QGEN - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. I'm Melinda, your PGI call operator. Welcome, and thank you for joining Qiagen's First Quarter 2024 Earnings Conference Call Webcast. [Operator Instructions] Please be advised this call is being recorded at Qiagen's request and will be made available on their Internet site. [Operator Instructions] At this time, I'd like to introduce your host, John Gilardi, Vice President of Corporate Communications and Investor Relations at QIAGEN. Please go ahead.

John Gilardi

Thank you, operator, and welcome to all of you for joining us on this call. in interest your appreciate QIAGEN. We

will are Our our Officer; is website our the and Executive at www.qiagen.com. Bernard, Roland speakers being Relations Sackers, of live call today and This our Chief Officer. on Thierry Chief section archived be webcast Investor Financial

You can the copy a quarterly and release press also on presentation find the our of results website.

Thierry a Q&A We by will followed begin and with Roland, remarks from session.

again June Before Capital that and let we note we the be on the me to An invitation will New Markets going event sent has Day the already available is Events website York XX, under information Exchange. are the under host at section. been start, held and our out Stock

love person. to see You attend can also you we'd this but event in online,

The of over during XX, your questions Let's our expressed call the perspectives statement. and today, as views harbor safe of responses views and go management April represent to conference this now XXXX. the

statements to materially the Reform safe those for XXXX. of We forward-looking risks suggested of under the fall and predictions and involve will Private forward-looking results uncertainties, Securities statements actual the providing these and future. and They that be your convey harbor differ intentions, expectations statements. responses Act making These beliefs, our may Litigation questions by provisions from

our Exchange on could statements. that also forward-looking filings These Commission. are obligation and QIAGEN with influence website to available intention Securities and or Factors results the any U.S. are filings mentioned disclaims our the update on SEC's any in website.

share or EPS principles measures refer EPS. following will accepted prepared or refer GAAP. accounting diluted references we certain All financial to to not Additionally, to earnings per generally

directly to measures of financial measures comparable our presentation. release find these press a the reconciliation You the and GAAP can in non-GAAP most

Thierry. to I'd the over call to Now like hand

Thierry Bernard

and the for are morning, of depending you, where to good Thank evening, world, Thanks joining or good in us. on afternoon good all John, you you.

capital teams our achieve show in passed for results spending among XXXX. and goals report that our focused today plans. environment delivered another pleased to cautious which very on solid ahead to are customers, of the track the on our We This quarter are our execution we [indiscernible] results

Let me share you. with messages key our today

the Recurring the as the we $XXX of First, we of of non-COVID million was durability And CER. the final This XXXX, from constant worked XX% the first outlook QIAGEN represented sales million quarter continued signal the a pandemic quarter at CER COVID-XX to of ahead account exchange least more of of sales for for which for decline at product X% consumable groups. through are XXXX. first base. the quarter for net down of sales X% a outlook results rates, our achieved were sales net ahead sales, of $XXX headwinds. total our of than

ahead QX highlights sales group. confirmed the X% our the strength and of double-digit growth the syndromic TB placement. Diagnostic saw and the was portfolio per share CER. of of the This the at $X.XX of outlook at as solid for were One we for CER our testing earnings $X.XX Adjusted QIAstat system mix and of Solutions growth product resilience least QuantiFERON test for CER amid

message. key second a As

sales year. creates strong focused This in balanced CER quarter for positive pillars. Our again and momentum by teams a build once many a strategy every in growth, QuantiFERON during the with our delivering demand to executed trends fueled XX% and on really us region. growth foundation delivered

as to respiratory terms trend diagnostic Sales we placement. quarter of testing sales above marked XX% instrument in panels solid QIAstat $XXX nonrespiratory saw see another level high with while demand million. as The first quarter in a continue CER. both up of were We net of well also a for

the on the with collaboratively final decision panel gastrointestinal Our teams working still are to submission. FDA a get

digital solid system instrument QIAcuity ongoing delivered consumables high level PCR in strong of and placement. an CER Our with growth double-digit expansion also

the this particularly support expansion biopharma pleased trends A were tech development COVID use for very clearly application of pharma and are demand on see We differentiated new discovery. Sample China. of increasing to to for by consumables demand for research application impacted sales by has growth in QIAcuity, technology. drug key headwind and and been weaker the driver the also

for in we Connect and sales of XXXX, first For year-on-year better quarter low this for of continue of QIAsymphony, where EZX. CER consumables year this particularly QIAcube product rest anticipate automated the or still single-digit to the noteworthy trends expect during higher group, growth use

for expectation our below XXXX. were sales the quarter of NeuMoDx

have noted option June reviewing have we Capital our by we As a strategic Markets are XX. to before, decision on and plan Day

quarter first are ongoing investment saw an XX.X% our margin compared the in our for development As research as teams adjusted with while commercialization administrative for we This into on income operating in message, a QX realized adjusted XX.X% The deliver to at level a shows XXXX progress an teams to high operating initiatives. of income and XXXX. made determined year profitability of functions, in target third XX% efficiency how the particularly least our and gains, QIAGEN margin.

