VIVO - Earnings call transcript Q4 2020 | Meridian Bioscience Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Meridian Bioscience Fiscal Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Charlie Wood, Vice President of Investor Relations. Thank you. Please go ahead.

Charlie Wood

Lindsey. you, Thank welcome call. and fiscal fourth XXXX Good to earnings quarter morning Meridian’s With Officer, Chief Chief Kenny, me Jack are Executive Financial and Officer. Baldasare, Bryan slides are Please accompany at that our filings, release note SEC investor.meridianbioscience.com. this on available and call our website earnings to

Singular post in prepared after We next in MedTech Diagnostics the the With be Canaccord a the Conference Research Bryan and Thursday, Piper of as the calendar, XXnd December, Sandler Forum of posted our will finalized. website Genuity to Virtual Jack copy will Conference call. mid‐December. these events early will details Healthcare remarks our The they regards in are and Annual be those participating and to

February Xth, Finally, XXXX. is QX our XXXX Friday earnings fiscal call for currently scheduled

today, that the you begin we the statements. remind me remarks Company’s let and forward‐looking include presentation Before

and the Forward‐looking many uncertainties, to including and risks uncertainties statements described Company’s Company’s materially of publicly and these as be related no from forward‐looking which in risks SEC by numerous subject time pandemic. statements control, the are projected, XXth, beyond note to the results that may risks Company’s COVID‐XX affected November XXXX, makes today, obligation and from to these differ filings. The in of update Meridian statements to them. are time may those undertakes particular

diluted expenses, now like turn to Additionally, of GAAP throughout included our related are per over this financial these in would on Jack. basis. operating each measures directly the income, to And operating and release. measures non‐GAAP operating other call net financial refer margin, comparable with most the earnings and discussion to specifically presentation, I A earnings share, we an measures, earnings net non‐GAAP reconciliation adjusted

Jack Kenny

sights any Through quarter the positive segment. expectations of segment accelerating our quarters Diagnostics been Without fiscal Life better development growth time Charlie. with a on with five in We ride. a first quite expecting the schedule. playing began corner, out you, pipeline, the finally modest investment expected the our March, with than growth was for of for turning the that ahead set delivering product and Science in and diagnostics year in has new plan segment wild XXXX the Thank doubt,

all shift an to plans company’s its a the from our know, future, every March all we turning greatly head. for As altering saw being the epidemic COVID‐XX pandemic, lives and foreseeable on

we application industry January this response of we the I action. to and enhancements master as the our rapidly do across our in to individuals for While dedication process sight want coronavirus, of effort. well professionals and and early to healthcare assay. there, and concern press capacity new China the highlighting our January, globe, a our molecular to time XXth bringing sheer in issued mix release demand pandemic to online, of new teams not Lyo‐Ready On do damage has support equipment Life increased businesses, of the lose the team team the manufacturing meet demand of diagnostics both the Meridian’s take COVID‐XX qPCR efficiency From our heroic time want prompting noticed this such through grew celebrate to need. from molecular In growing master we Science a in mixes done

in fever the first the This teams high products, African to was knew team, was been having in swine outbreak to their Zika R&D our the done. our outbreak new situation is XXXX existing and to the respond not XXXX. demand While work for not

did These included that to RNA of positioned testing facilitated from first‐to‐market deployed for division that diagnostics antibodies to its in approaches testing lateral which none that COVID‐XX flow were subsequent our molecular be and comprehensive distinct Not rapid the According and Over Meridian Inhibitor mix testing. but assays, performing our components in strive assays the does XX Life expanding high to comparative innovation This Tolerant performance. included and in quality extraction the industry. with in Science of supply. globally. offering eight in any products new to tests brought regulatory short only require key serology are and and continued second for not COVID‐XX we with molecular each development world, the testing both data new products role kits, serology in to a has months, agencies key around the market, reputable our components playing needed top the also performance most antigens, some be the innovations, of

