VIVO - Earnings call transcript Q3 2021 | Meridian Bioscience Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Meridian Bioscience Fiscal Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Charlie Wood, Vice President of Investor Relations. you. Thank sir. ahead, go Please

Charles Wood

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

will the be post XX copy may virtually Investment Jack of call. after With approach we a remarks calendar, Global regards added fall. will be H.C. We and to the prepared Bryan participating in Annual events Wainwright our to these as the XX. XXrd Other September Conference,

call Our scheduled XXXX Friday, of currently is fiscal last November earnings for XX, XXXX.

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

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

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

John Kenny

Charlie. you, Thank

coupled pandemic, volatile. has The variant our As been to the the challenge the vaccine, and of a case testing somewhat global across unpredictable has remains the of impact COVID-XX, industry. Delta this with due rollout predicting the particularly of throughout volume been

been correct see things far directionally thus with we going. We have where

again quarter we beginning that. slowing pandemic demand example and reagent From May, in is year, second the fiscal another forecasted the half. the to This of in of the related

Life quarter’s forecast. that This Science line in with was in performance

performance However, is In message our Life what typical better validating this than exceptional. fiscal at looking Science year-to-date should be pre-pandemic alone, been quarter, quarter performed that has the overlooked significantly not a that further future strategy segment this our pandemic. stronger continues of but coming face headwinds, have we well us some a much growth. The positioning out Diagnostics to continued for advancement business of is

operational in our then the application, of approval COVID-XX response. review the the Bryan XXX Consistent activity The Let Revogene we the commercial for financial concluded assay for assay. FDA EUA wait customers cannot eagerly finished the to the install same, quarter with an await the We SARS-CoV-X the instruments. studies Unfortunately, and messaging remains will to with story application and with we in new continuing resubmitted cover their me of of predict FDA. when the we and on the quarter base May, the of expand remaining will Revogene highlights results some more the detail. our with

pace the of COVID-XX expect clearance. return once levels to receives assay We the EUA installs to normal

by expansion with Cincinnati are on and manufacturing production initial of in production front, the Quebec track September. On the progressing, end the

in warning a issues ago, know, almost facility number there Billerica, when including Massachusetts, letter were XXXX. years four FDA-related joined manufacturing with our Meridian in October issued LeadCare you As a I of

the be that facility week pre-pandemic in recovery procedures and new demand instruments Quality inspection continue Lead in closed our II earlier quality lows. officially Regulatory teams Billerica of from system warning a have the and FDA. for to on our LeadCare testing Our tirelessly this bright In June, the an with spot in worked FDA collaboration letter. improving and and conducted Billerica

quarter quarter this product’s sales to row, year the the were on For best history. our third track QX post installs exceeded our and the in a expectations in

However, recall an based some on the resulted apparent in issues third system one supplied situation, current is May, investigating with and root the of a and contamination revenue continues This of in we party. our to an our initiated to, components progress the quarter. assays our identifying taking serves be due a resolve of the assessment, of work, out specific example backlog headwind. as Unfortunately, and by active to recall of lots issue, a pushing supply-related cause, steps and a in at the issue. recall The recall quality LeadCare still

by the options. and picked the portfolio addition commercial was orders history quarter LeadCare, momentum. closing In best its to strong seeing had up to BreathID, leverage testing H. BreathID our led team as broad in significantly, pylori of pylori BreathID of able is our H. the franchise,

throughput customer urea the modality development, to franchise. be solution, COVID-XX We commercial immunoassays. trials performance advance bottleneck leading resources to resubmission some for with have and a in new stool pipeline have strong high during ELISA rapid of continues to In product the testing project. breath continue our tests, of antigen requires, is partnership the of Whatever tests, redirected DiaSorin, the team we and Clinical the and quarter the products products. and a that antigen in continued reflected stool the we

submission the Life the it until are delayed commercializing. There C. completing products the we XXX(k) result, fiscal next quarter. Diagnostics and another on in had horizon segments for on will strong trials panel preparing clinical forward GI looks be many exciting Science, a team to Curian year. As In that on Revogene the diff like look and

mix the We samples. plant-based saliva the with master expansion mixes and portfolio, new Air-Dryable optimized of continued for

a plant EUA bypass COVID-XX number to and attention of because the The steps Inhibitor already been AgBio has the of with the saliva the specimen included a simplicity an enables. of our industry in lab as of approved mix the second sample. first assay, tolerant and enable it is preparation typical add getting type, mixes simply technicians properties

