QDEL - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Quidel Corporation First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, instructions will be given for the question-and-answer session. [Operator Instructions] I'd now like to turn the call over to Mr. Ruben Argueta, Quidel's Director of Investor Relations. ahead. go Please

Ruben Argueta

Chief Good today's operator. and and you Steward thank Executive Thank With afternoon, me joining our Randy and call. Doug President Officer. today for Officer, you, Bryant; everyone, Financial is Chief our

now Our our on Investor release ir.quidel.com, available first website. earnings quarter XXXX is Relations

this Presentations Please a conclusion laws. call will call of of conference We the on post note period IR statements our May meaning prepared our of also for of this hours. XX website that on X forward-looking the include remarks tab following will the within securities federal

of Forward-looking financial involve assumptions uncertainties, performance, highly our around and financial by from and forward-looking statements. suppliers, our possible events continuously condition our results that response that factors performance in unpredictable. risks, the differ and such results and in pandemic COVID-XX assumptions our business, impact and Many that evolving of statements, future business and their could and results nature, may the affect on customers are expectations and or and particular those uncertain, operations partners, our materially our material actual of

time-sensitive released the titled by undertakes and statements ended conference X, that May this on XX-Q, of For after Quidel March Quidel to recent as Factors, Report review date circumstances XXXX. broadcast, no the information only or with update factors, except the Form to events the live the filed call, of as Today, subsequent conference statements XX, Risk XXXX. section financial contains of XX-K, three is this date required Quidel's such reflect Annual revise registration obligation call for the quarterly or months any results law. of reports including Form most please a discussion on as Furthermore, SEC. accurate

not the at added a please would you to distribution if If you company's me XXX-XXX-XXXX. or news to like release, received list, have be contact

the call we'll to our the will to comments. I'll Following now hand financial over take briefly call Randy results. questions. discuss his Doug's your open Then comments, for Doug

Doug Bryant

Thank us. good for your and company of it's Ruben, interest with you, all you quite afternoon, being your you, appreciated. and know our Thank in time everyone. are late for but many I

high our showcase strong the saw and new to up team. facility and big Quidel every XXXX QuickVue strategic rapid completing the one center, on and ago. distribution markets. achieved and to in expected period manufacturing have team. from take the like in by our our increase entire our negotiating give beyond. establish same a new discipline managing mass chain, and unique clearances and packaging supply would products, that commitment of quarter simultaneously Carlsbad, without delivered into well extraordinary specialty global be it increase not a across new opportunities per our foundation new the advancing and Quidel emerging and brought operations market first XXX% very and of manufacturing net innovative well regulatory platforms as year that impact, at-home serve stepping results We our capital in is vision, a regulatory XXXX construction in We results of pandemic. challenges Everyone launching labs, grit a capitalize on us income see facilities performance, in Quidel profit talents, and as press quality These XXX% challenging will Solana teams marketing As release, day in increase to HR, share the on possible the to product and with growth, We gross execution a to XXX% OTC the compared an approximately SARS-CoV-X, this revenue, while continuing you test earnings our antigen will

top so, forward a thanks That our steps the pandemic. belief prudent it multiplier by doing our undergone taking to and coworkers the do of on and last contain is While part centered teams. COVID diagnostics-based significant R&D take their health us, years as their are protect families, the customers our and can that charge meeting others remained and we we introduced is the doing we products In company helping against that society's well-being. pay communities. a breakthrough several The a innovation force have the also over to priority what has transformation needs, personal have for empowers fight to to

result, strategic several drivers other a have we As growth worth noting.

analyzer targets to plus XX run molecular that As poised PCR a introduce controls enables proven our Savanna, real-time you to most robust our minutes are up and in customers single XX built in under know, professional multiplex analyze to on of we or techniques. pathogens assay

to capabilities decentralize ingenious extending use, and Feedback factors, for customers Savanna moderately to an complex regional and many we combination performance time, Given ease of lab and physicians' been modularity superior clinics achieve settings. bigger of of simplicity, potentially care promises has testing, to differentiating tremendous. and managed urgent unique disrupt molecular turnaround point-of-care the offices, and platform. centralized revolutionary multiplex hospitals and technology from This other labs, versatility

our this We XXX(k) the the back Savanna the have year. in for submitted of to respiratory half our to Savanna FDA package recently first we submit platform and first expect panels for

antibody coronavirus look forward in XXX(k) as US cardiometabolic, X to will IgG the or introducing we expect quarter. Sensitivity April Regarding known PLGF clinical to placental soon, Sofia growth trials Very this factor for be Fia. X our and properly as more product long-awaited it package antibody test we known Sofia High SARS-CoV-X Triage also Troponin de for began the submit development novo

