Qiagen (QGEN) 8 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. I am Perry, your PGI call operator. Welcome, and thank you for joining QIAGEN's Q3 2022 Earnings Conference Call Webcast. At this time, all participants are in a listen-only mode. Please be advised that this call is being recorded at QIAGEN's request and will be made available on their Internet site. be a will session. remarks prepared followed question-and-answer by The Relations to time, host, of [Operator Investor this like Corporate QIAGEN. introduce and Head Instructions] At President, I'd your Vice John Communications at Gilardi, sir. Please go ahead,

on live section Please our operator, is Phoebe Thierry first our performance move will our Loh Investor our presentation are Investors and Chief along from you, website, Roland speakers Thierry Roland of the Also A www.qiagen.com. our being quarterly on of then Officer. team. Officer; Today, have Bernard Bernard, is and call. the with Chief our Thank The the website available note to we'll archived into and joining from session. call details today at the Financial and webcast in Q&A some Executive release. the remarks that this with Sackers, section welcome and be IR us Relations is

the We showing will not be this slides call. during

usual, statement. of today, me XXXX. your views as let management begin, and call of questions reflect safe to This our cover November we responses discussion conference the Before as harbor X,

any actual Reform obligations Securities or cause materially and to results risks or will constitute forward-looking of QIAGEN provisions intentions We statements responses expectations providing could your the Litigation any Act that that the the differ making disclaims under state the Private beliefs, intentions, those future. and questions These purpose of for XXXX. forward-looking involve our These to uncertainties harbor statements statements. statements from to of be revise predictions projected. safe

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

principles accordance accepted our measures again, comparable website. the are earnings per both to to references measures directly presentation. on be measures And non-GAAP certain our available also refer the not most share. like to turn call to accounting prepared referring or with in these and now GAAP. release in financial Thierry. the is reconciliation A these EPS over EPS to We GAAP of All diluted I available would today generally financial or press to will

good good conference call thank for our Thank joining. today, afternoon. morning, Welcome John, everyone to you, and you and to

to We of the indeed trends report with in diagnostic solutions third business. solid pleased demand our and strong quarter ongoing very saw XXXX. molecular clinical a performance broad-based We for the both across are research market

let right So me the top get for messages to today.

of period quarter demand. also our outlook outlook in a by third This First for million adjusted we higher-than-expected $XXX sales and EPS. high Net from for driven all, growth sales from non-COVID quarterly was XXXX, These portfolio product sales the sales the results in of third for our 'XX in performance largely quarter top our again exceeded and testing. used exceeded net the of CER at were and unchanged million. million $XXX were $XXX COVID-testing of of COVID

outlook for and earnings group that non-COVID performing $X.XX. portfolios product and CER were above Adjusted per demonstrate at sales XXXX XX% results well. our least of share $X.XX Our the our sales. total over third more represented quarter than the diluted very growth XX% CER Those delivered are

our this CER non-COVID underlines the the double-digit our portfolio. fact, QIAGEN. of business seventh across This strength in quarter mindset In growth the is clearly execution of consecutive and

our environment. and a strategy. five been future. in very foundation is for the pillars strength the our have I of This of of have proud growth done executing creating very very XXXX the message, five dynamic year goals performance The months of this on job an of teams definitely QIAGEN staying teams. focused on They outstanding remaining for and growth solid nine am proactive delivering advance sustainable our key our Second key micro growth. in pillars as ability we a underscore

our five exceed we on significantly of for are pillars sales the likely XXXX. even some goals of set to to achieve and All track are growth

is group new in step lab. instrument leverage first product a in prep any Technologies the sample Sample to molecular benefiting leading wave is from Our our of position helping upgrades. QIAGEN biology This

which in driving testing and well $XXX larger are well consumables above sales well, related We portion that Remember, make kits by million viral the is in rise. prep with testing of with than as business year-to-date RNA million. in franchise growth target group is COVID up The XX% more The and tuberculosis non-COVID this DNA is of application, demand our the for about far. very TB kits XXXX. RNA QuantiFERON relevant of TB nonviral than up for making sales on $XXX for growth performing this more

by report rose and recent a in noted pandemic. disease WHO the deaths that COVID-XX significantly TB during As the prevalence