as last we full And year the outlook. point, XXXX our reaffirming are

at guidance. CER also monitoring adjusted are least other many our Our at plan $X exchange XXXX on of on net $X.XX for closely in and our Like at at focusing EPS is for trends sales constant building delivering least confidence goals rate. we XXXX and macro companies, billion of

would Roland to for results. hand a over And financial to of review now our I like

Roland Sackers

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

momentum. for this on QIAGEN X% QIAcuity our U.S. environment and and also XXX capital actual million rates to trends of Our results systems. challenging despite Instrument some COVID the goals the declined modest for show had is were exchange purchases. CER X% sales the USD dollar. rates CER, the at constant ahead results pressure for At reflecting ago the and time, at to to the good QIAsymphony, related year from saw headwinds first QIAstat-DX over and absorb X% X% placement decline of strengthening same revenues of XXXX building Consumables led Net sales the period. declined we due quarter the and

the X performance. the Among groups, Diagnostic Solutions led product

increase for the a The results with in again, historical saw for single-digit for our the mentioned In larger along price more gains QIAstat-Dx, over first we as low XXXX. This sample with delivered our consideration companies, was year, start pleased improvements of levels kits. to automated healthcare increases while sample Here technologies that the had we, technologies, were and into we higher XXXX. sales of earlier, take QuantiFERON price increase. also business quarter double-digit consumable line see at personal single-digit other of

underlying headwinds a at single-digit low decline CER faced sales rate. COVID-XX with modest we Additionally, an

We as trends differentiation marketing initiatives we anticipating to during growth are improved the our the portfolio. highlight of year launch

flat clarity for Congress in U.S. on federal science budget funding for by outcome the decision provides life in budget. line was customers this research and the Additionally, planning, with with essentially our

Results prep Americas Insights growth the were sales to next-generation business over bioinformatics of this the of for drivers QuantiFERON, QIAcuity but rose but the above amplification, We headwinds. CER this the We continue unchanged placements. trends excluding large contract, with biopharma the from solid Africa first expansion library continued the Sales kits expect third-party of first PCR/nucleic on instrument in declined quarter continue in saw from timing regions, XXXX. of been QIAstat and have 'XX, reflected of to XX% sales use PCR quarter pandemic solid trajectory, COVID solid underlying of of of slightly demand a quarter Genomics/NGS, 'XX. acid In for Europe, demand for levels universal were results consumable for CER improving better impact product East, quarter digital year benefited the group delivering with sales a growth to headwinds. Key for QIAGEN along the ongoing a customers, Middle lower sales due QIAcuity to as progresses. In the system business Digital high customer CER 'XX. Among the sequencers. consumables. X% over sales saw at double-digit CER the particularly sales the in first region single-digit see higher and anticipate we rate The our sales trends

Kingdom. top the and where Switzerland Among the United countries France,

In sales a CER that macro are region, double-digit the regional not these market expansion this results. improvement. showing signs Pacific, in Our Asia in the challenges Middle China at Japan declined the reflecting rate, in helped East of

improved India South However, in see time, and emerging saw we targeted results and continue to at dynamic markets. the same Korea opportunities in

review first quarter of the rest lower was capacity as the Let's we 'XX after gross increasing recent years. worked of now period utilization statement. efficiencies XX.X% the adjusted expansion on sales The of in margin a than of modestly income

investing income in decline in first ago line improvement sales income declined X% to in XX.X% in margin first We million R&D focus of sales. adjusted XX.X% on quarter, the of operating operating delivered the quarter and from to the period. in the with 'XX, an For adjusted the the compared to year $XXX

To out million share exchange average the income least at outlook, at XXX line was the our quarter, The for expectations. and tax at was high were statement, adjusted end of rate of $X.XX constant the outlook the rates for with also EPS results of first was XX% ahead $X.XX. count while the while diluted close $X.XX the adjusted at in

of X.Xx planning capital 'XX the over transitioning management and Operating Turning Free months XXX we resource level been new in equipment a to the with at over 'XX to XX while in property, quarter enterprise rose receivables. as start million nearly positive. flow USD saw in collecting cash time, 'XX have plant flow. the inventory and improvement we cash investments X doubled first management cash of million increase well of flow the at to significant the our very The of slight nearly working same accounts to environment. trends as of USD as first continue

provide light customers a the disruptions of without paying measures are to macro current the to challenges. ensure trends on while logistical world attention high We to of especially supplies in cash products maintaining and level particular adequate conversion around

