RBC sees growth in IVD market, favours bioMérieux over Diasorin

Biomerieux SA

12/12/2024 07:41

** RBC expects the in vitro diagnostics market, which it
valued at about $80 billions in 2023, to grow at 3% annually to
2028, driven by increased testing demand despite regulatory and
reimbursement challenges
    ** Five dominant players, including Roche  ROG.S  and Abbott
 ABT.N , benefit from long replacement cycles and large
installed bases, leaving a "niche" by sub-segment or geography
to smaller players, it says
        ** RBC starts coverage on bioMérieux  BIOX.PA  at
"outperform" citing its leadership in microbiology and molecular
testing, expected 8% sales growth and significant M&A
opportunities
    ** It also starts Italy's Diasorin  DIAS.MI  at "sector
perform" saying it does not expect significant contribution from
its "impressive array of product launches" until the second half
of its plan to 2027, and sees the stock as fairly valued
    ** Diasorin's stock has gained 10.5% YTD as of Wednesday's
close    

 (Reporting by Johan Bodinier and Alessandro Parodi)
 ((Alessandro.parodi@thomsonreuters.com ;
johangeorgesroger.bodinier@thomsonreuters.com))