including outstanding led assays, potential in India. the both as has of of still samples approved over customers. inclusion tests being performance by COVID‐XX Meridian globe for in dozens with products COVID‐XX XXX and and to are tested East, today, Asia, assays Our being the America, China new across Middle of Europe, deployed These North

year, has released of in-vitro Science also comprehensive our In antibodies Beyond novel for division on antigens, reagents this of test launched Life mix a market. molecular the RNA master is the is to development and lyophilization. fiscal we kits quarter. one mix and assays most COVID‐XX, portfolios air‐dryable the under DNA for that for this version expensive This an be facilitates without need based shipping dry diagnostics

biopsy month, a past for designed master specifically liquid launched we diagnostics. Just mix this

of us You to to performance. expect the from customers bounds more the we our targeted support see products as diagnostic in future test pushing look should

during the new products’ impact of assays. already this non‐COVID in are inclusion resulting We built and pandemic, several new our in relationships, strengthened seeing

announce pandemic a segment mix year‐over‐year time that in and illnesses. the for bit We of pylori first that the respiratory Curian launching for the Revogene multi‐year plan and On struggles quickly diagnostics our HpSA our Exalenz, than to instrument stalled advancing turnaround bringing the assay. as acquisition development closing strategic stay‐at‐home that for testing QX, I on and respiratory that The way critical testing am not our of adapted reduced we in growth in also Quebec business. team other COVID‐XX posted we United of assay orders care the the of panel let milestone five Diagnostics stand to for FDA SARS‐CoV‐X. did plan, in States. stand‐alone quarters, in and happy urea a side, and include growth the the today submit anything completed EUA portfolio, the breath different has the a development the intent successes. The an In for informed to of journey have the to H. application the with our been

into and antigen an FDA agreement is entered United now States. under market, CE rapid which to a to bring mark in and America towards also approval test We here the being is a with EUA working in Europe Latin partner the sold

brought online conducting quarter. things trials and the return up sessions was virtual would and sites XXX a and first on particularly Revogene, halt have That to for the combo in of QX customer for be the our approach QX to QX at and slow pylori. fourth mixed at access to now towards work Clinical heading we did both normal. In‐person adapted nonetheless, remains new true H. ending of strategic limited placements off, with year paid wins into focus moved on the While sales validating everything instruments front, to XXX. the been a quarter the installations, calls. our bag. team Curian, BreathID to placements were COVID‐XX That optimistic interest the surpassed the picking sales training situation has in was see continues which testing;

in syndromic of While full a GI in call. and of truly by especially our decreased that in our monumental driven favor has area, been availability have and did company swing, to of plan. those assay executing of restart lack devices in a discuss production. predicate pipeline the I the some year peers get for slow our detail been more qualified participants, prevalence back trials to de‐prioritized businesses This our COVID‐XX strategic off others got later in by disease the will both

Now over quarter the the about Bryan year. hand and talk the results I’ll the call to for financial to

Bryan Baldasare

It fiscal is with year million, of performance pleasure company. year‐over‐year. Thank a revenues what over XXXX financial the record consolidated a up to We you, drove Science recap for finished year Jack. Life in XX% million, partially was $XXX sales by $XX XXX% to related was contribution offset $XXX a that growth COVID‐XX XXXX. growth growth year of million. the That XX% million. declining were with $XXX Diagnostics, year fiscal for a whopping

up was margin an income QX, a $X.XX, Importantly Science. was a blend Diagnostics over million, for assays $XX though, over reflecting category. was adjusted QX respiratory XX% for and gross in EPS our This was X% of consolidated and core Life fiscal in outside margin was XXXX. Consolidated revenue diluted up XX%. GAAP of XX% XX% basis on Diagnostics rebound of the XX% operating a

well as original All guidance of November guidance in as in revised of year these August. set exceeded set our our last metrics

the into our November be release year, the you refer filed please will dig to which want for If our XXth. deeper to press XX-K, drivers by and

