Qiagen (QGEN) 7 Feb 242023 Q4 Earnings call transcript

Good day. I'm Melinda, your PGI call operator. Welcome, and thank you for joining QIAGEN's Fourth Quarter 2023 Earnings Conference Call Webcast. [Operator Instructions] Please be advised that this call is being recorded at QIAGEN's request and will be made available on their Internet site. The prepared remarks will be followed by a question-and-answer session. time, President, to and Head at this John your Investor At QIAGEN. Vice Gilardi, of Instructions] I'd introduce like host, Relations [Operator Corporate Communications ahead. go Please

are all Thank your appreciate QIAGEN. you you, welcome in for to operator, today call. and interest who joining We us this of

Our are our Thierry Chief Roland Officer; and speakers our Chief today Sackers, Financial Bernard, Executive Officer.

the our live the This call We at us. and be also with will have of IR Phoebe team Investors archived www.qiagen.com. on Loh website being webcast section from is

You can copy remarks by a begin our find press followed release of session. some results also website. the and from with on Roland, Q&A quarterly Thierry and the presentation a We'll

on let we the New note your safe that management in mark responses briefly questions start, before today, the have York. calendars. and are the the An we we to invitation this The an weeks, also X, XXXX. this February will few me in call of let's June during Investor out of Monday, perspectives be statement. going to XX expressed harbor represent start, And conference to Before please in the Day but event as next going your Analyst over go views and

making We expectations convey our or to and intentions, statements will your be beliefs, future. predictions responses providing questions that for the

website any or are disclaims and and filings available risks suggested U.S. obligation Factors uncertainties, our of website. intention Securities filings those QIAGEN Litigation Private Exchange These forward-looking and statements. mentioned harbor results to and Reform materially the These XXXX. statements that are provisions the influence of on They in under Securities our these forward-looking the statements. involve update safe also fall results may on by forward-looking the SEC Act any Commission. could with from actual differ

to following not accounting All GAAP. refer EPS Additionally, to refer measures we financial certain diluted generally references will prepared accepted to EPS. or principles,

these non-GAAP most financial measures press of comparable GAAP a our find can in directly the measures reconciliation You to presentation. and release

hand to over to Now the I'd Thierry. call like

portfolio morning, evening, for or once to our world, good further Thank our John. solid continuous joining the on We you year fourth execute, focus continue our company, strategy delivering Thank and interest and environment, and leadership another base Hello, you performance the expand sales and how balance our our good QIAGEN. installed in you, in Amid macro you today where good both and the a to us. thank dynamic to your Life you Diagnostics. again are in afternoon in a testament for quarter. of solid well depending and reporting growth. This strong teams Sciences to positioned come has is Molecular

me the for we through Let dive into today go details. key as the messages

fourth sales for at and fourth were full and our at net achieved exceeded for we $XXX EPS outlook $XXX for for outlook the outlook. year our First, CER, quarter quarter the exceeded million. adjusted our which Net least million sales

quarter. industry in one This for X% that the for consumables sales of was CER Our over business of fourth the base by delivered sales. demand growth the prior XX% performances non-COVID strong total driven ongoing top over with accounted

on [ year for ] our (sic) CER, full Net XXXX. $X.XX point for $X.XX this and billion outlook billion the at sales sales was were for

XXXX. at CER fourth for outlook X% CER, above quarter sales Adjusted compared the for $X.XX per the $X.XX grew CER. were for year also non-COVID Our year share earnings to least the the

for above $X.XX EPS at the For were $X.XX CER. least outlook the year, and full CER, adjusted diluted

message. key second Our

in our pillars Our portfolio, teams important deliver well executed our growth. and growth achieving some build to value in of milestones

syndromic than QuantiFERON passed related X CER $XXX latent X% in cartridges The placed million growth in X,XXX QIAstat $XXX in reached Over annual the year year. automation quarters during new key capped testing sales Technologies the market The for had platform XXXX with the X more also the outside system year by and grew and first the XXXX CER Sample time X% of in and several million shipped CER consecutive XXXX. First, non-COVID TB sales over of above for milestones. U.S. and were in sales million double-digit sales of QIAstat driven the non-COVID full growth sales test

of sales our GI, to meningitis year compared and XXXX. full doubled gastrointestinal panel Globally,

and number milestone fourth X,XXX systems. the cumulative quarter at sales of highest constant placement year rates X,XXX saw over of to performed for QIAcuity bringing addition, well, of year delivering The digital and the total placement number quarterly full system double-digit In growth exchange cumulative also the over the the PCR met placements.

