QGEN - Earnings call transcript Q4 2021

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Operator

Please standby, we're about to begin. Ladies and gentlemen, thank you for standing by. I am Jessica, your PGI call operator. Welcome and thank you for joining QIAGEN's Q4 2021 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. this be being Internet made that request at site. advised will and available be call recorded is QIAGEN's Please on their The a be will session. prepared followed remarks question-and-answer by your I like time, this At Instructions] to [Operator introduce host, Mr. would Gilardi, Investor at and QIAGEN. Corporate Relations President, of John Vice Communications Head Please go ahead.

John Gilardi

Loh Q&A Thank much, Financial today and the Officer; on A Roland details welcome the our Chief our operator the all remarks archived our us QX you Today, to from Thierry Executive website presentation you we performance Speakers our our first on today in the the team. with being Phoebe that is Investors our be release. Chief the website Also Relations very Officer. of from is joining at then call call. this will are www.qiagen.com. IR session. webcast section of along and section and and Please of with Thierry Investor some have Bernard, Roland available will Sackers, into and live note is move

be We the call. slides during not showing the will

let February me begin, the responses of Harbor reflect traditional of your the call discussions we Before and statement. This to as management views X, questions Safe XXXX. today, conference cover

the revise of statements. XXXX. any those for actual statements statements disclaims will the expectations Reform state our purpose any or statements projected. Act cause from to to the results We intentions, uncertainties making and forward-looking or Securities Private materially could obligations your of forward-looking be intention risks differ Litigation harbor These beliefs, involve and to that These QIAGEN future. predictions responses providing questions under provisions constitute that of safe the

Securities Commission filings available For with are our website. the to also information, and please Exchange U.S. on our which refer

measures GAAP in to these on is again, press A over release references comparable GAAP. will to are well prepared also with presentation. like to measures directly financial as website. EPS accounting Thierry. accepted measures or to call non-GAAP the making available to EPS. reconciliation turn not accordance our of the All would as generally the principles most these And the certain I financial refer of to be in reference both now We diluted

Thierry Bernard

John morning, our to you, conference everybody. and always today those everyone, and It's afternoon, thank meeting. good pleasure you, joining. Thank good to for Welcome regular and call a exchanges have

Our quarter of in solid XXXX a the very growth for the highlight The clearly this and portfolio. non-COVID constant CER, these underpins portfolio rates, at in in of fourth for our confidence in double-digit year product tremendous was capped or really exchange growth results QIAGEN. XX% our our areas XXXX

We for a over I've execution important COVID-relevant also $X as sales tireless I for with dependent. to saying our been like teams billion their the take very but milestone showing to often not year. call thank achieved opportunity of is very continue to QIAGEN this of would that COVID

So for key what are today. our messages

XXXX fourth decline grew of sales outlook the the we XXXX. the period Net the for for sales of to fourth over the full First, million was outlook net for growth year. and well above same X% EPS adjusted exceeded for the both a for X% and quarter This quarter CER $XXX CER. set in

testing was non-COVID sales, This due expected ahead sales expectations. variant. the Omicron COVID-XX than to product advanced down CER to were from CER fourth X% quarter XX% sales which related of were product better however, Our in also of COVID-XX XXXX. the the our surge

our sales least outlook with exceeded CER CER full $X.XX against the net year, rising we billion to XX% XX% at the outlook For also for growth.

Adjusted for earnings and growing the again earnings least represented business The and per $X.XX growth outlook our led goal XX% for faster total to was expansion outstanding CER delivered about strong XX% again CER XX% ahead above CER. Our fourth sales. pace. this quarter our at results rose for non-COVID share to of $X.XX of those products at the business a

For was well at per the the $X.XX for XXXX least full year above XXXX, this CER. CER to and grew share at outlook XX% adjusted EPS over $X.XX

a business $XXX key a rose clinical team. to balanced highlight very That been the health that to investing focused as as access world to ability implementing very message. molecular research The a part enters strong on period flow cash to while again third cash of flow. our strategy highlight million ambitions a disciplined care. XXXX. our flow customers of capital business flow a from $XXX two Another from QIAGEN was while over molecular Those increased support cash cash the year for XXXX performance strategy. our XX% as management last strong led of growth Operating focused have XXXX the and is once around gain to results record our to company. XX% generate helping more leads new free insights to valuable to stronger, strategy This allocation years million

