Qiagen N.v. · NYSE:QGEN
Qiagen — MedTech Conference Morgan Stanley 2019
47 slides from Qiagen's conference presentation, Mar 5, 2019
Slide 1: Investor presentation Q1 2019
Center for Biomarker Research, Graz, Austria Investor presentation Q1 2019 Sample to Insight Investor presentation Q1 2019 1
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: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2018 results Q4 2018 results Appendix Sample to Insight Investor presentation Q1 2019 3
Slide 4: Customers rely on QIAGEN for DNA and RNA molecular testing solutions
THE BUILDING BLOCKS OF LIFE: CUSTOMERS RELY ON QIAGEN FOR DNA AND RNA MOLECULAR TESTING SOLUTIONS Sample Assay Bioinformatics technologies technologies Automation systems Sample to Insight QIAGEN: World leader in molecular testing solutions that advance science and improve outcomes for patients Samp
Slide 5: Addressing the world's most pressing challenges
ADDRESSING THE WORLD’S MOST PRESSING CHALLENGES Academia How can we achieve scientific breakthroughs even faster? Pharma How can we develop better and safer drugs? Applied Testing How can we improve public safety? Molecular Diagnostics How can we further improve outcomes for patients? Expanding rang
Slide 6: A most trusted brand found in virtually every lab worldwide
QIAGEN customer classes Product portfolio Global presence 9M 2018 net sales (% of total QIAGEN sales) 9M 2018 net sales (% of total QIAGEN sales) 9M 2018 net sales (% of total QIAGEN sales) Molecular Academia Diagnostics Americas Europe / ~22% Middle East / Africa ~32% ~49% Life Sciences ~12% ~88% ~
Slide 7: 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 19% 21% Applied Testing 6% 10% 2% U.S. HPV 22% 55% MDx core portfolio 46% 25% 2009 2017 2020 QIAGEN going through transformation to focus on attractive growth opportunities CAGR
Slide 8: 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow
2020 ambitions Net sales Adjusted EPS Operating cash flow ~+7-9% CER ≥12% CER CAGR CAGR ~$600 m $1,338 m +6% CER $1.11 $340 m 2016 2020 2016 2020 2016 2020 target target target 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow Sample to Insight Investor presentation Q1 2019 8
Slide 9: Disciplined capital allocation
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 capital allocation New commitment in 2018 to return $200 million via repurchases Targeted M&A / licensing Conti
Slide 10: Multiple drivers
+ Maximize sales growth Multiple drivers + Deliver operating leverage Greater + Optimize balance sheet value creation + Strong governance and top talent = Adjusted EPS growth and high returns Committed to higher returns and greater value creation as differentiated leader Sample to Insight Investor p
Slide 11: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2018 results Q4 2018 results Appendix Sample to Insight Investor presentation Q1 2019 11
Slide 12: Sample to Insight portfolio
Sample to Insight portfolio Key highlight areas: QIAGEN’s Sample to Insight portfolio Life Sciences Molecular Diagnostics QuantiFERON ✓ QIAstat-Dx ✓ NeuMoDx ✓ Next-generation sequencing ✓ ✓ QIAsymphony ✓ ✓ Life Sciences Precision Medicine ✓ Differentiated Technologies ✓ Multiple growth opportunities
Slide 13: QuantiFERON
QuantiFERON 2018 highlights Full automation sets new standard for TB testing Achieved goal for 21% CER full-year sales growth QFT Gold Plus Strong guideline expansion driving modern blood test adoption + Hamilton and DiaSorin partnerships for automated TB testing Launch of CE-marked DiaSorin
Slide 14: QuantiFERON
QuantiFERON Tuberculin skin test (TST) QuantiFERON-TB (QFT) Manual placement, reading, data entry Can be fully automated Affected by BCG vaccine and NTM Highly specific Two patient visits required Results with one patient visit Significant inter-reader variability No inter-reader var
Slide 15: Expanding QuantiFERON-TB benefits
QuantiFERON Expanding QuantiFERON-TB benefits Total convertible 2020 target: >$300 million sales LTBI market: Intensify commercial activities in strategic markets Automation upgrades to improve workflow ~70 million Continue menu expansion tests annually North America Market: ~20 million LTBI
Slide 16: QIAGEN's footprint in the Molecular Diagnostics market
QIAGEN’s footprint in the Molecular Diagnostics market Addressing the majority of the ~4.8 billion Molecular Diagnostics market in 2018 Single-plex PON Arrays Benchtop NGS GeneReader NGS System Real-time PCR Syndromic testing Fully integrated sample QIAstat-Dx and assay technologies NeuMoDx 96
Slide 17: QIAstat-Dx