profitability we message, and as of into remain a we research delivered third investing to again level development. high dedicated Our

The in and to development. last innovation driving our adjusted we XX% in research And fourth going as about even in portfolio operating point. the our expanding margin quarter rose invest sales to X% of continue our into menus and income with

'XX outlook into the macro our environment trends the year full initiated taking have We account business. against of solid volatile non-COVID

at at again. XXXX, billion have $X.XX and at for least CER set an of outlook CER adjusted sales $X For least we for EPS of

you our will call. give details the more outlook on assumptions Roland in later

Pelt Eppendorf, members van March, Before an bringing Board, I our privately Leica Accenture, welcome to Siemens, I and be recently, of to served Hitachi Data would German as over a Eva position Co-CEO company. extensive the industry. our hand Eva in like experience In our with Microsystems. Roland, Supervisory will held before, Systems new And life Most her joining to with X previous Board. held science

is the the in at their will as the Executive the A month Royal as therapy image-guided business Committee Bert also later well of joining Philips Meurs April, N.V. Bert precision in Netherlands, member leading he's where be business. currently a Board. diagnosis van

in addition be to diverse pleased his valuable both the but very are We and operating looking experience, our Netherlands. have are Bert's to They forward their also contribution. will we knowledge a to of board, industry

to over hand results. like would for our of Roland to a review I Now

joining Thank me everyone. well Hello, call. our Thierry. you, Thank you for from as

results the the discuss some XXXX. quarter on for and fourth our share full first for views and outlook then our me Let year

fourth for of period, so movements USD from We against COVID-XX press the U.S. against in As revenues. currency million, helped net dollar, sales actual saw saw even ago were release, decline X% quarter you year positive modestly a up the this substantial rates. in sales 'XX our at XXX

good 'XX, product of and milestones rising we and some led quarter product sales. CER signal Sales XX% Consumables achieved revenues the for in fourth related CER groups. the QIAstat-Dx for for capital drop of declined performance, conservative consumable multiyear environment reagent that the the rental groups same for spending sales especially represented delivered agreements for of showed X% in of we for Overall, in over with testing, while the time, against non-COVID important total 'XX. for sales growth of a portfolio the instruments the At continue year we non-COVID placements, see decline placement 'XX to X% as CER COVID-XX the off a trends X% XX% non-COVID reflecting contracts. QIAcuity full in

X% non-COVID factors, also business. volatility 'XX year Looking over well performance Taking in above at CER. the of out for while at these non-COVID at absorb X% in rate XX% to strong included This from CER our up our CER the for 'XX. least having the OEM were the growth still target sales both QuantiFERON, growing

about Among of X/X this our first is the total X Sample sales. product groups, Technologies, represents and

mid-single-digit year and sales For CER rate the this growth full 'XX. for QX the in same a for at non-COVID both 'XX over products, period

to delivered time. the product growth finished TB and group, achieving product testing second blood from for QuantiFERON Solutions Our represents growth first and the with about and over modern Diagnostic testing capture $XXX of outstanding X/X group 'XX. continued than test sales CER also in sales of CER mid-single-digit skin conversion year XX% tuberculin growth an Within more 'XX million this to

for QIAstat-Dx PCR testing, testing, sales also the platform In NeuMoDx, at fourth than during acid of single-digit 'XX. X% underlying sales from trend down from headwinds CER much headwinds for the which nucleic revenues year amplification PCR This level solid the in non-COVID system more rate. was the sales better compared group, syndromic the our involves for in 'XX. For the 'XX clinical sales integrated XX% to from COVID-XX quarter. reflected high overall some a faced the than testing saw products, third with significant declined CER rising testing but COVID-XX Results

sharp from nucleic An group our orders have we reason the in our PCR mentioning, that own OEM been digital of group in QIAcuity, important been the PCR our the sales is products. reagents for drop-off third-party use platform. in their in As the product acid volatility customers 'XX the has for driver

any placements Here, we saw of driven along growth with Digital QIAGEN is in at biopharma last designed for was as NGS least Genomic third-party especially portfolio sales. at the growth USD This exceeded goal our This use our pull-through by new during consumables for Bioinformatics million consumables the next-generation our 'XX group. the product with sequencer. XX includes increasing annual teams business sector. QIAC dynamic Insights

business QDI in another had year, for CER QX over solid performance and growth the 'XX in double-digit full delivering The 'XX.