XXXX. This and pillars We segments market associated model, we Recurrence balance. business on instruments. in in of over focus promising laboratory acceleration the into three built maintain focus our COVID-XX base revenue five means absolute business mean indeed, step this of our pillars consumable our quarter razor first revenues process. saw, I quarter. sales this making Those in the reached our the in installed positions two significant our base last Sample do the for recurrence coming We by blade installed translates our What any XX% recurring up while years. Against The after a recurrence? This in backdrop, increase execute to streams from opportunities create the from highly dramatic building is in opportunities core and highly of and sure are with the keywords: of building a growth. on services. two means also involving are At attractive technologies, targeting of top the growth leadership new markets. leadership strategy five

this front, we test diagnostic our XXXX across focus the into R&D on than especially installed testing this, focus move portfolio. this base reflected the for We to are transforming we our made This sources to is that our applications into obviously want new digital progress growth. significant in and and of XX% on As developing in And of are we dedicated syndromic QIAstat XXXX, pillars more growth. investment for system. PCR fact with of five QIAcuity new

for step manufacturing future We testing. sample include for QIAsymphony clinical health up also our continue NeuMoDx PCR of and integrated systems automated consumables growth which care are for our that to essential for also capacity prep

serving is Life the The second balance customers Sciences Molecular keyword Diagnostics. and both balance. It in in means

the robust and believe half often funding science I customers. and reminder that our attractive point as well markets overlooked, very life sales a offering, As involve the end are about is of given differentiated environment as our long-tail These customers.

Americas, across the sustainably regions, in in towards As about ensuring Balance our we is responsibly commitments the Pacific with Europe a geographic and reminder, of second also X/X remaining and XX% operate also our half sales goals. about in balance important the Asia region. ESG

our reducing X footprint example, emissions XXXX. by carbon For net reach carbon to

name health inclusion, as targets maintaining by in responsible just a strengthened to our few. to access improving such dedication increasing and care, We setting diversity areas governance have

years, is we ESG Our investment. execution. focus continuing a XXXX clear clearly those This stronger is become on continuing important in our how 'XX the in and QIAGEN on focus coming in

outlook growth message, sales a our last As portfolio. our of in XXXX non-COVID for calls strong for a

expect the growth and For at led least full year, portfolio. by $X.XX CER our of sales we double-digit non-COVID billion in

expect EPS. adjusted at least also We $X.XX CER for

demand COVID-XX take in XXXX. conservative We have testing on a We trends. view done

Given the volatile anticipate trends significant those expected for to in decline compared XXXX, we XXXX. a sales

global to is it before, portfolio said ever develop. non-COVID I the may pandemic, to however, growth as again, trends clearly support 'XX, ready in as while on solid focus the mid-term deliver Our the remaining to response

We later in I outlook call more would over the details like financial Roland provide will hand but on this update. now to for to the

Roland Sackers

side and call. Hello thank joining the from as well Thierry. you, you my Thank for

Let me you through begin our in detail. sales more walking by

reflecting of was that comparison quarter a For in very for XXXX and the XXXX into business exchange 'XX, sales rose same third the fourth the quarter quarter, quarter the the fourth nicely Also trends the fourth our non-COVID of with XX% constant Consumables levels for over and quarter highest going X% the represented period to in sales rose sales 'XX, This against was rates. revenues year. tough which of core fourth CER quarter positive of net grew related the 'XX. X% at over in sales.

fourth and also instrument quarter highest sales the declined sequential While against in quarter sales the increase level XXXX 'XX. was for this third quarterly over CER, of the a 'XX instrument XX%

up solid based year, CER while throughout rose X% the trends XX% sales sales For the full growth consumable year, CER. were instrument on

double-digit in our provided The CER full systems, environment. Sample with is year reflected Sample year sales without were The about total million In four full full trends. trends. the over growth levels for especially Life for to funding the XX% represented to Medicine rising this product are the and COVID-XX product Sciences. Nucleic for business XX% the Precision the strong bioinformatics shutdowns The a was impact terms up were XXXX groups, of testing up consumables of sales in of benefited with sales from in in were of sales region QuantiFERON, for QIAstat-Dx after the groups demand NeuMoDx in and the given the other activities. were the important trends two our Insights, consumables vast the on This in even both PCR rates. of was PCR resumption majority XX% pre-growth among as year that the the well the fact by X% Diagnostic by volatility growth were used XXXX These came that CER sample demand driven in product total key performance decline against the QIAGEN even CER reach the R&D product Sales CER technologies. sales trend as QIAGEN as key let's used for 'XX gains PCR levels benefiting start during well many We than highlighted non-COVID Solutions sales sales This year by research of portfolio into lifted. incremental balance from XXXX. very and the of of up 'XX revenues DNA non-COVID and COVID weaker as the sales. amplification also from universal system technologies CER to more with while which encouraging growth acid due 'XX, sales double-digit sequencing reversed the markets. the 'XX and QIAcuity and CER testing and XX% about adverse across Digital projects. returning rose over growth advanced was QIAGEN is in prep double-digit in in pleased in In represented revenues contributions CER as US$XXX pharma sales supported these resumed group, significant driver digital clinical companies. This at were XX% a Sales absorbed customer XX% presence Genomics/NGS more group performance pandemic clearly performance sales. operations CER many geographic laboratories higher in the next-generation in 'XX