RNA friendly pipeline product our development and DNA released it our launched of as for new blood. and and of accelerate highlighted mixes mix, both based can customers. technologies. for technologies, versions LAMP pandemic optimized The in molecular Lyo-Ready and quicker, we the address to robust benefit Additionally, of samples time stool, this additional be urine critical master such our quarter will clinical mixes is The point-of-care

the competitive in Life test the molecular launch Our of of performance patient We solutions array sample ensuring to market most the continues chemistries strong us pipeline this by accelerating types accommodate products business Science unique common advantage a broad approach of that assays. and believe a and of the test. while development provides

commitment population treated, Otsuka Meridian acquisition the moving greater support H. This cancer. a is BreathTek example business the leading and to of but and pediatric our be solutions, our to the focused recently is business will customer-centric now area. non-invasive highly and of the our to the strong remains service see H. patients it continue putting to proponent the utilize infected with in Otsuka. their If infection. working on is great They as point-of-care. the business. Meridian how to when example in best-in-class great reputation direction will tested balance such, emphasizing this looking customers. testing respiratory for and with we a BreathTek approximately look and of are condition. under-diagnosed customers not non-invasive strategy, diagnostics to right that is was from know, testing this is strategically for you gastric commitment forward this cause strong testing organization treated customers acquisition another driving work able another as acquisition. on partner closed offering the importance a our could of drive According big returns outcomes and customer and of our and to pylori. for is of these with was support CDC, focus. of to to Consistent GI, sheet another see for the This We Lastly, the of pylori Otsuka’s we Otsuka’s GI have awareness solutions world’s two-thirds for Meridian.

is for Meridian’s H. introduce products, to when business We for opportunity to is solution our including a this right pylori BreathID year customer. acquired expect business in as the sales other Bryan accretive being the over in and will million see as This the the revenue, immediately. time to shareholders. option $XX one the discuss which generates take for upgrade times approximately value good this more to a Meridian detail, we

in We headcount. infrastructure not are increase with able our line product a to absorb plan material and current this do

to to going call results hand about financial the I’m over Bryan to for the quarter. the Now talk

Bryan Baldasare

Jack. you, Thank

start a highs, of consolidated recorded fiscal We transition to are to was that periods quarter year, that As XXXX being from being strong for endemic, $XX peak the down will being levels. be Despite pandemic challenging. company the pandemic comparisons million. relative prior was of a QX XX% meaningful to COVID-XX down quarter the we to Remembering year-over-year. QX pre-pandemic revenues from revenues

back XXXX. is a are year prior result XXXX, roughly good quarter in of fiscal QX the quarter, down was and the primarily QX gross reduction the year-over-year flat of of XX%. example a profit third to quarter pre-pandemic The change gross XX% to mix. we XX% business from of performance, segment margin in consolidated up in Looking and subsequent a fiscal profit margin Consolidated in

with of adjusted increase year-over-year, non-GAAP segments Diagnostics fiscal versus this for by $X of year-over-year XXXX. the over spending expenses, of down On represents acquisition a QX partially was and operating Life $XX R&D greater year-over-year. favor corporate-wide a This million XX/XX was expense adjusted primarily On Science Also, GAAP or year expenses down The QX generated margin expenses XX% operating nearly on diluted April XXXX. earnings million Science $XX lower was million were basis, G&A with expenses $X.XX one approximately were basis, third income last offset was basis, an decrease quarter million, and of income that the Again, in operating in than driven $XX while quarter XX. of month EPS XX%. between a an the closed was Adjusted Exalenz Diagnostics $XX and XX/XX by Life in million, $X.XX. $XX million. operating net from operating adjusted on additional

