QGEN - Earnings call 3 2023

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Operator

Ladies and gentlemen, thank you for standing by. I am Jess your Global Meet call operator. Welcome, and thank you for joining QIAGEN's Q3 2023 Earnings Conference Call Webcast. [Operator Instructions]. At this time, I would like to introduce your host, Mr. Head Communications President, at Investor Vice QIAGEN. Gilardi, of and Corporate Relations John sir. go Please ahead,

John Gilardi

QIAGEN. Jess, you, joining call. interest for for you us this in your appreciate Thank We thank today and all of you

and Our speakers today our Thierry Bernard, Financial Roland Executive Officer. our Chief Sackers, Chief are Officer;

joining at Investors webcast also will live We team be Phoebe www.qiagen.com. section This well. archived from Loh as have the of and website our call IR on the us is being

copy of presentation a into quarterly results We'll You with and find can session. Thierry move the press release and on begin also a Q&A then website. our and remarks from Roland

to me expressed the perspectives your Before let briefly we today, views over of management statement. during as the start, XX, call safe of XXXX. conference The response questions harbor this October represent go in and

responses We your or for will the to future. beliefs, questions that and making expectations statements our intentions, predictions be providing convey

Private safe SEC actual These Reform and the results the and could with suggested also statements materially XXXX. fall may uncertainties, are mentioned Act These own by available under of also differ harbor are our Factors our from in Securities involve and influence that the statements. of website. SEC. filings those Litigation They risks these on the results on provisions website

any disclaims statements. intention QIAGEN or obligation forward-looking to any update

not GAAP. sorry, not -- accepted or financial prepared approved diluted principles to All references Additionally, measures we EPS certain refer will generally accounting refer to EPS. following to

presentation. to hand to measures to most reconciliation find call directly a measures like Thierry. comparable can GAAP now and our release of in the the these financial non-GAAP over press You I'd

Thierry Bernard

of are macro again you evening, or morning, Good portfolio. delivered outlook volatile where of course, afternoon the another solid us. We and for environment. thank results Thank that quarter This our world, increasingly resilience in of the exceeded our you, good an depending, in of joining John. good you confirms

customers strategy our Molecular focus with be of Sciences driven balance our continues pillars and performance of the by growth our presence. on XXX,XXX balance, and focus Our to in over Life and geographic serving broad Diagnostics in

this obviously possible to At challenging positioned in to a on reduce earnings as growth solid impact very macro the improved we closely We our monitoring the are and to environment we finish that ahead. as business. years time, position, fourth prepare XXXX as quarter taking and in growth year and the more strong much actions committed well and we for expansion delivering in the same and geopolitical sales are increasingly believe

me go messages to top today. our Let quickly for

exceeded we and sales non-COVID and at First, exchange our profitability. by Net solid high growth the level business million. outlook for our which exceeded least at the rates, for $XXX outlook adjusted driven quarter, $XXX a constant of in net sales were for EPS million third base

Our well was recurring CER by total XX% of growth non-COVID sales. in XX% for product accounted over highly rose X% sales of revenues supported that CER, consumables and sales this

$XXX million of showed grew from to testing the in Cove of decline year, reflecting, CER. X% months sales nine Overall first of off results the For course, a drop the significant X% XXXX. those revenues

million the We pandemic. for group sales COVID-XX that of our to product $XXX continue towards this in had we XXXX before group. $XXX to in track XXXX million $XXX Remember, sales million of from

for $X.XX In and $X.XX CER the terms again, least earnings CER. of adjusted were at outlook once profitability, above per share

key message. Our second

performance. key the Our underlying pillars solid driving are

saleable during XX% third momentum The Just to XXXX. quarter $XXX TB have consecutive call out the second XXXX, the seen over a we quarter QuantiFERON of CER maintained Growing and test of few. million. the delivering

from again, once Tuberculin conversion strong Obviously, use the the trends drivers? key of skin the are What test.