supported The CER, Italy, and in by Australia of led some Africa while with for 'XX in rose growth QuantiFERON-TB CER enjoyed XX% CER sales. growth and sales grew by XX% South than Switzerland. highlight here. non-COVID also the Life and to Japan, growth Science The groups. the region, Asia solid up from delivered benefited XX% 'XX. the U.S., results XX% Americas full Just growth in Middle region United product year double-digit Turkey had and Africa Pacific, more sales XX% results. In growth the over above in China East CER Austria, and CER the CER, These Japan XX% Europe, year also key XXXX in Kingdom, figures including

down that gross investments The grow. well build decline future change of This as made production are Moving margin in a as 'XX the several product we improve involved to income being can in scale volumes in up included consumables factors. mix adjusted economics statement. meaning capacity, the as in

adjusted year declined the from gross of result, margin full XX.X% XXXX. sales the in a XX.X% to for As

point, Results able menu expansion in 'XX rose for into the XXXX. pillars We These leverage new investments other the operating The 'XX make steady from sales EPS to increase in for million X.X% X.X% especially both COVID-XX and sales applications, to income as to in outcome especially of significant from for in in 'XX channels declined XXXX digital X.X% were sales XX.X% XX%. years administrative actual basis above sales a in the remained and growth. operating adjusted of of marketing adjusting expenses tax years. benefits. million XXXX. last shift income was in in an was general currency the also for and drove margin At came gain at outlook continue in X.X% at XX.X% expenses. and engagement a The both and of again and CER. and from $X.XX operating in to $XXX our XX% $X.XX activities. to on customer Sales we $X.XX 'XX investments 'XX well adjusted of for marketing rate to US$XXX was XXXX, to expenses reflected of as and were R&D same significant in steady And at five a time, tax XX.X% Adjusted from fell rate

from fourth investment years gains of from XXX acquisition sale for Adjusted minority line expectations Invitae both connection of company. ArcherDX for the in the shares -- and results for quarter million periods the our in Additionally, and share about in this count excludes year our with XXXX for was full with the shares. both of EPS also received

for We flow free to cash operating saw cash expansion. dynamic and in business Turning flow the trends 'XX. strong both thanks results to cash flow,

For rose to million US$XX resolve to US$XXX a flow payment this included 'XX, the infringement. cash million of XX% and patent operating

growth XXXX rising rose higher the We tax a The at production and in property, purchase 'XX. key for tender XX% flow These million. primarily payments to to for XX% robust US$XXX at XX% the Free than equipment plant investments expand payments sites offer. to more increase 'XX had a in US$XXX cash million also than consumable included and United rate products XXXX, and for Europe were discontinued in the also States. results in significant in capacity also absorbed of

at resulted held end to trends to debt at falling debt-to-EBITDA net led the end cash, and equivalents end of This flow higher 'XX compared to of our the due levels cash net and short-term net end of -- million investments compared and debt of cash our at of XXXX. 'XX the 'XX. terms In ratio the the balance of net end leverage of XXXX. sheet, at at X.Xx decreased EBITDA position to of the reduced of The combination US$X.X US$XXX debt results the to strong was to higher billion X.Xx

programs, million capital disciplined 'XX. business, organically as such and our share completed that the strategy in the reaffirming involves are We allocation increasing transactions value-creating completing $XXX investing M&A in program returns through repurchase

across back we that on reviewing to we to At would As I molecular and complement to same refinancing are now opportunities. life diagnostics we but faced like have 'XX said before, the various strengthen and sciences valuation. take to and M&A debt considering portfolio hand our maturities debt time, various targets would also in continue a view are disciplined the Thierry.

Thierry Bernard

you, Thank Roland.

five an give growth. update in on our portfolios of pillars Let you key the particular, me and now

progress at in on those for delivered portfolios. said solid As 'XX, boxes you and five we building on I JPM pillars the in of gave have development ticked we the conference, further the in our commitment menu growth all sales

beating Sample demand driven reached for kits returned CER. extraction expectation year million, Sales the for by million for to $XXX our labs This was strong technology. DNA at $XXX First, work. XXXX full as

saw sample a also COVID-XX our solution and liquid very We testing. prep sales QIAprep good for

the the In terms over Connect of preparation instruments. program our instruments market launched upgrade system as are built molecular Sample we and automated on development in have identification. success the specifically designed human Both tech, our system EZX portfolio X,XXX part to sample just of diagnostic EZX for in of and

again headwinds the and more sales. XXXX, For compared of at single-digit $XXX expecting anticipate non-COVID deliver as product COVID-XX total for Sample we are $XXX CER growth XXXX, low portfolio group million in million than to technology in to the in we products sales

in to exceeded at $XXX franchise QuantiFERON sales million our the Second, CER. at target rose for $XXX XXXX, least million

