Quidelortho Corporation · NASDAQ:QDEL
Quidelortho — Quidel — Bank of America Merrill Lynch Health Care Conference 2019
24 slides from Quidelortho's conference presentation, May 16, 2019
Slide 1: Investor Presentation Q2 2019
INVESTOR PRESENTATION Q2 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future financial results and performance, such that our actu
Slide 3: Quidel is a rare, pure play diagnostics company at the Point of Care
Quidel is a rare, pure play diagnostics company at the Point of Care (POC) with multiple revenue opportunities and favorable healthcare trends expected to drive sustained growth at attractive margins. We grow by introducing products to the market that have at least two of the following attributes: Q
Slide 4: Quidel is committed to delivering strong performance by investing in innovation
Quidel is committed to delivering strong performance by investing in innovation. 2009 - Present Revenues Over 25 FDA clearances Acquired Triage and BNP Submitted over 30 510(k) and expanded product $500.0 Businesses from Alere packages to the FDA claims, 4 CLIA waiver designations Launched Sofia 2 p
Slide 5: Quidel sells products across the globe through the Quidel Network
Quidel sells products across the globe through the Quidel Network - a broad channel mix composed of direct account managers and distribution partners operating at the local level. BC-BNP, BC-BNP, Quidel, 23% 13% Quidel, 53% 35% Canada EMEA Triage, $8 M $59 M 42% Triage, 2% 11% 34% BC-BNP, Quidel, 6%
Slide 6: Quidel's point-of-care products
Healthcare and consumer trends, such as decentralization and patient demand for rapid care, create a perfect storm for Quidel’s point-of-care products. Recent Healthcare Trends How Quidel Benefits Healthcare decentralization: growth of less Expands the Point-of-Care market opportunity to traditional
Slide 7: Quidel's focus is on the decentralized POC segment of the marketplace
Quidel’s focus is on the decentralized POC segment of the marketplace. Research Reference Labs Hospitals Clinics Home LabCorp Pharma IDN Large Small Micro Free- Urgent Public OTC and Quest Public Physician Retail CRO Univ. Core Hospital Hospital Hospital Standing Care Health Pharmacy Self-Testing AR
Slide 8: Quidel is well positioned to capture growth in POC segments
Quidel is well positioned to capture growth in POC segments. POCT By Segment ▪ Decentralization of care 2016 2020 continues in response to high costs associated with Hospital traditional settings Bedside $3.9 Bn CAGR: 6.2% $5.3 Bn (Global Market) ▪ Approximately 30% of patients seeking treatment in
Slide 9: Our Cardiac acquisition has unlocked new markets
Our Cardiac acquisition has unlocked new markets. Quidel Markets Non-Quidel Markets New QDEL Markets $Bn $Bn Global In Vitro Diagnostic Reagent Sales 8 Global Professional POC Test Sales * 80 Other 70 7 POC, Drugs of Abuse Professional/Hospital 60 POC - Consumer 6 Fecal occult blood Hematology Blood
Slide 10: Active projects represent $1.7B in addressable market opportunity
Active projects represent $1.7B in addressable market opportunity. Global Markets QDEL’s Opportunity Active / Near-term Projects $3,280 $1,734 Market Size Estimated Platform Product Geography (in millions) Addressable Strep 98 US $150 - $225 100% Vitamin D Europe $100 10% Inf Dis $1,165 Sofia $610 T
Slide 11: Our Strategic Intent
Our Strategic Intent Build a broader-based diagnostic company that delivers revenue and margin more consistently. Use existing resources to fortify price and volume in our core businesses, while using our capabilities to attack the limitations of our competitors, and to forge ahead to create new mar
Slide 12: Quidel's Main Objectives in Support of Our Strategic Intent
Quidel's 3 Main Objectives in Support of Our Strategic Intent: Cultivate organic growth Fully integrate the Triage Grow revenues to from Legacy QDEL and and BNP Businesses, FY $1B through M&A Triage and BNP Businesses and realize synergies; and new product Pay down debt introductions Near-to-Mid Ter
Slide 13: Growth comes from multiple sources