QIAstat-Dx 2018 highlights QIAstat-Dx Addressing ~$800 million market opportunity in syndromic testing Over 300 placements following 2018 launch with two panels Differentiation: Ease of use, PCR-based system and cost efficiency U.S. submission done in Q4, plan for 2019 U.S. launch 2019 catal
Slide 18: NeuMoDx
NeuMoDx 2018 highlights NeuMoDx 96 / 288 Entering ~$2.7 billion fully-integrated PCR market segment Late 2018 launch, complements QIAsymphony (modular segment) Differentiation: Speed, random access, walk-away, on-board storage Contingent full acquisition of NeuMoDx: Mid-2019 to mid-2020(1) 2
Slide 19: NeuMoDx platform key features
NeuMoDx NeuMoDx platform key features Specification NeuMoDx N288 NeuMoDx N96 Rapid turnaround time Sample throughput: High-throughput Mid-throughput Samples per 8-hour shift Up to 340 Up to 150 Best ease-of-use Maximal sample loading 288 96 Greater workflow versatility Walk-away capability ~7 hours
Slide 20: Next-generation sequencing
Next-generation sequencing 2018 highlights GeneReader NGS System Exceeded $140 million target for NGS sales 2019 target of ~$190 million GeneReader NGS System Gaining share in ~$300 m global benchtop oncology NGS market Offering full menu of cancer gene panels Universal NGS Launch of Q
Slide 21: GeneReader NGS System
GeneReader NGS System Ease of use Unique automation Reliable results Data interpretation QIAcube® GeneRead QIAcube® GeneReader™ Bioinformatics portfolio 1 2 3 4 5 First complete Predictable Actionable Expertise Flexibility to NGS workflow costs insights and service fit needs The world’s first comple
Slide 22: GeneReader NGS System
GeneReader NGS System QIAGEN Target customer requirements Comp. I Comp. T (1) Actionability 100% 100% 70% 80% Minimum Optimum Integration of bioinformatics 100% 70% 80% Strength of Knowledge Base, # publications >30k Third party >1k Actionable variants detected in panel >700 500 600 Analytical perfo
Slide 23: GeneReader targeting a distinct and highly attractive market segment
GeneReader NGS System NGS market by application Clinical research market throughput(1) Share of Large WES / Majority of use is Panels No. of laboratories market panels WGS in the mid to low throughput Research 80% 20% 40% 40% Average Clinical research throughput 20% 70% 20% 10% and diagnostics 0 2
Slide 24: Natera and QIAGEN collaboration
Natera and QIAGEN collaboration GeneReader NGS System Long-term partnership for development of cutting-edge genetic testing assays Joint development of NGS-based cell-free NIPT assay Designed for GeneReader NGS System Powerful bioinformatics integrating Natera’s Constellation cloud platform
Slide 25: Natera and QIAGEN collaboration
Natera and QIAGEN collaboration Clinical molecular testing market by application(1) QIAGEN Partnership Natera (In $ billions) 3.4 2.1 2.7 1.4 1.6 Liquid biopsy Cell-free DNA 2.2 Oncology platform technologies NIPT expertise 2.1 2.5 0.8 1.0 1.6 2.4 NIPT NGS assay Panorama assay platform technologies
Slide 26: Assay roadmap
Assay roadmap Selected assay roadmap (2018-2021) 2018 2019 2020 2021 Respiratory Respiratory Meningitis Positive Blood Culture Gastrointestinal Gastrointestinal Oncology Pneumonia QIAstat-Dx Meningitis Positive Blood Culture CLIA Waiver Respiratory Pneumonia GBS CMV FluA&B/RSV CT/NG GAS HIV NeuMoDx(
Slide 27: Precision Medicine
Precision Medicine 2018 highlights N-of-One clinical interpretation services Novartis partnership: CDx for PIK3CA-mutated breast cancers Day One launch readiness with leading clinical laboratories NeoGenomics (U.S.) and SRL (Japan) Strong momentum in immuno-oncology (I-O) Launch of QIAseq
Slide 28: Life Sciences technologies
Life Sciences technologies QIAcube Connect QIAcube Connect New generation of automation for sample processing Based on proven QIAGEN spin columns and chemistry Builds on >8,000 first-generation QIAcube placements Over 3,000 protocols for automation of over 80 kits Digital connections for r
Slide 29: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2018 results Q4 2018 results Appendix Sample to Insight Investor presentation Q1 2019 29
Slide 30: FY 2018: Consolidated Statements of Income (unaudited)
FY 2018: Consolidated Statements of Income (unaudited) Twelve months ended Twelve months ended (In $ thousands, except share data) December 31, 2018 December 31, 2017 Net sales 1,501,848 1,417,536 Cost of sales 500,888 494,975 Gross profit 1,000,960 922,561 Operating expenses: Research and developme
Slide 31: 2018: Quarterly and full-year income statement summary
2018: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Net sales 343.6 377.2 377.9 403.2 1,501.8 Net sales (CER) 327.3 370.5 387.7 415.0 1,500.5 Gross profit 225.7 253.8 256.8 264.8 1,001.0 Gross prof
Slide 32: 2018: Total net sales overview
