Qiagen N.v. · NYSE:QGEN
Qiagen — Q4 2019 Earnings Presentation
59 slides from Qiagen's earnings presentation, Feb 4, 2020
Slide 1: Executing on Sample to Insight portfolio opportunities
Executing on Sample to Insight portfolio opportunities Investor presentation Q1 2020 Sample to Insight
Slide 2: Disclaimer
Disclaimer Safe Harbor Statement: This presentation contains both historical and forward-looking Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate statements. All statements other than statements of historical fact are, or may be deemed to be (CER) basis,
Slide 3: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 3
Slide 4: Looking ahead to 2020: Delivering growth with focus on value creation
Looking ahead to 2020: Delivering growth with focus on value creation Supporting customers across the continuum of Life Sciences to Molecular Diagnostics Executing on growth opportunities in a large and attractive molecular testing market Dynamic and innovative technologies reinforcing QIAGEN’s stro
Slide 5: Leveraging portfolios across the Life Sciences and Molecular Diagnostics
Leveraging portfolios across the Life Sciences and Molecular Diagnostics ~+6% annual market growth Academia Pharma Applied Testing Molecular Diagnostics Scientific breakthroughs Better and safer drugs Secure and protect Better healthcare QIAGEN addressable ~$3 billion ~$1 billion ~$0.5 billion ~$6 b
Slide 6: Dynamic and innovative portfolio to unlock valuable molecular insights
Dynamic and innovative portfolio to unlock valuable molecular insights Sample Technologies Assay Technologies Academia How can we achieve scientific breakthroughs even faster? • Sample collection and stabilization • PCR and NGS kits containing • DNA/RNA/protein purification kits reagents and consuma
Slide 7: QIAGEN is found in essentially every laboratory worldwide
QIAGEN is found in essentially every laboratory worldwide From young scientists to Nobel laureates Selected Nobel prize winners • 2018 – James Allison and Tasuku Honjo: Discovery of cancer therapy by negative inhibition of immune regulation • 2015 – Tomas Lindahl: Mechanistic studies of DNA repair •
Slide 8: Strong leadership positions create opportunities in scientific and clinical applications
Strong leadership positions create opportunities in scientific and clinical applications 2019 sales by customer class ~32% Academia / Applied Testing ~49% ~$1.5bn ~51% Molecular Life Diagnostics Sciences ~19% Pharma 2019 sales by product portfolio ~$1.5bn ~11% ~89% Instruments Consumables (incl. ser
Slide 9: Large and attractive markets with growth opportunities
Large and attractive markets with growth opportunities Total addressable market for QIAGEN Life Sciences Molecular Diagnostics Bioinformatics ~$7bn ~$6bn ~$5bn ~$5bn Pharma ~$500m ~$350m Academia / Applied Testing 2019 2023 2019 2023 2019 2023 estimate estimate estimate Key trends • Technology advan
Slide 10: Global presence with focus on the most attractive developed and emerging markets
Global presence with focus on the most attractive developed and emerging markets Sollentuna Distribution Aarhus partners Venlo Manchester Wroclaw in over 60 Toronto Hilden 2019 sales by geography Beverly Paris Milan Seoul countries Ankara Beijing Barcelona Tokyo Redwood City Cairo ~32% Germantown /
Slide 11: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. Bioinformatics E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 11
Slide 12: Life Sciences: Providing differentiated technologies to enable scientific advancements
Life Sciences: Providing differentiated technologies to enable scientific advancements Market 2019 sales Top 10 customers Instruments Asia-Pacific / Japan Americas ~5% ~13% ~25% ~45% ~$5 billion • QIAGEN segment share: ~15% addressable market • QIAGEN 2019 sales: $789 million (2019) • Unique sample
Slide 13: Life Sciences: Building on the strength of our leading positions
