Qiagen Plunges After Saying It Won't Pursue a Sale

The genetic testing company will remain a stand-alone business following a review of strategic alternatives.
Author:
Updated:
Original:

Qiagen  (QGEN) - Get Report was falling sharply Thursday after the genetic testing company said it would remain a stand-alone business following a review of strategic alternatives.

“The Supervisory Board and Management Board conducted a wide-ranging review of strategic alternatives for our business and determined that the ongoing transformation provides the best means for creating future value for shareholders and other stakeholders,” said Hakan Bjorklund, supervisory board chairman, in a statement. 

"We have a strong and differentiated portfolio of molecular testing solutions that provide opportunity for significant growth," Bjorklund added. "We will continue to focus on value-enhancing activities with financial discipline and an increased passion to serve our customers with our Sample to Insight solutions focused on the Life Sciences and Molecular Diagnostics.” 

Qiagen said that in mid-November it had received "several conditional, non-binding indications of interest for a full acquisition."

A report last month said Thermo Fisher Scientific  (TMO) - Get Report was considering a purchase of the Dutch molecular-testing company.

Bloomberg reported that Thermo Fisher had approached Qiagen about a potential deal, saying that if the deal was completed it would be one of Thermo Fisher's biggest-ever deals. 

Qiagen shares were falling 24.43% in Thursday to $31.34. The stock closed Tuesday $41.47 before the company announced it decided it wouldn't be pursuing a sale, adding the "current stand-alone business plan represents the best opportunity to drive future value creation."

Qiagen in October saw its shares drop significantly after saying third-quarter sales would come in below estimates and after the molecular-testing company announced that its chief executive, Peer Schatz, would be stepping down.