For of competitor. PCR tests from the brings diagnostics. available transplant This testing areas largest one on our new two menu NeuMoDx, use any integrated launched to now for clinical tests XX platform, as such NeuMoDx, were in CE-IVD the

system the and on encouraging well transition indicators tracking are from on placement utilization. non-COVID to COVID We seeing

diagnostic, QIAstat-Dx now the For Placements outbreak non-COVID responded vehicular application. teams sales the QIAGEN viral QIAstat monkeypox our with the panel. more than for XX% rapid of continuing for to worth QIAstat are for that it testing, worldwide, have development to and noting grow syndromic offering are is of the

in in around see area assays. digital new This we biopharma In involving QIAcuity, important an segment PCR, base where into companies pharma a offering the entry recently world, as it of and terms step an important we extremely for market customer the launched our the future strong of XX creates is XXXX. our growth biopharma for

address strategy progress are the This well value very portfolio growth. we see, overall to fits can range our broad our to in continuum to of in through molecular our a of the customers science ability into you of maximize making pillars five diagnostics. life good of as So the

takeaway key today. Third for message

outlook our year of the increased based XXXX another quarter solid have full on We for results.

reaffirmation of XXXX goal the double-digit non-COVID in a now of CER the with portfolio. We expecting full sales are $X.XX growth for billion about for year our

for now up CER is $X.XX are at As adjusted about least for this and CER. our EPS, EPS, $X.XX from outlook for prior we expecting

also COVID-XX and seeing health surveillance. support monkeypox. testing And always, we As other for are needs like stand the will this goes emergencies we ready for for public to

for testing have As most around dropped world. significantly countries volumes COVID in the trends,

We on our decision it are decouple COVID. believe of demand as outlook trends do on on trends, we but a QIAGEN eyes view to QIAGEN the was conservative we in take details environment. performance COVID will from our very have fact, Roland for portfolio among to continuing call. and continuing, continue for very dependent But before, we the overriding But testing, COVID so. relevant advancing of non-COVID Indeed, changing this are course, be our remains not to right the on the while first, remains on strategy to to based later open not have to focus first, those more the was sales. said our if macro providing our

now, for For to over let hand the me on update financial him the quarter.

Thank me as you, this from Hello, for and Thierry. well thank you call. joining

first review I to discuss of start and will then a with Let our the come results, me outlook. back later

sales The ahead currency of least so, the had U.S. the of the than product CER. up to and constant better outlook better-than-expected groups were CER. product declined We due were net also exchange for XX% the over at about revenues year in such with performance a was consumables X% period. were euro sales in $XXX million. against dollar year-over-year third Sales Even USDXXX The expected. our as instruments CER sales, of of and much rates million on result the sales points In related exchange were sales strong quarter constant to headwinds currencies at COVID a ago USDXXX This at unchanged and these rates. of at rates, six also basis actual non-COVID million the XX% and group down they light yen. other in terms

related instrument rose revenues for Excluding CER. at up pace, a the were headwinds, COVID-XX CER, XX% sales XX% while sales consumers about faster and

sales terms Technologies, In four represents of groups, of let's total about which X/X product the sales. with start among Sample

of of growth the Here, that non-COVID 'XX. solid CER XX% we the saw represented in double-digit third sales in quarter portfolio

COVID-XX this franchise. group the in QuantiFERON quarter our double-digit on first decline regions. of product was of test and nine the were behind third constant the Sales X% rates. growth ago in driver this significant led QuantiFERON The for year into sales. testing a XX% overall exchange gains about CER in demand represented account months the the 'XX constant at to TB $XXX Take for second rose at all over the XX% million in the key group, of sales that period. is However, Solutions exchange rates about decline Diagnostic

We million CER. are to target $XXX exceed year for clearly full the set over

testing expectations. PCR QuantiFERON. for quarters for In NeuMoDx year our double-digit trends fact, clinical now and seven with continued growth we consecutive the full of have The sales to align QIAstat seen CER system

increasing constant growth strong the CER the product The significant NGS of decline seeing sales with double-digit group, interest In XX% of of in a in double-digit revenues likewise adoption represents exchange and X% customers terms launch by as a groups. contrast are declined related Nucleic non-COVID amplification of X% region. CE-IVD saw product this We total delivered in The about panel. the is new here demand the third in terms PCR Genomics rates many mass in be significant quarter. at continued addition meningitis strategic new against QIAstat-Dx, of established COVID customer panel CER earlier growth has that menu group critical soft. product necessary product a which the CER year of group for we sales COVID this to the following acid this In sales