qualitative venous patients the and antibodies to one rapid plasma human finger-stick nucleocapsid employs and spike protein, proprietary whole protein Our differential IgG COVID-XX SARS-CoV-X immunofluorescence protein from and whole of detection serum for two specimens and suspected technology spike from exposure. blood of blood,

two COVID-XX of spike of for is reaction the but current titers also is levels use the analyzer also cutoff parts and side compelling. Did Our packet things. to PCR antibodies Patients body.That's peace detects values asinine blood experienced semiquantitative reaction and antibody immunity The antibody And concerns confirm indicator degree believe which to symptoms with have infection. this they the to to in a that people single instrument detecting vaccines. protein, or can COVID immune the infections? submit and test access far used virus vaccinated target antibodies understandable to story, the for of COVID? an three X case protein EUA Sofia with were mind each antibodies want to individual's pressing the Our their reports they before test to future the an more to signals who tests the have distinct know widely technical the antigen is antibodies active against COVID-like do which FDA vulnerability along countless We to will imminently bring or about patient's COVID-XX. to plan for to of X, by to COVID-XX test be available

getting reach accelerate Sofia already practices which from for coming are asking X in our and point-of-care Sofia care ultimately patients the the and the our forward across Also calls should traditional with analyzers, medical platform and penetration months, compact amplify competitively-priced test. urgent market. to look We over-the-counter outlets introducing we

frequent for host in retail significant awareness, channel from quarterm for have these global testing. provides to we markets COVID-XX leagues sales door forward. the peace tremendous antigen driving employers operations other to and disease Sofia This OTC demand QuickVue along products an market line CDC on see these when this objective means Several testing and schools, and the take the received to of is brand and of the frequent leverage inflection revenues portfolio for that received several EUA change the OTC and talents first the path-breaking in at-home of This consumer presymptomatic newly second serial During represents embrace We drivers compliance the Quidel regulatory returning sports extend are is market Quidel The drive use focused these with with broad for at-home the and and new and are significant and implications of to barriers of as opportunities flu, Perhaps for non-prescription markets That We final conditions. serial opportunities of for product. Sofia partnerships a Similarly, which us for viral benefits that our and potential with base and and scale. of helpful at our been installed with we company believe diagnostic with we of quarter the going enter of shift and both platforms. reopening for immediate our strep to most could share sites. quarter. test guidelines. for of beginning with screening test of developments to when to first schools, mind and through Walgreens. overcome full addressable we on shape wave EUA that leaders, of rapidly OTC distribution for asymptomatic testing testing to significant Both our of to regulatory expanding of observed enable over-the-counter QuickVue, workplaces potential use day of adoption already ahead capture employees next XX,XXX the array sales through the at-home day our markets, assurance significant and significant FDA their regulation. was believe strategic give retail from for be clearance which patrons point screening including could a significant beyond truly home Sofia of also screening EUAs a authorization the and and testing, flow McKesson venues came we second well approvals the at open expansions commercial that adoption well of OTC and telemedicine Sofia entertainment determined in to as analyzers reopening QuickVue sites. assays at-home be quarter, sea secured first demand rise quarter, our workplaces and of to at testing. our is expect our SARS partnerships generating a our The entertainment day addressable of diagnostics workplaces screening FDA commercial the and other other greater

to departments such testing in same to retail, customers centers us for and the enables health locations. significant for new McKesson professional continue with partnership supply time our other and reopening the at reaching entertainment existing schools our segment, employers, example, while as For markets, many

access Our will multiple independent agreement and access provide HealthSmart franchise, pharmacies. over us to of allowing a retailers with Quidel XXXX to network with McKesson its

to as Medical. e-commerce multiple and Finally, across McKesson products introduce such will provide Simply sites us eBay with rapidly the ability Amazon,

COVID-XX OTC locations at-home with to any US partnership QuickVue and than or@walgreens.com tests Our will sell allow and X,XXX to us offices to more and sites. in their partnerships serve take bring Walgreens own us significant give to charge consumers employer the segment employees consumers further Walgreens OTC enabling of seeking the to Rico at the as our fulfillment will of unprecedented are to Puerto These back pathways exposure well important that as to groups work health.

extremely everywhere. these We access the and of innovative workplaces democratizing for and proud tests new well-being for antigen of to communities hold families, are rapid partnerships the our they promise

look COVID March. we realized the demand we our of in we quarter, the and at As professional did February in for April, the month second as tests, same

at-home accelerating and reordering demand we anticipate key expect test, and June, aided OTC professional of by partnerships. COVID QuickVue some May For for our our our strategic tests

forward, which to and aspect summary, us. it's support growth macroeconomic at-home but very testing, see partnerships individuals COVID-XX products our just a to of on-site we and opportunities early. of near-term of testing the runway powerful is ahead of significant in and revenue one still represents Moving In long mix asymptomatic component initiatives trends. work a increasing strategy tied of have we back-to-school

forward. we innovative for they assays, with demand success, to at-home it's provide model These symptomatic we as certainty our revenue screening broader human proposition. any for a long to hard that three could portfolio on our trends: continued While and our will gateways health. testing, road the our map our COVID diagnostic and growth improve growth be value that testing material pave are exciting products diagnostics market are to business, both asymptomatic advance going macro the with to prove confident That's have combined of and effect there that

to is and While be will and revenue we performance, a longer-term quarter we understand that Randy? each report valued the on short-term extent far of greater. certain margin our value based company