Now on fourth fourth let’s from million, XXXX. in were of the Consolidated quarter. $XX the up quarter revenues million $XX XX% focus fiscal

an quarter, basis, last quarter with diluted decline increase review. Excluding in incentive the will programs, Adjusted rate I a of cash on performance XX%. the changes, million quarter remains reflecting and with year‐over‐year. expenses with costs XX% improvement adjusted profit driven was operating million. offset acquisition. operating up margin was and an by strong basis, equity adjusted of or R&D, in gross revenues $XX Gross plan, $X driven On this fourth to operating trials, gross margin currency the by year. were further The $X GAAP and including in net segment increase of Life incremental product from was Also, from XX% year. Science was the $X.XX. $X million impact up better foreign on expenses story clinical Exalenz On new million, in spending in an up compensation, earnings by development of operating were exchange Diagnostics The fourth a were operating XX% year‐over‐year of the million XX%, was million in the basis, EPS margin primarily a same the operating income partially in which improvements $XX discuss margin, relative income $XX non‐GAAP last expenses

in addition $X.XX. GAAP restructuring operating million million $X a partially $X.X and of GAAP related expense GenePOC, $XXX,XXX reduction diluted consideration in in operating expenses, to selected was the to $X.X million. acquisition by the impacted GAAP drivers, were offset net were earnings of aforementioned costs contingent increase In EPS expenses increase legal a by

segments. unpack from details operating of in Now at of revenues by XX% $XX progress the our results up QX. those let’s two We saw million, great looking with Diagnostics

While pleased momentum about XX% are from that this recognize we rebound with are still we the and seeing. we strong QX year‐over‐year, is down that

saw products primarily in better than decline the softness to demand to attributable respiratory year‐over‐year non‐COVID‐XX are conditions. is of the return continued in from notably, slow but expected, products our demand pre‐pandemic quarter, expected lagging recovery. As the Most resulting the

to sales into in this recovery we last segment experiencing same that products than H. is most down also margin improvement stool to in was despite in sales in quarters. better higher this loss continued affected driven commercial year for on volumes year. suffered XXXX. is an by expected last XX% the have we prior lower XX% from mentioned Gross The though we million. products, fiscal basis year‐over‐year promising, product still profit programs the by lower an Similar quarter, from continued demand new While in adjusted development margin excellence result decrease and Diagnostics XX%, expect our pricing headwinds an the and QX, quarter continue of are antigen the which was investment $X of pressure operating our levels. on a to pylori

amortization. Exalenz, asset ultimately quarter, clinical related anticipated. in included investor ramped development absorbed of Diagnostics increases QX programs, product but and adjusted trials on the new expenses up spending new and trials, including our XXXX Progress up is for in year‐over‐year website. on presentation posted acquisition Diagnostics in lower product our the resulted $X from by planned Our million product the clinical on quarter operating driven were development costs in including pipeline than intangible spending

products large quarter‐over‐quarter of for that remains demonstrating exceeded for robust. QX $XX increase million, from year. XX% the products. business continues of Adjusted up year‐over‐year. in $XX as XX% increased coming recognized a decline pandemic and Our was and coming was Gross scale COVID‐XX XX%, of this from an by with products. immuno was brings income revenue last be a XX% segment related from can This XX% the of million, in our expected, Life demand quarter, see, the to We operating margin such leverage $XX XX% driven scale. molecular as when profit Science margin sequential economies to at our of molecular products operating you This revenues estimate million,

and as million under sheet, balance in capacity the line $XX a our we XX, had to of credit. cash million borrowing September $XX of of Turning

we for that the view our XX%. on repayments our million, consideration quarter, exceeds the net bringing of of $XX as borrowings earlier facility, after repaid in $X a the year million X‐to‐X to During debt‐to‐equity evidenced $XX million ratio Exalenz ratio revolving condition strong, credit a financial current acquisition. We and in by our