CER performance a such In region, the a had overall Australia 'XX. portfolio. but constant the Pacific, This in risen Germany, groups. countries sales in constant and more growth double-digit the the with to for group as especially robust COVID-XX the and Indonesia. India. of by were mid-single-digit quarter of about sales non-COVID sales Europe, declined that period, overshadowed product on of QIAcuity across The a at This at on Kingdom, countries the areas In in due in COVID the weighted down region, X% on East, franchise. third sales exchange the offset Thailand, France, have the in a top-performing of region QuantiFERON non-COVID third Philippines driven the Americas, COVID CER decline Moving seen China United number rates on Netherlands sales expansion sales CER Japan and significant ago in from growth basis. third all at rates saw Among the where CER quarter. growth rate and In the Sales at than year-to-date X% Africa product a basis. were double-digit year sales geographic we X% in that to lower this the led exchange quarter and the Middle Asia

see closely continue are underlying as pandemic the We good trends the to evolves. but situation monitoring

down accelerate quarter our margin clearly sales operating which the into for sales. This higher income COVID due trends. was statement. of light XX.X% decision of growth sales XX.X% period third to was the in adjusted compares at investments products. to the This to of business Moving with The income came 'XX, a margin to in in exceptional mainly

accelerating year-ago Turning period. XX.X% expenses from one year-ago as sales about and the to percentage product period favorable consumables' in quarter to of the the percentage R&D Genomics from to half the rose the due for contributions in also investments developments period Technologies of point by in Sample margin third X.X% during in XX.X% the groups. well NGS to rose from same components. in adjusted Sales 'XX. as utilization these rose to due and the margin and 'XX. The This to gross X.X points of improvements investments higher are marketing product included third QIAstat-Dx in mix of as second production the sales rising we quarter of 'XX, X% sales

pillars in up sales light higher strong investments five of strong growth line And in freight As mentioned, of the costs the we also also 'XX. have stepped are higher with results we the in like commissions facing performance. others, and into

sales. of expenses, actual high to Adjusted of at general was at had one at EPS and and XX% cybersecurity. of mainly is currency again, set due to above to the Results This constant rates third exchange point the to percentage we the for tax terms The rose administrative adjusted strong due about In was investments $X.XX were our $X.XX. systems into rate $X.XX XX%. outlook quarter for IT X.X% at and this the end XX% least range about headwinds. rates for

to expect rate about continue We to full a year of XX%. XX%

in both from million expansion, 'XX the Turning Thanks cash cash earlier operating of nine pace X.X% solid at over completion flow the first of was X.X% 'XX of the of year-ago trends terms XX% first cash 'XX to of following the and even from an planted third XX% faster saw flow. property to rose months due strong the cash to This in operating to continuing year investments cash in to flow business period. lower Free the sales important capacity. flow. 'XX 'XX 'XX, first USDXXX months period the trends of to the 'XX. equipment expand during of quarter rose production in free flow the investments We fell the over purchases in 'XX. months of nine and These nine and in

held cash decreased This total September compared our consolidated million XX, sheet, USDXXX the to the equivalents at times ratio at to adjusted 'XX on net the XX, -- debt balance quarter. investments net has cash, at of quarter. of third the million this, our 'XX. of EBITDA debt at at end X.X terms our leverage to In Based short-term and USDXXX net third at the due stood end stood December