Life Sciences: Building on the strength of our leading positions 2019 Life Sciences sales ($789 million) ~$3.5 billion Sales Underpenetrated and significant growth opportunities ~$280 million Bioinformatics (7%) Assay Other (8%) ~$700 million Technologies ~15% of sales #1 ~35% of sales #3 Sample PCR
Slide 14: Strategy: Strong foundation in Sample Technologies supports growth of new products
Strategy: Strong foundation in Sample Technologies supports growth of new products Sample Technologies: Continue with Segment leadership Strengthening portfolio with investments in high growth areas such as microbiome and liquid biopsy PCR Assay Technologies: Transform portfolio with digital PCR Exc
Slide 15: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 15
Slide 16: Molecular Diagnostics: Full range of automation solutions from IVD to LDT and CDx
Molecular Diagnostics: Full range of automation solutions from IVD to LDT and CDx Market 2019 sales Top 10 • QIAGEN segment share: ~15% Instruments Asia-Pacific customers ~$5 billion • QIAGEN 2019 sales: $737 million ~10% / Japan ~18% ~17% Americas addressable market • Focus on high-growth, high-dem
Slide 17: Strategy: Deliver above-market growth with disruptive portfolio, agility and partnerships
Strategy: Deliver above-market growth with disruptive portfolio, agility and partnerships Immune Response: Develop QuantiFERON (QFT) franchise and automated platforms 2023 target: >$400 million of QFT-TB sales, deliver QFT-Access and QFT-Lyme Focus on Infectious Diseases (QIAstat-Dx and NeuMoDx): Ex
Slide 18: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 18
Slide 19: Bioinformatics: Offering unique genomic data analysis and interpretation capabilities
Bioinformatics: Offering unique genomic data analysis and interpretation capabilities Market 2019 sales Molecular • QIAGEN segment share: ~20% Diagnostics Top 10 Asia-Pacific ~$350 million (~9,000 users) customers • 2019 sales: ~$83 million / Japan addressable market ~20% ~25% ~20% (2019) • Industry
Slide 20: QIAGEN Digital Insights – Introducing new portfolios from Discovery to Clinical Insights
QIAGEN Digital Insights – Introducing new portfolios from Discovery to Clinical Insights Discover new connections in data to support better outcomes • >1 million patients analyzed to date with QIAGEN Clinical Insight QIAGEN Digital Insights • >20 million curated findings covering scientific knowledg
Slide 21: Strategy: Expand leadership in data analysis, interpretation and content
Strategy: Expand leadership in data analysis, interpretation and content Build on genomics leadership Help customers rapidly transform complex genomic data into actionable insights The partner of Expand our datasets choice to get Combine our curated and public data with secure access to patient data
Slide 22: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials– Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 22
Slide 23: QIAGEN is ready for a sustained growth and value creation cycle
QIAGEN is ready for a sustained growth and value creation cycle Recent developments 2020-2023 strategic targets Highly competitive portfolio Maintaining growth and value creation Added exciting organic and strategic growth opportunities Multiple launches of disruptive new platforms for Material inve
Slide 24: 2023 targets: Strengthen leadership in exciting areas of growing molecular testing market
2023 targets: Strengthen leadership in exciting areas of growing molecular testing market Addressable QIAGEN 2019 QIAGEN 2023 market size segment share Sample to Insight portfolio growth profile sales split target Academia / 1 Sample Technologies (incl. NGS) Applied Testing ~15% 2 Assay Technologies
Slide 25: Growth Driver - Sample Technologies
Recent developments 2020-2023 targets • Strengthening position as the first step in virtually • Extend market and technology leadership with Growth Driver - any biology lab process innovations in high-demand application areas Sample • >500 sample technology kits now available ◦ Examples: Liquid biop
