QuidelOrtho (QDEL) 7 Nov 242024 Q3 Earnings call transcript

Welcome to the QuidelOrtho Third Quarter 2024 Financial Results Conference Call and Webcast. [Operator Instructions] Please note, this conference call is being recorded. An audio replay of the conference call will be available on the company's website shortly after this call.

I would now like to turn the call over to Juliet Cunningham.

Good afternoon everyone. Quidel Quarter the conference financial joining call. for Ortho XXXX Third results Thanks are and Blaser, and me Brian With today President Chief Officer. Joe Financial Chief Busky, Officer; Executive

available Relations simultaneously This is posted that a that that subject the in in webcast will page other implied on materially we of presentation filed Relations with SEC, Factors could on statements annual the the conference forward-looking are discussion, our assumptions may results being our the those Investor call uncertainty, for XX-K from supplemental certain these be and forward-looking Risk Today website. throughout Investor our page referenced not report Private prospects forward-looking strictly the reports Securities expectations, fiscal performance Form conference actual This year the within Actual call. Statements vary results company's subsequent are statements factors that section. excluding call XXXX XXXX. historical, contains to is are Reform in the including plans, Litigation statements. and the or of risks Information this expressed Act and factors. of on affect potential the about meaning future

made to required and X, today, of assume no except we obligation are November by statements update Forward-looking statements, as forward-looking any XXXX, as law.

includes which GAAP page presentation, are supplemental quidelortho.com. measures available In the financial measures. earnings certain directly comparable and our to on call of the of addition, Tables today's at measures Investor non-GAAP in discussion most reconciling these website their non-GAAP are release Relations our

a given given year-over-year otherwise, today's stated rates comparable call currency on all unless constant Lastly, basis. on growth are revenue

our to like turn to CEO, Blaser. Brian I'd now the call And over

XXXX and third pleased afternoon, here to Good with quarter you everyone. share today be Thanks, I'm our results. Juliet.

EPS of We $XXX EBITDA diluted $XXX quarter reported revenue million $X.XX. and adjusted million, of of third adjusted

guidance, the which like the XXXX. half improvement Our greatest provide realize our detailed communicated as see as executing Joe will financials also today. quarterly key that growth. the reinstated expect first well After million where highlight we cover year initiatives, solid previously and to we financial focus progress our we areas through opportunity for cost $XXX our demonstrate I annualized XXXX my in profitability in of would remarks, improvement including business our in full savings results to

During diagnosis, my step QuidelOrtho, first rigorous patients' by places that from we an products, continue and a so every to the monitoring. to of people, right at those strong cultural and first. and excited needs I every X needs discipline review part To entire care undertook journey months need the treatment prevention and the customers profitably, right meet our of and serve here the opportunity do health meet at we setting business. extensive the in continuum across quality care mindset to the be customers of and to every

in at growth molecular a With Chief Assay engagement expertise brings we that through Jonathan years with Bowman & XX-year industry leading track He in most objective our in platforms diagnostics, engineering. recently a Resources in leaders Officer. critical Edwards of biomedical Officer; Development recent initiatives Sigrist here leadership drive Company is Chief Human Technology record the as Sciences transformative development over Sprouts Lee at a create experienced continuous high-performing and of has strengthened X improvement Lee and experience developing by culture workforce continued CTO as and at Lee's we the workplace talent of as Research Cepheid. QuidelOrtho. teams and leadership winning Life Jonathan and in highly team proven Head and mind, Target. microfluidic was and addition

cost structure. complexity aligning are our reduce and increase flatter, efficiency our more a be agile we organization customer to and focus, leadership addition, In to improve structure our

their culture Mike As of and be a Mike leading Bujarski, teams and collaboration. the Rob Chief Operating grateful and of Chief fostering to QuidelOrtho operations Officer; this to in part company. and Iskra, We're will effort, leaving contributions Rob Officer, the Commercial commercial

forward, both the and leaders run to the global leadership our fully our regions will we to regional aligned designed be business The report global alignment with Going me. and is business team units of our way us unit our are We will time. the performance we designed directly customer-focused to the making to a scale business over team, and improved cross-selling better to build accelerate opportunities are organization. the and changes of enable achieve global believe commercial improve leverage continue consistently

time remain increasing commitments, our steadfast of we platforms. product delivering improving our focused R&D we're R&D our and on part executing our Under Jonathan's key including our in expanding and critical productivity, leadership, advancing achieving on menu lines priorities, As customer our efficiency. business

