Quidelortho Corporation · NASDAQ:QDEL
Quidelortho — Quidel — Wells Fargo Healthcare Conference 2015
22 slides from Quidelortho's conference presentation, Sep 9, 2015
Slide 1: Wells Fargo Healthcare Conference
Wells Fargo Healthcare Conference September 9, 2015 1
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: Our Strategic Intent (The What)
Our Strategic Intent (The What) Build a broader-based diagnostic company that delivers revenue and margin more consistently. Use existing margin and cash to solidify price and volume in our core businesses, while gaining access to, and competing in larger markets, to include molecular. 3
Slide 4: Our Strategy (The How)
Our Strategy (The How) Focus product development on Infectious Disease, Women’s Health and Inflammation markers, areas in which we have extraordinary talent, expertise, contact, and know-how. Develop products that, through clever design, address unmet market needs and issues, and are improvements to
Slide 5: Our Strategy (The How)
Our Strategy (The How) Since 2011: • Developed and submitted 25 products to the FDA for clearance to market in the U.S. (20 have received 510(k) designations). • Built R&D, Manufacturing, and Commercial infrastructure. • Can comfortably grow revenue 10-15% per year. • But one or more of our Key Init
Slide 6: Key Initiatives
Key Initiatives Replace back-up Strep A culture testing with Solana and AmpliVue Group A Strep Improve manufacturing productivity to lower costs (and potentially enter developing world markets) Grow the Influenza testing market (and gain share) $ Improve the Economics of Distribution Value in “first
Slide 7: Key Initiatives
Key Initiatives Replace back-up Strep A culture testing with Solana and AmpliVue Group A Strep Improve manufacturing productivity to lower costs (and potentially enter developing world markets) Grow the Influenza testing market (and gain share) $ Improve the Economics of Distribution Value in “first
Slide 8: Molecular GAS testing at the POC
Molecular GAS testing at the POC • In Q4 2014 and Q3 2015, in depth interviews and focus groups were conducted with independent physician office practices in five states, which has greatly informed our commercial approach. • GAS clinical guidelines will need to include molecular testing in order for
Slide 9: Molecular GAS testing at the POC
Molecular GAS testing at the POC 9
Slide 10: Molecular GAS testing at the POC
Molecular GAS testing at the POC • In Q4 2014 and Q3 2015, in depth interviews and focus groups were conducted with independent physician office practices in five states, which has greatly informed our commercial approach. • GAS clinical guidelines will need to include molecular testing in order for
Slide 11: Key Initiatives: Replace back-up Strep A culture testing
Key Initiatives Replace back-up Strep A culture testing with Solana and AmpliVue Group A Strep • Migration to molecular at the POC likely to be slow, as our market research shows; therefore our strategy is different. • Approximately 37 million negative rapid Strep tests are cultured to confirm a neg
Slide 12: With the launch of Solana GAS, our approach to the molecular market is different
With the launch of Solana GAS, our approach to the molecular market/opportunity is different • Based on our research and our deep understanding of our customers, we believe that a strategy to encourage our customers to migrate to molecular over the next couple years is not viable, and that significa
Slide 13: Key Initiatives
Key Initiatives Replace back-up Strep A culture testing with Solana and AmpliVue Group A Strep Improve manufacturing productivity to lower costs (and potentially enter developing world markets) Grow the Influenza testing market (and gain share) $ Improve the Economics of Distribution Value in “first
Slide 14: Grow the U.S. influenza testing market by providing better information
Key Initiatives Grow the U.S. influenza testing market (and gain share) by providing better information VIRENA AND CONNECTIVITY Data visualization tools will be tailored to each constituent audience 14
Slide 15: Grow the U.S. influenza testing market by providing better information
Key Initiatives Grow the U.S. influenza testing market (and gain share) by providing better information • Patients. Today, about 60 million in the US have ILI each year. About 30 million seek medical care. • Physicians and other Providers. Of those patients seeking treatment, about 40% are tested wi
Slide 16: Grow the U.S. influenza testing market by providing better information
Key Initiatives Grow the U.S. influenza testing market (and gain share) by providing better information • With launch of a next-gen Sofia in 2016 and beyond, our influenza users will see an improvement in individual test performance and workflow - Next-gen Sofia optics and liquid extraction lowers b
Slide 17: Key Initiatives
Key Initiatives Replace back-up Strep A culture testing with Solana and AmpliVue Group A Strep Improve manufacturing productivity to lower costs (and potentially enter developing world markets) Grow the Influenza testing market (and gain share) $ Improve the Economics of Distribution Value in “first
Slide 18: Accelerate the move to molecular with Solana and Savanna
Key Initiatives Accelerate the move from traditional infectious disease assay methods to molecular with Solana and Savanna SAVANNA • Leverage clinical urgency to drive decentralized, on-demand MDx testing. While impact on patient outcomes well accepted, cost has been a factor. • Key success factors:
Slide 19: We are on a path to our longer term financial objectives
We are on a path to our longer term financial objectives 1. Achieve low- to mid-teens in annual revenue growth through new product introductions. 2. Invest in the development and commercialization of new products driving gross margins to exceed 65%. 3. Leverage operational efficiency driving EBITDA
Slide 20: Quidel financial overview
Quidel financial overview Revenue Adjusted EBITDA (1) (in $ million, percent gross margin in white) (adjusted, in $ million) $200 110% $182.6 $45 $175.4 $40.6 $40.9 $180 $38.9 $158.6 $155.7 90% $40 $160 $35 $140 70% $30 $27.9 $120 $113.3 $25 $100 61% 62% 59% 50% 60% $80 54% $20 30% $15 $60 $40 $10 1
Slide 21: 2015 expected operating cost structure
2015 expected operating cost structure Annual Investment: R&D Annual Investment: S&M (in $ million; percentage of sales in white) (in $ million; percentage of sales in white) $50 Range 65% $45 Range 65% $45-$47 $40-$42 $45 $40 55% $37.9 55% $41.5 $40 $35 $34.2 45% $35 $33.8 45% $30 $30.3 $27.7 $26.3
Slide 22: Growth drivers and milestones for 2015
Growth drivers and milestones for 2015 • Expand Sofia installed base through commercialization of CLIA-waived Sofia Strep A • Receive CLIA waiver for Sofia hCG • Continue Sofia conversions from visually-read lateral flow products • Submit 510(k) package to the FDA for Quantitative Vitamin D • Grow r