Slide 26: Sample Technologies: Comprehensive portfolio to process essentially any biological sample
Sample Technologies: Comprehensive portfolio to process essentially any biological sample Attractive end markets Strategic focus • >1 million samples processed daily • Extend leadership with innovations in new application areas • >$700 million market size with 2-3% CER annual growth • Drive instrume
Slide 27: Growth Driver - PCR Assay Technologies
Recent developments 2020-2023 targets • Adapting vast quantitative PCR assay portfolio • Planning 2020 launch of new QIAcuity digital PCR for use with digital PCR platforms into research market • Current QIAGEN segment position: ◦ Future expansion into MDx applications ◦ #2 in pre-designed assays •
Slide 28: Digital PCR: Preparing launch of fully integrated nanoplate-based platform series
Digital PCR: Preparing launch of fully integrated nanoplate-based platform series Differentiated new solutions for digital PCR QIAGEN digital • Scalable instrument formats: 1-, 4- and 8-plate capabilities PCR technology • Quicker time to result and lower cost On track for addressing >$4.5 billion mi
Slide 29: Growth Driver - Human Identification / Forensics
Recent developments 2020-2023 targets • Strengthened sample technologies portfolio • Strengthen sample collection and processing as well as data analysis portfolio capabilities ◦ Includes collection, stabilization, isolation, purification and storage of DNA/RNA samples ◦ Expand position in sample co
Slide 30: Growth Driver - Immune Response: QuantiFERON
Recent developments 2020-2023 targets • Modern standard for latent TB IGRA testing • Expand DiaSorin QFT-TB partnership in U.S. and Growth Driver - China • Significantly strengthened best-in-class position Immune • Launch QFT-TB Access in 2020, gain access to high- ◦ Excellent assay: QuantiFERON TB
Slide 31: QuantiFERON: Broaden test menu and create new tests with partners
QuantiFERON: Broaden test menu and create new tests with partners Drive QFT-TB market conversion Launch QFT-Access in mid-2020 Expand DiaSorin menu: QFT-Lyme Leverage best-in-class test with automation Advance TB control in high-burden, low- Launch ultra-sensitive Lyme disease test partners to drive
Slide 32: QuantiFERON: Best-in-class blood-based test for latent tuberculosis detection
QuantiFERON: Best-in-class blood-based test for latent tuberculosis detection QuantiFERON vs. 120-year-old tuberculin skin test (TST) Various risk groups requiring TB testing Tuberculin skin test (TST) QuantiFERON-TB (QFT) Market size: >70 million annual latent TB tests • Manual placement, reading,
Slide 33: QuantiFERON: Complementary solutions to address global latent TB test demands
QuantiFERON: Complementary solutions to address global latent TB test demands QuantiFERON-TB Gold (QFT-TB Gold Plus) QuantiFERON-TB Access (QFT-Access) Planning 2023 No continuous power No calibration or for sales goal: supply needed maintenance needed H2 2020 >$400 CE-IVD Option million No computer
Slide 34: QuantiFERON: QFT-Lyme in development to address unmet needs
QuantiFERON: QFT-Lyme in development to address unmet needs Targeting $400-600 million market Rising US occurrence of Lyme disease Confirmed cases Potential testing market Planned 40,000 Europe ~35,000 per year ~15 million tests per year CE-IVD launch in U.S. ~30,000 per year ~5 million tests per ye
Slide 35: Growth Driver - Infectious Diseases: QIAstat-Dx
Recent developments 2020-2023 targets • Entered $800 million market with >20% CER growth • Drive global market penetration and share gain Growth ◦ Nearing 1,000 placements as at end-2019 • Aggressive menu expansion Driver - • EU launch in late 2018 • Expansion into new therapeutic areas (e.g. Infect
Slide 36: QIAstat-Dx: Next generation syndromic testing system entering an $800m market
QIAstat-Dx: Next generation syndromic testing system entering an $800m market Competitive benchmarking QIAstat-Dx bioMerieux bioMerieux Genmark Luminex (4 scalable slots Biofire FilmArray Biofire Torch ePlex Verigene used for comparison) (1 slot) (12 slots) (12 slots) (1 slot) Throughput (in 8 hours