Randy Steward

Doug. everyone. you, Thank afternoon, Good

quarter. first very in the As Doug strong stated, year-over-year we growth saw

new portfolio. scale goals assays, develop, COVID-XX We strides on strategy, well make product which continue the introduce longer-term of progress our involves to our rest to great and as as and

As antigen reported, This million, strong the million was significant due immunoassay compared driven revenue molecular isothermal and were molecular demand first of for $XXX.X lesser metabolic increase and a and growth in demand modest saw also revenues $XXX.X solutions by first quarter products. to quarter, diagnostic we while In rapid for cardio our our in product extent categories specialized our the and products total to XXXX. COVID-XX in diagnostic decline. XXX% PCR the a Solana quarter our growth for category for solid to saw rapid line

the influenza that had no in never years $X.X It's million in fact a the first threshold, that of season. CDC's effectively illustrating for interesting data crossed to currency a positive IOI time positive was quarter. Foreign there impact X% note cases, the X% XX the

million revenue flu in of last first million to the the all-in compared $X.X was $XX.X Our year. quarter quarter for

product of million test. QuickVue grew revenues in to million was XXX% SARS SARS the million $XXX.X quarter category to revenue this were the $XXX.X attributed sales. $XXX.X quarter antigen product XXXX. the $XX increased million first in immunoassay to attributed of or $XX.X in Sofia rapid which million $XXX.X Of to Sofia Within $XXX.X the Our products million QuickVue

As until mentioned, EUA receive March a we reminder for test our did and COVID-XX at-home QuickVue as OTC XX. not Doug the

from growth business For levels to to is and we BNP Of nice our from assay of the and first This business a revenue, was XX% cardiometabolic our the and million XXXX. came million segment return as businesses. immuno BNP second from cardiometabolic of or both see quarter consecutive demonstrating a strong Global the quarter pre-COVID business. the year-over-year $XX from $XX.X Beckman Triage million our the continue performance increase revenue in and $XX.X came $XX.X Beckman Triage for million

driven the Revenue quarter very in category decline our to both growth in cell respiratory respiratory business geographies. sales in our came Beckman/BNP million non-COVID of the Triage by result diagnostic year-over-year specialized $XX.X and $X.X For from solutions decreased all million first disease. the in from products a culture little

SARS-CoV-X by million diagnostic the $XX.X our solutions molecular to Our million increased $XX.X Lyra products. sales million of quarter $XX.X in in category driven

quarter. Solana revenues grew the to XX% $X.X million in

decrease million EUA resulting and profit the gross margin $XXX into SARS-CoV-X Solana to late SARS-CoV-X of was XXXX that demand for million The our XX%. drove less quarter was million quarter product being for of was estimates the approval a generated which interim assay $X.X improvement the Margin favorable profit the product product by with is million fourth quarter. This also the product below driven in sequential $X.X to in $XXX to late mix the Gross in entrant SARS-CoV-X due increased assays versus sales. mix. due market.

base longer platform leverage instruments, like of Sofia in and operating to of expenses continue on R&D Q installed advancing As new to it and goal technologies. exciting with platforms large invest that our our relates launching Savanna we the can assays other our term year this Sofia initiatives next-generation

as as continue also marketing and in that will and expand partnerships invest sales customer in testing, OTC markets develop new dollars we at-home to and our base. markets marketing broaden can We promotion significantly more sales other such and

benefits it relates provision income effective tax As of from by in resulted approximately income which rate the compensation percentage reflected XX%. tax in Tax tax the quarter stock-based recorded for $XX rate to million effective we quarter, X expense, our an points. in taxes the for excess

effective potential legislation, excluding are full uncertain. any rate We impact and of a estimating which between XX% tax currently year remains XX%,

$XXX cash of March cash end equivalents. approximately of the As and in had million we

have million payment two assets will a invested in our company only generated cash In the years. operations. $XXX deferred next then of $XX in expenditures. the we capital and $XX to in quarter, from balance the Alere made October on the flow acquired million Abbott capital paid $XX we million be for the we also over remaining million to of quarter, XXXX consideration that Relating April, first the deployment, approximately in During annual

increased For that, today. formal our of call for we upgrading assay questions. year, we're cartridge support information plan with we systems. the $XXX And capacity manufacturing, products our spending amino the approximately in Savanna Operator, for remainder conclude the now to for ready our our on of million open overall and comments

Operator

comes Alex your And Instructions] with [Operator first from Nowak question Craig-Hallum.