of mid-single-digit product of fourth of total the terms fourth CER terms In growth basis, delivered 'XX quarter on CER the Americas non-COVID of the geographic in 'XX. with sales in quarter X% over a groups sales rising

Science a by on had of trend non-COVID full growth well rising CER in Life 'XX QuantiFERON with XX% solid products also the sales as groups similar on year back a We basis driven the for over QIAcuity. as portfolio

fourth quarter at grew pace and CER headwinds. full excluding year a region the Africa COVID-XX East, Middle the Europe, both double-digit for The when

In the period was COVID-XX the China well. than top-performing They included in the sales modestly fourth In United where region, CER the the Italy also Kingdom. terms demand was fourth over weaker non-COVID due sales, ago -- the as by Asia group and fourth quarter for lower sales non-COVID in quarter. were the performing were macro also headwinds for 'XX. of terms COVID-XX France, product Germany, of from sales in expected countries to affected Pacific, the top the This in Japan year decline quarter the double-digit

low-single-digit the For in China region especially at year, rate declined a full sales the India. over of South higher rest was by 'XX, more Korea the this CER offset but than sales and

income the review rest now the Let's of statement.

XX.X% rose quarter, income up in period. XXX an 'XX, the year operating over operating at from higher also a X% of basis of quarter, same reported the from adjusted of the the to led For income generated ago USD period for 'XX. This we adjusted income margin fourth operating the XX% quarter and fourth million fourth on

We up have a of for to failing the about fourth the low support well delivered points adjusted manufacturing launches. improvement as due margin percentage as was in utilization levels This product 'XX. capacity to of gross that we adverse mix from to change built XX.X% quarter X.X 'XX in product this some despite the new decline quarter, an

to gross newer the we build sales as up expect improve these products. margin We in

sales of in X% of In fourth our unchanged rate. expenses, This and at a to R&D high at 'XX was terms at remained X% line 'XX. investments for also of from this with the level XX% quarter goal

were expenses marketing the points focus expenses digital in of expenses 'XX, through and customer ago. benefited sales fourth to year in and sales of about of administrative year. last X.X% quarter especially greater of to efficiency on engagement, also were and Sales from less X.X% from X.X in channels. a down XX.X% improvement than These falling percentage General 'XX, the compared quarter fourth

For the XX.X% to of of against adjusted absorbing level to while supporting was in sales operating income full the investments XX.X% R&D a year, investments compared commercialization. high margin 'XX,

To for faced the margin $X.XX EPS quarter rates was again, at the of XX.X% 'XX. at sales out for fourth outlook reasons to and XX.X% in a the least CER. for statement, earlier. compared also at adjusted lower the gross above the $X.XX income exchange outlined constant adjusted for And year close We

constant currency at at the were full year actual rates, $X.XX at while year, due trends For results against dollar full $X.XX on exchange some basis. EPS adverse $X.XX U.S. better adjusted to was a rates

key we the 'XX. income As factor to the significant interest income to nonoperating mentioned rate compared 'XX benefit was environment a earlier, have due higher to interest in

'XX net sales the to move cash compared flow, as to beyond Turning and the levels of lower reflect income trends pandemic. we the 'XX in

XXX free while cash was million. cash was million USD USD flow flow XXX 'XX Operating for

products inventories in higher of capital of period decisions our Beyond profitability, of to challenging sales This requirements. in the impact to we of level a world disruptions. geopolitical the are light a balance reflected around the We in and customers trend macro inventories also provide This that levels to of on environment. high can ongoing QIAGEN the ensure without is the sheet. lower maintain and relatively is working due high want to

which consideration position our we shareholders. share with returned was to the Continuing of the the balance 'XX and synthetic for repurchase, billion recent sheet, at Taking million end into about billion $X.X liquidity 'XX. QIAGEN this of about the at end $X.X compares $XXX

of the maturity repaid X.Xx that $XXX existing about compared to in debt having end at at on this from million Our of leverage and mind, and ratio would Keep EBITDA of the of to we about 'XX million for end cash X.Xx 'XX 'XX debt be about net debt $XXX have X.Xx builds 'XX. during reserves. reaching

deploy We to strategy, value are reviewing allocation cash ways which last has its decade. disciplined the over within other our proved

balance I value our into continue in Insight well to back as the Thierry. portfolio. bolt-on want creating multiyear healthy targeted our Given announcements as complement investing our now with hand through to sheet flows, that strong to the internally business, we like we cash business by Digital investment as see about the QIAGEN would and acquisitions