sales. this quarter placements year. level consumable in and the by by driven system QIAcuity non-COVID PCR new well achieved exchange growth CER driven same syndromic The at gains rates, XX% consumables, a Another diagnostic of testing sales last constant in platform also quarter increasing above delivered of over The digital double-digit placements QIAstat did biopharma example. growth in testing and combination with the third

we new investing of achieved to message, this maintain continue growth a development. help investments quarter, see third operating third the will way those development We research into to XX% profitability Our and into growth we of was driving XX.X% as level in high an future and The adjusted tomorrow. trends. that research margin invest for we around create level and important relays while of as income sales

year our XXXX. for point full last today, are our we for And outlook reaffirming

constant remains $X.XX least of CER. of for Our adjusted for and outlook net exchange at earnings sales at least at 'XX rate share $X.XX billion per

of are, in China. Those of are in increasingly and Middle trends, macro war the geopolitical inflation. Ukraine macro parts moving in closely economy chain volatile observe and in the trends. supply We monitoring The course, lot issues, terms East, now the to of a

Corporate We business here of like appointed He to Executive record to track also mention QIAGEN our of President hand diagnostic leadership would our on the Vice Strategy and want After proven Jean-Pascal XXXX XXXX, Senior Committee. capitalize to in has over I his Viola change I been development. Head to Before Development. since team. Roland molecular in leading a remains member and since Jean-Pascal's business a contribution

of Senior like business at Solution and role review Fernando than Committee. a our his us would spent more now his Fernando Diagnostics business welcome last Fernando After molecular focus most the are at Genetic at customer Roland led hand Healthineers. Siemens detail. in two convinced We previously over as joined Global QIAGEN Molecular President over ambitions. to results unit diagnostics member Siemens the and business Vice and I'd Thermo industry. as the passion the the like Scientific Bell Molecular our Head and we area to and our and Fisher team will Testing innovation new Executive two decades achieve process, of after decades to a greater help sciences selection He in And Head life of rigorous Diagnostics for to of that recently for welcome

Roland Sackers

our you Thank me for call. well for joining Thank Hello, as you, everyone. Thierry.

Let me first quarter our and on of third views the nine months for the outlook. some our discuss then and share year results first

you quarter saw X%. at USD rates. period, exchange constant press movements U.S. impact of XX our year As result sales actual while the constant million down net were compared the exchange dollar, for to saw a million were modest and a in declined against XXX rates ago so third at at X% XXX from currency release, rates USD sales We

decline revenues. Instrument during rising still again COVID-XX of CER sales solid was the conservative growth trend this a instruments the as this trends. performance, a as QIAstat-Dx. we saw more led price has lower been spending As 'XX, Even substantial such QIAcuity environment, teams X% in customer placements point generated quarter our and with in despite

trends This Among customers see agreement diagnostic Technologies, among for represents to to placements placement with start our which help groups, total reagent molecular continued let's four of and about good rental multiyear linked consumable involved contracts future product commitments. SAP consumable agreements. We secure sales. X/X

COVID-XX and tough of represented the products growth group. for 'XX sales of this product Here results the a against comparison non-COVID and at this we to single-digit demand. testing XX% CER very within Overall, this drop sales this and CER, XX% declined low nearly year rate due in the was had

the X/X main the QIAstat-Dx across test is group skin Diagnostic of more this with sales. product growth growth better. overweight, a Solutions, overweighted test also this the is XX% sales world, market still headwinds solution was latent which The sales with delivering for also system XX% all trend about The 'XX. applications syndromic COVID-XX testing, is than represents testing our continuing rose of the from QuantiFERON CER CER TB well strong non-COVID traditional conversion X% delivered below solid more driver about trend from or that penetrated. as second XX% regions CER than the includes of Diagnostic but

continue revenues This non-COVID NeuMoDx, XX% decline quarter. rate to third of that level a sales. the see utilization We against due in non-COVID testing in saw QX of double-digit platform clinical application the PCR represented for in with COVID total integrated growth our 'XX. Europe was about underlying high CER sales to at testing headwinds excellent

declined the quarter. Product sales PCR in on CER the nuclear Amplification third Moving Group, these to XX%

have own products. their 'XX, sales was OEM reason the sharp our drop-off on reagents a our discussing been to in during for we use these calls third-party As customers that

at for Excluding consumables new time, annual non-COVID of same product at solid sales rose this of QIAcuity digital factor, growth tracking goal is million 'XX deliver along growth the of the this to a least for group increasing a from placements. $XX in trends combination CER single-digit with is At and towards rate. coming continued sales. pull-through well This above XX% PCR CER

for all and CER In and X-plate, levels were the versions QX, above system. growth X-plate the quarter these involving three X-plate,