Continuing with sheet. the balance

of billion share the X.X to at cash the repurchase payout end $XXX Our liquidity million of shares position USD about includes removed in January, 'XX which 'XX. XXX $X.X first of was at the million compared level million the quarter the This synthetic for of end outstanding. about

quarter result, EBITDA As at a of debt to stood at the X.Xx leverage 'XX. to at end first the of end net our compared ratio X.Xx the

in maturity million a reaching September. $XXX debt As of we have reminder, about

we healthy strong flows, policy allocation our Given served that cash us well. capital sheet our has balance create value want to through and

business increasing complement commitment repurchase returns. into QIAGEN We would the is our continue and to also signal our while start of invest targeted 'XX a bolt-on of acquisitions various of share also the to valuation that our The the portfolio. reviewing organically views about at

to now would Thierry. I like hand to back

Thierry Bernard

Thank you, Roland.

to a have of advancing progress over go take portfolio. moment me in some the teams made let our Now our

sample are in or and for lab the application. position biopsy. First dominant in fields gain RNA. access expansion support first Key step to technologies, research kits to in to and increasingly liquid of new Those microbiome the are areas involve of like DNA critical all, we stages life becoming to sciences in early strengthening our processes customers clinical areas are QIAGEN

example, start, minimal from progression. of for Biopsy Urine identification patients Set, cancer monitoring a Let targets cell-free launch disease approach collect with as and of improving urine. for new detecting for This such offers therapeutic noninvasive patient technology the me and DNA the PAXgene residual which disease to in the Liquid potential holds

tuberculosis, the test the population Another of example improve in urgent TB robust Diego, in is need is measures. worldwide in and in conversion immigrant high modern death. of a people the and be to majority world. tuberculosis U.S. U.S. continue This for the the in global the and screening tuberculosis remains highlights we to importance the as for continues to fight the skin Chicago already testing screening around has for in with blood-based the from long-standing available outbreaks incidence These particularly cause the initiatives. key screening underscore areas latent QuantiFERON helping a this or rate, among why market outbreaks, proactive old such for Recent against commitment San a element leading of is QIAGEN which that health conversion.

Tuberculosis global the of underpinning our X,XXX great awareness. to over event March, support Day participants, with success was efforts in awareness World In a raising collaborative significance

enhance we our commitment of for Additionally, announced screening target reinforce a screening. improving migrant to TB health, of new use technologies with are promoting we years the as the young effort This IPPA, jointly Together with eliminating old. tuberculosis QuantiFERON focused XXXX. to is Panel on the IGRA like and X the partnership domestic immigrants support part International of nonprofit to detection as cases our early organization by U.S. a Physicians Association

against This fight surveillance epidemiology we whole critical need will As genome enable the to a samples. of and tuberculosis panel for that recently tuberculosis, of breakthrough QIAGEN launched commitment global part outbreaks real-time of QIAseq enables sequencing a control. tuberculosis tuberculosis

launch access Another important diagnostic. This results allows devices and the other new was to healthcare more to version QIAstat and our collaborate gain system development to the software professional upgraded for of from faster enables remote efficiently. access

For expanding this for oncology QIAcuity are the technology on we cancer using and testing. utility digital PCR, of research

use new positive deeper Our for in of analysis detection designed the the kids are in been reduce are and EGFR tests. results. teams with other to recently and through that mutations launched simultaneous of mutation better kits enabling B-RAF types, false found has not possible Those many cancer cancer incidence

of relationship This customers. knowledge and software sets our new is bioinformatics for This will Insights diseases, understand have literature drugs advancing Digital base among drug on between scientific QIAGEN our In can built we and causal pharma intelligence better artificial vast entities biomedical an biotech genomic driven extract discovery our new business, database customers genes, help and disease identify and drug sources biological targets. data. and mechanisms to from launched

our customer of demands impacting the that we back important across our as developing life. And harness portfolio, for biology Roland see breakthrough of now can that daily is details you really outlook. to QIAGEN addressing So our is power together

Roland Sackers

Thank you Thierry.

the non-COVID return mid-single-digit growth X% the growth and more Let at that start in for on others, CER from on $X.XX remains we we 'XX a This year billion and the least represents at $X CER 'XX achieve in outlook more the track. to at X% CER. outlook year provide our to growth least building portfolio. The second least of full momentum plan billion and for also in The perspectives quarter. 'XX muted now solid at second of sales are also expect me for for the start CER half. shows our Like

from expect test double-digit CER QIAstat-Dx. expecting growth the at sales QuantiFERON QIAcuity in continue We least XX% TB improvements to also while of CER and

well. Insights Digital for growth to QIAGEN pace set CER business deliver is as a year also Our double-digit at the

reaffirmed XX% is least least of commercialization. operating key to rates. new for at commitment adjusted of at constant exchange In from X income margin 'XX least our while in R&D profitability profitability, EPS terms our our we have $X.XX and operational product point percentage to development in and The expectation reflects This for outlook up efficiency and reach 'XX. at XX% at adjusted driver investing

for rates As per for $X.XX of as neutral about on adverse currency and full expect impact year 'XX, adjusted movements a April share on we based EPS impact an net sales, on results. of but

at we For $X.XX at also earnings USD to at net Thierry. outlook share million the XXX of now back for hand second and sales least quarter, adjusted would of have set least share CER. I per CER to like per an