our a our take advancing Thank go moment please progress And teams now, of me have over to to usual, some in the you, portfolios. made Roland. as allow

we with portfolio on have Sample a as significant position and base areas key to deep where those areas, of growth biopsy. differentiation. It all, our on Technologies installed and our is First expertise in liquid In us clear build give such expansion growth. continue leading we focus microbiome

challenging example, an portfolio expanded have PowerMax from RNeasy launch our with Kit PCR as in inhibitors. soil the again for isolating we Soil Pro microbiome the of rich quarter, samples best-in-class This RNA

companies have made over instrument over our cumulative XX,XXX significant of challenging family the popular prep new trends year talking demand, platforms. have placement sample heard in EZX solution last EZX, in our placing the in for XXXX, there all in placement of QIAcube teams you the progress While At X,XXX about world still and the end automation. over extremely of and low throughput industry both now are cumulative

while over cumulative the connectivity such even now through our For with as higher platform onboard development new to will The growth and In in our application expansion biopsy. partnerships. enable upgrade for flagship portfolio, are diagnostic system, of liquid also together better there global we of X,XXX features to additional products strong is placements high-demand, elements throughput, continue high-volume include this our see QIAsymphony. facilitating

Oman's over may For latent used the example, for be an of This testing people over have agreement be includes span a in years. will in you new the to of TB our seen tested East. recent screening the where announcement XXX,XXX expansion QuantiFERON X Middle program

the TB testing. skin TB testing in the This the increase represents global the modern the are we conversion blood-based of healthy from seeing trends and old latent test to

the We of Ministry in support signed Health have health Arabia and also agreement to with public Saudi an their infection control initiatives.

the of development using diagnostic new screening program WHO national QIAstat using the to addition the includes In latent TB an test, this eliminate the platform. QuantiFERON-TB to effort through program meningitis

of more testing employed detect represents and This syndromic more example to another good being is meningiitis. how

QX quarterly In sales for highest for QIAstat yet fact, we in the meningitis the platform of XXXX. saw

to This only where PCR over collaboration the Companion of cancer our example, development are solution digital next-generation assays have through Another companies, entered to into and to Myriad we partnership adds we of pharma one offer companies to Program, with of test. these development and acid and the sequencing cost the In precise and companies active for drug on Diagnostic sequencing QIAGEN a for PCR, Genetics pharma provide based have digital The software ensure and modalities: in new sensitivity quantification, specifically biopharma new efficiency by we QIAcuity X and all PCR. amplification, next-generation customers. increased PCR kits applications and PCR food kits to digital pharma, capabilities used and for expand safety. launched updates nucleic XX

software the GMP for helping documentation must QIAcuity suited be reporting task meet critical and especially audit labs standard by equips update While trails. to the for well automate to further that of

a sequencing In of Biosciences solution Digital our the platform-agnostic with genomics platform this have a instruments. into product range very validated on kits sequencing has their new and on QIAGEN's use library workflow and to as QIAGEN way, sequencing Insight entered partnership been offer recently This as offer with prep QIAseq NGS solution. to large Element QIAGEN partnering group, system. systematically enable bioinformatics strategic AVITI and strategy panels next-generation providers our follows to of we In consumable sequencing next-generation well

analysis business, our expanding segments. knowledge our new and years and investment the X as is regions to portfolio expansion we for With clinical program powering QDI, next This are NGS as with new of goal also rapid over support planned the product new leading our have artificial accelerate launches QDI own molecular the additional geographic made into decision augmented market of investments Also that intelligence of will bases regards and this bioinformatics planning use labs. this well the the the our solutions of extension solutions. to in is intelligence and

our we now a And details is give see, to leveraging our deep network as 'XX. footprint, Roland can our on you to expertise. So more in through that continue strong you to with strategy innovation global value outlook build portfolio back and

Thank you, Thierry.

provide me for for first the more now quarter. 'XX Let outlook perspectives our on and also

as the headwinds growth X% noted set of least reflects COVID-XX for last the constant first As X% of have quarter in outlook at overcome rates. least earlier, are non-COVID least means about exchange sales $X billion growth includes of group of sales at from from X portfolio. at point at 'XX that 'XX. CER . that CER total we we we expecting This percentage This the of an

anticipating a the return in CER this how terms In year of to year developing muted the are we a half. growth start mid-single-digit others, solid into second see like more we with

our to trends Additionally, how across as we geopolitical could and the they dynamic have impact industry. macro closely risk globe monitoring

yet. improvement market decline a this the The cautious a to not single-digit for signs showing total is is ignore. For of time, year. full China, sales CER we in At view environment expect the and same modest continue to a any take not

as local strategy branded brand two-pronged China. offering well our a the product implement directly portfolio by commercializing to in continue as QIAGEN We

a conviction from take address for our back strong we York. we 'XX, in the Analyst This that a midterm we is topic about growth the planned Day for in perspective As New XX markets will step in remains June Investor QIAGEN our serve. and

our $X.XX constant have at for profitability, exchange In EPS least terms adjusted of outlook we of at set rates.