that nine with any about CER business our rate Insight a had involves growth use double-digit and of year. QIAGEN the growth our next-generation The in sales QDI with and last CER months Genomics and business solid NGS performance third sequencer. at the is product Digital maintaining XX% for quarter our another group, products Bioinformatics the for first

applications. well the seeing discovery are research applications clinical and and complemented we double-digit growth by Here, growth in as fastest in our

and and to key X% business. clearly on and portfolios QIAcuity the X% terms seen the rising in discontinued basis. CER trends growth faster and SAP for sales total again at by rate The supported second delivered was in Moving technologies of geographic a a quarter. sales QuantiFERON Americas CER the The non-COVID the driver

pace Middle for East, non-COVID a for top-performing United non-COVID France, with an the grew sales rising and Kingdom. Africa product results stronger at than were groups region even rate. at rate The Switzerland countries the double-digit Among CER Americas Europe, the

a low China rate for had low CER Japan Pacific, sales Asia region declined at rates The well. at non-COVID CER sales. Non-COVID single-digit single-digit as decline in a

the rest in least sales. to of last million margin reflecting to quarter points the was at for now R&D, was income quarter, change basis sales the At to due and third of the in factors the revenues of capacity The sales. the lower with key mind the sales goals. XX.X% 'XX, margin of pandemic declined our continued in of year and in that levels utilization line statement. The adjusted third of decline income income the review remains significant mix. Adjusted from product time, operating operating on USD headwinds currency the which we Let's Among quarter driver make in base of year. Keep XX% XX% in the was lower about third the faced XXX full we a adjusted at same to XX XX.X% gross investments margin. the

and sales expenses sales a on in year of in significantly lower of customer administrative X.X% improvements third and the engagement. quarter marketing slightly of base. Sales expenses the sales. XX.X% 'XX COVID-driven These benefited higher from and expenses at in X.X% General were last were of from quarter, and third quality than XX.X% the efficiency of up sales

To above close for exchange CER Adjusted $X.XX constant $X.XX and statement. at actual for quarter out the outlook the the third least EPS rates. also income and at $X.XX was at rates

nonoperating interest rate of during income incrementally net higher interest environment. terms we 'XX high In have income this factors, in seen

same existing cash reserves. time, is At last $XXX months this the having expenses repaid have maturing QIAGEN XX due to during the our from of nearly maturity, interest million declined debt

the for the $XXX Turning cash $XXX flow months cash the for flow results the of to million 'XX. free 'XX levels first nine million. reflects to profit and while nine months was Operating lower of cash compared sales first year, flow, was

due of geopolitical earlier higher environment. to are have inventories period and our a mentioned decision macro of to we to the light on As requirements challenging 'XX, call working increase capital we in in

at in billion We sheet want with the balance the terms same into At seen QIAGEN been down and XX of about with time, quarter, This end the inventories. at the also receivables our from ago. that the of is the in adequate liquidity from product has receivables sales This availability was billion end down third end 'XX by a serve achieved $X positive teams. days is outstanding XX operational DSOs has the year balance due September at days direction of customers. is to our increase in ensure which trending $X.X days a or of of the 'XX. accounts to at the Continuing position to improvements sheet,

at the X.Xx increase the of third ratio As at stood result, at an net leverage our debt to EBITDA, the quarter X.Xx of end 'XX. from adjusted end a

cash reserves, capital One decision repay million debt mentioned. were of and to million Of of about leverage efficiency our 'XX. the of was paid convertible for existing I notes drivers out $XXX amount, $XXX in a from September improving as this

another and next we debt 'XX. additional ahead, million in Looking an November June have of $XXX reaching $XXX million maturity

convertible notes of million could require Another repayment $XXX 'XX. in December

share We review M&A as as within targeted cash repurchase involves continue ways allocation deploy to well that disciplined to programs. our strategy

to by we investing our and want continue balance business into create approach to our the returns. Given healthy sheet, increasing value

hand back Thierry. I would to to now like

Thierry Bernard

I'd And Thank to our take if to this quarter. in Roland. progresses you, run you through moment a some like portfolio allow advancing me, of now our

sharpen applications. to our continue growth of and we our various focus our First, drive on of expertise key expand pillars in areas growth sustainable to in

are we our new into pillars growth as While diagnostic such directing of investments QIAcuity. growing or QIAstat

obviously are in leadership We or tech not established QuantiFERON. complacent Sample our in

