Molecular Plays Lead Rayno Dx Focus Stocks Up
Illumina (ILMN) rose 4.5% today on “talk” that Roche will increase its buyout offer to $60. Roche told Bloomberg that it does not comment on rumors. Illumina was added to the Rayno Portfolio in 2/2/09 at a price of $29 and the buy was reiterated in 2012 in the low 40’s. The last high bid by Roche was $51. Illumina is a leader in gene sequencing which is a $5.6B market and is expected to grow to $25.6B as genetic tests and additional diagnostic content is added to sequencing.
In other action for 2012 Qiagen (QGEN) has recovered from lows and is up 37% YTD; Exact Sciences (EXAS) is up 40% YTD and is at all time highs.Quidel (QDEL) is also at YTD highs and has recently introduced its Sofia diagnostic assay platform.
Cepheid (CPHD) is a premier diagnostic company with a broad platform of assays but is not on our list. We are looking for value in the low 30’s.