For at support 'XX we of an continuing to business for of to of full from while operating sales invest the point 'XX improvement the adjusted margin, the percentage income XX% planning X the level business. year least in our for are

to new presence. business global this see our This XX add includes plan multiyear than of the investments into we We and as new sales Launch accelerate in in expand products helping more QDI investments 'XX these growth the to profitable positions. business.

we the in represent we pressure 'XX from about $X.XX results quarterly As report, significant income, anticipate for of noted these and 'XX. headwind compared to nonoperating factors

net adjusted The compared million to our we First, balance is lower of 'XX. be 'XX is the and lower to interest for interest modestly decline along expectations for million on XX with income USD 'XX. the half $XX expected levels is sheet, $XX rates million. fact due during the between that to cash have This year

an second at 'XX. countries in tax Netherlands rate as to The actions XX% this about to is for to implement in initiatives higher as OECD adjusted well 'XX. as expectations the 'XX. is shares known our end XX% The XX% from The due Pillar implemented the factor X. in increase This of tax up jurisdictions for involves profit higher taking

net neutral EPS adjusted but As adverse expect impact for impact on movements share of XX, year for results. on on as we of an sales, per about full a and based January $X.XX rates currency

the Moving first quarter. to

that also Our back at in expected Thierry. per earnings for sales $X.XX be million CER. sales in period now to are mind to hand a about share 'XX. like USD share I Adjusted COVID at of to significant net per with CER. outlook XXX least will is be this would Keep

And Q&A into you, Roland. thank are Well, getting session. now the we

a summary. So let you with me provide quick

beating amid or and quarter both the environment, volatile quarter delivered has QIAGEN First, another sales adjusted our We our ongoing outlook. net macro exceeded fourth of for the EPS. meeting outlook for

year non-COVID our XXXX growth outlook driven sales also top-tier in We our by portfolio. full achieved

of Our of performance portfolios world the our and our strategy. power the around shows the of impact to customers in XXXX relevance definitely and solutions

all build over key on all This and on milestones solid teams continue QIAstat our world the instruments. XXXX, execute value growth XXX over installed Over meeting newly and to in preparation going goals sample strong forward. portfolio, to in over placed throughout our expansion. XXX X,XXX fueling growth platform XXXX, consumables QIAcuity sales Second, base our includes

for of also deployment, in you Third, with capital high delivered our level returned our macroenvironment. the of portfolio and million our development, to saw disciplined announced profitability bioinformatics the And maintaining amid the of plan while we R&D, investment have again level a that an high shareholders. for challenging to multiyear as ongoing we research The outlook demonstrates a $XXX commitment last, XXXX strength and XXXX. investment business recently

the year first more to going we this labs demand marked takes improvement visibility mid-single-digit return acknowledge of in unfolds subdued shift such into a countries. condition into the in year market account the year spending conservative funding a half the of fully for While sales lack first second as half the as the we many the as in growth given of part expect year. CER and a on into election XXXX, But current we strong the

and We for strongly up solid profitability. sets this midterm growth sales improving believe that QIAGEN

industry. and like all. to profile Q&A We that, a to John growth would positioned Thank continue back I With are, session. therefore, now the well hand delivering to for the in very compelling our you operator

first Derik De question [Operator Instructions] America. Bruin from Bank of The of comes

markets once I on June. environment, normalized comfortable to look when CER coming little for MER Analyst XXXX like curious, in that elaborate on more normalize high-single-digit at returning consistently to And OEM to you're market sort you basis? feel you I you more growth bit going But Just do an in through how can mid- think see Day there. sort on the of know a a of headwind a what's and you rate have

Thank you, Derik.