Alex Nowak

afternoon, everyone. question… Great. The biggest Good

Doug Bryant

Alex. afternoon Good

Alex Nowak

Doug. Hey

biggest sounds that testing got good I do market. think the new long-term? professional the here the question everyone It is from has how going the markets in you these to and all sales quantify in you near both

quantify You got into revenue? can all making that ultimately you could these just decisive the you're that these looking just and for announcements, how could look I take And to how all this channels But revenue some deals. them potential of all financial go think of out put like distribution what have these by go some company I is them into deals clarity into to and year asymptomatic the model? we're there, at-home and -- year? how define a go the to

Doug Bryant

The feel pain not and don't Alex, it's guidance on reason we answer give Yeah. revenue will short that not essentially giving forecastable. and it's be guidance although your I capacity or the is,

to new as of well is which entertainment situations, is your you model of recognizing guess make impossible and COVID I for would this schools, at sense. paradigm a at new But sports that it's and new new are us for So all for testing a most lot which travel, this for build which stage. model employers, new to of which for is that would like retail, clients venues for

you would our I how just model all you analysts, on not colleagues can say It's to and phone, the So possible. it?

in Alex that. pain your So I feel,

second. of think just opportunity school And You if the what take a like. bucket looks But to you you testing try for opportunities. these see each one

are decided and You've shortly. definitively they already they're got several without an so announced states already those have we of what there, out they will that RFP, which be some did doing have

that the an schools, just the the determine then of you RFP process starting to have superintendents In are have make are addition we possible. living And states some states decision. what's that

the how but suppose of wild So to the Later, want day, be. we're at this is big with difficult super make can't. talk I at, out of tell just could you am demand actual categories, end about I it all just bucket But I can going it's to be. one actually to if each the that them. folks guesses, alone, define, figure to some can it of how with at I different the stage

Let's -- quarter. on just we more do very, I They're material. the appreciate have An to two enough very impact employer in to will color that bit are this provide just very, a large global employers little and have testing, be imminent large the question. question.

you vaccines therefore, to process because to announce. pod not will venues, got until so grades, travel. what do works. park of only But required are doing a also the going the actually showing have employers, went actually our that we that And several our many know the to number they office. so have not other that, to support they the the some a countries twice could in in arrival. providing you not them, back, We're something But to that testing talked out. schools as big do And the do people testing at them. We're bring there are quite How all it, good tests to delegate of say But week, sort a don't a you we You've to know. early office, we name passengers answer. quite now, we right like, forward. we back the reached their And discussions for protect safe. them. need But big what and do other moving be and We're the that tested. Sporting testing are appetite, be? be? is upon Others active How have? games other employees. vendors sports And suspect the potentially know about really employees franchises similar big. front we're who employer, we public have be I well. the definitively employees where my the we're are of we're we're testing we say for numerous an they're own I couple that price that of company. what at with example I can employers can I'm would And are how companies up of of because in going inbound park We aren't numerous will to there. who think to point? people

had Retail don't we've channel. really fact to of know. as with big, big Pharmacy a of is and testing how Walgreens there In there. number Pharmacy, much think a well. McKesson respect conversations type that is. is I Certainly, that But demand

have So have just store we've have that are stores. that be with retailers, -- and have those two out. others pharmacies of several grocery shortly. won't the And their big it'll also But those it name been chains partnered we in fall to be going our

So we a order. in of those the number have

I don't it we apologize, is we you could why buckets, Alex, impossible also it's but forecast. that that by definitive to just anything tell have major the So

Alex Nowak

you. here. I second answer, Thank Doug. the just then, appreciate question the And

up Walgreens want the an XXXX. Sofia on test. a And lined that but platform guess launch you you've over-the-counter assays established anything? big with on when Have in, does question, they you to you Now, this do launch same other I signaled QuickVue, we're add what really I to is want add? talking guess had going menu what in Sofia, gotten beachhead then, to back that to XXXX, over really to

where Sofia? again on QuickVue Just pipeline that OTC? for does And then, anything stand and