Slide 37: Growth Driver - Infectious Diseases: NeuMoDx
Recent developments 2020-2023 targets • Entered $2.7 billion market for fully integrated • Achieve menu with 10 CE-IVD assays by end-2019 PCR-based platforms • Right to acquire remaining 80% NeuMoDx stake for Growth Driver - ◦ Synergy with modular QIAsymphony as well as $234 million by latest mid-20
Slide 38: NeuMoDx: A disruptive integrated PCR testing platform in a $2.7 billion market
NeuMoDx: A disruptive integrated PCR testing platform in a $2.7 billion market Competitive benchmarking Roche Hologic Danaher Hologic Cobas 6800 Roche Abbott NeuMoDx 288 NeuMoDx 96 Panther Beckman Veris Panther (+ Omni LDT Cobas 8800 Alinity M Fusion (Discontinued) channel) Sysetm volume in '00,000s
Slide 39: Growth Driver - Next-Generation Sequencing
Recent developments 2020-2023 targets • Rapid growth of “Digital NGS” gene panels • Invest in IVD assays (including CDx) for use on Illumina’s clinical sequencers ◦ >100 preconfigured panels available (QIAseq, GeneRead) and unlimited customized panels • Continue to develop and commercialize QIAseq p
Slide 40: Next-generation sequencing: QIAGEN solutions from Sample to Insight
Next-generation sequencing: QIAGEN solutions from Sample to Insight Achieved 2019 goal for ~$180 million of NGS-related sales; expecting double-digit CER growth in 2020 • Reorientation for NGS growth strategy with Illumina partnership QIAGEN NGS portfolio components ◦ Invest in IVD assays (including
Slide 41: 15-year Illumina partnership to accelerate use of NGS in clinical decision-making
15-year Illumina partnership to accelerate use of NGS in clinical decision-making • QIAGEN to develop and market NGS IVD kits (including CDx assays) for use on Illumina systems ◦ Integrated with QIAGEN sample technologies, NGS IVD kits and bioinformatics solutions for “Sample to Insight” experience
Slide 42: Core Franchise - Oncology and Precision Medicine
Recent developments 2020-2023 targets • Strong position in molecular CDx • Maximize differentiation; supplies both NGS and PCR systems ◦ >25 pharma partnerships • 2018: ~$120 million sales ◦ >50 active development programs ◦ Volatile trends in companion diagnostic co- ◦ 7 FDA approvals and 5 CE-IVD
Slide 43: QIAGEN oncology and precision medicine portfolio
QIAGEN oncology and precision medicine portfolio Oncology assays 2019 Oncology and Precision CDx co-development project revenues Medicine sales PCR-based kits (both general IVD and CDx kits) • >25 master collaboration agreements Other with pharma and biotech companies therascreen: Top portfolio of
Slide 44: Providing a wide range of oncology assays to qualify patients for targeted therapies
Providing a wide range of oncology assays to qualify patients for targeted therapies Lung cancer (NSCLC) Colorectal cancer (mCRC) Blood (Leukemia, CML) 2013 BRAF ~$87m TAM 2012 BCR-ABL ~$13m TAM (CE-IVD) EGFR 2015 KRAS ~$108m TAM 2014 ~$95m TAM 2012 2018 Urothelial cancer KRAS G12C 2002 ~$92m TAM In
Slide 45: Core Franchise - QIAsymphony
Recent developments 2020-2023 targets • Achieved >2,500 cumulative placements in 2019 • Goal for >800 new placements from 2020-2023 • Successful regionalization strategy • Continue regionalization strategy ◦ US: Focus on sample technologies ◦ ROW: Sample technologies, less modular IVD • Continue to
Slide 46: QIAsymphony: Gold standard in molecular testing sample and assay processing
QIAsymphony: Gold standard in molecular testing sample and assay processing Nucleic acid isolation and PCR set-up for an extensive range of applications • Innovative, easy-to-use modular system • Purification of DNA and RNA from a wide range of samples • Automatic transfer of samples into assay setu
Slide 47: QIAsymphony: Hands-free automation for sample preparation and assay set-up