OEM the question. Regarding, first,

a deliveries, portfolio. have always on specific very of business rather in is understood, the of a bulk our made to large customers. you limited As in this It's most time number

year-on-year. for the always $XX have average around market to you OEM and So business volatility our million. The pre-COVID we $XX disclosed that million have was revenue to

$XXX around During shot to it up COVID, million.

getting now to $XXX close are We to in business. million achieved but this we XXXX, account normalization, take back into that with

a headwind coming year by. million to back So million, normalize starting to should goes 'XX, $XX Further, expect should year-on-year. $XX performance our $XX million. to around compared we $XX in expect you as in normally normal business the million of 'XX that This

your To question our X believe systematically we growth of that we last a the years, QIAGEN. profile, for building stronger are

the We growth have above to the where we market market people, of is. portfolio have regardless that product grow growth systematically

if growth So the to probably will able market profile, be will slightly is that. be back to we be mid-single-digit let's above say, and we there,

Our Odysseas . Berenberg. next question comes with from Manesiotis

strongly these all, And better First ended? slightly that for the expecting you year, that secondly, instrument at the of DSR shouldn't financial these in your this seems of is this your pillars placements commentary this you'll guidance near drive year. renewal looking results? you will time outgrow recover with significant negotiating Have it be getting into you're assume last it consumables term, NeuMoDx to reasonable terms And be increase Taking terms QuantiFERON one most mentioned your partnership. for growth and instruments? account would what the to in of negotiations pull-through

the then I and Odysseas. of you, And with QuantiFERON. your to second part finish going question, Thank will directly

million to starting start seen, we our in Why? -- from not example, $XX for add yes, over growth the menu XXXX. NeuMoDx, as plan of lower it's percentage the you We're for that slightly starting On the it's over from but $XX U.S. is a the in have million, Because base. we and percentage go outgrow,

seen gives our approval the in have LDTs a capabilities to addition You of on CT/NG growth. factor recent that of our

because platforms Second, the XXX we all world. have already something over like

base expect have pull-through have so And think disclosed reviewing portfolio. possibility is time, and evaluations. We of that clarify. Europe, DiaSorin. has the the portfolio results at to And I know, we since the 'XX assumptions market in together the said for you our by for are we'll we of those grow. in availabilities significant kind same our starting due this this to explaining DiaSorin, the partner XXXX installed time in any menu you NeuMoDx. But QIAGEN the evolution this currently we to NeuMoDx we very on Odysseas, come in another for to as on with the contract we XXXX need that add Europe, U.S., is On within to What back

with we QuantiFERON. at to the our are we able exclusivity time and a DiaSorin we drives partnership it works the convert with This seen partially very do that you is moment well. premium situation for The to performance a Any customer this DiaSorin, as over X price. proven last years that have members, partnership this have at the

continue the moment, that justified both at So results and positive opportunities, is review always while for believe we exclusivity to we this is generating very partners.

for financials, As with DiaSorin financials we far parties. as to the the work optimize both constantly

Casey next question Our comes from Woodring with JPMorgan.

said conditions guide first half, second the in in but a hoping half So XQ. grew I versus Roland, assuming you're the are in the more. just into think you XQ prepared, little bit non-COVID was I X% that you guys the could you dig softer

taking share you on competitive gains bit across just maybe if Maybe or as expecting And share pharma think between there? if off you're to trend. follow-up, split out QIAcuity, And can guys seem board? more on elaborate a does headwind the then XQ curious do as OEM strength you an you're maybe the So be what and can just specifically? you're in seeing academic in it's particular a pharma you

seen expenditures, ticket see well, but clearly overall we particular are of macro environment companies environment couple in clearly, you capital have is have obvious, also capital or as rentals, of up we We many industry other heard a Pacific and falling the in more demand more the a from And here. also our last cited trends Casey, difficult. for I difficult. that the in environment. it's But clearly Yes, more which where general. less reagent think now facts certain couple a the Things sales increased couple quite right weeks/months, for bigger for somewhat clearly of

more before, that the As course mid-single-digit solid expect rather is is not to and easy the year. more environment. to a on side, believe something that is it Nevertheless, an I we the we of over temporary return trend said

the OEM, somewhat I we think Specifically, in in down are high-single-digit area.

I compared compared 'XX. actually to think $X million to X and so in rest revenues to $XX the million the million now the the -- first about for Nevertheless, more years $XX or looked fourth between the always first years up between the somewhere I drop it also XXXX and around absolute including quarter was XXXX, less important and quarter to understand, in plus. quarter actually pre-COVID, it's

So not very different.