CE for back-to-school QuantiFERON XXXX. in useful includes a The programs tool TB our T-cell marking strongly the test, portfolio health care demand in returned screening expansion across This immunity and COVID the seen As very world. in of all testing are regions testing has surveillance. QuantiFERON resuming, SARS-CoV-X multiple

countries. using institution add or TB resources. Expert high-burden, world procurement specifically approved This allows was battery-operated Additionally, by Global Diagnostics. unit CE a by the the developed very Review programs device all over countries in than more low-resources new gained QIAreach for for health Panel and It XXX QFT qualifying Fund’s global as marking public recently fund

into Moving expecting XXXX, franchise, we $XXX of are million our so double-digit over another sales once QuantiFERON again, from growth. of CER year

Third, integrated platform. PCR our

total progresses at million QIAstat about platform at A, these This of Xplex XXXX. January with to for included syndromic sales, million new This in testing at panels Flu were a panel First, year four X,XXX bringing respiratory our respiratory to in respiratory of made end a instrument the $XX among least RSV Important well $XX distinguish diseases, syncytial last also target common to COVID-XX. into placement this B, CER. diagnosis diagnostic the QIAstat Flu very virus, exceeding rose year diseases. 'XX key Cumulative of the diagnosis the placements the for support performed platform. and is

promised, on CE-IVD panel Meningitis the time gastrointestinal the and the FDA team completed As marking our the of panel approval in submitted U.S. for successfully

access QIAstat per an up significantly and so for milestone new passed XXXX preparing important in an We Rise, Our throughput in labs. also our modules. Rise system volume syndromic large XX analytical to teams mid-XXXX. model capacity This has hold enhance to tests CE-IVD launch processing QIAstat different of for this X interested are to development laboratories XX with tests the leading week random just shift, the launch will day with in testing. up Diagnostic X-hour high diagnostic the scalable offering tests to XXX

we would a system unloading time fully a differentiation. cartridges. automated this have key the no of what drawer, as will and It call be a of the loading but first well today generation video smart embedding We will for you see the

sales support the expectation of at for transition panel world. $XXX of million target of full XXXX rose NeuMoDx instruments to as $XXX million into QIAstat-Dx January Our our those are placement for year the to $XX over Cumulative non-COVID sales platforms for new for in XXXX. in about and CER. ahead XXXX, million as NeuMoDx grew XXX

developed the and have of running four In adenovirus making COVID pull-through the menu in to QIAcuity marked XXXX. on also in anticipate therefore a digital placements. currently million over largest over as for we the we fifth leveraging the test it's kind. of We with $XX placement stand XX asset, the as for U.S., the system PCR growth, driver CE-IVD menu goal FDA-approved on focus is addition for to In now FDA-approved of are batch capability laboratory tests one our we sales pillars achieved digital NeuMoDx, of PCR, With consumable human the expanding we these systems XXX assays test. now the

we We XXXX. year the our in more not quarter-over-quarter did goal growth also $XX million than however, same reach saw for sales CER. at time, full At sales

for We on have and into areas consumable plans now set QIAcuity than for To new for testing. of up expanding $XX are ramp utilization base. CER to and a the of new on help based installed more for utilization, placements XXXX more application million research we goal the drive

using surveillance. about health states we all As announced in of wastewater recently an are example, American XX% that QIAcuity for public

prenatal recently into Atila solutions entered testing. addition, offer quantification In Actome for and BioSystems noninvasive with protein to collaboration we and new

the PCR in Roland me quantitative the We PCR to it digital are now, of the back conversion number market let of QIAcuity new terms one hand technology to this standard. make again. to and placement over really system drive And determined

Roland Sackers

you, Thank Thierry.

the first for outlook additional Let the now on for provide some me also quarter. and 'XX perspective

of this is CER expectation year product and sales is non-COVID by Our full double-digit in billion at groups. for growth the driven for least CER US$X.XX at 'XX

aggressive do once again, sales. not want assumptions on make we the As COVID-XX confirm to course of we

the view in Our for sales 'XX a significant support these 'XX, again, remains from decline while prepared in response. to remaining pandemic

impact of into consideration rates of continued movements on adjusted sales U.S. adjusted applications. to takes net $X.XX Based currency as portfolio are against CER. EPS tests pillars XX, of expected $X.XX of for per plans expect points about dollar about 'XX. and an new growth at year for and percentage adverse our XXXX, two least the investments We on on full This and growth exchange in into five particular, for January share create at EPS

are and CER to sales grow net least quarter, at least X% expected expected first CER. EPS the adjusted For at be to $X.XX at diluted is

headwinds against I and currency EPS. currency first reporting expect dollar quarter $X.XX like of also the U.S. adjusted and sales adverse to to on Thierry. impact We percentage back our three hand for now about on would in an points about