Doug Bryant

The or Day, Are we new year? job speed versus at things. of all FDA clearly the EUAs to all reviewing call did refer is assay that pretty Analyst moving the prioritizing those but we other No. good you XXX(k)s if non-COVID on And would expect things. they Sofia the a now, in with I rapidly won't here development. those through go a very progressing still We're back

a you is fall, delay FDA, their So other about at So the understandably, noticeable asked right? products. not there

for in the big could this would Walgreens, testing. I a an think, pharmacy be number that conversations in or speak change in that in other chains. we've diagnostic say places sea these of But folks terms won't important like I retail I where Walgreens had of think box

move right? we're going do retail to I home, but that calling from to telemedicine mixed, larger telediagnostics, pharmacy So what a strep, we're do So you bit about, think flu could talking are the folks is do home. there disease some you lyme at already could segment you or could at

think home, for an We begin that test be diagnostic mean not. by what I is accounting to happened that accessible or see physician want healthcare over-the-counter. so, about the certainly opportunity. or other in I opportunity else, whether there pregnancy Abbott their glucose of those or diagnostic a could think completely to aided testing, provider an testing for or or market folks us is build at who testing companies, whether that And it's somebody to for

is I think us I moving an additional there for opportunity. it segment could And very be market that We're opportunity. an think an forward. is as helpful planning certainly if is that that

Alex Nowak

Excellent. Appreciate All right. you. update. the Thank

Doug Bryant

Alex. you, Thank

Operator

And your Weinstein of next from Blair. William comes line with Brian question the

Griffin Soriano

afternoon. Griffin is on This Good guys. Brian. Hi,

return, is the think recognized is what pricing on to up And clarify directly then, revenue into one Is and recognition? quick you end being right you maybe to Walgreens the And Walgreens on pricing announcement. that the is what shipments? of a it a end Are there second user? the to one revenue on or you and Can shipping Just channel? your -- going here. then

Doug Bryant

Yes. We're directly recognizing into Walgreens. revenue

short answer to So question. missing first I that's that am the What part? the

Unidentified Analyst

user. end the to Pricing

Doug Bryant

Yes.

different to two it ways. So I'm going answer

any in price we change interesting by First didn't QX I'll is price. start actually because in see saying

to to at other end we the would to easier priced we QuickVue we -- say believe Therefore, be really than should run QuickVue believe that though we the faster slightly product that competitors. this be OTC very pricing the aren't specific. user going can forward is our higher. say than products I But premium our command Moving to and

we And That's so slightly they wherever higher. go my will be view.

Unidentified Analyst

non-COVID to revenue six Okay. of a XX% just There are on revenue gave reason there one then to grow Day the there's some change the still one that your side. there, targets specific which months pretty core XXXX-XXXX. targets And about from CAGR Analyst or think from non-COVID was more at Is any here you Analyst endorsing about last from an removed Day? you where revenue are those

Doug Bryant

We believe solid. are those Yes.

the to heard continue talk single-digits. We're grow You to Randy and about mid do I say poised well low segment. there cardiometabolic to would to

introduced prospect the With of sense troponin. rapidly more when growing we high

in little used I started be got that pretty bit predictor useful we'll PLGF, is. was big health. of about. that diagnosis We that it's we something in assessing a the or be this as see placental what clinical we'll you we're a a as the say the of could minimum product that in to for get pre-eclampsia that better use to think If says data April. that's that could As growth a pre-eclampsia. would aid say we going an claim when Obviously I physicians that And mentioned trials then would FDA to and opportunity. what huge intended beyond you're talking submit use claim But at

get for that company. on of what And clearance then see product if see a this is as for huge top were flagship being we product so growth I big that the next that to well. as I driver And

Sofia a be Savanna was going a slam. is home run, grand I to think,

believe got up a so product to ramping because Randy cartridge of as firmly in be And that we've heard we're we best million manufacturing $XXX say, another -- going you spending is we market.

Unidentified Analyst

Great. Thanks, Doug.

Doug Bryant

Thank you.

Randy Steward

Thank you.

Operator

And Peterson with your question next Tycho from JPMorgan. comes

Unidentified Analyst

Tycho. for on Casey is This guys. Hi,

Doug Bryant

Hi, Casey.

Unidentified Analyst

is going? How it Yes. Hi.

Doug Bryant

Good.

Unidentified Analyst

guidance I not obviously. giving a XXXX you're earlier to anymore. back comment you guidance giving heard guidance capacity Going not I that made so you're regarding think But

that year Just maybe the the XXX tracking million just… about think XXX Sofia by or we wanted end how run for to you're and rate that, clarify QuickVue should of unit one million the towards so still that

Doug Bryant

many I'd it's nitty into ahead just there's of to tell next to moving I'm parts week. that numbers. you beat we're so not week we but the We're week week those One going grid And number. the going now, another. get this to from already know running because

a of think have people absolutely for it's doing it's simple a guys everything. You It's things we set chain. highly always It's not. control lot don't us And supply a but highly outside complex of company. the are complex of that

So, number pouching what to just would the we're significantly. number. important process component come and save too you It's of us it's in and that the schedule, of the for way pretty very manufacturing strips one tell But right is difficult now, on of hard. then running I ahead

all looks up the fingers crossed. guys don't to we you like Fingers Now catch hear we It don't want other stuff? could. but know. can with crossed, I

You hear number a want but have a I you. number for don't to

Unidentified Analyst

Got you.