QIAsymphony: Hands-free automation for sample preparation and assay set-up Competitive benchmarking Selected competitors; list not exhaustive QIAsymphony Promega eMAG/easyMAG Roche MagNA Pure 24 Dimensions (W / H / D), cm 128 / 73 / 103 142 / 181 / 80 94 / 68 / 80 Size Weight, kg 173+110 (cabinet) 1
Slide 48: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 48
Slide 49: Executive Committee
Executive Committee Thierry Bernard Roland Sackers Thomas Schweins Interim CEO and Senior Vice Senior Vice President President, Head of MDx Head of Life Sciences Business Area Chief Financial Officer Business Area Joined QIAGEN in February 2015 and previously served as Corporate Joined QIAGEN in 199
Slide 50: Employees as of December 31, 2019
Employees as of December 31, 2019 Europe / Asia Pacific / Total Total Americas Middle East / Africa Japan / ROW Q4 2019 Q4 2018 Change Production 252 777 135 1,164 1,067 9% R&D 188 718 47 953 1,056 -10% Sales 540 798 732 2,070 1,990 4% Marketing 69 161 79 309 308 0% Administration 83 366 151 600 531
Slide 51: Business services and external providers
Business services and external providers QIAGEN Business Services (QBS) sites Key external providers 2015 2019 2023 Status target target Supply chain Employees > 150 > 700 > 900 Information technology % of employees 3% 13% ERP system QBS sites in Wroclaw (Poland) and Manila (Philippines) i • Scalabl
Slide 52: Agenda
Agenda A. Overview B. Life Sciences C. Molecular Diagnostics D. QIAGEN Digital Insights E. Key Growth Drivers and Core Franchises F. Team and Organization G. Financials – Q4 2019 and 2020 outlook Sample to Insight Investor presentation Q1 2020 52
Slide 53: Q4 and full-year 2019: Summary
Q4 and full-year 2019: Summary 1 Q4 2019 results exceed outlook Q4 and FY net sales Q4 and FY adjusted EPS(1) • $413.5 million net sales (+3% actual, +4% CER vs. ~+3% CER outlook) (In $ millions, at actual rates) (In $ per share) +9% CER • Diluted EPS $0.19; adjusted EPS $0.48 ($0.48 CER vs. ~$0.45-
Slide 54: Q4 and full-year 2019: Financial review
Q4 and full-year 2019: Financial review Fourth quarter Full year (In $ millions, unless indicated) (Diluted EPS in $ per share) 2019 2018 Change 2019 2018 Change Net sales(1) 413.5 403.2 3% / 4% CER 1,526.4 1,501.8 2% / 4% CER Operating income (loss) 80.0 88.3 -9% (26.1) 266.6 NM Adjusted operating
Slide 55: Q4 and full-year 2019: Sales by product type, customer class and region
Q4 and full-year 2019: Sales by product type, customer class and region Q4 2019 net sales: $413.5 million FY 2019 net sales: $1.526 billion Sales % % CER % Sales % % CER % Sales by product type (In $ m) change change of sales (In $ m) change change of sales Consumables and related revenues $364 6% 7
Slide 56: Significant progress on profitability towards value creation
Significant progress on profitability towards value creation 2015-2019: Adjusted diluted EPS trends in $ per share $1.43 ($1.46 CER) 1.34 1.27 1.06 1.11 2015 2016 2017 2018 2019 Sample to Insight Q4 2019 results 56
Slide 57: Q1 and full-year 2020: Outlook and assumptions
Q1 and full-year 2020: Outlook and assumptions (As of February 4, 2020) Q1 2020 outlook FY 2020 outlook ~+2-3% CER ~+3-4% CER Net sales (Prior year: $348.7 m) (Prior year: $1,526 m) ~$0.28-0.29 CER ~$1.52-1.54CER Adjusted EPS(1) (Prior year: $0.27) (Prior year: $1.43) Adjustments to operating income
Slide 58: Abbreviations
Abbreviations Adj Adjusted EBV Epstein-Barr virus JPY Japan Yen R&D Research & Development AIV Avian influenza virus EGFR Epidermal Growth Factor Receptor KRAS Kirsten rat Sarcoma Viral Oncogene RoW Rest of World ALK Anaplastic Lymphoma Kinase EGM Emerging Growth Markets Homolog RGQ Rotor-Gene Q AML
Slide 59: Your contacts
Your contacts John Gilardi Vice President Calendar Corporate Communications and IR Phone: +49 2103 29 11711 Q1 2020 results May 2020 +1 240 686 2222 Mobile: +49 152 018 11711 Annual General Meeting June 2020 E-mail: john.gilardi@qiagen.com Q2 2020 results July 2020 Phoebe Loh Share information Assoc