Thierry Bernard

Thank exchange have times, we are lot John, And and really we and as Roland, many time Phoebe Roland. to said by a discussion. myself, you, more committed

move you provide with summary me into session. we let a quick before Q&A very So the

growth a growth demand year sales exceeded and First, outstanding our our with in for for and sequential EPS adjusted by was team delivered volatile an XXXX supported XXXX in outlook. quarter-over-quarter driven sales by non-COVID This testing. COVID-XX

Our and teams execute our deliver commitment. continue to on

we a solid with company case opportunities. of market Second, stream balanced revenues business with XXXX a that a as entered recurring combines

progress tremendous next phase have after made our the our growth growing and installed ambitions on our XXXX delivering of goals. have entered We base in

Our five performance. of with growth pillars year a the strong finished

non-COVID we point, is And our as be stronger we delivering by outlook are in Third, profitability very value shareholders. while CER for to driven growth reflected as a a XXXX, in to which our portfolio. us healthy this invest sales cash year flow a last QIAGEN growth increasingly our to in a of drivers for level strong enabled confident maintained double-digit

a the the motivated that, ready With John and focus our operator to have I'd empowered on of deliver QIAGENers for like with Q&A Thank back on hand a to you. We session. team execution, commitments. to

Operator

question [Operator Citi. go Instructions] The Donnelly Patrick first Please with ahead. from comes

PatrickDonnelly

Thierry, questions. one the taking for for you. Thanks maybe guys. morning, good Hey,

touched that kind had of pretty revenues are unique became bucket, $XXX you the this million that the there anything broke think COVID. really see you piece, guys do on when XXXX bucket to COVID encouraging it Just essentially how to base year, the fact about because even COVID But business. think COVID this underlying in durability then you for the on that tied that obviously, back I you

a So it think really how number others going forward? like that do I pure we than COVID. about durable feels more mean, are that

if just number that on love parse that, revenue. could, kind you that of kind So you would out of previous maybe break COVID could through if

forward million it this or so. And think what I year? could beyond going was that $XXX like look

Thierry Bernard

Thank you, Patrick.

like thing that COVID first said, that volatility. is to reacted this, sales absolutely systematically, would the surge say development. fully then, XXXX courageous that of in I COVID were new July quite even P&L remain relevant if time, for added And to we since always that the assumptions We to demand. So sure the not we that result and market is any we decouple at take and in confirm our kind priority believe right on QIAGEN back we of I to would from make continue we the our

clearly our manufacturing is the the adjust the are contractors you, on focus that and for constantly but non-COVID. a obviously we we output of lot So by told way, we using that

this Systematically, equivalent to question. of that our take not want have for XXXX QX. your result in said to we was million remember existing, because not solution, -- testing COVID We you obtained progressively. was right the in that around applied to QX. XXXX, expecting were in that in directly longer-term to $XXX going believe believe that COVID not We XXXX, always to to Now time, that QX We have is COVID were do most with or down we happen we And said assumption it comparison to give that $XXX for a or million. going obviously, QX 'XX. we pre-COVID at go period where that we it's

the lower don't go pre-COVID, why should For reason any this $XXX of million period. see pre-COVID it than I

for be We and non-COVID back utilization [indiscernible]. are will we in normal now

So of basically platform, of it is the dedicate believe I most real non-COVID really Sample your the want answering difference tech, question? Am is to done mainly we to remaining the the in growth. in part. them QX. we rest And the It is

Patrick Donnelly

to in XQ guys How rest the that think level was it on talk strong And there, COVID guidance. Thierry's one you XQ? as Can came really had the we gets out certainly, look the that really No, the And year? quick point into with. for guide of for just through strong year in a Obviously, conservative XQ? little Roland you more conservatism a the relative consensus. Was the for you back visibility well of great. but to a above then Yes. were about you levels then baked full half should there the the stripped

Roland Sackers

line if numbers XXXX. kind for year the for assumptions Yes. is QX. this even And just it -- of the goes described half as but we one in Thierry we're what think And COVID. the assumption RNA-related And hand and in we or on the just all year. together and the don't really hand described year the very reiterate assumption anyway more by is less I again, aggressive driven overall put want And in clearly, QX you what what to clearly focusing call had which with just for on I take But any we even on bottom it, products larger second much for full assumptions hand think before things. two visible, very said the is or that and with that's clearly of

are see So up, in picks standby. If XXXX, on be expectations I you can that moderate. market quite on want to clearly that we the would we Nevertheless, are, ready. say,

We capacity the in react we quickly. have shown can production we clearly QX, have

as did use In answer, we this 'XX. some terms that the of quite second the of we of moving it's in obvious to expenses, part on

us to Some hands R&D we things we you guess have projects invest initial even get to the expenses. quicker to here proceeds quite which and bit done. well know of more are the probably gaining on focus operational a well our I that And on around typically timing

we're make term margins. here we incremental from a long use mid we less short while or opportunities -- more that seeing term track believing improve try also also long and clearly our So or still to some on to term, the are

Patrick Donnelly

Very you, Thank helpful. guys.

