Diasorin falls in wake of French BioMerieux's forecast cut

(Il Sole 24 Ore Radiocor) - Slipping to the bottom of the list Diasorin , which is paying for a cut in forecasts from French medical testing specialist BioMerieux. The French group announced a drop in quarterly sales, due to the uncertain geopolitical environment and a rather mild winter from an epidemic point of view, lowering its forecast for the year accordingly. In the three months, turnover fell by 10.4% to EUR 983.6m, -3.9% net of exchange rate effects.

BioMerieux develops in particular tests related to respiratory diseases. Its flagship product, the Biofire respiratory test, saw revenues fall by almost a quarter. Reduced estimates for the year: sales are expected in the +3%/+5% range, previously they were seen at +5%/+7%. Less than comforting indications also came from Roche I, which reported revenues for its diagnostics division (which accounts for 22% of group sales) down 7% year-on-year, below expectations.

According to analysts at Intermonte, which has a neutral rating on Diasorin with a target price of €73, the indications from BioMerieux and Roche reinforce "the negative read-across on the flu season already emerging from Abbot and QuidelOrtho". Diasorin's figures will arrive on 7 May and analysts expect 'a soft start to the year and a recovery in the second half, in line with the indications provided by management'. In particular, on molecular diagnostics, Intermonte expects weak trends both as a result of the less intense flu season and a 'still limited' panel of tests.