2018: Total net sales overview Net sales by customer class (In $ millions at actual rates / Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 change in actual, CER rates) Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Molecular Diagnostics 161 14% 9% 187 11% 10% 189 5% 9% 194 1% 5% 73
Slide 33: Consolidated Balance Sheets
Consolidated Balance Sheets December 31, December 31, December 31, December 31, (In $ thousands, except par value) 2018 2017 (In $ thousands, except par value) 2018 2017 Assets (unaudited) Liabilities and Equity (unaudited) Current assets: Current liabilities: Cash and cash equivalents 1,159,079 657
Slide 34: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Twelve months ended Twelve months ended December 31, December 31, December 31, December 31, (In $ thousands) 2018 2017 (In $ thousands) 2018 2017 (unaudited) (unaudited) Cash flows from operating activities: Cash flows from financing activities: Net income 190,3
Slide 35: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2018 results Q4 2018 results Appendix Sample to Insight Investor presentation Q1 2019 35
Slide 36: Q4 and FY 2018: Overview
Q4 and FY 2018: Overview 1 Achieved 2018 target for net sales, exceeded on adjusted EPS Q4 and FY net sales Q4 and FY adjusted EPS(1) +6% net sales growth (+6% CER vs. ~+6-7% CER outlook) (In $ millions, at actual rates) (In $ per share) $1.34 adjusted EPS ($1.35 CER vs. ~$1.33-1.34 CER outlook)
Slide 37: Q4 and FY 2018: Product type and customer class
Q4 and FY 2018: Product type and customer class Q4 2018 net sales: $403.2 million FY 2018 net sales: $1,501.8 million Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Consumables and related revenues $344 +1% +4% 85% $1,315 +6% +6% 88% Instruments $59 +
Slide 38: Q4 and FY 2018: Geographic regions
Q4 and FY 2018: Geographic regions Q4 2018 net sales: $403.2 million FY 2018 net sales: $1,501.8 million Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Americas $169 -4% -4% 42% $693 +6% +6% 46% Europe / Middle East / Africa $143 +7% +13% 35% $490 +6%
Slide 39: Q4 and FY 2018: Balance sheet and cash flow
Q4 and FY 2018: Balance sheet and cash flow Balance sheet data (As of December 31 ) 2018 2017 Leverage ratio(1) Group liquidity (In $ millions) 1,394 1,017 Net debt (In $ millions) 781 743 3.3 Shareholder equity ratio 46% 50% Leverage ratio(1) 1.4x 1.5x 2.2 1.6 1.5 1.3 1.4 1.1 1.2 Cash flow 0.9 0.9
Slide 40: Q4 and FY 2018: Reconciliation adjusted results
Q4 and FY 2018: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS Fourth quarter 2018 Reported results 403.2 264.8 88.3 68.4 -7.5 11% 60.9 0.26 Adjustments Business integration, acqu
Slide 41: Q4 and FY 2018: Currency impact
Q4 and FY 2018: Currency impact Net sales Net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) Fourth quarter 2018 U.S. dollar 141.6 141.6 34% 0.0 Euro 106.8 109.6 26% 2.8 British pound 33.4 33.8 8% 0.4 Japanese yen 15.7 15.7 4% 0.0 Other currencies 105.7 114.
Slide 42: Q1 and FY 2019: Outlook and assumptions
Q1 and FY 2019: Outlook and assumptions As of February 4, 2019 Q1 2019 outlook FY 2019 outlook ~+5-6% CER ~+7-8% CER Adjusted net sales (Prior year: $343.6 m) (Prior year: $1,501.8 m) ~$0.26-0.27 CER ~$1.45-1.47 CER Adjusted EPS(1) (Prior year: $0.26) (Prior year: $1.34) Adjustments to operating inc
Slide 43: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2018 results Q4 2018 results Appendix Sample to Insight Investor presentation Q1 2019 43
Slide 44: Global reach into the most attractive geographic markets
Global reach into the most attractive geographic markets Aarhus Manchester Hilden Venlo Waltham Redwood City Germantown Shanghai Shenzhen Hilden, Germany Europe Germantown, Maryland Americas Shanghai Asia-Pacific Sample to Insight Investor presentation Q1 2019 44
Slide 45: Executive Committee
Executive Committee CEO Commercial Operations Peer Schatz Manuel O. Méndez Executive Committee Molecular Diagnostics CFO Thierry Bernard Roland Sackers Life Science Bioinformatics Thomas Schweins Jonathan Sheldon Human Resources Global Operations Annette Koch Barthold Piening Development(1) Business
Slide 46: Employees as of December 31, 2018
Employees as of December 31, 2018 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q4 2018 Q4 2017 Production 277 656 134 1,067 1,020 5% R&D 231 775 50 1,056 985 7% Sales 559 762 669 1,990 1,883 6% Marketing 77 155 76 308 278 11% Administration 86 322 123 531 491
Slide 47: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Dr. Sarah Fakih Alexandra Koenig Vice President Director Coordinator Corporate Communications and IR Investor Relations Investor Relations Phone: +49 2103 29 11711 Phone: +49 2103 29 11457 Phone: +49 2103 29 11709 +1 240 686 2222 Mobile: +49 152