or First of market-leading involving upgrades instrument soil of to bone, early plant with key of steps disruption or tool a continue of launch or RNA all, isolation recent samples those is the such DNA portfolio, used matter. sample automation environmental in sample III as TissueLyser in technology of samples like instruments. progress as our tissue -- isolate we the to difficult on in make This

of is automation generation over is well QIAGEN Through platforms ensured has remote management delivering prior and comprehensive systems, have sample a demand of of cloud answer for processing complete of the which quality monitoring. for part only state-of-the-art been publications seated to modern of preparation monitoring broad positions this processing. [runs], used technology in our range customer solutions that for upgrade these but lineup also of The XX,XXX are instrument highest service of the real-time and data we for sample not a connectivity,

will [fledging] such connectivity an elements the is QIAsymphony, biopsies. the which additional update to of our example of liquid that better with version applications Another onboard as features high-volume platform, will and even next come release enable upgraded

expanding deep microbiome more continue some We sample as our our of dynamic through leverage to also expertise prep applications portfolio. the growth such

workflows kits include DNA antibiotic comprehensive sequencing microbiome complete launched six and microbiology leading extraction health, diverse leverage preparation recently Those and the including bioinformatics. sequencing gut and microbiome microbiome teams enable whole for dedicated sets Our research, like genome soil resistance. genome library our whole to

launch notable QIAwave Another our sample is portfolio. in tech the our kits of expansion

alternative of The plastic added zero reduce of of QIAwave by RNA versions our Those toward most been multi-analyze sustainable our kits version were redesigned DNA/RNA which considerably SBTi validated use are of collection to kits achieve to environmental broader less our QIAGEN the XXXX. milestones net and part kits and the cardboard. have footprint and to popular target initiative

the QuantiFERON to Moving now franchise.

QuantiFERON led Plus the testing. to Gold Tubercolusis product We test expansion for market see this strong continue into latent for by leading the TB

conversion an with As technology from strong latent with you seen differentiation automation test in the the market quantiferon have automation solution with TB as the results, proven for tuberculin strong TB continued alongside in test established our to of see DiaSorin. unparalleled demand the undercalls power options. from our continued skin the testing successful This and

together month, deadly Annual health management. policymakers established disease for experts, to importance leverages Our and treat the globe. team's survivals bringing to the QIAGEN ongoing public across and emerging tools promote professional Summit, work health hosted strategies This for of strategy eradicating relationships test TB the again discuss Tuberculosis for infections once TB example, care

This event, drive with knowledge, works with in X,XXX participation over through and record-breaking empower care TB significant them pipe best against and our in This person or by the accredited in webcast attending so and practices. summit investment London. insights health latest the to professional policymakers providing people

we tuberculosis, the of are and exploration technology oncology essential response plays fight assist immune QuantiFERON in to the autoimmune QuantiFERON also an in global diseases. against role in the While leveraging cell-mediated

our for and malignancies. only EBV recently, seen the research assay virus in building release, Just Epstein-Barr research of the use have you to we launched related press as infections in understanding facilitate QuantiFERON

a portfolio the CMI use monitoring only line of for assay research and disease response response cytomegalovirus, the builds This cell T on and assays. IVD test existing

in we building see road a continued well-established can technology on years in you see the base QuantiFERON So a are differentiated growth this next leveraging to by channels. strong our highly through few solid We proprietary commercial franchise. double-digit

on our give XXXX. to more again you for And Roland to now details back outlook

Roland Sackers

perspectives more on also the and quarter. fourth for provide for outlook me 'XX Let our

earlier, for USD billion As constant full our X.XX noted at rates. reaffirmed sales have we outlook at exchange year least

XXXX, about were RNA. XXXX, we in technologies these pandemic, XXX Remember SAP COVID-XX for million were we obtaining of in million. of continue from to million products terms redeployed use for for that USD to had XXX that sales and the during expect $XXX In sales mainly use USD

see clearly as significant we full XXXX So the year last of COVID-XX headwinds.

