data on Sept. 2, and we intend to review our forecasts at that point once we have greater clarity on the firm’s results and management expectations for the year.