GAAP and $X.XX. operating In expenses of the aforementioned our addition consideration million expense for transaction. GAAP earnings lower the adjustment GenePOC the were to EPS to value $XX fair from an GAAP operating a was include diluted drivers, obligation net contingent credit

Now and let’s Unfortunately, GI estimate sequentially and the of low to down calendar Diagnostics through point opening in end details XX%. chemistry that from of his two working to year. X% this approximately mentioned situation at We LeadCare remarks. pandemic the operating gains. due through look the the be the Jack delivered recovery as $XX of while backorder lag million, revenues by the up QX that to both by the segments. situation was category to expect be our million Respiratory the blood continues backorder impact $X.X of a continue strong post backorder to

basis The QX decline in the from month XXX down the growth approximately in category. in we segment BreathID lines a to quarter. of for While this royalty of points was in down by quarter current year-over-year were profit both the from year, XXX extra contributing product the prior our margin and the revenue and quarter well, from approximately driven basis one year. XX% foodborne points versus H. did very margin same pylori was significantly lower XX%, performing the Gross level revenue QX, last have

previous that driven loss levels. In our expenses we than for prior adjusted our million. this the products was an new decrease is less result excellence $X.X investment Diagnostics development basis Diagnostics by in had quarters, programs million commercial quarters. and a driven spending incentive pressure continued addition, the pricing in an despite in operating comp. by adjusted quarter on R&D antigen lower of operating $X down and the were to pylori Similar sales lower H. have mentioned product year-over-year of stool year-over-year,

approximately profit in of of good quarter sales affecting This of we to Science XX% segment of a seeing segment recognized at mix not note, products averages, had COVID-related was from product We XXX break level QX revenue growth backorder. the it the when million margin dramatically the at products. is the contribution Life impact suggests first produces this be that what would COVID-XX this approximately continued QX peak to immunoassay Science during last operating demonstrating last was of saw This was XX% we in of continue we been year-over-year $XX sales, quarter, pandemic million. related realized of income XX% in business $X revenue even core margin of the despite million, higher non-COVID the addition that revenues off points Adjusted $XX.X are was year-over-year to approximately backorder end This pre-pandemic our Our have margins of our Margins was of demand. $XX revenue XX% product levels Life with above level of blocking-reagent still a the had more been even from the decrease sales sales. estimate the year. million, year down revenues the estimate strong saw for Gross core and still year-over-year. in basis our we Also, and strong in from a line pandemic. up in changes.

Turning to sheet. balance the

capacity and line June in $XXX of million of XX, of million As million a credit. cash borrowing $XXX our we under had $XX

$XX acquisition of cash approximately million BreathTek you subsequent As end hand. funding to with the of of the the closed on it the business, we know, quarter,

to Turning guidance.

opening predicting of his the impact challenging. in pandemic said the Jack remarks, very As is

knew the used demand we COVID-XX year to of assays. see half Going products that the for was the second into going quarter, in slower

was have liked, our we than range demand with While it lower still expectations. would was of consistent

of are net million, revenues million the of the in layering impact revenues the to between net of million our $XXX be of between will over per and hand operating now now Diagnostics $XXX $XXX million. such, to range consolidated resulting simply tightening holding call adjusted I and acquisition. $XXX of We XX%, in the back revenues $X.XX BreathTek XX% margin of As guidance We million $X.XX. and expect and between Life anticipate low-end earnings and Science and between And and million the and Jack. which $XXX includes $XXX adjusted we between share

