Cepheid's New Xpert Flu for Europe - Analyst Blog

Cepheid (CPHD) recently launched Xpert Flu, as a CE IVD Mark product, in line with the European directive on in vitro diagnostic devices. This test operates on Cepheid's GeneXpert System and concurrently identifies and differentiates Flu A, Flu B and 2009 H1N1 influenza virus in about an hour. Xpert Flu is expected to be marketed in the US in early 2011.

According to the company, while seasonal influenza strains are of usual public concern, the resurgence of 2009 H1N1 influenza virus, in Europe, draws attention to the urgent need for precise, fast and user-friendly diagnostic solutions for major influenza strains. While molecular testing is widely accepted as the criteria for detecting influenza, such tests are often restricted to complex laboratories whereby results may not be available promptly. Xpert Flu, on the other hand, provides a user-friendly, on-demand molecular influenza test, which can assist medical practitioners in providing timely medical decisions.

The 2009 H1N1 is a new influenza virus, which was first detected in the US in April 2009. While the 2009 H1N1 influenza virus is no longer at pandemic levels, a recent report from the European Centre for Disease Prevention and Control stated that the current influenza season, in Europe, is already dominated by this virus. This report also suggested that nations promote early sample collection and testing for victims with influenza-related illness.

A rise in sales of Cepheid's healthcare associated infections (HAI) portfolio of tests along with Xpert EV, Xpert GBS and Xpert MTB/RIF tests were partly responsible for the recent growth in the company's revenues. In addition, it benefited from increased use for the GeneXpert System. We are pleased to note that the prognosis of the hospital capital equipment market has gradually improved over the past few months. With further improvement, we expect Cepheid to generate higher sales from the clinical market.  The company competes with Abbott Laboratories (ABT), among others, in a competitive market.

With a broad portfolio of tests, Cepheid is one of the leading players in the HAI market. Further, we are encouraged to note that the company is focusing on non-HAI areas as well. Cepheid enjoys a significant position as this is the fastest growing segment in the in vitro diagnostics market.

We currently have a 'Neutral' recommendation on Cepheid.

 
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