bioMérieux: Short-term pain, long-term gain
NEUTRAL, FV EUR69 vs. 66
We have been on the road with bioMérieux following the H1 results and the BioFire acquisition for USD450m. There is no doubt that acquiring BioFire makes perfect sense strategically. bioMérieux’s focus on clinical microbiology (50% of sales) and infectious diseases will be complemented by the integration of BioFire. It brings to the group “a plug and play” solution in Molecular Diagnostics where it has historically been weak. So why do we remain Neutral? We have been arguing that margin expansion should remain muted over 2013 and 2014 given R&D and S&M investments. Despite having long-term potential, BioFire will add 2015 to the investment years. As a result and while acknowledging bioMérieux’s fundamentals, we remain on the sidelines for now.
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