For placement in issued month repay to balance a October, we number XXXX the and issued the our private USDXXX million your maturities of debt in during have from the cash U.S. of used of short-run XXXX. information,

that, deals repurchase We bolt-on are work has has It share like sheet continue disciplined would to capital view back With and This a programs. with on to and for targeted put been a us hand the both reviewing now different Thierry. I to to place balance decade policy served in take ways well. involves M&A deployment. along to

please of of our Sample growth some of teams advancing growth first Roland. our me in our now you, key the strategy. made five all, in within And go allow Thank progress to over Starting, updates overall Tech. have of pillars the

new tandem to to system develop working our further Here, kits in we and in with key instrument areas. in application automation are update combination

the portfolio. unique quarter, detection released the key tool instruments the features new in to profiling. samples. also on prep new PCR with the a as these we QIAcuity and order leveraging builds QIAGEN's workflow Just instrument quantification sensitivity high QIAcuity's This applications. an high-quality example, digital for This power liquid of combines successful liquid biopsy optimize biopsy liquid the in the third very of easy-to-connect two easy This high-volume demands with biomarker and of for platforms, two handle sample offers biopsy workflow comprehensive

able QIAGEN In analyzes. to tumor is one Those liquid of only DNA, master all include biopsy providers fact, the circulating circulating exosomes. cells and

also range sequencing the instrument for have of teams used is make expanded for quality DNA Those Connect the for and attractive in analysis. of application. more even that analysis QIAxcel kits RNA next-generation QIAxcel control Our kits new

the testing committed standard Our as gold We second growth pillar TB latent countries involves for detection modern extremely remain QuantiFERON, of tuberculosis. to bringing solution the to as around possible. many world

earlier launched the burden for this high version year test countries. low-income QIAreach, As for

new options countries. TB are the insolvency very open to Our on in working new expectation in improve the But on much sales has that for solutions mind still QIAreach testing and are proceedings. also no QuantiFERON entered midterm to have emerging impact growth this Illumina We plans. recently keep partner, product

As and the It health agile system epidiomological diagnostic, responsive the flexibility use extremely QIAstat panels testing. confirm remain of needs. mentioned to panel a all viral ability and vesicular growing diagnostic our regard with surveillance. another and detection QIAstat for I pathogens new to is QIAstat syndromic example viral again detection. panel for research the for for These the This monkeypox the of once to have and public is we

with we the the in panels. have and able Europe, we now and offer meningitis respiratory panel the GI to menu During are to CE-IVD XXXX, along added

respiratory know, the As to FDA. we a have offered and the submitted panel gastrointestinal already panel in U.S. you the

U.S. The We planned are well. to the expecting approval XXXX. a be meningitis as in is decision during submitted XXXX to

the European terms higher solid customers QIAstat In among modules for are we for good Rise a of particular, trends interest seeing version. very QIAstat-Dx placement, throughput in diagnostic and,

COVID, placement see after So continue even we very demand encouraging to during trends. the

and the for for test this test launched offering transplant can system, and Herpesvirus two virus XX test NeuMoDx new the now offer the our X. for (EBV) on we human tests NeuMoDx, addition For Epstein-Barr the a third CE-IVD CE-IVD during patients. strengthens quarter, We

Another biopharma are previous Union received new market. under Medical efficacy assays NeuMoDx platform the PCR sales drug the regulatory platform to the increasingly care especially of and high the eight-plate in since acid digital of popular well achievement those Vitro additional QIAcuity the capacity Nucleic assets accuracy delivers not is This well level also are IVD PCR enhance group QIAcuity with topics. sector around and in the automate the rules for developments. laboratory Devices group, the proving by gene higher in QIAcuity platforms. companies designed demand systems robust European of by as was amplification impacting Diagnostic are In The costs. in of certification areas, replaced given the to and In to And regulation. ability labs This to for the continuing address technology. is and of of adopted and placement, safety health new the throughput across application especially therapy offered application and processing terms to order the world, key QIAcuity leverage to NeuMoDx new it being we be LDT's use are see sensitivity R&D other customers' to offered

to NGS analyze can expand group new to and launch to to sequencing worldwide. analysis. has NGS half are any that designed our of we ultrasensitive to system. chemistry prep new QIAseq Those for cut and genomics optimizing customers innovative involving used in are confirmation workflows library been to continuing offering, panels help The kits enable prepare Finally, panels Universal rapid on portfolio solution. a time samples be and NGS, are in launched new This processing variance

continue part point, our At this over our strategy, to ensure let partner to this outlook. XXXX to of me to with solution. Roland instrument provider more on access As details it new back for we sequencing hand

the also least at USDX.XX we quarters quarter XX% and growth an at for rates. year Based billion the to exchange the CER you, have the to better-than-expected Thierry. the Thank sales continue double-digit outlook and year results delivered increase non-core This on of from sales quarter, increased billion is the third in first outlook three we expect outlook growth fourth full groups about full 'XX. to solid our for to $X.X USDX.X prior constant product in us compares track goal. in 'XX, and quarter billion the our of into on In putting achieve CER fourth our

at maintaining below 'XX on quarters level the are be in of view conservative million testing our constant we exchange USDXXX for first In USDXXX We COVID rates. group of to and sales COVID the three had product million. sales 'XX, of these XX%