Turning we strong. banner to year with rebounding fiscal Life Science demand Guidance, another expecting Diagnostics for at are revenues Meridian remaining XXXX and

changing is we some year forecasting plan our of state of While underlying pandemic, providing the ever to guidance approach including challenging from still given the the key assumptions. of continue last

million includes midpoint. $XXX Diagnostics and and $XXX Diagnostics Science $XXX revenue $XXX back of million, between see as core the stabilizing $XXX increase million pre‐pandemic and year. million the million and revenue of of revenue. in We levels $XXX between That revenue the fiscal XX% an progresses, of million expect the over year returning at the XXXX between to Life We half

assays quarter. coming but dynamics expect Those also further Additionally, $XX to This fiscal combine assumes few to growth of XX.X%, not margin lock‐downs quarter‐to‐quarter with respiratory Diagnostics volatility included for XX. reagents healthcare million particularly over Science relationships. XX.X% and Life deeper is we be making things. some see roughly demand non‐COVID‐XX line expect contribution in saw robust in fiscal deliver COVID‐XX in and with same some the are to XX. second over elective a our no from key it albeit and procedures. is beginning a assays, growth fiscal XXXX, of the that there we out operating Adjusted utilization components, million also XXXX. key see expected between fiscal we or fiscal of XX, to in to Expect contribution a fiscal only through with in This between $XX remains continue result to new lower panels, COVID‐XX resulting

Diagnostics to delayed continue to Diagnostics XXXX new growth opportunities. we and be R&D we First, is the clinical trials. invest as complete revenue trials of in start future in around fiscal XX% expected

to Life investing Science infrastructure manufacturing, the Additionally, scale we in sales, of new across are R&D business. and the support

we headcount XXXX cost acquired absorbing return the increases from some Exalenz. finally, fiscal of year annualization Second, of with are And travel. the structure and we have normal

to back for or adversely the encounter order raw period a Jack. as closures result now patterns for a chain United a rate between significant to sight the and reductions States of hand current tax of guidance expected full Our I million reflects $X.XX and site Diagnostics manufacturing business This into of any over the diluted portion XX.X causing we earnings that XX% our materials. rebounds. the capacity will on based call line not coming do to supply ultimately our assumes from partial either pandemic as XX% share count greater This reflects leads of fully EPS expected of $X.XX shares. or time, And an in of extended adjusted affecting

Jack Kenny

Thanks Bryan.

As can not strong is Meridian. up XXXX shaping another fiscal but over fiscal just a depressed XXXX. fantastic compared to Diagnostics for to you is year be see, XXXX, deliver as positioned growth growth, fiscal to

capacity, Our initiatives. This and between four to EUA to number us two the fiscal Life be innovative trials demand customers beyond. development, the our XXXX launch as delivering to well per of production Exalenz, begin COVID‐XX C. We pie and the RI key Revogene a to as pandemic the and four Science and products as new ongoing diff new an trials fiscal Shiga well of the completing in executing year strategic Toxin continuing the approved and meet driven test, in Campylobacter as product position panels XXXX complete Curian new will expanding the by operating products products. will will Revogene focus focused for new assay. Curian clinical GI of launch on assays be areas the on efficiency integration and for clinical advancing of plan

assays. mixes We in have that in raise new a bar performance molecular number of the master will for pipeline the

at beyond in fill validating Meridian. truly Additionally, be assays work of testing new, non‐COVID the a the for dozens future will transformative pandemic. Fiscal the year to the team and products growth was XXXX our supporting customers funnel hard for

to work years Science. the hard us and in weather the our IVD Diagnostics of global All over a prepared critical both pandemic two battling partner storm previous Life in to as a the excel industry

to that lies excited may is have. for any Lindsey, The best are yet with that let’s ahead. that, We folks questions about open opportunity up the it come. now

Operator

Blair. Andrew [Operator comes of Brackmann William the Instructions] Our line with question first from

is line open. Your

Brian Weinstein

is It’s the Andrew call actually questions letting Andrew. today. Brian on Weinstein me ask in

I appreciate him So doing that.

are doing? you how guys So

Jack Kenny

morning, you how Good are doing?