Our next question Stanley. comes Morgan of from Aisyah Noor

to question. going need did not We're There which get back on to was the interrupt we to a which was answer yet. I of question, second you. QIAcuity, sorry, half I'm your

I'm and okay? question. Very we to So your back immediately to that good. going that take go one, Is

can cost So are do we numbers yes, are share, our shares taking with our the and traditional on First competition. is see taking technology efficient different faster because we we from that and show of market our of Why? more QIAcuity, droplet technologies obviously all, allows results.

the X And a is our also plates. pharmacy This Pharma of this is definitely mid main we Second, the digital throughput, one have X seen why segment. a menu you instruments, you improvement sector. menu we -- over in Low also plates; throughput, target, to business for in come. the plate; dedicated last application PCR throughput, years, of X to target which already the but months kind three, our the is have pharma different covering constant X needs. Fourth throughput because developed cover if X academia, larger remember, needed because with different sorry,

of we the digital do is PCR as for you we make so as believe in to market, science growth leverage but XXXX, a clinical we fourth, not know, applications that And solution the going into diagnostic, solution are a as coming why years our only those in it well life can much the well.

first approved. BCR-ABL. this FDA onco-hematology IVDR half launch for In of the to the will application, platform of second XXXX, planning assay be first and our in half year, we are regulated the And

that So we this beginning in the to we since have said solution, launch have dedicated, team market. take of position as believe #X the the the we solution of the that

if can I okay. question Okay. my ask now, that's

lockdowns. this COVID the of lot us business. of down about peers help market, had QX sciences understanding your weakness about to life bit And China there. of your comp the a If unpack saying you XXXX from which was is believe weakness in half My what drivers quarter, the because sounds I talk it you like could a China a the and softer are the is little

you And clarify understand the So to the first. is it could also customer decline segments. Diagnostics dynamics whether there business I'll market different leave quarter? in within the trying China the Just in

your for questions. you Thank

constraints, price as It affected sometimes this large continue is we need want China cannot half it market call our time, At science is our China the the is policy. First it to business life of ignored. just where the constantly are have for by all, localize COVID said from And such to to is highlight, if a to as that be your still selected same more sector that well science market in in life is activities specific what a market. VBP also that you than many be bounce market true period. it's where we in the the China you activities, tenders, of not back

a the equipped in In position very take this we back since of this We that regard, the expecting well to will reasons. we were end we not have believe come progressively, and at consistently least growth before X for market said XXXX, very that return always to 'XX. are market

QIAGEN First in the of of the premium all, of the top brand for tier China. labs

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XX% those year So before This that, expect market, can assets, mid-single-digit would take a position, we said after we year at from as time, we growth. come with a progressively always normal not we but post same COVID growth I pre-COVID that will X if were believe before, we the expecting Chinese XXXX. the insisted

then has Verogen us And Understood. buyback XXXX, you was M&A among appetite from the peers And here from in the M&A us Obviously, just quarter. your picked activity in a just models. to and our share program. out also give if on capital to contribution then recent deploy with just your recent help up given the second quickly, question could

So strategy. on M&A, we confirm our traditional

that a -- that have bolt-on acquisition. know especially see we You you of rich history essentially,

spread have M&A. We company to M&A for the always do the sake M&A, want We said that not want we [indiscernible]. do don't to of to

fit would growth. in working, pillars our at opportunities We current and are of looking our especially that reinforce portfolio constantly

very focused it's a So strategy. M&A

accretive. but could many a opportunities of said time a P&L, during we very also to be visible dilutive have that be frame, period time, times our looking short are We that at should in

We normally give becoming before around accretive. it that always said years we X

to continue we so look at clearly opportunities. And

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in have strategy. Once progress. very much is and keep be this what So to work our in existing have to existing will you again, mind, portfolio into a it fitting

expecting around a million As we XXXX, regard this were Verogen, contribution we year is where the landed. to of for and $XX

next Doug from Schenkel comes Wolfe question of Research. Our

want Thanks sharing different I for questions know and for much been this angle. on on your take year. pacing. a of philosophy to guidance couple there's a I the so

the So least, it's an been you if outlier would aggressively uncertain say guided an time more and have you in QX. to

factoring good year. is expected in the to in pretty think consensus the lower seems on growth models, headwinds, in than to that pharma So made pace you've an election what while thing OEM I QX comments see dynamics the me, China and is derisked guides it surface, on how we

I if to is QX, outlook here risk does see looking aspirational we how guided expectations. we sit risk is, to back-end expectations, meeting relative to what And the again, the of look But strong today? the need or because I if QX where as in or more beat you what year confidence QX then on terms a your meet question you beyond QX start it see to could the is guess in to wrong? even in I take have of the for the loaded wanted it. be norm. really my beating even QX, get past you Again, year don't of any, terms to we biggest and the get What's then rest to

think thanks, I -- Derik.

