Qiagen N.v. · NYSE:QGEN
Qiagen — 36th Annual J.P. Morgan Healthcare Conference, January 2018
31 slides from Qiagen's conference presentation, Jan 8, 2018
Slide 1: QIAGEN: Delivering on ambitions to create value from molecular insights
~60-70% 19,000 publications mentioning market share QIAGEN per year in Sample Technologies most a trusted > 20,000 brand for molecular testing instruments In the field 5,000 kits shipped each day ~50,000 samples processed each day QIAGEN: Delivering on ambitions to create value from molecular insigh
Slide 2: Disclaimer
Disclaimer Safe Harbor Statement: This presentation contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended
Slide 3: The Building Blocks of Life: DNA and RNA
THE BUILDING BLOCKS OF LIFE: DNA AND RNA Molecular revolution is gaining momentum with increasing importance of valuable insights Sample to Insight J.P. Morgan Healthcare Conference, January 2018 3
Slide 4: Addressing the World's Most Pressing Challenges
ADDRESSING THE WORLD’S MOST PRESSING CHALLENGES How can we How can we How can we How can we achieve scientific further improve develop better improve breakthroughs outcomes for and safer drugs? public safety? even faster? patients? Expanding range of customers want to benefit from molecular solution
Slide 5: Customers Rely on QIAGEN to Master These Challenges
CUSTOMERS RELY ON QIAGEN TO MASTER THESE CHALLENGES Faster Better More efficiently #1 Top 3 Sample Technologies Assay Technologies Bioinformatics Automation systems #1 Top 5 BIOLOGICAL VALUABLE SAMPLE TO INSIGHT SOLUTIONS SAMPLE MOLECULAR INSIGHTS QIAGEN: World leader in molecular testing solutions
Slide 6: QIAGEN: World leader in molecular testing solutions that enable valuable insights
#1 Top 3 Sample Technologies Assay Technologies Bioinformatics Automation systems #1 Top 5 BIOLOGICAL VALUABLE SAMPLE TO INSIGHT SOLUTIONS SAMPLE MOLECULAR INSIGHTS QIAGEN: World leader in molecular testing solutions that enable valuable insights Sample to Insight J.P. Morgan Healthcare Conference,
Slide 7: Supporting >500,000 customers from basic research to clinical healthcare
Academia Pharma Applied Testing Molecular Diagnostics Supporting >500,000 customers along the continuum from basic research to clinical healthcare Sample to Insight J.P. Morgan Healthcare Conference, January 2018 7
Slide 8: QIAGEN at a glance
Academia ~22% QIAGEN at a glance Consumables (incl. bioinformatics) Scientific breakthroughs A most trusted brand for molecular testing True hybrid with leadership across continuum ~87% Pharma from Life Sciences to Molecular Diagnostics ~19% Better and safer drugs Facts and figures Applied Testi
Slide 9: Continuum
Continuum Academia Pharma Applied Testing Molecular Diagnostics Scientific breakthroughs Better and safer drugs Secure and protect Better healthcare QIAGEN addressable market ~$3 billion ~$1 billion ~$0.5 billion ~$3-4 billion ~+3% overall ~-5% basic research Annual market growth ~+8-12% +7-10% >+5%
Slide 10: QIAGEN going through transformation to focus on attractive growth opportunities
Sales by customer class (As % of annual net sales) 2016-2020 target: ~+7-9% CER CAGR 100% 100% Academia 45% 26% 23% Pharma 20% 21% Applied Testing 6% 10% 2% U.S. HPV 22% 55% MDx core portfolio 45% 25% 2009 9M 2017 2020 QIAGEN going through transformation to focus on attractive growth opportunities C
Slide 11: QIAGEN 2020 ambitions
QIAGEN 2020 ambitions U.S. tax reform (December 2017 announcement) Net sales Adjusted EPS Operating cash flow Anticipate 2019 adjusted tax rate of 20-21% Compares to 2018-2020 outlook for ~19-20% ~+7-9% CER ≥12% CER ~$600 m Impairment of deferred tax assets CAGR CAGR $1,338 m $100-110 millio
Slide 12: 2020 ambitions: Multiple strategic levers to improving performance
Strategic levers Actions 2020 targets ~+7-9 CER sales growth CAGR 1 Accelerate organic growth Allocate resources to high growth areas >12% adj. EPS CAGR ~$600 m operating cash flow Disciplined capital allocation: 2 Enhance growth with targeted M&A Create value, enhance growth, focus Support business
Slide 13: Delivering on 2017 commitment to sales growth with operational efficiency
Levers 2017 Achievements 2013 Building momentum and capturing opportunities in attractive markets Sales targets Meeting targets, U.S. HPV headwinds dissipating Positioned for China growth strategy ✓ Increasing sales from Sample to Insight portfolio: Portfolio strength QIAsymphony: >2,000 cumul
Slide 14: Example: China growth strategy
Example: China growth strategy Unprecedented China opportunities China set to become No. 1 IVD market Currently ~8% of QIAGEN sales (No. 3 market) Targeting growth opportunities, including: NGS and bioinformatics QuantiFERON Human Identification / forensics 2017 actions MAQGEN joint ve
Slide 15: Accelerate organic growth: Key areas of Sample to Insight portfolio