Brian Weinstein

good. I’m good. I’m

between talked million that new there. to thinking call about immunoassay Maybe it from but where all year a the some – And kind guidance just this So buildup next appreciate midpoint, here. bridge of where bit $XXX you’re from me help million, to $XXX commentary you you bit you’re I help the to at molecular let’s on you incremental were million little is little help can just going Life little a that us just – to more going same more dollars little bit there million going to get and you color diagnostics just those and $XXX million Can to a in mix more on to products, the on the $XXX give bit million. million $XXX revenue a So detail? sort the there? thing $XXX color year $XXX of Science maybe then the trying

Jack Kenny

I’ll then at can backend. to the Bryan, and you this add So start,

and really sales response to pandemic was role move. So the recently COVID we and played have seen million Brian, whole Science first and big continued know, demand of Bryan pretty $XXX to our we What in of Life the Science the have From our you in give a increase the Life reagents to a all, on bullishness in this regards little doubling way. number started more big see – we overall molecular, continued Life leading our to customers. bit We business. is can the Science increase and continued the the side But percentages. as on see you

molecular picked you our the of we customers bit We slide are little master number a color about more large side. the of number our customers that new have give deck, on a mixes. up using In

higher the that percentage. so is probably And

good not the took However, we’ve understood see there’ll hasn’t to – We testing seen, that Unfortunately, to done a do seeing start has antibody a market number have that increase got fully antibody also how we they that we a on we testing. in the of amount the increased rapid want doing after antigen see as rebound capacity. vaccine share of be use where a also an test to overall assessing the But test antibodies people now and seen companies testing. to that. there’s if resurgence antigen

of So continued Life we’ve our to the raise regards in Science kind internal side. to numbers even

As very, QX time. assuming will and beyond, over strong we’ve as normalcy seen happen the as pretty what we’re strong. demand QX In first We moves continued through and beyond the world really towards our know really don’t very to QX. be assumptions, closer you know,

can Life And so and that’s backend. the on what Science come I’d in say Bryan

returning normalcy. continued we improvement but the see the On side, steady Diagnostics to kind of slow of

we business core been but impacted, go somewhat that has but consistently. continues rebounding as And Our back been has forward. slowly

impact that in And pregnant of bunch. the the core whole as first one D back the on year ones anticipating like didn’t came forward. for that impact a double-digit the of we tests half sure. really of are Group – back strep normal testing we the earlier will half to year, women go that closer Lead was move we business, move for in an see So the

middle parts this strong So the really, pandemic. up remained Diagnostics was of things certain like are testing. Diagnostics strep our even business pretty But side, what the Brian A really Group slowed of in on

and did the testing, respiratory to a school or I strep nature. overall decline see in that things not going home, kids think Group we with like from taking A for of school

mentioned the notify We on We intent, in anticipating point today did Revogene. just of this amounts of COVID. FDA at our are the as modest we

that. shipping on would up, then acknowledgement customers So we get we’re ramp we Once the we ramping early were well. FDA, excited up move to about that slowly production from to and side some going what as begin we’re

million. XX% recovery, and rest the think the in moving million want back So with you and to XX% of how of up, to that from answer to its the number that’s that you Diagnostics do $XXX Bryan, being related SARS-COV-X of business that? moving get side $XXX to the

Bryan Baldasare

Yes.

me a of couple things on just side Science of business, Brian. Let Life the the add

that COVID-XX you the the $XX the have that we perspective, the I our percentages million to from $XX to So million the molecular to guidance expect get reagents, for quarter, the know, a million, XX%-XX%, in cited guidance $XX and $XXX to a $XX million to $XXX fourth million mixed translates around between of the similar amounts mix million million immuno $XX on to you into $XX that the on remaining million. can

mid-XXs, of we couple recognize there. in a were growth we’ve so in to expecting that, the We’re things there. happen One, got XXXX,

comfortable second disease even We the infectious general. just I non-COVID. a like respiratory we a to And assay. what COVID little with reagents murkier about mean I to our we million business, also generation our now, our talking say by back, $XX have from core with though penetration will are we’ve starting panel right $XX see becoming in and coming call that million are for greater to to break diagnostics it, expecting it been you are that a a who asset is of effect is then And reagents have, out customers

single a now right? COVID with looking And respiratory panel started they’re developing target at included. test, a they a with COVID So

that to reagents We customer. are selling the same

a of COVID gets and terms helps. that Hopefully just murky what’s little bit what’s it non-COVID. in again, So