Okay. makes sense. That

Savanna, towards Going back space you by tracking the XQ to of scale crowded question. the think you're become following sort starting early Is having still sort given to previous launch in maybe customers space. what with of here? Savanna conversations Mesa a And the thinks Helix that's then of new up that in on competitors

little how can just So here. a talk differentiate maybe bit about to you

Doug Bryant

you They by has the saying start companies mentioned are good tiny microscopic. – are a been not tiny. I'll mean Yes I word,

put are into We Cepheid see to ability on in others, and players to a dramatically their up the don't I hand the ramping to as manufacturing and cartridges number like compete other pretty order ramp big imminent. space. with So of the out

launching six going clinical going We that these year. already into lack this trials companies we market. be other other that possess to products have the multiplex in is to thing products, The be we're menu. They're

the already EUA we've for submitted RVPX. So

Plus not only terms way terms and way, of those manufacture. of our a ahead have commercial of ramp we're in but companies, product quality So ability we in to so organization. to

offensive, hope want we we intend guys. don't don't sound about I to I because worry I those okay intend sound – here. to defensive So

reaction are going is Cepheid's what worried We about be. to

Unidentified Analyst

then in. I one one And it. Got just can maybe if sneak last

On XX% business with the potentially the flu about forward. potentially cannibalize And combo COVID environment, Maybe flu maybe about that. split year. talked COVID test on think wondering the combo food some longer given more moving as combo? together previously the maybe should know we and thoughts term, just Sofia going between a for and normalized Sofia, tested how as how that stand-alone materialize being of combo. didn't updated you've then test I will to this the obviously But much regular

Thank how that. Just about you. should think we

Doug Bryant

were had if do Sure. to folks the ready to did asked develop lot roll Well of in the of We to and then fourth We combo quarter, we're we a were that was have by that no administration. Keith And the food. did. product we start indeed product. inventory product. we asked We in to ship We I'll need so manufacture the saying product so.

of have the So course, [indiscernible]. we

see wouldn't stage. panel at can a us that's I a you're really more I includes to respiratory future, forward the significantly a And good going at moving see COVID. this in be manufacturing looking flu that and And so where question. the RSV world

prevalent in one throw want that's human If you too. to virus probably probably than there there should have another more you us on melanoma

seasons. to ability our is that, great to into So going move think as future we I do be respiratory timing

cough, days panel, a a and think. anything with want I on indicative sentence viral could test which to kind you that's of of fever be these almost people infection anything of so the And

to a making customer ask in we're see as customer moleculars debate a molecular to position a those they whether I method. I that a it's think if give of about or and done. the in customer them. with and we basically a part don't think is influencer case, includes panel way, When know, more do is looking I them. I call name We looking will things, both of by go one better. you're we performance? that's you'd don't our and we if on we it will better goes combo do at Are few we're product whether Sofia I the see perspective doing necessarily, combination at that assay are see companies wants we it's where so speed, and because the on They're anywhere by a that think we're have organization's better want well. the products – it them be from obviously testing but of immunoassay And I depending commercial just a perspective the and what you And or So are go but cannibalize great at. what that that to of so Are in that two you from it we looking could And what ones looking affordability? the that now, the a even few at companies, give one Savanna or you sensitivity other

Operator

And Co. your the from comes & with line next question Sandler of Steven Mah Piper

Steven Mah

for Thanks guys. Hi, question. the

Doug Bryant

Steve. Hey,

Steven Mah

question my to already. might one discussed these Savanna. so And you a follow-on just have apologize. if I But And

CapEx and to spend? bundle well. update Q the Q support you of timing with of we as Savanna was that maybe about and then an just Sofia think to what launch So – should that the And in how is going timing launch? on CapEx be Sofia question my And the can

Doug Bryant

question, the a total script $XXX RSN I and big in just was chunk Steve. obviously a already the of start – year-end, We'll morning. CapEx We that between million and $XXX an my require that were It with doing we million did fairly sign CE said enough this signature. now big

it's got say, some pretty million. evenly $XXX between I – So distributed the the would we've quarters

So $XX That million, – million, would million that. bucket want it into into if $XX about quarter. bucket you you're the right, like something $XX trying to be –

right? et right the of Q, we've there already Sofia and they at button We submitted it's which data questions. to sending hit They reviewing kind the back data in the say, the send chess data, clock, active et they're great like cetera, we back they're FDA. then Regarding the Or means it looking we're like under cetera. package they're now. review, to have It's as shape

were Steve? you looking answer for does So that what

Steven Mah

in to then set right. Savanna still? is Yeah, that's launch QX And

Doug Bryant

QX, QX. No, it's been no, no never it's

Steven Mah

QX, sorry.

Doug Bryant

to some pull had solve things QX the things obviously, done along it that forward for launch. we way. given And to we've

we're I'm proud still the sticking of fact that So pretty to QX.

