bioMérieux: Approval of VITEK MS in the US
NEUTRAL, Fair Value EUR66 (-14%)
bioMérieux announced yesterday night that the FDA has granted approval to VITEK MS, the first clinical mass spectrometry MALDI-TOF-based system available in the US. There is no doubt that this is a significant achievement for the company as the system will dramatically reduce the time to detect disease-causing microorganisms. We estimate that the price of VITEK MS is around USD200k. bioMérieux acquired a licence from Shimadzu related to MALDI-TOF technology in 2010 which should result in payments to the Japanese company. A second mass spec instrument from Burker and Becton Dickinson is expected to reach the market later in the year. As a reminder, bioMérieux and BD are #1 and #2 in terms of market shares in microbiology (50% of bioMérieux sales). We continue to be Neutral on the stock as solid fundamentals continue to be offset by margin pressure and valuation (17.4x 2014e for an high single-digit EPS expansion).
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