Wedbush Downgrades Meridian Biosciences (VIVO) to Underperform as Competitor Gains Momentum

November 28, 2012 7:16 AM EST Send to a Friend
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Price: $20.04 --0%

Rating Summary:
    2 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

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    Up: 17 | Down: 38 | New: 6
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Wedbush downgraded Meridian Biosciences (NASDAQ: VIVO) from Neutral to Underperform with a price target of $17.00 on poor risk/reward.

"We are hearing from industry sources that Great Basin, a private molecular diagnostics company with a recently launched C.diff test, is gathering momentum," the analyst comments. "Great Basin, who launched its "sample-in answer out" platform and FDA approved C.diff test in July 2012, is winning accounts (mostly sub 300 bed hospitals) based on its easy-to-use test, low price point (low $20s) and free system. As a result, we are more cautious on VIVO's c.difficile business (~22% of sales) for 2013, where we are modeling 50 system placements/q in 2013 and a slight decline in utilization per quarter, exiting the year near 1400 tests/system (annualized).

Based primarily on C.difficile deceleration in 2013 & 2014, Wedbush now forecast $186 MM and $197 MM with EPS of $0.86 and $0.92 versus consensus estimates of $190 MM and $209 MM with $0.88 and $1.00 EPS in 2013 and 2014, respectively.

For an analyst ratings summary and ratings history on Meridian Biosciences click here. For more ratings news on Meridian Biosciences click here.

Shares of Meridian Biosciences closed at $20.56 yesterday.




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