Qiagen N : Earnings Document

QIAGEN Q3/2021 AND 9M RESULTS CALL TRANSCRIPT

November 4, 2021

Sample to Insight__

Q3/ 2021 and 9M RESULTS CALL

TRANSCRIPT

OPER:	Ladies and gentlemen, thank you for standing by.
	Welcome to our call to discuss results for the third quarter and first
	nine months of 2021. At this time, all participants are in a listen-only
	mode. Please be advised this call is being recorded and will be
	made available on QIAGEN's website.
	I'd like to introduce your host, John Gilardi, Vice President of Corpo-
	rate Communications and Investor Relations at QIAGEN. Please go
	ahead.
JOHN GILARDI:	Thank you, and welcome to our call.
	The speakers today are Thierry Bernard, the Chief Executive Officer
	of QIAGEN, and Roland Sackers, the Chief Financial Officer. Also
	joining us is Phoebe Loh from Investor Relations.
	Please note that this call is being webcast live and will be archived
	on the investors section of our website at www.qiagen.com.

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JOHN GILARDI: Today we have an updated format for this call. We have decided to streamline the prepared comments and ensure more time to address your questions. So we will first have some remarks from Thierry and Roland summarizing our results, and then move into the Q&A session.

A presentation with details on our performance is available on the IR section of our website, along with the third quarter release. We will not be showing the slides during this call.

Before we begin, let me cover as usual our safe harbor statement. This conference call discussion and responses to your questions reflect management's view as of today, November 4, 2021.

We will be making statements and providing responses to your questions that state our intentions, beliefs, expectations or predictions of the future. These constitute forward-looking statements for the purpose of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. QIAGEN disclaims any intention or obligation to revise any forward-looking statements.

For more information, please refer to our filings with the U.S. Securities and Exchange Commission, which are also available on our website.

We will also be referring to certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. Additionally, all references to earnings per share refer to diluted EPS.

1. reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is available in our third quarter press release as well as the presentation that are both available on our website.

I would like to now turn over the call to Thierry.

THIERRY BERNARD: Thank you, John.

Welcome to our conference call today and thank you to everyone for joining.

Before I begin, I would like to first acknowledge the efforts our teams are continuing to make around the world as they balance the volatile demand for COVID-19 testing solutions with the return of regular business.

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Our teams around the world have done an excellent job of effectively managing the shifting demand as the pandemic has progressed and they have responded quickly to the ever changing needs of the market. It is through the ongoing dedication of all our QIAGENers that we have delivered another quarter of strong re- sults.

Now on to our key messages for today.

First, we delivered a solid quarter with strong sales growth and adjusted EPS.

Net sales grew 10% at constant exchange rates to 535 million dol- lars, and this was well above our outlook for sales to be at the same level as in the third quarter of 2020.

Our results were driven by better-than-expected sales in COVID-19 product groups and strong trends in non-COVID demand.

In the past we have seen these product groups inversely related - as COVID testing increased, demand for products used in regular research and testing decreased. However, in the third quarter this year we saw strong demand for QIAGEN solutions across both ar- eas. Variant surges and diverse levels of vaccination have contributed to uneven recovery trends across the globe and we are seeing mixed demand coming from the various regions.

As we move through the pandemic, and COVID testing demands remain volatile, we are focused on executing on the sustainable growth of sales in our non-COVID product groups. So we are very pleased with the 17% CER growth delivered by these groups in the third quarter. These results are again proving that QIAGEN remains relevant - but not dependent - on COVID-19 testing.

Adjusted earnings per share were unchanged in the third quarter compared to the year-ago period at 58 cents at both CER and actual rates. This was above the outlook for 52 to 53 cents per share CER.

For the first nine months of 2021, sales grew 25% at constant exchange rates. Sales were up 28% at actual rates to 1.67 billion dollars due to positive currency movements of about 3 percentage points against the U.S. dollar.

Non-COVID product group sales grew 27% CER as demand continued to grow steadily throughout the year.

Adjusted EPS for the first nine months of 2021 came in at 1 dollar and 88 cents per share at CER and 1 dollar and 91 cents at actual rates.

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As a second message, our five pillars of growth continue to perform well as we make good progress on our 2021 ambitions.

In Sample technologies, substantial demand for non-COVID sample preparation consumables delivered mid-single digit CER growth in the third quarter. This builds on our long-standing leadership in this important first step in any molecular biology lab process.

We continue to expand our portfolio of consumables and are launching new instruments to drive sustainable sales in this area.

A great example is the EZ2 Connectfully automated sample preparation platform that we are planning to launch later this year.

The QIAcuity digital PCR systems are being used in a growing number of applications, in particular in surveillance for the COVID-19 pandemic. Customer response for these systems remains high as we work to further expand our application menu.

QuantiFERON-TB, our leading test for modern latent Tuberculosis, led our five pillars with 48% CER growth over the same quarter of the prior year and we are very confident in our target of at least 255 million dollars in sales for the full year 2021.

As planned, our teams have just launched the QIAreach Quanti- FERON-TB test. This break-through test enables modern TB testing in low-resource areas, allowing expansion of QuantiFERON-TB to critical high-burden countries around the globe.

Demand for QIAstat-Dx syndromic testing systems and NeuMoDx core lab PCR platforms remains high, especially for respiratory testing as multiplex tests are being increasingly utilized for diagnosing influenza-like illnesses as we move into the flu season.

In response to a rising demand for low-plex testing, we have just released the QIAstat-Dx Respiratory 4 plex CE-IVD test to aid in identification of the common seasonal respiratory infections influenza A/B and RSV combined with SARS-CoV-2.

For NeuMoDx, we have just received a U.S. government grant to increase production of COVID-19 test consumables at our Ann Arbor site.

All of our five pillars of growth delivered solid sales in the third quarter and are on track to deliver on our sales targets for 2021. They are all well-positioned for future growth as they not only serve the continuous need for COVID-19 research and testing but also enable important non-COVID related discoveries and diagnostics.

We continue to execute on a robust pipeline of menu expansions and new product launches which put us on a strong trajectory to build additional value in our portfolios.

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