Operator

Please comes with question Peterson next Tycho from go JPMorgan. ahead. The

TychoPeterson

declined. NeuMoDx QIAstat QIAstat on Question both the thanks. NeuMoDx. quarter, They're grew and Hey, in COVID beneficiaries. revenues

declined? So in out what for rapid you 'XX? other talk why that the you laid replaced antigen NeuMoDx to is below getting NeuMoDx maybe by had 'XX PCR why testing quarter? or sales target And just for can Is your

Thierry Bernard

There is a a clear of full our in NeuMoDx which from over portfolio. the impact integration for clear have year NeuMoDx impact already, and Tycho was said we XXXX before the that

a -- very as testing. U.S. the Second, of four the when for become real previously, been was really because also because relevant it it quarter had quarter NeuMoDx COVID started is there to XXXX need strong in for

have to in we clear explain COVID-XX second half is of that of been driven. the a NeuMoDx revenue always part the very very still so strong And XXXX

no mystery of made have that. We

as are where up importance in difficult we catch we COVID now NeuMoDx have testing is given Europe performance with that XXXX. post going the basically for COVID more not So for do be that we to still in NeuMoDx of have U.S., the to achieved we in and moving the menu the quickly

is we obviously, get we are LDT million, capabilities and in the reason. going the for on dollars now customers need just NeuMoDx this had transfer, this why XXXX. differential. to $XX So we to ambition It's revenues of acquired that rest that customers the of at least have approved. only the move to menu U.S. to and FDA the That's to the obviously continue the Europe that we menu to in And

portfolio XXXX. more this half and selling heavily now also we second in For a at in QIAstat, the Tycho, driven QIAstat were instruments, sales basically menu start because are the they at phase still and the than will moment. headwind It's QIAstat in more way They is the both we on portfolio by COVID Does GI, the beyond our Europe we catch-up the we expect our already of to question, of still be guided XX. it answer There as bit because pandemic. pandemic, the have explained submitted in of your times, you before easier, are But many driven. have a because menu COVID. of Tycho? available

Tycho Peterson

through from how COVID the this yes. market? assumptions thinking maybe the contribution dynamics helpful. about 'XX, you the COVID year. in revenue follow-up commentary one pricing Can the did, given earlier. profitability It talk just And drop changed That's for on around your about you're business then Have

Thierry Bernard

to And I'm So, this first take of all going obviously. Roland, please free in, one. -- to chime feel okay.

see PCR home we first see, don't So is antigens. much of price to example, all, more on our testing we on COVID clear pressure because, or believe for that significant in I prices Tycho, on testing a that portfolio, immune

So try not, before, to know, you this obviously pretty as situation us. never neutral [ph] We COVID for so work to QIAGEN. relevant is took advantage as the so it's of prices, for repeated on

Tycho Peterson

thank Okay, you.

Operator

for comes from Wendorff ODDO question next BHF. The Daniel

Please line Your is ahead. open. go

DanielWendorff

certain revenue thanks is is it guided for at this? growth XXXX. And bit a main environment? lines. you about questions. taking for non-COVID-related you what my it the healthy more Yes, question market product my Can Is driving very the talk looking general Is

take small the can developments more care should then Roland. we color any you would a How I XXXX? operating should any would So of. provide there here free major have we development. follow-up about helpful. And one this question cash flow think going be on Is and for Maybe into

Thierry Bernard

slide -- was If you be interesting what market at our JPMorgan, we had we environment. had we remember JPM, at consider to describing that

highlighted life data healthy example. I'm we NIH the rather U.S. this a the also U.K., from in on for science, referring institution. gave that First for believe public of We in level on of the funding to all, slide funding

is be And reassuring so us allowing this obviously to optimistic. and

institution showing gave testing, we level of where a above like was we many in expert and example, independent February you slide hit diagnostic, were that impact. were returning the progressively diseases, way COVID pre-COVID-XX by in oncology, that also in We non-COVID infectious the the to case, level very for mentioned was That on from like some any XXXX. data

So positive let's there say, very is environment. market good,

want the QIAGEN the health moment, same. be more over And or optimistic I don't of talking Sure, and at antigen complacent demonstrated have many the be clinical even I if the a for care and I since and testing valuation. to in government and want health COVID-XX the said has that proven in believe importantly has company diagnostics, about even to always don't value proven the it you science both here, but I care value life like research superiority valuation. critical diagnostics molecular Second, the of

batch very gold acceptable urgent endemic want, able say, for result. many will I kind be to, come have when be demand the every remain, last many back will PCR testing, if more am will year again, of said times PCR surge level, to phase, of not I'm well. less -- Laboratory antigen COVID that, there will that emerging more when sure such as that I you test welcome. it's First of all, let's because But convinced standard about because is -- for and a in technology so versus need for of you