John Kenny

has on a eclipsing another record Meridian have we million Bryan. revenue. in months to pace year, are delivered Thanks, strong nine and $XXX

coming our pandemic. the last segment its need a Life segment, FDA We partners, relationships has COVID-XX robust customers technology new to and new XX Meridian diagnostics months. environment. the the master of grown this established have our months, emerges times customers has In Diagnostics from IVD Science largest in with focus solidified the Diagnostics investments new with pipeline the advanced expected position on Life for has existing in submission to products pandemic made with key significant Exciting a while mix reinvigorate what much with has customers during strong our submitted segments. this Science and stronger. in relationships pioneering each new and Diagnostics business

very acknowledge I to finish years thank and our four to over Before I quality Billerica the teams. team quality up, and our remediate and in want system. regulatory hard They have our past worked

working appreciate strategy committed As you VIVO the continue to closure quality an on transform warning of business. in support will never the system, know, for but important of our we you milestone the our team. of as improvement shareholders the our continued is execution. invest are and remain to and done we on laser-focused We We quality letter our

days And can you now ahead and like would that have. the it questions you questions? to remain I for We take but up may of progress of Bryan best our Shelby, any confident are proud open made, us.

Operator

Blair. Absolutely. Instructions] Brian Your question is [Operator Weinstein William first from of

John Kenny

Good morning, Brian.

Brian Weinstein

How Thanks are for taking questions. guys. doing? the Hey, you

John Kenny

Good. Well. Thanks.

Brian Weinstein

it much that of uncertainty, we conceptually, recognizing process, on $XXX of of to high-level a Life this. this you've should of next on business but how know lot some year, about we're and at I little a to thoughts course, relates Sciences out kind kind still there's as talked get be just in quarter thought coming bit being about of a I thinking very focused million of but least kind of a XXXX, wanted

this $XX million quarter. did something just You here

is about on for on the think the And Life business that? had should Sciences year. But not So delays that. what thinking some plus I'm about You on to side, of analyzing, a just that that should level of $XXX million at next about a of, we of be be digits, side sure, R&D. well kind kind is high still single Diagnostic way growth? thinking low-to-mid a over kind couple we

John Kenny

Bryan, I'll So around. this. you start wrap can

the you all, first in we if saw, as the Brian, will, in So were low-XXs, you of quarter.

is million talked different have is about have Life much the very pandemic It And quarters number $XXX talk core be of was in consistently we say the COVID we $XX into we're would out we're I when think know, a of million year. no that then, testing reality $XXX this is certainly that, that going million coming with confidence plus approaching I you high We is the of will pretty to that clear that going a business off it's business believe and level business. don't this. it the was the not impact range. next it it that range and million in business And plus anticipate some there year. is but we we business $XX like Science – itself COVID as away, COVID that our be of going over

in guidance going we I next high that have your $XXX to Bryan, we confidence as to comments plus, QX, that? provide $XXX business we'll million on provide head you regards that. year. think we're much fuller million in – is very it So as into But any above question

Bryan Baldasare

Yes. on we modeling Jack processes We'll are have we speak. more issue through in to fall just say we think guidance his comments. going I actively XXXX, is would when as for certainly in but our reiterate, spot the I

John Kenny

we're confident. Brian, really

I have strength it's on continue over a its business front. have coming concerns We to the to that and year. we don't going any strong Life show Science think

high very ability we mid-to-high of do in confidence been that front, for growth single-digit have kind still about and that. a Diagnostics the to we talking On business, have our

than the that in some acquisition recovery is COVID. some of number going because that the acquisition, think and to comes you've year next from got also look more I our of revenue

are performance double-digit to expecting much guidance we QX. be a It'll more next on So get in end sure, for we'll and certainly type mid-to-high of single-digit the higher provide a we here growth as year. that of

Brian, business lot making a grinding business. with that confidence number for of build Our to have We're that Diagnostic in business, and a been quarters. of we our progress continues

about we businesses XXXX. feel we head very into of So as our good both

Bryan Baldasare

Yes. that, to Brian. I add would just

about volumes the we've from encouraged to gastrointestinal us are products, increases of of seeing foodborne we're side effect. the encourages what you the we've pylori. side, about H. volume The an standpoint acquisition We line our talked as talked on in beyond we’re we have other that by products, Diagnostic increasing see this pandemic even know, starting