Thierry Bernard

you, Thank And Roland. session. getting now we to the are closer Q&A

just a me let So provide you summary. quick with

to track are achieve fully our on XXXX. we for First, goals

been growth the uncertain results initial times. instrumental less was effectiveness anticipated our of sales in by has for growth decline Our first pleased focused recurring anchored navigating this by double-digit initiatives. In for the sales is a testament diversified Diagnostic resilience for our consumables. quarter, to QuantiFERON, with strategic the we QIAcuity. for of led highly strength particularly portfolio and of are and from real our than pillars quarter in the The execution strategy expectations the on and balanced XX% and our QIAstat sales of our demonstrate those This

very is good level Another pleased of we message with that are the profitability.

margin organization. create effectiveness Our and least of delivering the full Efficiency the XX%. enhance adjusted to more at flexibility our teams operating across initiatives to committed are QIAGEN are helping year on income target

I Q&A This for take sales for event am of growth I'd team the all advantage leadership again an forward lot to you John to to June as call strategy person. With improvements and of like and seeing invite All at are in York operator higher QIAGEN our looking attention. deliver be more a Day to our personally you the actions session. profitability. in learn I New for and Markets deliver midterm for improving we meet Exchange. ambitions and with to to the midterm opportunity hand this profitability. to about Capital back now sales your our Thanks of solid personally again attend that, really our those positioning XX on will Stock

Operator

from Sykes [Operator our Instructions] And Goldman take we'll first Matt with question Sachs.

Matthew Sykes

course over reach QuantiFERON, set to been the the guide? QuantiFERON start that to part growth looking just potential for growth sort phasing on just Maybe than that January a Or the that first the And is out, Oman of to quarter collaboration target previously. announced a just that out, year of gauge upside? $XXX it's you just greater strong pretty of of engine that for of in at you and the results, is million want you

Thierry Bernard

So thanks question. for the

we So directly it. it's our on of XXXX Oman, since part guidance for yes, announced

goes the before. And said are together QuantiFERON traditionally reasons. know many and you the starting solution Oman We currently that deploying in it we the per with QX as authorities, QX now for so accelerates phasing, on plan,

because countries, all, the of First example, we different have for lot initiatives the in a initiatives U.S. back-to-school as, in of local such

expect track So weaker and a guidance and are an basically achieve you. we that we QX QX. this the moment, gave acceleration always at in And then again on to well we QX

Matthew Sykes

just was It operating which the driver receivable just Maybe really lower about was looks quarter. capital cash And and flow, improvements. on strong flow. of this main sort talk it. like Got of cash the then accounts working further

kind the of capital free your year Just this allocation then a as relates maybe over flow maybe over cash Thierry, standpoint, expectations M&A, it priorities talk to just of sort of organic for course go about generation. And from your opportunities? debt, --

Thierry Bernard

Thank you.

I and on generation, to flow Roland? will cash the on takes Roland capital allocation. that come the propose will you I back So

Roland Sackers

on for in clearly us to very important course, in growth cash at think the is to probably but also -- And second us believe the clearly hand side, for of least quite somewhere now, was before are maintain the was free probably strong do describing levels. for with quarter. one. Having that a also inventory have the logistical would that of It's flow, operating around half just all-time And million opportunity sequentially, do have upside, one an from and as some It's right by in an driven cash potential the clearly normalize mind, clearly the we Have biggest Thierry first year. the but numbers, of a variability plus flow to these cash $XXX first second pleased will second also start the But is quarter mid others. that, absolutely. the just an and question. opportunity channels to going addition. said flow, of reasons quite We the year, to single be here I million. we political cash the was well, see Yes. your grow a a also our less also shows, flow the last high we we're China on be go and I to clearly good that and inventory more full year $XXX things there or relative -- obvious level

Thierry Bernard

think investment R&D. axis so Roland. and with in still X On our capital the R&D that QIAGEN prioritize Thank or growth deployment, you, for organic around main I deployment, capital investment

be and R&D, is You XX% development a research we investments these of sales. want profitable. to that we slightly which ratio have to also know But investments above

to say investment. priority organic So I profitable would

know we that balance healthy a have You very also sheet.

are bolt-on. potentially So constantly mainly acquisition, synergistic at looking accretive and we

it's do recent value a have will return we give obviously, ongoing. good example, share we the would our But early several It's be third, to as in priorities. clearly not of a have shareholders discussions to to And anytime to we hesitate that priority. that. see proven, buyback, basically We order for with but details, too opportunity

Operator

question comes from with next Aisyah Noor Stanley. Our Morgan

Aisyah Noor

I have X, please.

to what recently. released view your on the can reference as developed an sense the the tests that's across test exposure us labs you business. lab or what's your portion give LDT is, classify your And exposure, FDA First LDT the or U.S. by of whether of your ruling

us helpful. really help quantify exposure your you If could that could just be

question us most to the and margin business, appreciate business of this in of the outcomes stage on remind considered, second you've you the is which the please? The planning you're likely? appear NeuMoDx. the But review us NeuMoDx And I update on could profile on June. of at

