Qiagen ($QGEN) plans to move ahead with a $100 million share repurchase program in the wake of improved revenue and sales in the 2013 second quarter on nearly all fronts.
The German diagnostic/genetic testing company booked $316.4 million in net sales during the quarter, 3% higher than the $307.2 million reported over the same period last year. And adjusted net income jumped 6% to $64.2 million, up from $60.8 million in the 2012 second quarter.
Qiagen reported a $34.2 million operating loss, but blames that on a $76 million restructuring charge, a final cost as part of the company's "major efficiency project."
Back in late November 2011, Qiagen announced it would slash up to 10% of its global workforce to "enhance productivity by streamlining the organization." Roland Sackers, the company's chief financial officer, said in a statement that efforts will be completed this year, allowing Qiagen "to grow faster, and to translate this growth into improving profitability and higher cash flows." He added that the $100 million share repurchase program, set to run from Aug. 1 through Dec. 26, 2014, is designed as another crucial ingredient in boosting company's bottom line.
Molecular diagnostics sales grew 4% during the quarter, and Qiagen's pharma and academic research division also posted solid gains.
In recent months, Qiagen has turned to molecular diagnostics in general, and companion diagnostics in particular, to fuel new growth. Earlier in July the company gained the FDA's approval for a molecular test for lung cancer, meant to work with a Boehringer Ingelheim drug. And the company gained similar approvals for a colorectal cancer test that can be used with Bristol-Myers Squibb ($BMY) and Eli Lilly's ($LLY) Erbitux. So far this year, Qiagen has also inked diagnostic deals with Bayer, Pfizer ($PFE), Amgen ($AMGN) and others.
- read the release
- here's Reuters' article