Brian Weinstein

it. Got

there of here other looking it the business. of out topline But Thank that for was been we bit it was We're want a obviously kind one get holder mean, still a little R&D you special for be that are to over or about thinking also kind here in last you're future inorganic kind the kind in where a Okay. so the growth. of viewing accelerating opportunities this flow R&D a these where mean, I'm situation to you I are range of I of that fit. should same about you've a I cash. are curious, acceleration There just of use of how The that. are while asset in other talk ways on in opportunities, there a aggressive be obviously M&A? of of month opportunities, out increased was kind cash there. now. or have any R&D kind of how perfect to of kind place. But programs fuel little

John Kenny

wrap start. again. So you can Bryan, I'll around

revenue, will XX, to we're all, going spending what high-teen investment continue, percent on seeing Brian, down been to So the as is I side, revenue first right. forward. increase, anticipating going we're type percent think you've level speaking that come The of start XX of our generally of dollars of Diagnostic that in the

with be pipeline, invest do from R&D. a continuing a lower future money build that in sales, it'll that. percent we robust can into to of of we we'll So And the amounts organic growth believe but be similar

business and doing As thanks back, you that, that, opportunity that through to generated a organically the type were done we've the couple and both and a for BreathTek made you really that of enabled know, deployed investment environment. the those a acquisition, our aggressive of eliminated inorganically. we've the into to we to alluded the Exalenz our before, begin acquisition, strengthen now post-COVID support Board us really position of dividend as the COVID, more of we with to The in cash years

is And continued so continue the think you'll I what to on investment from us see internal Diagnostics.

going There’s on and Sciences a with increased hired to reasons. the investments see work ago, done planned couple also Life on organization. organically. some a a those That's had different efficient going Science organically, Life Life investment in amazing Science but very the side, side, half as an that the side. we inorganic R&D You'll well. of investments We’ve of team forward we're on From for a year standpoint, increase Charlie,

them of One really was from a business IR, but standpoint. development also

working and And a so we opportunities. a assess that process to are we pipeline have really using

strategy that committed have We been on staying the have. to we very

So it Science to pediatric the or the or I you're see our point-of-care side side, in on be Life funnel think needs related to as build in Life starting respiratory us well. Sciences GI, Diagnostics,

strengthen Life but on this Diagnostics thing We're we we and gas I all use cylinders. get keep cash, fire. to that want Bryan? putting our on really next, it working to is to Science intention firing to So firing been have firing. think the to get has

Bryan Baldasare

of the over the several we're now. internal platforms M&A menu that pretty business, on that do we from we're Science have well right and perspective. do. content out feel the being things Brian. Life We an Yes. strategy, the you're Strategically, on Air-Dryable on I the going that perspective, seen last then, instrumentation about. I a to before, rich And as on to innovative side, new we right see think be the us in releases hear coming good available the from Science From into now, would R&D what they of building to you've us number little are would press months. Life us said That us add And side Diagnostic very very just an we to a mixes of transactions we particularly need that, were the to products the with say, would terms trying valuation. side, you talk fit need to

consideration. the a well well. deal not I always as just But a think our with works that's we did well of that the good works for is So business, only example Otsuka, for shareholders something but

sure both we're acquisition – to So those trying of we're thinking make through about things as we opportunities. filter

Brian Weinstein

for and Okay. talk of you of talking And the see is I'll in you're I last about cost it materials, throughout pressures. Thanks, the seeing just one XX kind about me everybody Can And freight, guess. days, is them. chain? increased Obviously, supply Thanks. materials the labor, you be guys. impact whether what availability about on of cost on

John Kenny

start I'll Okay. that.

of we first pressure with definitely Brian, some So all, of are our supplies. level some seeing of pricing

that's got. intent time also trying but that we standpoint, front. And at no we're There's other been I working contain challenging. from make else saving that certainly programs, with of that are on data with at we're hard in think a are that hard wages overly having that this see anything there, a out wages. wages the being hiring think higher cost higher than even hiring we've risk we material the don't point any we We've to anybody from standpoint. have really pricing different I that sure

hire to like to on. most a been try companies, think I people it's challenge

material there are pressures It's at point, to on some perspective, from So Bryan this my at not our point. this would you? numbers that. overly

Bryan Baldasare

that In a manufacturing being isn't from to of secure issue. I price more standpoint. would agree chain that. some the of necessarily things a absolutely alluded able with to need volume It's the supply we we've

John Kenny

Brian. it. Appreciate question. next Thanks, next or caller Shelby,

Operator

is Steven next Your from Piper question Mah Sandler. of

John Kenny

Good morning, Steven.