Thierry Bernard

Aisyah. Thanks,

And so on question first LDT.

premature of bit to it's all, a comment. First

was the yesterday. by only that know You text FDA issued the

it's a As reminder, pages XXX text. long

is So developed time FDA it that of a The But has oversight couple have saying years This they been test. to takes not of believe an proceed. points they new. that many highlight. laboratory for to

version, option proposal. in what issued we we that text seen were for far, have In end saw from remember, version does no the yesterday is the tests Second, softer XXXX. that the of than the grandfathered. so much you new towards grandfathering first The if exist

even Third, are significant developing the of very that to of or this say not QIAGEN limited, positioning at to are will it supplying LDTs. QIAGEN exposure industries quality not that believe I components companies is like moment. reinforce which the laboratories

will say stance it's we laboratories to start not in I we that that by say. On take it's early because litigations actors association Too especially we And everybody NeuMoDx, expecting know major confirm as this to in several definitive now a the proposal. agreement of U.S., the June is some probably with are fourth, when premature, XX.

or We to on on scenarios. work to continue several look

scenarios, gross standpoint previously, say today our to As partners the of and more both finding is from those EBIT accretive well. are what we margin XX. EPS I or on margin the P&L. details June are down would standpoint, said They decision activities a This as shutting whether by and accreting

Operator

with Our Michael comes from Ryskin next of Bank America. question

Michael Ryskin

Congrats on a the year. want market about ask conditions. solid underlying I bit little to

flat little the comments your [indiscernible] and government seeing on [indiscernible] U.S. also from patterns you're from talked and you bit demand biotech end, pharma a As budget. you [indiscernible] quarter about with

to rest X still year out? change update have through is the X, very on your expectation go uncertain the how as played time? Just of year you first of relative any the any And if the months is there

Thierry Bernard

conditions. must I that market was understand about that muffled. your I Michael, asking you are the confess seriously voice So

especially So back, right, if not hesitate condition do I to got but research. market academia come

be in Roland the first think for budget that of level the alluded I got also This on factored what example, but in behind the clarity a there clarity this for quarter, continue many, call bit see and get cautiousness so would so our in this least That's as countries. I capital to in year. that to because a always plan customers spending you progressing funding, third that this countries exactly Michael, to what NIH, surprise we say, or end elections a our towards for of elections I is know capital flat. We are we XXXX. We many not public in at this or going to as other we certain would year expense, we which is coming clearly know, election point going budget highlight. creating attentisme. improve that We the the are to we that are it's of highlighted our for those we see us, the morning are

We up yesterday not anytime sequentially. before morning at we expect Chinese expect market soon, in the the XXXX. ramp market press this We said that to morning the and -- this bounce do back to least not release slowly

we XXXX. moment, market So at factor what fits did the the environment for

Michael Ryskin

part quick is the of just portfolio. challenge. [indiscernible]. insurance that follow-up. [indiscernible] helpful. Hopefully, business, That's easier A I on specifically very [indiscernible] is my overall think touch to And small I a wanted this I know

a of fall product that? If instrument [indiscernible] by in You've that of you the color lines the any [indiscernible] any the got different provide in as couple just ASP, by you change that could complexity start within year? instruments

Thierry Bernard

from of the Absolutely. I you voice but half background too at lot a muffled. question, the in here I me, I of Boston, get don't help can if know am, John, There's where didn't least. noise. is

Roland Sackers

market we probably instrument to companies while First rate. not No, $XX,XXX instrument all I in days. overall overall, I time, agree. and one easy of and instruments about portfolio the quite understand, clearly easiest it not as given than At the Once see it's And more business that like around in the other rather I do instrumentation is particular $XXX,XXX, more growth -- price the actually still an our many same was environment it these gets QIAstat that environment. a are $XX,XXX, points normal with QIAcuity difficult. costs think

QIAstat's, I would quite our difficult comfortable world, QIAcuity's, to and QIAcube's quite for going given the environment while So say, overall, we in more a it's to feel exposure instruments [indiscernible] particular the XXXX. expensive

Operator

the of go Solvet Paribas. to next line with We Hugo BNP

Hugo Solvet

I have your level X, first for understand fact maybe the thank teams can us help on comments confidence with QIAstat. your around -- that closely you just working the FDA, are the you Thierry, in of more by June out by approval bit an can getting HX? maybe the QIAstat color on in And of test -- give end the -- the a placement gastro to roll the you test on trend?

classify your process to test. FDA thoughts [ high-risk IVG And regulation, on ] down share you can second, the on

Thierry Bernard

Hugo. you Thank

the they the were and solid was solid later submitted of They is FDA our get approval. Hugo, say since I terms questions all to performance, all our and data submission, So didn't analytical can first of were that data and good. on for what have competition. level GI to and of confidence solid we more compared in any the we

obviously, cannot behalf I So speak now the on of agency.