Our million Russian for sales the losing COVID due rates. our able be full latest invasion annual to impact year business to $XXX of X% at to the also of outlook Russia. and about we planning suspension group is within absorb exchange of about the in of our product constant are sales Clearly, Ukraine

are net rates impact expected and about this also per on against against XX, constant as the sales actual currency to EPS six an to are The our of at The to prior is for dollar. terms in of This create however, Based is at adverse rates, expected $X.XX, points of headwinds rates adverse about October of adverse for dollar sales. an impacted the initial billion In least from $X.XX $X.XX our exchange about movements currency at U.S. have profitability, $X.XX USDX.X outlook share. about about $X.XX $X.XX adjusted CER. to by outlook on exchange we and be $X.XX with of for now the to at business, of 'XX, of adjusted increasingly progress increase this EPS adjusted reduce EPS outlook compares applies actual EPS upgraded 'XX rates. At movements $X.XX. adjusted our percentage by

adjusted USDXXX payments of consideration strong $X.XX least the QIAGEN For diluted to takes to rates, set fourth have of at also into It reach employees to the of inflation light environment. at at for onetime current we least CER. outlook constant in acceleration sales million at quarter, exchange the our in support decision and of EPS investments light that an the high make performance also for

sales adverse to would back headwinds an fourth least currency of about in adjusted have of USDXXX adjusted now Thierry. least at I points and EPS seven $X.XX. of At sales expect to like about the on and $X.XX EPS. rates, actual to quarter percentage We implies on million hand at impact this

all you, Thank and attention. your for Roland, thank you

think move a quick I it's messages into to our key time we Q&A session. go before of to the recap

growth our the share by First, outlook our of the $X.XX from CER per quarter product CER. outlook $X.XX adjusted above earnings group exceeded third XX% driven of results for and well the previous non-COVID XXXX, the CER of

into rate a QIAGEN the in teams increased I double-digit and the Second, group that, growth fully our to for are would for hand XXXX, today, not full our have at sales based engaged better-than-expected With the to session. lastly, Q&A portfolio now our of operator all. Thank John continue commitment no we the as XXXX. CER back growth look like remain is reason well. our in of we why should and and And outlook growth double-digit execute continue new five to non-COVID reaffirming non-COVID we quarter. in the on what reflect to we there third product on And you year see profitability our year as strategy. pillars XXXX

our [Operator please Berenberg. from question of Odysseas Odysseas, ahead. Instructions] go And first Manesiotis comes

to two I've got three.

Would potentially this on dynamics growth a your QIAstat, midterm growth, in planning meningitis BCID next the to on business I GI, the for example, you're sure pillars. confirmation single-digit year? U.S. double-digit growth And of fair divisions, in ask all, assume year. panels Is to double-digit guidance wanted the next growth a rolling launch to of to here please still the all except for for it between could pillars, been on think low be First and I'm I secondly, different you've communicating next high us growth to non-COVID whether you track? plan give sample still year? prefer particularly

lot, of to said like And QIAstat, a as QIAGEN first portfolio the on in perfectly non-COVID growth to that as to not Sample that profile, we so see and let's digit all, your seeing we knowledge we question, current highlight if growing the, basically, Tech see reason indeed no based for at are midterm, said, to the five digits. And first Investor you of we back we But We we growing based indeed of the our portfolio at on Thanks XXXX not at QIAcuity our indeed. you double guidelines. in mid-single Odysseas. year. pillars, right. QIAGEN December Day, digit double the today, on next see say, the And NeuMoDx first on midterm I'd want focus QuantiFERON, are in grow continuing see results the environment, are