Steven Mah

questions. good taking Hey, the morning. for Thanks

Bryan Baldasare

Our pleasure.

Steven Mah

master So – question on your is Air-Dryable first mixes. the my

like plant So it to we to is can do pretty working saliva understanding which plant, a and seems get is if hard properly. sample my

cetera? blood, different move And for master types, Are are urine, how how the are second of part it different the is completely different So Or small just is, hard that they? mixes et samples, they sample into materially for different? tweaks? they these to question different

John Kenny

and our Steven in do means, and not London most I the benefits get team high on to strong you scientific performance to the by right make So if down ultimately are all least how has and great further. reagents excipients built path, a and by it at all get do them the and really think you can I'd how of expertise, enabling this. people But answer start Bryan use I you Air-Dryable the not, take I we'll first saying, shipping. dry wet and of to individuals

started sample So kind these build we and than then really than blood inhibitors out, type. some is of every last that sample that the years to different types couple After completely out figured of work saliva, figured Stool different we impact urine, the et cetera. over expertise. of that that type and is type strong can sample performance of a different we has on different basically which because

have along and been have we because inhibits And the excipients with and we them. so I working capabilities the we dry types, sample would describe in what the down with know expertise expertise the

really we together of So capabilities and way kind brought those through two working our these. it's

one have don't really that kind and on. we up any have So next we to way to, your we the like great working mix pipeline. the that through of can a build discomfort get It's

customers In that. about we Bryan? performance. we having really and and we have that have, have the the very to extra good really a cases, well of do been we cases, work are we very, customers in confidence But many feel optimize those couple that very, tweaks so few a all very, as working in mixes we And with great. work of very high

Bryan Baldasare

system we The little would – underlying diagnostic instrument. this on about when or process Steven would about a that add an think a is to to have where only menu the maybe I development is thing way that to think I is this, development similar you

of will. kind we a into So development you process, we have you plug will, about if process, think if mixed that case, to in samples can same this the different

it So kind bit of little development makes do a side. that things standardized on we easier of how the process a

John Kenny

And all a unique these molecular for the it's mixes. certainly very us been very different It's approach. front exciting to are on not make doing that. Competitors

sets as us capability we our well. for helping future, believe so customers in and we believe build the it's into some very other or competitive But new a And some that molecular gen areas to expertise take sequencing skill advantage can as also like providing our do us next we're that test. into significant area

area capabilities. look an to as well with we're at that starting that's So our

Steven Mah

Great. for color. that Yes. Thanks Okay. Yes.

I think mixes, that pretty master exciting yes. Air-Dryable that's the

the of change just a with I that COVID, panel, maybe now there's but be hearing that of lot flu spikes were kind to clinical know us So there going well. season you trial? having a to and enrolling update we've respiratory you potentially is Could some that guys as of RSV over difficulties been Revogene the emergence? on pivoting the patients, Delta recent just if variant status wondering some

John Kenny

respiratory and test We will COVID-only as do into test what that's active we enter we would the have that be programs the on So like really will the have panel. first have to XXXX. we fiscal

RSV couldn't As year. any you get Steven, or specimens last fresh noted before, flu specimens, you any

of the of when it to starts very those amount of be kind more more those we flu you would timeframe quantity can any any anticipate get able hit to specimens. We So it's of but the to reasonable get when more challenging. in was be specimens, that really season likely along going

it respiratory is a this unlikely as far would have panel, flu as that it season. in So we

In really our Steven, product any add Now that there into but have to COVID-only season. portfolio towards XXXX looking you we the for counting on do not in numbers chance the is the Bryan, a we’re we're anything flu that. have, to only it, of that?