of In business year. these OEM would XX pre-COVID regards like sales -- that for were about next we to To range this, frame in the level this OEM business, plus. are the at year. to expect again we And the our tracking million $XX normalize million USD to sales would

monitoring terms during closely the of macro fast-changing are world. In trends regions, geopolitical and we

continue not third is improved China view where to as in quarter. on reflected the have We the a the cautious environment for results has

situation closely the during in We these that region, the are In to monitoring we are support Middle also East. distributors working actively challenging times. our

have our our growth significant EPS midterm. constant is agility of terms least enables solid invest delivering In QIAGEN business. rates. adjusted while cost in remains structure top we outlook exchange the to to to priority position we management in of as at at cost $X.XX profitability, continue part This A continuing the in variable, which for a reaffirmed

point results. for impact on year negative a and of least movements on impact as full per we rates at October XX, net and As $X.XX about adjusted on expect share currency of sales X based EPS percentage negatively

Moving fourth to quarter. the

per CER. is CER. Adjusted be net at per sales least least outlook million to at for expected XXX share at $X.XX of earnings Our share USD also

the for fourth to would movements XX, rates to impact of a adjusted sales back October negative hand Thierry. slightly to as on As quarter. both and now on based we EPS like neutral for expect and currency net I

Thierry Bernard

Thanks, Roland.

presentation. close coming of end our the We to are now

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

environment, volatile ongoing has delivered for technologies another performance outlook QIAGEN net our our in in and both EPS macro good adjusted with the solid We business. base third quarter the for demand of XXXX. amid non-COVID First, achieved sales our

Second, were and our Sciences Molecular by performance those Life pillars results driven both key Diagnostics. resilient in for

the complemented in strength Our QIAcuity QIAstat making systems. are progress tech in footprint by solid digital diagnostic and our team Sample QuantiFERON PCR and the expanding are in

outlook a continue full reaffirmed and healthy profitability high Third, inorganic organic and our we maintain investment. we to as of to sheet are year have lastly, XXXX. And balance always, level create value through for using our

the the to through move dynamics landscape all into eye diligently we global we on understand these As carry the an end keeping of year, are XXXX.

currently Despite see outlook sustainable a midterm for market years. diagnostics and life positioned the challenging we are well and solid coming in growth environment, sciences both to to continue the the deliver

would you. that, With to Thank now hand I operator John to question-and-answer the the like questions. back to for and

Operator

Ladies you. Thank we Baird. Instructions] The time, at question will [Operator Schulte the and Catherine begin with question-and-answer session. this comes R. first gentlemen, from

Catherine Ramsey

pressures of It's to I academia great talking some results Life to the lot intensifying caution business. on amidst Sciences been of side spend has see healthy. the space. throughout the quarter. on pharma peers these your pretty wanted a heard Meanwhile, start about We've

NIH the those you outlays for talk up quarter. third the your in over XX% customer were the going and think in quarter markets I trends Can forward? those groups end through you throughout expectations saw just

Thierry Bernard

obviously, biotech Yes, bit industry competitors for the what for Thanks, are are questions. Catherine. following saying under Thanks also is market. tension. a some that It on funding obvious the is are the we

especially very Life still in science for a of product Science. the demand good However, we QIAGEN, see life

are Sample UNGS, we have to we a research fundamental to self-directed of academic part of sector, to in talk I'm -- those spending, Sample tech, are but is especially those not you have in that sorry, high science, are whether very what the spending. that What life you a or either the tech we in budget understand

in of step So crucial QIAGEN Sample most difficult biological yet tech it's for difficult even the to any labs. are of but we company part our the is eliminate mean run, is I events, this pretty very That protected. activities economic environment. adverse doesn't in not is economic times that expensive carefully. and first this are we those why is think to immune monitoring it And

the example, have CDC and there carefully budget we for example, what the be are shown government will like, an for NIH. is we the U.S. organization But in line the As it and we down keep on increase, under if control. an a analyzing the increase

Operator

Donnelly Patrick from comes of question next The Citi.

Patrick Donnelly

impact piece, China, of the as maybe these Thierry, set lingering the some next think then Obviously, Roland, for little on guess these there? the about about bit And into commentary being maybe in these the headwinds, headwinds. potential it's of and have some how got we've in of peers up year how a from maybe instrumentation for more to do you and growth look the you at a OEM guys margin do the about little some given just I continue some persist, subdued whether first half you the you into if same think P&L. these the topic just leverage headwinds XXXX

Thierry Bernard

and Patrick, the Thanks, and we I this question will margin. take to going before just Roland

challenging in ball. OEM to questions obviously China. volatility. a forecast days It's those on Obviously, I'd have extremely the So instrumentation given Patrick, like to crystal

have we business towards that We QX. in OEM time. pre-covid as believe now However, strongly is our its normalizing said