U.S. the QIAstat, approval. the to on we Now question DI submitted have for

as before, an I We approval expect, said in XXXX.

plan meningitis to the the Our XXXX. panel before end submit of is

in XXXX. is also submitted U.S., will of to around not BCID, in the want first then it BCID we the end the submit be probably You Europe. launch mentioned planned in but And panel to We XXXX. it

move to question. let's Operator, next the

please Woodring go JPMorgan. comes question of Casey, from Casey next ahead. The

balancing rolling And next year? moving next setup COVID, expansion well how should should think higher How tough about Can revenue performance comp with Is costs as actually, XXXX? the for think gross And parts and we the year? out a this strong margins with then about year we off? for that gross next year non-COVID input margin the pricing. expect creating you're we the to

chime we I Roland to think this, take on margin. and in ask also the And can I I. Roland will gross

On probably to the asking have for $XXX that million. we sales perspective, you around our XXXX overall guidance raised COVID

I'm is our P&L by approach We or therefore, non-COVID reason hands for based we -- portfolio. to XXXX This We than expect less current our portfolio want sales no growing COVID decrease the our double to invite Roland XXXX. on have on repeat, said, COVID the COVID basically in non-COVID to of volatility. being 'XX, And And more assumption. conservative on this, have on evolution is being our to take that than we to to gross digit This our depending I I XX%. we continue not what a margin. said, of do those sorry, have on This at focus would part like see part comment XXXX. post today,

Yes. And about the as Thierry not talked right is call are 'XX. reconfirm Thierry as said the side. what before, for guidance to now think clearly willing I in are Nevertheless, we today we revenue

to I to 'XX, last believe XX% post-COVID couple do comments had from now were were are EBITDA you before think the still trend that means, we is right? adjusted which we things the XX%, be X over weeks clearly would very positive. moving to pre-COVID certain margin it's also inflations. want clearly always of you fair also that as be the say exactly the rather into percent. that are also we plus made stronger nicely on than we valid, profitability know, we and say said an we moving that pre-COVID, we a right question And above of I now increases Overall, at of should recall Look, price

So I year we quite move 'XX. strong into the will do think

go comes please of Our Derik ahead. America. Bruin Bank Derik, De of next from question

of obviously Can bit market seeing a in of bit There's such? be panels little portfolio, a the that some about some you're you your prep genomics sort demand little the of genomics talk to and and seeing sample for choppiness been specifically your results.

in Europe how and So and you're end demand viewing there what thoughts XXX? overall the of you're year into there. your going feeling just on And the

I of get Derik, can you question on that. repeat part didn't the please? your Europe, second

voice a I was muted. apologize. Your bit

Sorry. Yes.

fourth basically, into your about into for of like are expect region you and 'XX. you the do Europe sort quarter -- any just No, what's headwinds see to that. Sorry as It's there? expectations and just that look softening

Okay.

competitors. I'd QIAGEN -- the We of So a obviously like our the the that the and our to genomics. follow obviously, platform-agnostic we chosen audience addressing follow evolution XXXX has today remind reporting completely market. strategy. since of first, carefully I publication

can or universal of Illumina, is Element, different any is BDI our and [indiscernible]. chemistry Our kind and universal on Thermo, platforms, bioinformatics be be they used

that the believe sales, companies exposed I potentially not than less So being because some market the the at involved moment. into we platform of other evolution are

of if consumables, 'XX small third a last NGS the in time, of effect kind government normal this had quarter UNGS, the consumption saw growth positive there And we try evolution base for same detect we the universal virus. of because a against COVID our still higher remember, of of PCR year, the was investing in of were to customers have QX And single-digit sales the of high Now at in coming XXXX. mutation back. to you sequencing

we lower is this said, QX so I UNGS not a being overall, did, are by in that pre-COVID. reason That portfolio as do our to see we growth. growth than go in And single-digit why the way, double-digit for

Europe, once we in XXXX Second, not your again, are guidance call. question a the to in call or

of growth in and Europe, have QX. that Africa kind East You leading seen had Middle

there. basis strong have We

of We have most countries. subsidiaries direct the in

July a the are obviously year. -- where we have are is situation. attentive we of passing We price to geography economic part Europe of set extremely, increase second in extremely of and this the

pass third now the January increase of will XXXX. starting price set We

at at geographic So the this in attentive very our organization to what same can say environment solid I area. economic in very this is moment, time, the the

comes question Bank. Friedrichs Deutsche next of from The Falko

Two questions, please.