Growth comes from multiple sources. Quidel’s Revenue Structure (FY18) Cardiac Rapid Specialized Molecular Immunoassay Immunoassay Diagnostic Solutions Diagnostic Solutions • Triage • Sofia • Virology + Thyroid • Lyra • Triage Tox. • QuickVue • Specialty • AmpliVue • Beckman BNP • Eye Health • Other
Slide 14: Our R&D and Regulatory expertise is what fuels our growth
Our R&D and Regulatory expertise is what fuels our growth. Since 2011, Quidel has submitted over 30 510(k) packages resulting in over 25 FDA clearances and expanded product claims, 7 CLIA - waiver designations and numerous product introductions, contributing $138M in annual revenues* FDA-cleared Pro
Slide 15: Our Instrumented Immunoassay systems have become flagship products
Our Instrumented Immunoassay systems have become flagship products, combining quality, high sensitivity, low cost and fast diagnosis. Rapid Immunoassay Cardiac Immunoassay FDA–Cleared, CLIA–Waived FDA–Cleared, CLIA–Waived FDA–Cleared Sofia® Immunoassay platform is the next Sofia® 2, at a fraction of
Slide 16: Our innovative molecular diagnostics products are designed to meet customer needs
Our innovative molecular diagnostics products are designed to meet the various needs of the customer in any POC setting. Molecular FDA–Cleared, FDA–Cleared, FDA–Cleared, In Development Mod–Complex Mod–Complex Highly–Complex AmpliVue®, a non-instrumented, Solana®, our first instrumented Lyra®, our Re
Slide 17: Our multiple tailwinds sustain long-term revenue growth
Quidel’s multiple tailwinds sustain long-term revenue growth. Current Commercial Growth Drivers Cardiac Immunoassay Rapid Immunoassay Molecular Commercial Focus Influenza Season Reimbursement & Cost Integration Incremental Sofia Incremental Solana placements MDx placements International Expansion CL
Slide 18: Our Synergy Plan for the Alere assets remains on track
Our Synergy Plan for the Alere assets remains on track. Annualized Synergy Annualized Run Rate Synergy Plan Run Rate Plan Actual ($, in millions) 12/18 $10.8M $13.3M 12/19 $15.5M 12/20 $20.0M Actual synergy for FY2018. 18 Copyright © 2019 Quidel Corporation. All rights reserved. Actual 2019, 2020 sy
Slide 19: Quidel has aggressively reduced its leverage
Quidel has aggressively reduced its leverage, which better positions the company for additional M&A opportunities. Transaction Date Current Debt Current Actions October 6, 2017 Re-paid $109 million through Convertible Bond Debt $167 million $59 million convertible bond exchange. Paid $110 million fr
Slide 20: Our Future Look for Maximizing Shareholder Value
Our Future Look for Maximizing Shareholder Value: Achieve high-single digits in annual revenue growth through new product introductions Invest in the development and commercialization of new products driving gross margins to 65% Leverage operational efficiency driving EBITDA margins to 35% Maximize
Slide 21: Revenue Growth is Critical to Maximizing Shareholder Value
Revenue Growth is Critical to Maximizing Shareholder Value. Aspirational FY Revenue Target - $1 Billion Organic Growth Assumptions Quidel Organic Growth M&A $1,200 • Market expansion for Sofia, Solana • Development of new products on existing platforms $1,000 • Launch of Savanna M&A $150-$250M $800
Slide 22: Uses of Cash and Free Cash Flow
Uses of Cash and Free Cash Flow: Infrastructure investments 15% FCF CAGR and productivity improvements >$100M Ongoing manufacturing maintenance $50M Instrument purchases Cash taxes estimated 2018 2023 to be equal to the tax provision CapEx $30M Abbott $40M Ongoing Abbott annual Annual payments of $4
Slide 23: Our M&A Strategy: What we're looking for
Our M&A Strategy: Use cash on hand to pay down debt and pursue inorganic opportunities to diversify and augment the non-respiratory part of the business What we’re looking for… Targets range New technology Products that reduce Firms that can Accretive within from tuck-ins up that accelerates the sea
Slide 24: Investor Relations Contact
Investor Relations Contact Ruben Argueta Quidel Corporation O: 858.646.8023 E: rargueta@quidel.com
Quidel — Bank of America Merrill Lynch Health Care Conference 2019 on 6ix