$XX say, So around a environment. normal, to in of revenues I OEM million normalized a expect million $XX range let's

localization, anticorruption in on sequential VBP adding towards And so-called market standpoint, permission This clear players starting the challenges President in expecting is has campaign well foreign market market, QX that it's the China, launched the Chinese a other happened. health in improvement in delays a this a that to obvious by from and lot pressure Xi were not care, the companies as it met registration this by of policy. year. is of of regulatory

second the However, China in life is very market, it's clinical for probably a diagnostoc, important world. market the and science already both

Chinese companies not the fit, market their do long-term in believe coming and I population potential the the of have in to Obviously, obviously, see because for patients a the to example, priority. improvement the strategy of months, X on the this into of fundamental the foreign I needs market locally. adapt but So

cool going are market. bounce to It's perspective need the not long-term an a head. we but back keep good. immediately, It's So important to

Instrumentation, instrument QIAGEN diagnostic during COVID more period because world. always would in of as said say, of see than we many the capital expenses of the of instruments post-COVID the that trends influx the tier, in towards placements period, labs

used every There QIAGEN. upgrade their that no and believe years. rules are instrumentation accepted continues but well at to X it's still labs KPI well that and is on renew We scientific our I average, here, in market. to adopted

whether Roland, It in is once believe all So it market as placement answers coming capital well is life the options. the margin. a a or months. the we and sales as those QIAGEN will clinical that for growth is it's true financial for diagnostic continue But bit science solid, more again, pretty the moving constrained. rate and to that solid at

Roland Sackers

Sure. around, our say, days, quite is wild that clearly margin around do past still Yes, have believe hands would that increasing think you that forward. the uncertainty think going I well in out and the also as expenses change we I had market. laid I to and I our shown volatility also the in don't we going

more also I a 'XX a growth moving margin should in -- believe deliver a very in even So we improvement. muted actually assume in rate to brackets where reasonable you be scenario able from a that still to' more 'XX

to some invest. we right rather there we believe -- are clearly is said R&D today, accelerating investments on do because it and the for we our us now, There is also good a of opportunity call

more the marketing leverage see more sales and opportunities on and to continue We side.

the XX on trend had side as admin months that have for think we while and reduced around that we well. there's ratio seen are last overall now, potential administrative I lower expense more the our that have revenues still significantly here quite We

a line, for room us on So even environment, in think improve enough difficult should the EBIT to margins. in, I there all be more

Operator

next Arias Daniel comes of Stifel. from The question

Unknown Analyst

Paul It's on for Dan.

is we less Just talked your of or terms last sense we year? so X into of of level expectation. Should single-digit were down about the do as heading come of kind what a little you a about in comfort with talking terms of kind forth, And baseline comfortable you XXXX, since just might quarter just realization ago? high sort next sense of being what and for inflation trajectory, that, that's of pricing be kind bit in for growth have months a directionality a expect getting more normalizing

Thierry Bernard

Paul. you, Thank

that have portfolio have in high believe the and I'm clinical I single-digit have that market seen science people still be and for number always market. to in we sure we ever for growth. product But in wherever QIAGEN, we diagnostic growth both XXXX. So not believe And life I the a said, that like what this, above

again, be COVID-XX believe a and good life pressures care disappearing. experiences not clinical it's chain. pressure in days, health those This and but Once definitely might diagnostics market I science that some diagnostics that value is market. the has proven relevance of the

market growth, have to QIAGEN if the regardless level growing the even softer, we is market So is the the portfolio that growth. bit a it's we feel at of market be still a market. above And that what

on clearly environment. XXXX At the are we in and moment, a volatile achieving focusing guidance our

the are This early people portfolio going As systematically market for year year. and the have growth. the February. you do beat give strongly that this But we know, we product is we around to guidance the we our what believe to

On inflation, yes, it to has receded XXXX. compared

sell of environment what geographies year. a per to XXX normalized increase we increase we R&D. price X.X% believe basis January expect QIAGEN innovation, However, around around to net-net implement between hyperinflation always a increase for. we look every QIAGEN because start In to And is need was value. company said there customers in before, price normalized different should because year X.X%, according with QIAGEN we policy price of a of I environment, well invest normal like of sell didn't in shared a impact think as I increase XX year that points. to a that We last a our systematic price has and net-net,