this you ones through price year for secondly, next a then And device do the developing of showed you see device? pushed you Roche And digital this year? you bit market through your PCR, quantify where now? a of year as pretty do expect what you for Firstly, that forward new to a on top can on us? risk you increases do good the performance going How And you again. that see passed

Thank Falko. if and increase, so want obviously, you very much, quickly, And chime Roland, on the to price in free. feel obviously, you

for in of of disclosed pass explained a increase. January on that X% July, decided January. a year targeting established light we of that price second QX normally price always December price, starting of a we have number and So happens to increase have we This yearly our a results second X% that price every increase, the year, to previous were policy inflation of selected we normal in overall that in a wave. we lease And countries between year

to Now we price our as call, also I customers still of given you those net-net, can try QX explained what well not Nonetheless, moment. it's achieve that to year, that in to obviously, living base pre-annual obviously, a increase, we Why? consider our markets, because with all, see at in normally already the customer of contract, because we First geographies pre-annual that this contract the of as contracts, guaranteed once disclosed I by X% a we this we also total locked have said, and through but negotiate we one, objective on also in three obviously or that to in are are are price should negotiate years. to set, basically visiting customers. some said volume is higher therefore, when and inflation X% customers we as main we you pre-annual selected say those two customers, the on specificities We something. for are

impact So I have is it's too definitive impact. positive a a early net-net What you obviously, we increases. to price tell you that, of give those can

something For increase, the add in then we July, we what We you next on like number 'XX, passed passed our we price determine have best and we into obviously, take customers. January increase. are will of together have perhaps? with on account, the would possible to the Roland, what year, working in

No.

I Thank well think pretty you. it answered. was

to On growing. digital the we market that see PCR, continue

You total rather market said a to consider the probably this accessible the moment, total to $XXX market, billion. But million above which this market we the market. that is remember, need $XXX [indiscernible] Q-PCR million is X% Falko, is at $X we

believe is have I to So we we at this completely a basically case believe two piecemeal the customers highly digital offer that that an Roche market. in of which will is dynamic. entrance see workflow it market, help differentiated components. competition Roche. three as digital We QIAGEN growing which for three you very observed different the dynamic have PCR. that with of interest is with once of to growing And result. But your this this because integrated obviously a the QIAcuity, you, come must they of again, PCR whereas made It not with market, remind moment, us is get integrated, that We market we a final Roche I especially in say, solution. proves, fully workflows, boxes,

I market. criticized to its never take placed QIAcuity specificities, So is believe a leading competition, this well but on I given still position that

with question from Paribas. comes Solvet BNP Hugo The next

chain. supply I have on two

progresses of instrumentation. life been electronics mainly chips science the have And science for the for an peers as shortages is been the life Some you it NeuMoDx, U.S. recent broadening moment us by seem customers? to on QIAGEN in on have of impact impacted of the made menu? and update on not the that have situation can at What instrument on does second, your

Very you, good. Hugo. Thank

-- that think discussed during On Roland I QX. and the also extensively supply our

we supply unlike COVID. have been by highlight as we situation companies, other all, tight of First prepared that of

situation on You say, that remember in key or is XXXX extremely extremely prepared biologics at difficult company, XXXX, I issues. and it were the supply supply two plastic. in COVID means does extremely than ball, our on It the as and years team purchasing they in supply components mean? those What and of would now for some such more our that beginning

to don't hesitating, taken one some want purchasing specific suppliers around our we difficult our have in customers We to as situation. measures, take such with because year very a not for commitment example, of put

pressure to on no want not there do supply I that our chain. say So absolutely is

see this And have Of are we us word course, backorder, and is is our at to because but QIAGEN are situation, back taken backorder pre-COVID at QIAGEN there interesting also very chain, it's perhaps? we for had they encouraging. level, to that level proactive that at measures. a I normal the the supply managed Roland, think on our very

