Here’s Why Qiagen Skyrocketed Over 43% in November
What happened
Shares of Qiagen (NYSE: QGEN) jumped 43.6% in November, according to data provided by
So what
Bloomberg initially
And then a few days later, Qiagen acknowledged that it had received several "indications of interest" to be
After a rocky third quarter, a transition in the CEO position, and a pivot in next-generation sequencing sent Qiagen
There's certainly been plenty of consolidation in the industry with companies looking to save money on redundancies like sales forces. Thermo Fisher is, of course, the result of the merger of Thermo Electron and Fisher Scientific.
Now what
While an acquisition of Qiagen makes sense, there's no guarantee that management can find a buyer willing to pay what Qiagen's board believes it's worth, especially with uncertainties around how the new next-generation sequencing partnership with Illumina (NASDAQ: ILMN) will work out. Arguably, that partnership could throw a wrench into acquisition plans, considering that Thermo Fisher has its own next-generation sequencing platform called Ion Torrent.
If a deal does end up getting done, investors shouldn't expect much of a premium from here given that shares have already largely priced in a potential sale. Qiagen was a great -- albeit risky -- buy after the October drop, but at this point, investors looking for new investments should probably look at other
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