Operator

comes from Bank. Falko next Deutsche The question of Friedrichs

Falko Friedrichs

can my future it test be you're QIAstat-Dx follow-up much. us remind expansion. owner? NeuMoDx very still do then Thank the when should you about the to And of and best platform believe the how And question company? And comes on you think steps your whether we next the menu is, my you would of the within

Thierry Bernard

Falko. you, NeuMoDx. Thank On

speed, regulated random in versatility, that the is we for very, to the access. because platform parallel acquired believe platform that in the do we consideration to to market we believe very and a first in a able The laboratory only strongly many best very, developed that platform of it's test a This it, is ability use, that. ease probably the in run especially test features,

the experienced fix And this those issues given we However, we over years. platform, stability of last have priority therefore, stability is in the launch at market. in as we have disclosed, X.X issues have which the normal to

submitting As It's are main is we on infectious by the PCR for assays a market, which far still the experiencing and testing. U.S. approving diseases result, delays. market

NeuMoDx review Europe. assays, our it We in portfolio, non-COVID is see doing return on same the time, to market shares, growth. product At and growth, is of the constantly systematically duty double-digit well capital invested. performance our

It of The there not And growth because our and part the at deliver. no forever. QIAGEN. it part will is priorities is is that team our dogma pillars to the product product five of of need be

at options the is And we reviewing for This say are what NeuMoDx. moment. every can currently so we kind of

QIAstat kinds and QIAstat-Dx, to for would the I to going I here testing available in be respiratory, two traditional menu meningitis. is The menu Europe. GI is already differentiate competitive syndromic and of on, development. in refer

the to U.S. going assays those are as well We bring in

only as and a other traditional $X kind will then total competition not and market, are by in road size that first, have And on probably the to launched talking we to use blood portfolio. expected research growing to we of is take that positive, completely call the believe samples. go we #X can or we registration Once QIAstat, be which is our map billion whether very other assays existing what complicated the UTIs. culture joint samples, for around to market is and to solution we market kind we of This next where in position assay XXXX. I a really that differentiated a the Pneumonia, of Europe assets already of development step will continue Europe, refer direct such we The develop in identification more here is close

Operator

next from The comes Meehan Jack Nephron question of Research.

Jack Meehan

QuantiFERON. wanted on everyone to you Thank focus

at just the kind So and about first, you the of competitive landscape how for talk differentiation the some of looking you're could test.

just any you here? sensitivities finally, confidence this level And there XXXX? are double-digit of into growth can see maybe macro sustain Second,

Thierry Bernard

differentiation protect Obviously, thing The aware and discussion questions. partnership growth automation. Many of for with since the that the have of with the major about the for we thanks decided negotiation to faster the we people first started where Jack, DiaSorin. driver are QuantiFERON. DiaSorin XXXX, grow So and

of the than forget sometimes is Number of sizable and automation with one. installed Tecan no the excess. and partnership therefore, in today, by LIAISON QuantiFERON. QuantiFERON. for DiaSorin a available there of the the automated And And base or to people easier Some as also more either Hamilton back-end about very use workflow excel front-end from automation

the of number the unprecedented. publications two, of the Number value, superiority around quality, the is QuantiFERON clinical

We are education of medical public talking here about health, publications. and XX years

for itself, we product the Third, invest to R&D. continue in

continuous QuantiFERON seriously third the by sensitivity penetration test. the years, X which market investment penetration and for explains to test. generation its you where nonorganic the expand moved the the from still the and example, market of we potential fourth what have of the generation see success This is the is organic to on skin do As increased main QuantiFERON, we adding CDX, over seen, last for

between that XX% market, say, XX% to the U.S. still, let's penetration. even test the We is believe skin in

a to So grow. there room is significant

So we not #X. are despite being the complacent

QuantiFERON to countries. continue in we to We invest, continue push many

QuantiFERON, the have have QuantiFERON. in emerging also you countries years some in of You seen X Pacific favor ago, guidance in adopting Asia seen Brazil

there So is and QX. this fueling leadership, partnership, of once there XX% is is no by strong the what again, R&D investment a sustained is complacency, growth but

this that for a we maintain can double-digit growth product. confident are We

Operator

comes question Goldman Sachs. Matt from of next Sykes The

Matthew Sykes

Congrats the in a quarter tough environment. on

before. questions. quick you look at XXX just Just about up both two for 'XX, probably that ask first what XX% above for I'll could it upfront. But XXX above basis level, probably where end points be and of the year were 'XX kind if we R&D., on

think sort that difference be investments of of versus the that in customer as And segment we accounted non-COVID is terms or that there or growth into for of growth? that type can product a in in Americas. from we Is the product anything read a about should the spread then secondly, sales in wondering, into R&D level Just XX% we 'XX. thinking percentage Europe

Thierry Bernard

Yes, the thanks for question.