Brian Weinstein

Thank Yes. great. was That you that. for

for capacity you’re particular? update side, that how any considerations market antigen timing the viewing and EUA On on in

Jack Kenny

customer the to in orders mentioned we as to we been take – products ship So thing over to have just in Europe, just so and started our got product started, Europe. we we’ve

early on that pretty from standpoint. it’s So

States. here to help working get the to with We United them in the EUA partner are

for think come that I QX when play a anticipating that we’re it’s into us. would

gone is get We these we approved kind bullish to to don’t be We work But sure hesitant to little believe guys any this. going deep. haven’t too in. issue We of with to we’re they a do make everything really go that capacity that want that to of before product in what in opportunity worked the bring. been regards has performance done. and say to get e-way very, do in Europe too that well that I testing can the will has this can very that

about So general. product the we’re optimistic in

Brian Weinstein

Okay, Revogene, CLIA platform last the you that thoughts great. And just on then me type one to me ability this environment for of for remind can platform. just for on the Waiver around competitive obtain and general

lot a of after to space CLIA this here. seeing starting move are that going into We’re Waiver companies

to make the a the guys. I product understand little sure positioning kind want more. kind bit of of just Thanks So of

Jack Kenny

Brian, absolutely, thank Yes, you.

So that likely that test be we of simple that is itself we ease CLIA-waivable, have and to use not – run, receive do incredibly very to the it’s first do another to view and we can go get. it. it plane of to would as able that all, We we believe product the need an do believe

out and at But first future. We to there. are COVID we claims EUA that get wanted in EUA get to this like that first, specifically, product consider the the going things looking

EUA to begun this we focused bringing we so that yet are we’re things and point, on different claims like general, because not this but work to were at market. considering considering in have on we sample CLIA So types, Waiver, additional

Brian Weinstein

Great. Thank you guys.

Operator

Yi question next the Wainwright. Our H.C. of from Chen comes with line

Your line open. is now

Yi Chen

taking of to consideration questions. potential Thank impact first you fiscal XXXX your taken vaccine? my question market of a the guidance, from is, into the with respect have for entry My COVID-XX you

Jack Kenny

you’re the – them of business side were into taking you Diagnostic to effect. assuming that the was I referring

Yi Chen

Yes. Correct.

Jack Kenny

Yes.

we million So made million, $XXX as that. an it assay. assumption have – of target to our I our accounted for we we do an COVID-XX in describe would pass have have the of approval initial an $XXX

are towards We capacity. working increasing

how the out well acceptance, to show customers as and product and works this overall the get we So customer we to increase the capacity. can there the we’re product gain working

for EUA $XXX of as now number product, our much COVID-XX – we more to can will that million COVID-XX EUA, to number to we’ll to, come is have work overall once in update of about say million would that that we the of sight one, XX% as we amount and So obtain we I XX% And think about approval a line $XXX modest set that selling submitted we QX. we’ve the begin on have related.

Yi Chen

Yes, that Diagnostics were be but business if was Science Life your of talking on you of impact the IVD availability segment, the vaccine well, an impact segment – subject Diagnostics your customers, have could the COVID-XX about to as right?

Jack Kenny

Yes.

So you that – have question, I’m one? understand not sure Bryan, I the can completely we you – answer

Bryan Baldasare

take I’ll one. Yes. that

that not serology between in piece molecular that have reagent coming testing. immuno large that does for there piece the the And of is way I into would So And a immuno. play business, thought on where million for a of believe about million contacts we be serology think place include $XX with would testing. I side the vaccines think our say I we we’re to confident and pretty the had the $XX from that we’ve our customers,

demand of And kind will I to say guidance. the reagents what’s is we’re about around think that’s the out what serology example. We’ll thinking will in on more think how that’s our So around go to for more in we have be – tests. for future the comes vaccines that

Yi Chen

Okay.