Bryan Baldasare

from I Steven, have thing our reason I other by some flexibility specimens, only that with to I archived processes. we've getting we that. into and we're are think do is would make trouble something if specimens sure is, mean that going like frozen we fresh how trying regulatory build or getting add, about got a And standpoint for clinical what

this through through here we process angles think different to go to trying So all it. as we're us help of

John Kenny

it's fresh one how that's to little with And drive unclear the work of specimens the will FDA really things specimens. a versus that

So that's you'd standalone that it's would dialogue for really about we I an look FDA. for now, Steven, have at bit the type COVID the with say ongoing XXXX, active us. little as of test a of

thing, into other that XXXX. if I an it be we not happen would as does we're head but upside, The materially counting would that on say

Steven Mah

Yes. sense. lot makes That questions. the Thanks right. for All a

John Kenny

it. Appreciate Steven. Thanks, Shelby?

Operator

question H.C. Wainwright. final Chen of Yi from Your is

John Kenny

are Good you morning, How Yi. doing?

Yi Chen

taking morning. you Doing questions. Good Thank my fine. for

– affect in near-term, Delta quarter current data the could uptake the that an impact vaccinated you given revenue? transmit COVID-XX-related and be in and that unvaccinated So the Do or quarter think can both there showing the in following the that individuals. variant the current

John Kenny

Yi, normal mean, XX we predict. bit So than thing hard of it's with a lot to all I the I certainly Delta a fairly more little ago, was out a variant. last press – COVID our think I in clearly, regards now activity look it's days you more talk, was mean, life if mean, still or in the quarter, as hard wasn't It lot XX COVID was look I to today, a there out a bit there's surging there there. is it and right.

a in prepared COVID it implied does a if we're a Certainly, look but QX not you for if occur, even of planning are So guidance, anticipating huge stronger impact. bit are we than it. we on QX, our

it, front We handle at kind to of approach have been of ability from our look what's it. our capabilities a But has the in scale to with standpoint us. really

our what the overall trajectory ordering that patterns, towards And have of follow come globe. COVID the what us the business guidance I so say, but happens with we kind do into play, that's things it – around does would have. led we

I And would the would other so comment make. be that

Bryan Baldasare

Yes.

through other say, how chain. The as inventory we in thing be inventory monitoring And they have are near-term the is the [indiscernible] side this least is factor, that that business I would manufacturers Life much our of that process. see the on on are working throughout at a in can hand supply Science still

Yi Chen

and do to Got it this forward Or But obviously be maintained without drop you gross away do Science the may COVID little growing COVID continue rate? just revenue? is the it. any And if the we think going rate segment Life you revenue a gross strip bit year-over-year. could think

John Kenny

continue is business growing non-COVID robustly. forward. our very will have So we And going that high that confidence

great them. were respond our supply we quick to also had build but helped and hit, were we As to then COVID tests, customers able

post-COVID we're lot is in business So our a COVID. But built with we positive what happened activities. some it's these key during customers those impact customers, ultimately, a their of loyalty working of with now and been for certainly,

is it happens we And outside Is huge right? very in we strong but confidence last so for Science as Life growing double-digit not COVID, business COVID. like of here, What is know don't it our what big. year, a it with business robust was have

business, all away. – without a business, And not approaching $XXX agree Brian kind last that to million year, likely the take over about COVID of I million a it asked so any not $XX core think million may earlier year was business we're next and $XXX And question COVID. be go we'd it's what this but

you a that of And number years Science have going so a for robust to would we describe we growing Life that business I have confidence a of forward. lot

Yi Chen

Thank Okay. you.

John Kenny

you Thank much. Shelby? Appreciate it. very

Operator

no are questions. other There

John Kenny

I of joining for first Well, Okay. all, you today. thank to want

speaking we of to some at fiscal forward As you you upcoming have heard the much great Thank November, as a in day. Charlie, have from conclusion XXXX. look very and to and you again, conferences we

Operator

call. your participation. conference gentlemen, Ladies today's and this you for Thank concludes

disconnect. now may You

Meridian Bioscience (VIVO) 6 Aug 212021 Q3 Earnings call transcript