Steven Mah

Okay. yes, big OTC. for have Perfect. Got Walgreen Do for other it. I saw on you box next And the timing retailers? the question, congrats

Doug Bryant

Amen-Amen. soon. Very Soon.

Steven Mah

a million forecast. to XX to Fair there impossible all? that give government deliver then this contract in final can if know that mix guys things question I But enough. are summer the I and is out right. color -- there on you All know for and the any And on at at-home confirm you tests are the by

Doug Bryant

Steve? million asking you're what that about? Is XX kids, school it Is

Steven Mah

like this No, that is they got government grant? -- a that's million contract like $XXX

Doug Bryant

order not what ramp That's funded to up means, in they manufacturing no. capacity. no, that were No,

Steven Mah

XX home. Yes, this the million at is

Doug Bryant

to Yes. in What manufacturing they're to doing is the order agreed those government fund ramp-up. capacity the has buy

Steven Mah

or Yes. there's one. announced Got six companies, know Okay. like it. only but had they be going I to they seven mentioned

Okay.

completely So separate. that's

Doug Bryant

Yes.

more not companies. group larger we're like we're in the that So because

know Although up don't obviously, we're we in large Abbott, funding you We manufacturing. manufacturing as capacity. and Sofia not up Roche funding as did order others. as But to ramp need some ramp to get

think number there the I was...

Randy Steward

XX.

Doug Bryant

right? that was... XX And

Steven Mah

XX. That at was Rad

Doug Bryant

then And XX Carlsbad still our the in XX Rutherford we're and And that's doing for facility as all own. on minus then self-funded well.

companies smaller we these don't the funding. unlike need So

Steven Mah

Thanks it. clarifying. you. right. Got Okay. for All Thank

Doug Bryant

Cheers.

Operator

comes your And Cooper question with next from Raymond Andrew James.

Andrew Cooper

this that you kind for in Are the or And direct you the level? already Hi, a is? I it's to really think the shaping the wants spaces time. And been school schools state and from one help can to like. to buy when to But government. and just right or conversations guys. conversations sort buy, state that are the or money Maybe having the the what A school wants and up district Obviously where lot are Thanks more the things what we license? about signed necessarily structure of it's how has sales hunting asked. a yet. of appreciate aren't those the out? buy if school firm Can getting district federal it is look

Doug Bryant

Yes.

say Let be me then to clear the and repeat it at maybe second again just or I'll maybe time.

the are own some testing have states -- have already state-wide funding. they states most And So and their I'm to implementing plan. schools have sorry held received states funds, have access turnkey we're They're states early sending are which are also looking begun solutions, process RFPs. cases. therefore providing in out and of in the that have a number for now There just

and way how on some the embracing process be that are are that sort stop and done make then others will will way of when are when are to states basically there are there when bunch it the superintendents which decisions will in testing involved and school the a going. there start things to states others ahead RFP are see that. superintendents of doing are will school allowing it of the they have it individual done, and trying So it are be running And

them work thing and easier we that So are somewhat least states them you and obviously that us proposal particular being And latter two for up approaches; because with top-down states on it's a have using And that with top go are bottom already how have one, down. at the to engage we that the profile us. a that the pursue other the that to do for platform. three we to they our product would committed we as fit and

beginning So all blowing But that, see the the what say trees to the I at are the and we magnitude states would say hear that I of those. impossible would to signs is, it's wind move. predict we

Andrew Cooper

to Okay. or it's Can think exclusively you in Helpful. help about that product sort And conjunction the maybe Is top-down your with that just lab-based states committed products? using -- of or you other is? what are said there's whether in that way. three us point-of-care

Doug Bryant

exclusively. it I would call practically

state have other not be might the where chunk is a you you to So and going yet decided. this may

people whole different, state So it is a are of just because now. darn a pretty complex. little bit different that We've far they're schools team all right so doing but a every is little dramatically And got just not bit different.

Andrew Cooper

you you of the amount April more like one bit the made give pacing inventory a then the sort were little And you comment Helpful. maybe kind March. of down quarter around of and looking channel and in Okay. as just tremendous January. granularity? the had February a Obviously coming of on in Can of systematics

Doug Bryant

which were right? about the in just you the base have who are that talking script for and people fever I right? the So think segment the getting cough have sick, the symptomatic connected is segment said there may that for group. COVID professional level testing people who testing comment we that not I professional was misunderstood the month. you I Andrew, think What about in

Andrew Cooper

utilization talking necessarily were kind to more guess trajectory of revenue I Is about end that fair that. comment? the Okay. out. a you I understand quite not market