portfolio. take portfolio, is double-digit really last our in the of some the have because would I say we products. molecular that said key growth but environment in So said as for we Then of own commitment our non-COVID since year, looking we what also this said We the can because for biology. in trend down a for of

universal the for will example, double-digit continue next-generation outside for you oncology they than reason of They As after -- for grow no COVID. believe as, in such growth, to than sorry, no before or is we less have chemistry I digit. that growing that have double reason activities a Outside double There TAM. see COVID. activities five today, said less grow those example, this growth the of we QuantiFERON key non-COVID for were sequencing. pillars of digit

will will non-COVID and also part the rate is Day the we we already which we at look of when The to, fuel say, growth. QIAGEN QIAstat let's menu always growth will you back that. already of go December If -- of added confirm for in Sample mid-single-digit that double-digit fuel part NeuMoDx, our -- that the did tech, non-COVID we non-part will what said confirm XXXX for we

So environment. combination it's of favorable a a

for plus XXXX. say, two XXXX Second the can non-COVID also with said as and double-digit the we pillars five for that the for sustaining of us the what pillars five growth we growth, we for development of said help of the, growth growth, the years, have but our let's in of waves portfolio last of well rest potentially as

JohnGilardi

had you as cash flow Daniel, question a well. about

Roland Sackers

depending Daniel. COVID. particular, cash Again, Yes, on around we how on volatility question the given of a developing, year full the see much, flow, very in course,

you I above our or be XXXX probably guidance cash would look now, our right around we'd that at If flow assume development.

right is I would I the we comfortable around now. probably ballpark, think that think, feel

Daniel Wendorff

Thank you.

Operator

Please Nephron ahead. next of question is The Jack go Research. Meehan

JackMeehan

Thank up you. ask the Hi, to the about I and start you wanted put XXXX. QIAstat guys. in utilization, on just numbers reflecting

So it which utilization roll implies it, If about test is of average about I accurate day. you one think which of did I box just per sales. $XX assume that's but isn't probably that $XX,XXX with all million per consumables

range min? field? talk So What's you math customers And about my question one two, use field? think the the can you you seeing check max, is, just that it? the are of seeing do like does out? these utilization you're the in about what's How then How in question the

Thierry Bernard

having during to an flu situation, need That's I see good factor In The is only day good reasonable. a X.X per a test the X to I in Jack. of When into X.X in respiratory a for gave we month seasons clearly, which season And module number winter time, past test data normal is it case, to or syndromic you X high when seasonability question, saying account to in. perfectly refer way COVID. you to have, X on system, an very or for a example, expecting is X think something a math, is -- X.X which a day in accurate that assay the take average year. a a to you is this

always all COVID menu a QIAstat For progression clear not play. that it's will NeuMoDx, by utilization, the on that. we menu like said we why the This on is way, have it and our always depend coming been is play, a

So we have two good things this year.

the not case to least at are syndromic tender to menu position a any before. we meningitis. time, completely be first Because the in kind for which was respiratory, the answer on all, minimal the a real in competitive in expected Europe Why? of of GI tender First is and

We have in now Europe. it

already So without competitive we were meningitis.

meningitis. become more will competitive We with

the the in Second, have two moment, we assays. U.S., at basically,

to XXXX. We test, normal plus, also to FDA now will submit the with meningitis have U.S. obviously the and Adding the GI of approve in and COVID. expecting end to respiratory the before FDA the are want help we the we i.e., and respiratory the

continue that the depends on QIAstat, to hospital on we yes, yes. average in to can the specialization or is you that average are on It moving if an in increase So site keep day, two per of something we also mind, menu, the your tests Jack.

else than anything will respiratory. Some do never

the -- combine menu. will we Some

and greater XXX portfolio why, us just syndromic, one is using are multi-targets important laboratory it plus by our QIAstat of So will Rise because the adding those into to way, go that's on hospitals the the normally also extremely not beds with assay. help

correct. So you're

test With menu, Your day. factor is at to would much to correct try the more math moment. more I X.X X a

Jack Meehan

maybe us revenues tail And the type about then much And just as market And sales for give the a Can U.S. of as pretty opportunity? talk unrelated for just in think you how give what an you Great. is contract the a of of share this broad. state you PCR. could if business? generated could U.S. I the question, sounds your generate? wastewater of XX% curious of percentage wanted sense XXXX to Was you color, what digital some