U.S. it. the Okay. and across recent regarding And question pandemic Europe. resurging you. also, Got the second Thank

likely your the the of driver reagents up fiscal top and customers any inventory the the of a color providing at on you your significant experienced I think near-term stock reagents near-term XXXX. – in you a on line one significant as quarter to mean, the third revenue, of provide again, could level IVD with COVID-XX revenue, having customers? So such therefore resurging, are your in you do

Jack Kenny

Yes.

strong in seeing demand to the this Life regards are we Science quarter So in reagents.

but said also existing of way. So we and were seeing customers then customers inventory customers have through we along up picking who as in QX, new through inventory, expect the our orders, customers are worked we resurgence working with those those

So for we anticipate year the to that a strong start certainly there’s demand in QX. as we product and strong line forward do go

Yi Chen

Okay.

market, Revogene competing Okay. is this right. the products testing enter – And the – EUA with could tests, well, opportunity be products get U.S. as essentially large considering for for proprietary how the the once for testing PCR your IVD that you customers, you this the product market

Jack Kenny

Sure.

the So have we’re of at give Revogene opportunity. demand give an forecast Revogene strong to some We’ve let outpacing but orders with September as seen XXX you of mentioned points not this level product installation. really time, the idea in data the for that systems field you at we our XX. providing help before also me We

would as next we quarter we number will or two the to significantly the Revogene So particular. go continue that forward in of anticipate in climb

currently also building inventory our we’re other assays. for So

the things learned diagnostic other of of companies some that One is the making tests. we’ve stopped other

products up to been And other they COVID-XX. couldn’t able we’ve so lines product for business since the only those other making from as get pick customers manufacturers were

we the the to ramp for with been had capacity up manufacturing working other we our products. while were preparing and So this

of XXX,XXX up gives and second needed to ties capacity. However, is to shift month. expand and in overall That now. We Quebec us we capacity running also knew our that that per around we XX,XXX shift hired a

capacity further to assay X capacity have build both And of instruments are actively the of times increase today. we production to for intensified making Revogene where this well. plans And with launch really we scale so, X the plans and of to are the the as

month should really we QX anticipate now forward initiatives, that to between more lot in ties of a and we be drive in But capacity call XX,XXX COVID the color and our high opportunity now, – do, to XXX,XXX on market near-term. that and right a to per be the to be the think would the majority those there. we’ll trying pushing give that able we So, regards

Yi Chen

Thank The could it. Got liquid launched? you is cancer And how last you. new provide solution biopsy some one recently the you question, color, trending?

Jack Kenny

reactions. just would We’ve this. early. any we that recently launched I initial very has There significant had from So describe uptick some revenue product. as been customer not it

the other regulatory have validations to like their time that believe also The that grow. take We products will work. do all to some and customers

a year as it see That’s we that. who’ve now or bringing two can something on significant to build So products that customers started be a those from tested, slow market. really

financials. this limited a it’s our Science our more that We impact business. at Life view longer-term play for as point, on pretty a So

Yi Chen

you very much. Thank Okay.

Bryan Baldasare

you, Thank Yi.

Operator

comes question Piper with of the Mah Steven from Sandler. next Our line

line is open. now Your

Steven Mah

the How are you quarter. on doing? Thanks. Congrats

Bryan Baldasare

Thank you.

Steven Mah

Diagnostics Okay. be the weighted four Yes, and would it’s cadence lot Q&A year. the But questions, so about back probably think through you the already. XXXX the on you of said half the think the the just by in lot a COVID-XX a – guide few quarters? should walk covered us throughout ground How could I guide maybe you of the if out front year? in assumptions in back that’s know of the going offset of as through the year? be we to the half Do backend spread reagents a