Doug Bryant

little who components just two or were were either and more bit somebody underlying little now. symptomatic Here we change what Yes. So demand you bleed those have like out This than a we're looks now this that we're through been symptomatic people But we quarter, that contact was then who's half there's months, right? year to or that. it starting first complicated We're is in the channel, right? awarded an at were much. didn't back bit So lot like when that demand that pointing they testing last a about a April, inventory talked it now it of right looks And in there's when they the is only again, right? with the that look uptick. seeing

we decreasing of see And the so positivity back We the various at case. half obviously and been we on reorders the in kids haven't states quarter, right are that states of one-fourth see had not We anticipated. rates be this had seeing now would cases necessarily kids that we're now which where some But hoped least up. from vaccinated.

stage. the at primarily infections spreading are kids So,

for to point the for It's because going So some to make seeing at be was level. to going always and actually a but to we are starting we're that trying going flattened, eradicate to see Andrew, were had meant. be that period our it traditional be is tick to there that thought product. That's we not time, we start the of reorders COVID. actually demand back now we're that underlying certain able that's And professional up what to

going XXXX course, least probably think of I And be the in XXXX that's as and of have volume of on testing. this at Now, to into that, now much transition top is asymptomatic where well. you

Andrew Cooper

there. Understood. Thanks lot. stop I’ll a

Doug Bryant

Andrew. you, Sure. Thank

Operator

with Instructions] next from [Operator Meehan Nephron question Research. Your comes Jack

Jack Meehan

afternoon. Good Hey.

Doug Bryant

Hey, Jack.

Jack Meehan

around update was work I to wondering you give with us back employers testing. your if could an progress on

something said some out conversations hope to those previously of with kind are capacity And the have, relationships? would you had you How ability you think you those now. your build by do have I of feel going? had announced how

Doug Bryant

Yes.

in time, and have jumped in that get employers employers a India, and get maybe they're employees numerous and are said back coming when smaller for are forth. can a more large if of testing, the think in as throws, so the I global color there's two It's there's that you with your And call going I that that very, there, just little us today these bit are quarter. that it to And so in final say other And would has the the little imminent. we impact it's connecting many we're down I very can calls add global Early ago. employer we material on are approval employers done so to going well. we testing to our are do that in have significant. a as while

of -- announce imminently. So, where expecting we more are one the point say we're to at the I or in would these

Jack Meehan

Great.

Doug Bryant

product. Is fact I shipping. to shipped we the already Yes. begun have we've started amount right, the order get right but two, believe guys? of in A that larger In small

Jack Meehan

of status in Great. last on field? Savanna Then quarter. data and you on performance started us of like the I you what the had in Can trials update Savanna, looks there the give clinical terms the know just an the

Doug Bryant

it we've approach. we it in on RVP we phased I the already We're as that but the time, you at very a this things can tell every of great six And cartridges. obviously and data tested look doing one haven't good. looks it product single submitted have

Jack Meehan

hospitals complex initial moderately to from it testing? And for fall be the plan the you settings? like to the COVID kind pertains the demand look still as new in for how equipment going do of to Is add is it think approval for with

Doug Bryant

able clinics they integrated their the want though into delivery testing that. to we've be larger XXX(k) those made words as hospitals with So a could XXX(k) as get the to out go line it decentralize to a possible. and separate decided predictable waiver we have to in because would to we instruments CLIA want FDA. time Jack networks more have intend decision we link together CLIA-waived. to also both given to be and democratize it want other those in the Rather And quickly us order We where which do to

handy For into this folks clinics of do stage that have GI or you the it's would to to easily. that really not pallet very, at example, testing STI a able they're very actually lot tell and

it's believe that CLIA-waived And that causes will be thinking of us product so very a having to that sort important.

Jack Meehan

Just XQ? specific about how have as I COVID Makes there in last sense. around did difficult one goes And the I commentary there of product. it's for what funnel Lyra I it thinking the terms one you're now. model sales, a any know can one. to if demand? right do is obviously for question

Doug Bryant

some about other Well tell to solid seeing of do demise we're I testing, have the them. not taking Lyra pretty to PCR you customers looks but talking I I think we're hear it. companies

We some actively stable the targets seen falloff we're reasonably haven't but we it's at -- that that have others this working, point.

-- you segment. think the lab particularly I decline, gains but we're look there at it has with that if you reference want a been decline to in same-store a a offsetting as regional sales see

Jack Meehan

Doug. you, Thank

Doug Bryant

Thanks, Jack.

Operator

remarks. all have closing is we Please today. presentation any time proceed or That the with your

Doug Bryant

few and interest great Well the we're in it We just by necessarily forecasting done yet. We in I'll and planet, about to thanks first good your growth years. objectives for feel excellent not but optimistic quarter, on achieve the not had conclude very next everybody the Quidel. an best our your over we're shape support saying

on being for again call. the thanks So

Operator

participation Ladies your and that and gentlemen please we Goodbye. thank you your for ask you disconnect lines.

QuidelOrtho (QDEL) 7 May 212021 Q1 Earnings call transcript