Thierry Bernard

sales it the one QX, end the was of implement of close it's lab time of not QIAcuity I all, we is single part that big the of health mean, a very XXXX. contract for in for into most QX the reason, that at the to XXXX system public first U.S., in the

the those are If not states state. states the very because that we are one lost public and to lab U.S. rest in the with it's First we normally for the the to all it's competitor, don't remaining lab the significant of not representative per because of institution. wastewater. basically, is So a not revenue-wise wastewater, Why QIAcuity -- is health public huge. is get contract, have health impact it Jack? There all, because doing labs important have

a will real be don't is This This will XXXX. of the huge the even I depend on market clearly, surveillance. clearly. basically, XXX% utilization. So develop is share But flow expect going it to mainly revenues because in

in think many signal So more have other with shows first. the because that contracts other and First, we say taken that to am and optimistic? is those world of to a wastewater the countries seriously. And believe it COVID countries, something I I why install governments be to to will in I go possibility but

because infectious to lot a of not COVID but diseases. is going only Second, testing wastewater proven be for relevant for

wastewater about even things this. -- like think can for malaria, You and for tuberculosis for

will ambition our So be a to around menu COVID beyond wastewater. develop

wastewater Jack? it not driven we really, in by more said So of our barely XXXX, therefore, for at in today, Does you can an And QIAcuity question, instrument clearly tell I what placements increased confirm depending answer Jack, that I COVID-XX on your really is are percentage of don't testing, we what all. that expect as is XXXX. and XX%

Jack Meehan

Thank did. It you.

Thierry Bernard

Jack. Sure, Thanks.

Operator

We'll go next to Dan Arias at Stifel.

ahead. Please open. is line go Your

DanArias

Hey, good morning, guys. Thank you.

CT/MG Strep for already and gastro and believe, launches on with for QIAstat put lines You time for for those touched XXXX, QIAstat some within NeuMoDx, submittals then able and assays it around meningitis other with are blood you and for revised NeuMoDx. them just to respect the but culture I assays, and to

Thierry Bernard

So for have FDA. we GI QIAstat, a already to submitted the

as the you backlog of at is approval a request FDA. are However, aware, there significant well

and expecting GI half the say U.S. before sales year I the QX. If of the second would in all even of that's it and QIAstat before, in transparency, So comes before not we are perfect.

submitted. is the which took ticked of box we have We the commitment

depend we Now the FDA. on

QX For ambition is of at XXXX. our meningitis U.S., in in the latest submit to the

half want Strep the For FDA the submit and to of the in XXXX. second we to year CT/MG

launch in submit the assays XXXX. This Europe. in urinary the before XXXX to able the the time want half continue time QIAstat second we believe we authorities line. the our is on BCID, we be current current that For infection And to CE should is to tract marking of This end line. to of also

Dan Arias

end if were year, it the sounded prepared remarks that is you like I and margins, the helpful. this I of margins I mentioned apologize. on very gross in think the Okay, towards of Roland, it, thought gross missed then best And Is of gross a in being COVID would significantly out they higher seem a especially given the right as profile. bit don't XXXX. still there, so, revenues testing margin what seeing you And from like if keep rebound flattish that that outlook? But carry

Roland Sackers

discussed year we clearly also clearly led right as it's fair factors. for now best I something the we running what assumption by production on of One not economy is driven that a scale. this do invested That's and heavily -- are think two expansion. we in mainly that

So we being increased something to expect need what again, we utilization and is over helpful. clearly an come in time. that And therefore,

a time bit a Second as the terms bit in will more that, side of would on over margin is be also significant I more portions clearly product helpful that also assume become mix. share. certain a

see improvement. that's why or the the going again, the for year we two this reasons then margins So less probably more forward, flattish and

Dan Arias

Thank good. guys. Okay, you, very

Operator

Our last Bank. Please at from question comes go Falko Friedrichs Deutsche ahead.

FalkoFriedrichs

you. Thank

Daniel's So non-COVID on my question follow-up is growth the on you, question business. a guidance earlier for Thierry. for It's the

high the for it look I market XXXX. non-COVID consensus post business the looks single-digit if at growth a expecting is like expectations, So

be comments sustainable your to next this correctly, listen it did years. I sound few growth if more the also over a Now could year this bit double-digit like

a can important correctly or I I'm be obviously carried maybe getting clarify would you So away that understood that if because message. very if

Thierry Bernard

we effect, of QIAGEN we XXXX December So excluding commitment said think today non-COVID. exactly took have already, the In I five Thanks of the a X, is profile. 'XX Falko. obviously four definitely being we for We and December Day, And double-digit double-digit base growth this pillars COVID don't I in guidance. as the carried question. that post think you're Two things. for growth that away, said of our that COVID what confirm in that

equity, would a to that mid-single-digit on PCR tech to slide growth clearly. December that be said was NeuMoDx, There Sample today, that confirm on QIAstat, we we low- QuantiFERON. digital profile. And So and

John Gilardi

like again for With that, Thierry, and the in end Okay. I'd QIAGEN. call interest here thank to your you

hesitate not questions comments, to you. and me. If Bye-bye. any or Thank you have please do contact Phoebe

Operator

you for Goodbye. gentlemen, and pleasant the Thank this and Ladies concludes joining have call. day. a conference

Qiagen (QGEN) 9 Feb 222021 Q4 Earnings call transcript