Yes. non-COVID or on helpful the in as goods. more opportunities growth side, because our that's have in increase now. COVID we And XXXX less, we decided the to we seen some -- early the we of very quite volatility markets, our, had clearly inventory semi-finished have right is Overall, in in benefit of some also of I that would say in early I the as think even

I with of fairness, level, also out course, most out a the in see that of challenges companies this is logistic think relatively a all good coming write in inventory can Of bit. you challenges and industry

Now expansion U.S. we go moving to your of second question, menu which NeuMoDx. status for is basically the the

you for talked we If U.S. several have the remember the times in since XXXX Hugo, NeuMoDx. regulatory situation about

not we I'd for profile solution like growth and still midterm all, highlight expect double-digit that growth is this our of NeuMoDx a to changing, for First profile worldwide.

first call the Our testing first has for to been priority during global answer the COVID pandemic.

a [X dedicate or of of that now we in always of a you And single improve of system. plex] on the work The during and a was pandemic absolutely a system And QIAGEN end more At position like to launch plex with of period we us the this also given to Let market, the basically the remember are initial have development of was the forecasted any where led submission. FDA in NeuMoDx stability back by handling priority system. also is the the delays resources not started initially. system still there new seen the on development XXXX, continue even for regulated why we test we developing system run able more less menu benefit that at more way. focus in the if, to you XXXX. U.S. in is obviously, assays And Remember capability, unique see and menu unique, and random than is U.S., also the which this in from the on coming the again have moment. and U.S. this more the starting will sell years, can Europe LDTs in very the one NeuMoDx only time to on submission for is same in still emphasis, the the it's

comes of question last Ed Redburn. Ridley-Day from The

certain shortages? them what extent see just challenges? labor domestic And and feel follow-up do do And China. [indiscernible] inflation for with positioned clients, to those to any on your quick a you're wage help you

if remind give what If rate, sales is the China, you us that just you run current now would at of be trading environment us could China, sort of helpful. the and sort just more in percent color of can any on in current you

but coming I I once it's again, Perhaps hand, like understand repeat Ed, So you your of heard the words on my and do to want I don't that one? inflation first didn't apologize know wages. might part I if question.

the what I there think or for was more pipe question, the and Thierry, we -- are on, in our the employees doing less, [indiscernible].

Roland, one, take I want before China, Do to to move you perhaps? that

here say trying a has inflation our increase a fourth that was countries help And quarter. payments where prepared with in do decided our to let's average I to in minute No, Sure. in that. No. what think I employees than the is larger onetime QIAGEN clearly

So overall year more but We clearly year. we're are it for doing And will in next inflation will that's have also overall on having a are this the what stay. going the good side, again, we than clearly also hand seen before we something probably affect of in our roughly that expect situation more We next that half be what than also higher year. salary because performance, clearly employees. challenges one clearly increases to for of,

and really it's here towards employees ownership think to one responsibility taking I our very our way So seriously. out

moving China, lot, Roland. And to Ed. Thanks a

would X% X% So clearly, around of our sales. China, I to say, ratio-wise, it's remember,

peers. exposure would same market. the the quite of our than think we I the challenges are Chinese prepared same At the have highlight kind of organization-wise, that to I of we So well don't some answer time,

You in remember a past, mentioned and brand the nationalization health we Remember that local have segment. in have of some also localization, we development we care in manufacturing a for and China. Shenzhen second site

lockdown carefully So extremely situation. a obviously, very moving unpredictable situation we it's with because follow the very

call. CER gave our we saw already said as for X%. over our But we a of are today, new QX in up It that first sales in guidance factored decline we QX, the period. of sales XXXX wise, the was X% have XXXX, nine results same months in completely so And

to China the obviously, market. opportunities see continue, in We

see that world the Let's never standpoint. second pre-COVID to opportunities market it's But size than lower before at a whatever forget the in rate probably the period, XXXX. from those still a the challenge we is, compared

want very your Thank call Thierry. to And that, here. interest in the QIAGEN. you much, Okay. We end with appreciate we

reach please and you to to available topics any Phoebe much. have Thank or discuss, and help to questions out you you we're very follow-up me, If out.

Thank Ladies pleasant Goodbye. day. you have concludes a call. this for gentlemen, joining, and the conference and