-- I and Doug, I take think sorry, can Roland I'm can take that question.

a impacting In don't is the if risk moving of that let's the election Again, bit risk highlight, up just a The terms is of that year, again capacity. building it's situation. that for and overall that QX. forget see I labs risk we not half specific into happened, QX. QIAGEN, to for I not portfolio their would world that this economic are still believe slow Honestly, purchasing

me So main the for this is challenge.

We meningitis year. or Roland, our also to forget not that XXXX HX, quarter-by-quarter real have QX expected our plan Roland obviously execute, I U.S. last are do performance. wouldn't be you in would continue have coming our HX. in most of But in Those once was to between not acceleration, guidance my have clearly and it HX. year. performance now. if We the please. again, objective Missing my is we U.S. assumptions. acceleration Because early. logic extra plan in of for to too have also QIAstat of launches QIAcuity explanation new even want starting a in plan It sequential for on slow, our is that full the the And necessarily especially be HX that rational to to QIAstat disclosed see We the also an his we to bit say in XXXX clinical QX our contribution in indeed, that would HX. QX question would And the argument far diagnostic of but impact a GI clearly.

back. Just welcome additions and a few

or looked what HX ratio pre-COVID As bit HX, the 'XX before profitability 'XX. because I we have good revenue a we same 'XX less is have years indications the also in or backwards the more were. seen to more less years probably I said the for as actually are for to they And share before, seen

ramp year. I for would say terms quite So the it's in normal of

what [indiscernible] as I it normal do turn rather I part before. around It would and Second, say year. you of -- in the to rather back rather expect argue would think I -- second now I well, said important that is we would the you again, is not can

of the of second the what that year. of the XXXX, also is to it first So is in the is year the the XXXX even half part the year to in normal or rather full we to half if happen off the compare you expect second

The comes Deutsche next Friedrichs from question Bank. of Falko

of please, bit what QIAstat-Dx dynamics My we which QX platform. you step what from on slower a than regional about from to also XXXX bit confident used just a quarter that test Can question you menu fourth a little And was the are perspective? in the in another the expansion referenced, you've the will outside makes forward platform. speak that is this for be

Falko. you, Thank

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our it in but high-throughput are we relaunching also the system rise, we also and solution, improved Europe, QIAstat in have in because Second, XXXX the that we call U.S. QIAstat

and moving this on I story short, it syndromic, be on become going aspirational, position the is achieve. double-digit Day, our QIAstat positioning Investor we XXXX, on #X be would as second said is QIAstat would we the you the long purely are objective, really but that to So a to told market in If we have that have market. are a objective #X and growth with we December to the take is last solution profile, X, definitely, would

our And we Matt take Sykes final Sachs. with question from Goldman

me. Just one for

outlined us that is capital maybe on this you for Just obviously that just understand just and to full you year that in expressed recurring business and Sample the in give and back to of of Technologies. bit how on a relation the do course cadence QX I guys would love view guidance then can a year? equipment Could color you have just 'XX. business, But the half appreciate a the you revenue little the particularly over to the cadence of year, level that year, QX of guide the the but maybe and lot in environment you more Technologies gave Sample in the your of going over the on course of is

rest acceleration expect the as sequential for as think I business, described we here we a the of well.

again non-COVID that we X, close on digit. if you were guidance we will Taken be to low- December or We portfolio, Tech the with consider completely XXXX. aligned 'XX is especially between slightly mid-single part gave of purely business, very that which Sample mid above the once in

in still to . expect mid-single that -- to to of but year, We be of this digits. lower slightly low- guidance mid-

the new last not becoming in definitely has features. becoming Connect, leadership, is systematically upgraded with is for mean by which years, only QIAcube And Tech want are time that continue to on EZX portfolio attack. be the to the our to every Sample we I current only instrument the we addition EZX, its company Third, QIAcube X where, what this

XXXX. during disclose June we our As Day that of again, upgraded end development are version the [indiscernible] platform in XX. planning we new Tech on of our QIAsymphony, Investor launch by we will an we also will Sample And probably said automation today,

that, Thank you, end I'd this Thierry. call. And like with to

any questions we're always to comments, me, out and If please to Phoebe Bye-bye. help reach and available to have you you. or don't hesitate

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