in constant We touch. are

placement, will We a the of our release, only data, on it's questions do talk thing trend. is said continue important we in behalf to on the Based I'm as trends I press it's get to cannot QIAstat, approved. say. your can This healthy on for so the of I because for test confident. On agency. this QIAGEN the

of us not for to see in XX% our We over at units is, satisfying XXX COVID. the growth by all are many the driven more the quarter. But one, what the more than panels for and is

GI That's very able having available still encouraging. for are the Europe, in to that the despite to fact meningitis. And we only instruments. panel referring I'm to one two, place example, that U.S. in So

on FDA, some downgrading, PMA wouldn't Third, making from test the but it XXX(k). them to say moving I easier on or

submission from bringing remind moving not is a keep test. think value it's I need XXX(k) added to the agency everybody that I in either. they acknowledgment trivial that

still clinical submit level a to You need of data. significant

review. You to still go through a need

And It's But it's on value added I ahead FDA willing don't the to test. clinical time downgraded. so and submissions approving data. take just take both move say basically

Operator

to next Citi. go the We'll line Donnelly of Patrick with

Patrick Donnelly

Thierry, maybe China piece. the a follow-up on

improvement, going science guys verticals and both brand. want the it few Are outlook I just talk brand, trends there, bit we the little those, just and Does think to the through label expectations through as the talk different a on a through way each our seeing? Can just I there QIAGEN private of year sound have there? China then you year what you but in like you're of work about optimistic life diagnostics the there. different overly you're

Thierry Bernard

manufacturing of which that that I exposure, is transition and life is, needed has say, QIAGEN I thing since a any The always coherent. expect we that probably we and we of would we position. time X% We pessimistic, or optimistic not this it's a think, more Well, same the and before wouldn't R&D keep investing XXXX, our is XXXX, And limited time the at said, back in Patrick, market, Chinese sense. where Chinese never least bounce said first, strategy impacting local to science post would into market diagnostics. we both the tackle is of XXXX the end market phase saying and say need soon. have, that the clinical maintain Chinese COVID I makes to relative revenues. any And

Second, double serving or customers Chinese which having brand, Chinese with product. brand a the exclusively is second

closely it. to to all to investment by the fully are their but the going be obviously We initiative. impact, say to try initiatives and market, we are Chinese recent taken especially too boost the It's monitoring early the monitoring capital what's authority

us, XXXX expectations. a many said We starting growth should market And on back. as any company times China a don't for So represent bounce with opportunity track our I see for QIAGEN. before, this like XXXX, in is mid-single-digit

Patrick Donnelly

helpful. Roland, margins. the And one then, That's on Okay. maybe

and the talk into as healthy just You rate margin through is the visibility on guys. obviously can had exit pieces year, key the way there? variables the you But that you which pretty through [indiscernible] higher work we throughout a pretty and side ramp execution the moving our

Roland Sackers

said, year. a you into good as overall, think I Well, start Yes. the

going of We in has also that another already expect the range. ramp XX% income operating clearly to terms second the nicely adjusted, quarter

I year visibility think for make we the least or ramp. a So therefore, And there's also of the XX%. rest good think that do I at

the around but of investment in there leverage -- utilization probably stays bit is going opportunity full of a fourth digitalization the clearly SG&A, efforts, to help -- quarter, as believe still course, about that from also our lower well. scale, we relatively for XX% year, While again, R&D there's still we come where, around

Capital but improvements we And of also course, over was see the about on well. in as a talk I Day. normalized overall, that beyond. to that rest only options, So the assume 'XX, going higher Markets continue QX. for to would we're not year our margin bit rate Tax of

would said, the far, I healthy say as quite I so start So was for us.

Operator

go we Nephron Jack Research. with Next, to Meehan

Jack Meehan

release the growth you Maybe out called and just is? QDI into I Can dive results. want for business of to start, back the that I to timing to you rest path to getting visibility year, genomics in contract in your the about for the was what talk visibility just the --

Thierry Bernard

that QX all. very this you And even contract, mainly it's revenue Jack, -- one for was it's due to doesn't recognition. QDI we pharma. timing in question business especially sometime have simple. with for The contract, of know That last So a basically, at

for investment that year. goal months X market plan explained that question doesn't And the all, to the of rest the ago. we the our for double-digit all, at of First growth

of a just recognition. it's timing So question of

Jack Meehan

bit you can little year? what the QIAcuity, that the on that pace talk line? the growth like to a within out about throughout more PCR roll of just in the then expect mean should menu key of And terms And of Great. some you Okay. on

Thierry Bernard

double-digit as number say times, the, believe, Jack, the it's much we we double let's has that XX% solution a this potential. double many said digital referring to growth PCR to I when digits, QIAcuity closer line. say, one. And Well, low than I'm the digit,

the Second, it or developed offered last last we difference, a to X as started biopharma have you for the company, really know, -- systematically, we a differentiated science. life for years since we have implication. and first started And made ago many menu years, X.X we an extremely when workflows

We for to that QIAcuity we to remember to market. want launching also and FDA control pharma. But therapy approved. moving clinical for remain application are cell gene the also solution we be QC Now committed this and

We approved. expect platform be this FDA -- to the

for around expect for the example. XXXX. And -- BCR-ABL, then to for plan is like menu this hemato-oncology We that launch panels

want So where this confirm. we And science that's life the plan is research and that we to go, both application. and clinical

Operator

We'll go next to with Baird. Catherine Schulte

Catherine Ramsey

academic the on first Maybe side.