Bryan Baldasare

sure. Yes,

the to of driven without Bryan. I the first the a year on the to be our is and half are we first consolidated is expecting of we where think alluding guidance this the were stronger, this doubt. both some half Life in of So discussion, Steven, year, like basis Science certainly

but got online, I the more think, or back coming first core us quarter the I it’s Diagnostics as in you’ve a a this late Diagnostics, backend, quarter the on mentioned beginning little COVID here our then you as in the for second quarter, the part to of online And half of And more recovery coming quarter is, business about we of Science. product. even you particularly more really EUA Life with compared think second have little bit to year. a then talk little even that

distribution Diagnostics say in that the more and the at of more our we So have this half more side definitely of that come then may Life Science after the business. quarter. And on on little on on even that’s we line fiscal the first point current the sight call again, have. a And to based first

Steven Mah

you the on that’s I big then Okay. segment. or the issues. happening question in QX a a follow-up Science jump Life future again has in had know see because Science you helpful. stocking of right, stabilized? All Life that Do And maybe

Bryan Baldasare

this from in fiscal Jack, kind some we that quarter quarter, I third to were what So we’ve his to first say our now our comments here right fiscal year. have renewed is of seen think would last in I seeing what alluded we demand seen think similar during – we

of get of a better early I third little half we until think it’s quarter call line a still of the second too to this year, sight on the year.

Jack Kenny

the know In same lumpiness the of a we’ll the good will does lumpiness, strong you’re have we they half QX more that but have year sure. it business Life VAT in order to way is, to We Science tend But, time. the little the Life the that that the say feel our be over would that side general, Steven, line Because I for of manufactured I the a customer and to start with sight Science be that ordered. think a for don’t likely first key into QX. that, they components big

Steven Mah

Revogene. Appreciate That’s And helpful. that. one Okay. on maybe question

wait pushing a to that land get the a respiratory sales appreciate an sort of activity marketing your been the launch and ahead panel? in grab there manufacturing. really in the But – about talking going of on So you’re increase and EUA COVID-XX, – Revogene given has

Jack Kenny

Absolutely.

type looking diagnostics, of have COVID of they’re that one and source because product working testing had we in normally struggling that at announced when the challenges. vendors summer, saw – for vendor we we call use because we very demands we Customers are – a customer our the a the strong to you when were EUA. meet August, in announced that on for very, you supply the in We it’s to chain So unusual multiple interest.

instruments, sure demand been with saw secure make that very but we we’re to to to as trying well. very, under so looking instrument in and increased deliver. And don’t the hard do also working promise high people We’ve that, over side we

going products. want them. build and bring we we kits, start capacity, order build the – we’re somebody then onto our going back more as We don’t So to to COVID to customers we’re

have making to a capacity, to try our of to go their bring as going to we’re bring So way. supply next that we batch of going on and and seen also, a strep things seen products well, other demand, other as demand the for strong as have in of said, we’ve because quite needs but lot batch able very customers products. interest we like we’re But customers the B very, increase group frankly, the on, we be manufacturers

tests we’re those helping So with out customers as those well.

Bryan Baldasare

if to just Jack, And that. add I can

our far I because the think a quite end We were placements to the on the saw as quarter on to as number limited end would activity placements we – June, got mark at up placements we XXX as the we June of three quarter. the XXX least the had of times probably June our bit, numbers we as we say during sitting some quarter. Steven, of I And did in to September quarter X it, Revogene And placements. the of pick in fourth put had, September. as the

Steven Mah

pre-orders Yes. Got Okay. kind are helpful. it. all Those That’s getting of like the instrumentation.

that Okay, sense. of lot makes a

Jack Kenny

Thank you, Steven.

Operator

comments. call to closing Kenny back the questions Jack for all for today. have we over That’s the turn now time I’ll

Jack Kenny

Lindsey. you, Thank

you have best have this also of to again again thank Thank fiscal in As truly our great the quarter. we each want the to hard and our you speaking company’s team to us today this want to helped day. it XXXX. forward look do history next year a for to we close thank to joining in They you and call I and call, work year. their positioned I again, for deliver

Operator

This conference concludes call. today’s

You may now disconnect.

Meridian Bioscience (VIVO) 13 Nov 202020 Q4 Earnings call transcript