Quidelortho Corporation · NASDAQ:QDEL
Quidelortho — Quidel — J.P. Morgan Healthcare Conference 2022
24 slides from Quidelortho's conference presentation, Jan 12, 2022
Slide 1: Quidel Corporation J.P. Morgan Healthcare Conference
Quidel Corporation J.P. Morgan Healthcare Conference January 12, 2022 Copyright © 2022 Quidel Corporation. All rights reserved.
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information NO OFFER OR SOLICITATION The information in this presentation is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or a
Slide 3: Committed to delivering strong performance by investing in growth and innovation
1979 – 1989 1989 – 2009 • Company founded • Launched QuickVue Influenza A/B rapid diagnostic assay • Primarily a provider of Strep A and Pregnancy rapid diagnostics • First company to receive CLIA waiver for Flu, Strep and H. pylori tests 2009 – Present M&A: Product Launches: • • Committed to Signed
Slide 4: Executing on immediate and transformational opportunities
Quidel’s first transformative event: acquisition of Alere assets, effectively doubling the size & revenue profile • Successfully integrated the Triage and Beckman businesses • Established global infrastructure and commercial teams • Reduced leverage from 4.2X to < 1.0X within 2 years* • Harvested $2
Slide 5: Maximizing our core business with a high-velocity pipeline
Currently, strong demand for COVID product • COVID-19 anticipated to be ongoing revenue stream • Between December 2021 week 1 and week 4, sell-through increased 10X at Walgreens/CVS • Increased manufacturing capacity in 2021 to meet demand • Delivering on 100 million-QuickVue COVID OTC US gov. order
Slide 6: Continued decentralization of testing through investment in Digital Health
Quidel remains focused on continued decentralization of testing through investment in Digital Health • Our integrated digital health and diagnostic solutions currently focus on enterprise and employee health, with near-term expansion opportunities into consumer use and markets beyond COVID-19 • Empo
Slide 7: Savanna's differentiators include cost advantage, panel size and TAT
Savanna’s differentiators include cost advantage, panel size and TAT System has strong appeal in Ortho’s small-to-medium sized hospital customers Multiplexing technology provides quick 1 diagnosis in one sample • Magnetic bead based nucleic acid isolation • 4 color PCR multiplexing for up to 12 anal
Slide 8: MDx total testing market is ~$8 billion+
MDx total testing market is ~ $8 billion + ❖ Respiratory-MDX Pandemic Central SARS $5.3B 250M tests POC SARS $900M 45M tests POC Small Panel $1.1B 20M tests POC Syndromic $700M 5M tests ❖ Gastrointestinal-MDX POC Syndromic $150M 1M tests ❖ Sexually Transmitted Infections-MDX Central $280M 11M tests
Slide 9: Targets per Respiratory Panel
Savanna puts more clinically relevant analytes in the hands of more physicians through the economy and speed built into the platform The result is better and faster patient care Savanna’s panels are expected to offer a more complete clinical Moreover, as with Savanna’s respiratory assay, future pane
Slide 10: Quidel's Acquisition of Ortho Clinical Diagnostics
Quidel’s Acquisition of Ortho Clinical Diagnostics
Slide 11: Ortho represents our third transformative opportunity and a very attractive transaction
Ortho represents our third transformative opportunity and a very attractive transaction • Innovative solutions spanning the diagnostics continuum – high- $50B Definitive volume to rapid point-of-care and home use Combined Market Leadership • Multiple modalities to address increasingly diverse clinic
Slide 12: Transaction overview
Transaction overview • Quidel to acquire Ortho for $24.68 per share of common stock as of December 22, 2021, funded through a combination of cash and newly issued shares in the combined company • Total equity value of ~$6.0 billion Transaction • Ortho shareholders will receive $7.14 per common share