You budget your in, line with mentioned in came NIH the expectations.

NIH in the in quarters. have seen last slowdown We X outlays a

what from to could you're hearing in end just you that customers talk So market?

Thierry Bernard

you different X% roughly and economic example, we 'XX. right if we political were for 'XX, with we for the as did for In and flat, a cautious right. context, the were NIH context we This and the reasons, budget before, as we were Well, of said compare, well. we increase said Catherine, budget, year, more XXXX

have example, the the We HXNX extremely recent heard that for NIH. a of sense, have this active field milk, is continue you the to detection, with collaborate collaboration example, for about we NIH for example, in with where the in

especially You also have Clade where collaborate previous discussion, with Clade field for NIH. around the detection decision and II monkeypox the I in seen February of the we the of

product, We fields can whether we from enzymes where have components, PCR. oligos, finished collaborate digital [ PCR ample research to this or it ] of major an is with

invest transition we the that the it's of future. planned that they or development kind I that high-value for behalf authorities year. it's cannot on So it saying technologies and want I to clear fits obviously, the what speak authorities, in believe but U.S. for a seen period. the don't And a of We haven't research American

this that a bounce So still funding back we confident at point. will are

Catherine Ramsey

your on sample tech event? a outside And back what's growth a how we then see And second to outlook return half for tech, be Okay. China? business of the that in more Great. basis? non-COVID the quarter? a for will does of sample Should Or perform non-COVID

Thierry Bernard

to early as I quarter. in we said, low-single-digit that the expect say throughout would Roland low growth too It's the still to year. prefer,

the mean, on are COVID pleased impact. of impacted with are explained, we as weak on the one But by here non-COVID, the we hand see, instruments. I You demand placement we in China. Obviously,

probably to tech. quarter moving year, the ask the faster sample and the you once into we both to automated, see sequence full But is I need automated growth consumables, the on market through of X. not Now manual just again, accelerate

Operator

Bank. with We Friedrichs go next to Deutsche Falko

Falko Friedrichs

here looking the be side CMD you latent So coming of why believe in the see everyone's strategy? Roche can were remind now even to great to forward is just tuberculosis can still then decision, to would decide your you anything to things. a us on you briefly market, of that up with further that rollout May, business further if enter on that, the they you'd to they sitting do the Irrespective that market? change if And grow they that if related enter regard anything

Thierry Bernard

at workflow. no Hamilton. agreement has extremely cannot workflow comparison we have Tecan and of DiaSorin, it the for and I any QIAGEN, with also with which But Thanks, what built it. in on automated market -- automated the people executed most is is I Falko. talk is behalf Many detection. key talking that agreement TB I'm the on latent universal the with and There competitors. proven since the on with starts have know that for mind on we step pre-analytical moment efficient

the have continue third TB since It's fourth fourth and publications. unprecedented. itself. generation QuantiFERON. launched seen as product also Falko, on invest generation. X,XXX we we get more we did Overall, to the in latent recently, publications The It's you Second, reviews than have continue peer replace this to generation on

main many there The And antiquated still skin years is that market is for an Third, below competition technology has underpenetrated, XX%. for called QuantiFERON. test. probably one been

the never to potential markets. the shares. competitors changed growth the other all of also other rate And skin but still or U.S., So beyond test, obviously, significant market of really convert the presence QIAGEN not, our emergence in is in the independent or

complacency. to do take not to on but that I are we continue we We positioned very conversion, solution and anything concrete lead know very yet. What well, market not monitor our this seen we on So still for have well we believe market. that is the the invest market

Operator

to go Leonard Dan UBS. line we the with of Next,

Daniel Leonard

year. the level past your for business. conviction your that I the tech to conviction tech have that Has of months? in a sample single digits earlier all of question changed follow-up sample on an X can Has low grow level at

Thierry Bernard

No.

said, reiterate the we once that XXXX. again, year, As have vision we full for

We are of and worldwide. to analysis the time significant spending trends understand the market marketing

And this that so confirms basically far, assumption.

moment. the for change no So

Daniel Leonard

testing livestock about a QIAGEN's either And HXNX in follow-up, my Thierry, respond you for God thinking are you there ability forbid humans? to mentioned then HXNX. for if How need or is greater

Thierry Bernard

before, not one, are every before, as about, NIH decided the with we QIAGEN only QIAGEN CDC, what solutions. interesting panicking. about I without said I proactively with And the the just relevant about to extremely say usual, kit. proactive is not use I the the it's that situation it's own develop when as but is very authorities. And So solutions, their they components. NIH the kit spoke will to second, If a or NIH discuss

format So to on digital a kits or on format, component PCR whether from these we kits, format. can PCR finish answer is a a next-generation sequencing

companies some the challenge. And You most step QIAGEN will of continue to outbreak this the relevant we the HXNX, ago same. was first X years know of do major to that during up to

well. of as very the are on We on development vigilant Monkeypox HXNX

discussing negotiating so we and those And with and ready are constantly agencies.