Accelerate organic growth Key areas: QIAGEN’s Sample to Insight portfolio Life Molecular Sciences Diagnostics QuantiFERON ✓ Next-generation sequencing ✓ ✓ Powered by Personalized Healthcare ✓ ✓ QIAGEN Bioinformatics QIAsymphony ✓ ✓ Differentiated Technologies Applications including: ✓ ✓ ■ Liquid bio
Slide 16: Accelerate organic growth: QuantiFERON
Accelerate organic growth: QuantiFERON 2017 highlights Achieved target for ~25% CER growth NEW U.S. launch of 4th-gen QuantiFERON-TB Gold Plus New clinical data confirm patient stratification value of new CD8+ technology Winning large tenders around the world Resolved U.S. patent litigatio
Slide 17: QuantiFERON-TB: DiaSorin-QIAGEN collaboration
QuantiFERON-TB: DiaSorin-QIAGEN collaboration NEW Sold by Sold by New option with DiaSorin LIAISON family State-of-the-art immunoassay platform QuantiFERON-TB QuantiFERON-TB QFT embedded in extensive LIAISON test menu Blood Collection Tubes Blood Collection Tubes High correlation of systems am
Slide 18: Accelerate organic growth: Next-generation sequencing
Accelerate organic growth: Next-generation sequencing 2017 highlights Exceeded $115 million CER in annual sales Rapid expansion of “digital NGS” QIAseq multiplex gene panel portfolio for use on any NGS sequencer GeneReader NGS System: Expanding global reach with China MAQGEN joint venture, new
Slide 19: Accelerate organic growth: Personalized Healthcare
Accelerate organic growth: Personalized Healthcare 2017 highlights Exceeded 25 master collaboration agreements with leading pharma and biotech companies First-ever NGS-based immuno-oncology CDx consortium with Bristol-Myers Squibb First FDA-cleared JAK2 test for blood disorders Ongoing growt
Slide 20: Accelerate organic growth: QIAsymphony
Accelerate organic growth: QIAsymphony 2017 highlights Significantly exceeded 2,000 cumulative placements NEW Successful regionalization strategy (22 CE-IVD tests, 5 FDA-cleared assays) Very positive customer response to new liquid biopsy automation protocols New front-end solution for GeneR
Slide 21: QIAsymphony: Swedish University of Agricultural Sciences, Sweden
Accelerate organic growth: QIAsymphony Life science research: Swedish University of Agricultural Sciences, Sweden Sample to Insight J.P. Morgan Healthcare Conference, January 2018 21
Slide 22: QIAsymphony: INT-Fondazione Pascale, Italy
Accelerate organic growth: QIAsymphony Cancer research and clinical testing: INT-Fondazione Pascale, Italy Sample to Insight J.P. Morgan Healthcare Conference, January 2018 22
Slide 23: QIAsymphony: Police Finland
Accelerate organic growth: QIAsymphony Crime scene investigations: Police Finland Sample to Insight J.P. Morgan Healthcare Conference, January 2018 23
Slide 24: QIAsymphony: Herlev Hospital, Denmark
Accelerate organic growth: QIAsymphony Routine clinical HIV viral load testing: Herlev Hospital, Denmark Sample to Insight J.P. Morgan Healthcare Conference, January 2018 24
Slide 25: QIAsymphony: Virginia Commonwealth University, U.S.
Accelerate organic growth: QIAsymphony Infectious disease and oncology testing: Virginia Commonwealth University, U.S. Sample to Insight J.P. Morgan Healthcare Conference, January 2018 25
Slide 26: Accelerate organic growth: Differentiated Technologies
Accelerate organic growth: Differentiated Technologies 2017 highlights Strengthening No. 1 leadership position in liquid biopsy sample processing ~75% market share in microbiome sample processing, full integrated POWER kits Absolute leadership in Epigenetics Exiqon long-read RNA applications
Slide 27: Enhance growth with targeted acquisitions
Enhance growth with targeted acquisitions Selected QIAGEN M&A transactions 2011 2012 2013 2014 2015 2016 2017 SAMPLE Sample Technologies Assay Technologies Automation Bioinformatics INSIGHT Successful strategy of targeted M&A deals to strengthen our Sample to Insight portfolio Sample to Insight J.P.
Slide 28: Deliver efficiency and effectiveness
Deliver efficiency and effectiveness Key efficiency initiatives 48% 48% Sales channel Adj. operating 47% 47% optimization expenses Simplify some (As % of net sales) organizational 2013 2014 2015 2016 structures Site 318 342 consolidation 288 259 Focus on Operating growth cash flow opportunities (In
Slide 29: Deliver efficiency and effectiveness: Disciplined capital allocation
Deliver efficiency and effectiveness Reinvest for organic growth Capture more value from our Sample to Insight portfolio New products Geographic expansion Increase returns Disciplined Returned $300 million in 2017 ahead of schedule capital allocation $245 million synthetic share repurchase
Slide 30: Multiple drivers for value
+ Maximize sales growth ~+7-9% CER sales CAGR Multiple + Deliver operating leverage drivers >12% CER for value + Optimize balance sheet adjusted EPS CAGR creation + Strong governance and top talent $600 m of operating cash flow Adjusted EPS growth = and high returns Committed to greater value creati
Slide 31: Thank you
Thank you Sample to Insight J.P. Morgan Healthcare Conference, January 2018 31
Qiagen — 36th Annual J.P. Morgan Healthcare Conference, January 2018 on 6ix