Slide 13: Compelling Pro Forma Financial Outlook
Compelling Pro Forma Financial Outlook Pro forma combination is expected to create significant shareholder value (1) Pro Forma Addressable Market $23bn+ $50bn+ Opportunity Long-Term Revenue Growth 17% CAGR 9-11% CAGR Outlook EBITDA Mid 30% >30% Margin(2) -- Accretive to cash EPS within 12 EPS months
Slide 14: Leadership across large and growing market opportunities
Leadership across large and growing market opportunities Similar call points in clinical laboratories and small- to medium-sized hospitals Total Addressable Market: $50 Billion ~ $23B ~ $25B ~$2B Point-of-care Clinical Laboratories Transfusion Medicine Market Leader in POC Cardiac and Respiratory Ra
Slide 15: Multiple drivers for ongoing value creation
Multiple drivers for ongoing value creation Stronger financial profile Enhanced • Durable R&D business model • Significant cost Commercial and revenue leverage • Capabilities of synergies both • Greater financial Broad organizations flexibility for portfolio • Menu expansion growth • Global footprin
Slide 16: A leading Top-7 IVD pure-play
A leading Top-7 IVD pure-play FY 2020 IVD Revenue ($ in millions) (1) $15,431 (1) $10,805 Top-7 (1) $7,403 Diagnostics Player (2) $5,343 (1) $4,989 $3,809 100,000+ Quidel Pro Forma $3,428 Instrument Installed Base $2,728 Across All Platforms (1) $2,500 (1) $2,068 130+ $1,766 $1,662 Countries (3) $1,
Slide 17: Ortho is a great strategic fit and contributes complementary capabilities
Ortho is a great strategic fit and contributes complementary capabilities Leading In Vitro Diagnostics Pure-play Revenue by Business Segment(2) ($ in millions) • Rich 80+ year history of leadership in mid- and high-volume Non-Core testing 2% • A global leader in screening and diagnosis across clinic
Slide 18: Together, we will be one of the largest pure play Dx companies
Together, we will be one of the largest pure play Dx companies. Able to leverage R&D, Clin/Reg, Commercial expertise to solidify leadership position and drive growth into new markets • Global infrastructure (NA, LATAM, EMEA, Japan, China, • Sizeable growth opportunities in fast growing segments ASPA
Slide 19: Transaction further diversifies Quidel's footprint and revenue streams
Transaction further diversifies Quidel’s footprint and revenue streams Quidel Pro Forma $1.9B $2.0B $3.9B TTM Q3’21 Revenue TTM Q3’21 Revenue TTM Q3’21 Revenue RoW China 5% 3% EMEA Other Other 4% 13% 21% Revenue China 8% North by China America EMEA 9% 13% 53% Geography North North America America EM
Slide 20: Unparalleled breadth and depth of capabilities
Unparalleled breadth and depth of capabilities Clinical Setting Health Indications Point-of-Care Decentralized Settings • Infectious Disease At-Home / At-Home / • Cardiac Over The Therapeutic “PhAST” Counter Monitoring • Sepsis • Clinical Chemistry Clinics • Special Chemistry Freestanding Emergency
Slide 21: Global footprint provides scale
Global footprint provides scale Quidel / Ortho Sales Presence Ortho Direct Sales Ortho Indirect Sales 2,300 direct global teammates focused on commercial sales and service Significant opportunity for global cross-selling opportunities and channel pull through with combined infrastructure Copyright ©
Slide 22: Dedicated integration team focused on achieving clear milestones
Dedicated integration team focused on achieving clear milestones Process allows the rest of the organization to continue running and growing the businesses Executive Steering Committee Integration Management Team Close the Deal & Integrate the Capture Synergies Prepare for Integration Organization N
Slide 23: Key Takeaways
Key Takeaways Continue driving momentum in core businesses and leverage strengths of both companies Unrelenting focus on commercial excellence while expanding into new geographies and markets Drive the global commercial execution of Savanna Integrate the organizations while maintaining the culture a
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