Operator

Wolfe go Doug We with to Schenkel Research. next

Douglas Schenkel

investment follow-up about quick years. that QuantiFERON. think Thierry, -- been very the competition well on described something I you haven't not A unearth focus thinking like is on community you the really it's in for we

a efforts You've There's assumption? lock in you've stack you'll not in strength about assay of but process to talk you on detail just that potential perspective how compared CMD, IGRA in alternatives, detail been and market. With in the and made competitor the legacy approaches. an that a clinically describe it going competing against contractually anticipating fair Is up also on broader. the customers fair mind, based to to gets your you're say from competition existing that is to

Thierry Bernard

our such the clear that to Doug. details the It's expectations give key It's us a product CMD of for assumption, plans indeed for a what coming years. very

We are much situation our very monitoring of contract. the also

There growth no is that will that is you we confidence our be preannual on company. is is details continue give and So contracts There for will complacency. extreme driver see into to there really there that vigilance. percentage investments are can a the this so locked contracts that of

Douglas Schenkel

least And lab clear, reported and before that you of guys that be that. so, to those question assumptions? for And Other to came when quarter. thus have same you a activity into then April. waiting something reagent a there companies at if on reported continuation to a indicate year a to that in it was activity trend seemed for in pickup your it for like you longer just far, fully is did trend of have then just you the and start want see guidance? March Thank factor demand. quick slower-than-expected reflected the would time period thing? are I a the to guidance And the extend in that Or

Thierry Bernard

think, his I There presentation in science softness Doug, life part. during the on to the alluded just that QIAGEN. market, is Roland for not

more is results cautiousness moment at in believe market. terms If expense. I outperform the translates into capital growth. competition science in softness on on competition, life of competition at look and the And we you clinical mainly that there The dynamism

we planned, we even as comparable expected as than reaffirm have what have did than said competition better we well, results, at did we better as guidance. that on And reported And are for least the explained, our that to was us, We those and the QX. we Roland QIAGEN. it completely

see we the are So This at is -- seeing improvement. moment. we quite solid where

Operator

Cowen. question last Dan from our Brennan take TD with We'll

Daniel Brennan

improvement to year? it PCR you the one, digital the on first there business ex Maybe what progress through PCR the just business for decline of drives know that the XQ, says PCR portfolio. earlier was assumed you I I after release see But base know as the year. the on expect the kind through press question What's and amplification. improve digital in a XX%

Thierry Bernard

of such we believe that trend have I'm in overall, a applications our is Because newer expectation. the follow sequential technologies, trend digital we the market talking older in wide that PCR, PCR, made improvement portfolio not which will

forget a driving this also, base is have which installed So not assumption. do significant that we

portfolio. not of have or we and that PCR we focus the go R&D, new position years, said. But for what a symbol QIAGEN last portfolio again, this this in #X the It will on because confirming where because in the also really -- is in marketing go is clearly, efforts ground, presence this and overall efforts market. Dan, to So is the on for #X a we can the the PCR digital PCR because will take sales the

also So clearly what will that's the XX. allocation see of priorities. is you June on And this

Daniel Brennan

And Maybe you'll kind Investor the that, growth is and/or margin reasonable it June? related Day? you to of to multiyear think And of for the kind new targets out what goals in roll step can are back?

Thierry Bernard

John for on do to the and for with the numbers portfolio, and also we we accelerate to believe and Roland chime on clear growth drivers is Day we why think that what coming show go line that show I kind also here. the believe as show to can and of we will needs in efficiency measures ambitions want well. we profitability, Investor the The that. top QIAGEN X we our also is bottom to line goal years achieve to have But want improving significant in

new of the And of you for to meet QIAGEN. obviously, management guys an also it's also part opportunity

and of Diagnostics. of have their Diagnostics the Head those X Clinical respective will new new Life last Head giving of a Executive also different Head we stage for new that their manager growth know Science, Committee, the You assumptions brought portfolio. And you at Clinical also Head for a Life Operations, for and on new ones, a Science see

John Gilardi

or XX Thank in at on any to not in York Bye-bye. event. if meantime. us. in have New forward you And June hesitate look on thank to Please do for seeing reach point. And our to Thierry, you you, interest out you the QIAGEN. your questions that comments again we Again,

Operator

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

Qiagen (QGEN) 30 Apr 242024 Q1 Earnings call transcript