QIAGEN NV Q4 FY2024 earnings call

• Qiagen N.V. delivered strong Q4 2024 performance with net sales of €521 million, exceeding the outlook. Adjusted diluted EPS was $0.61 CER, surpassing the target.
• KIAstat Diagnostics had 25% CER growth in Q4 2024 and over 616 new system placements in 2024, with FDA clearances for four panels for the syndromic testing system.
• QuantiFERON saw 14% growth in Q4 2024 and 11% CER growth for the year, with room for further conversion in the latent TB testing market.
• QIAcuity expanded capabilities with the launch of the QIAcuity diagnostic for clinical use and over 100 new uses for the system.
• Sample Technologies achieved over 1,000 cumulative placements of the EZ2 Connect automated sample preparation instrument, with plans to launch three new sample prep systems by 2026.

Diagnostic Solutions: Q4 sales grew 10% CER, with KIAstat Dx achieving 25% CER growth driven by double-digit growth in consumables and instrument sales, surpassing 600 new system placements in 2024. QuantiFERON, the gold standard test for latent tuberculosis, delivered 14% growth in Q4 and 11% CER growth for the year. PCR product group: Sales grew 3% CER, led by consumables for the QIAcuity digital PCR system. Genomics NGS product group: Sales grew 2% CER, supported by growth in the Qiagen N.V. digital inside business and universal consumables used on third-party NGS systems. Sample Technologies: Slight decline in Q4 2024, but expecting low single-digit CER growth in 2025 with plans to launch three new sample prep systems by the end of 2026.

• 2025 net sales expected to grow by approximately 4% CER, with core portfolio rising about 5% CER (excluding discontinued products).
• Adjusted diluted EPS is expected to be at least $2.28 CER.
• First quarter 2025 net sales growth expected to be about 3% CER from sales of $459 million in Q1 2024, with core business up ~4% CER.

• Cautious spending by customers impacting some segments.
• External factors such as lower adjusted net interest income and an anticipated increase in the adjusted tax rate affecting adjusted EPS.
• Uncertainty in political and financial environments potentially impacting capital expenses in labs.

Q: On QuantiFERON, could it block newer entrants from the EU and is double-digit growth expected? On QIAcuity, sustainability of pharma traction and instrument pickup.

A: Thierry Bernard said QuantiFERON is forecasting double-digit growth, and the recent IP win in Germany supports blocking newer entrants. On QIAcuity, the solution's differentiation and strength despite softer capital expense context were highlighted.

Q: Thoughts on market conditions impacting QIAcuity instrument side and margin expansion potential.

A: Thierry Bernard emphasized solid fundamentals in markets but cautious capital expenses, while Roland Sackers discussed margin improvement driven by efficiency projects and underlying gross margin improvement.

Q: Sample tech growth outlook and implications of administration changes.

A: Thierry Bernard outlined plans for new sample prep instrument launches in 2025-2026, and noted it's too early to judge administration changes' impact, with China exposure being relatively small.

Q: Growth assumptions by end market in 2025 and margin expansion potential if top line better than expected.

A: Thierry Bernard and Roland Sackers discussed solid market fundamentals and margin improvement potential driven by efficiency and gross margin motions.

Q: KIAstat portfolio expansion and impact on consumables, and rationale for reorganization.

A: Thierry Bernard explained KIAstat's growth from system placements and reorganization to address hybrid customer needs and build sustainable ecosystems.

Q: DPCR growth expectations and impact of new administration on tariffs.

A: Thierry Bernard discussed DPCR growth from consumables and clinical applications, while Roland Sackers noted uncertainty on tariff impacts but considered corporate tax implications.

Q: KIAstat placements and rationale for organizational reorg.

A: Thierry Bernard highlighted strong placement demand and reorganization to better address hybrid customer needs and build sustainable ecosystems.

Q: KIAstat placements in 2025 and rationale for organizational reorg.

A: Thierry Bernard discussed KIAstat's growth trajectory and reorganization to address hybrid customer needs and build sustainable ecosystems.

Q: QDI transition to SaaS and margin expansion targets.

A: Thierry Bernard discussed QDI's transition to SaaS and Roland Sackers outlined margin expansion potential driven by digitalization and gross margin improvements