You can Roland, you if ahead, go want.

Roland Sackers

think would straightforward. right XX-plus probably that I for Probably I is given good let's into and also year, need can next clearly it's somewhere, that thing staying, difficult next along we activities, see will overall year, R&D think year some that to let's between say, And have looking any We profitability Matt, now XX%. even take and X% very R&D opportunities question. drive percent. we well environment. the quite our don't now are assume going a rather say, in I more next

of So and is I we some expand invest leverage Nevertheless, do there some menu. continue, course, here. to our think

Thierry Bernard

moment. on a our And that between growth, the portfolio spread I at difference think non-COVID but and the Roland. in don't you, American there European on customers, also major are have differences Thank the we

especially biopharma. America this where So and shares, of biopharma market non-COVID also by the significant main This driven North customers, is the very much by PCR, the in but taking is in we we QuantiFERON have UNGS. digital where are is concentration

in have have harmony NeuMoDx. you for on you compared where example, revenue the Europe, a to for on non-COVID for non-COVID great U.S., QIAstat, Whether a greater

Obviously, market to we had have the QuantiFERON are lower our for also also impact. shares than You year-on-year a this Europe level U.S. growing

in We market are digital our also growing share PCR.

we saying customers. status than up XXXX, QIAGEN, So non-COVID. of as of now that portfolio at since would you rather adjusting end it's rather on basically the the clearly, I our know, differences focus

know the our focus on really have core is We anytime, non-COVID. COVID business. products that is the again a of This available, if but we surge range

Operator

Casey question of comes Woodring The from next JPMorgan.

Casey Woodring

you're schedule, can Maybe set and for give can interest level just model. through us interest debt how walk one implications repayment thinking expense, the for income that we that a about Roland, maybe and you XXXX for

Roland Sackers

Sure, Casey.

details the of rates million went to I interest of repayments I is during well. EPS the net on compared impact in. USD the think again I quarter probably impact call. around in an But $XXX there around are assume fourth has now -- of or the $X.XX going year, probably about around you end million. we on is that more around suggest terms nevertheless, less remarks, we down I in would get that the the September, which probably interest all an And next think do where as X depends, to quarter net expense course, $X.XX level for third

So that probably I think you. helps

And of XX. be there's XX. million planned June well. And said, next repayments in might next again, XXX convert $ there couple year side, on I $XXX December November million the $XXX year a million in also another it's clearly and As as in

Operator

The of last question Andrew from comes Brackmann William Blair.

Andrew Brackmann

on the Sample tech just Maybe business.

who And just You've in years. that obviously last of handful seeing about lot in for a be an what you're over thinking around made Can upgraded? guess, we investments automation in customers how should update give the you us additional automation going have there business forward? I investments those

Thierry Bernard

Andrew. Thanks,

the think systematically X I when upgrade was years to ago we it right say, started, decision automation. our let's

a became became QIAcube reminder, new features. adding the As EZX, QIAcube EZX all connect. and time,

biopsy but better input, liquid new are our said existing we we more in which presentation, the the in adding next answer are today's only features, taking fundamental already we As customers. is to connectivity where increasing and not volume QIAsymphony, is customers steps

next steps, it's confirm we to to strategy to fundamental think we sometimes term. obviously to platform, those will manual you it due shares is a throughput customers bit before about speak And was The market higher automation platform. for but today, our early a our about customers moving leadership. enhance but see This to and too come in in automated being back automation, details

John Gilardi

Okay much call. Thierry, you your very thank time the for Roland, today operator, on

questions, reach Phoebe Thank If you me. Bye-bye. any you much hesitate and your follow-up in QIAGEN. very to again have to do out please not for interest

Operator

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

Qiagen (QGEN) 31 Oct 232023 Q3 Earnings call transcript