While and panel in one the part Savanna XXXX. season IT. improve as also revenue our we future respiratory and of profitable of in an the respiratory with Savanna structure, believe phases we cost plan market early initiatives, general, develops in is Molecular be later initiatives enter to in improvement of only trials supply to clinical our procurement, driver important our and quality and is We of process manufacturing, the implementing cost are and To in chain, growth.

incremental coming us in XXXX ahead. as enable provide to the more these in XXXX. operate quarters to expect plan contributions move we effectively and deliver We margin initiatives We detail greater to and

more to look it aspect be leader next and growth. of on to think our improvements customers and repeating every our profitable proud I'm you that do to I improve QuidelOrtho, of we we're are excited quarter. the progress focused the forward updating I'm making, bears for I challenging business our about Lastly, that on

Joe. over to With hand it I'll that,

Thanks, Brian. Okay.

quarter is and IR with Slides XXXX provide X our also results details of which earnings our Let's will and begin the the provided basis. today's a I presentation, website. XXXX call otherwise, for rates open are on our on on X all the constant year-to-date Unless growth financial reinstated then call questions. currency third and we full of year revenue will guidance, up stated comparable year-over-year on posted

the demand reported Total first the was quarter declined higher months revenue our see prior year third million, we business due in X approximately period. the performed and XXXX momentum and of the XXXX, in to and and COVID-XX $XXX well, During quarter healthy by flu which of continue to revenue third X% customer

currency exchange had global have not foreign XXX in While third we has impact our basis FX material a overall which negative did a footprint. results, impact labs on point business, quarter

order and of expected revenue, XXXX compared billion between was X% in in QX significant Donor prior revenue this was reported our labs period. QX. constant or recurring Recurring by define revenue quarter Donor but was revenue. growth and Screening from $XXX change QX year-to-date recurring services reagents, million in with Third COVID-XX revenue, total revenue year revenue. was as growth This $X.X growth figure excludes assays, revenue [indiscernible] no and offset X% X%, which China. and revenue was currency. and decline consumables was mainly as reported sales due in Screening Total we cardiac Underlying year-to-date to billion, revenue, Again, U.S. U.S. $X.XX a timing to excludes COVID-XX and the excludes recurring

grew Asia wind In higher our America respiratory and revenue growth third down. other X% prior of From perspective, year-over-year. Donor was EMEA Screening And transfusion China, U.S. business Japan, revenue by Pacific in That North the business softness performance cardiac offset year-over-year. XXXX period mid-single by year in in X% a result, labs medicine point-of-care and Latin revenue our comprised by led of total growth X% China region, XX% quarter America. due a which and to and products. declined growth is by our as was regional digits declined

to and region the to for expect in high continue in We be full in strong single growth the the digits XXXX. year QX

China's policies monitor the as potential impact We initiatives of both continue anticorruption headwinds. pricing to closely and value-based

We BPB initiatives not have date by expect in a not near been impact and meaningfully to do the term. significant impacted

customer seen last these XXXX to and instrument we anticorruption quarter, number governmental the policies. in due these a abate believe small of As customers disruptions installations purchases discussed will ongoing government's as delays in adjust we policies. Chinese to We have

negatively Chinese business we provinces, China that solid, to is we risk our point. which But more see could than despite this to upside products of addition, potential our sales be closely. In on are cardiac reimbursement dynamics, China at changes market there complex a and in some monitoring may impact time. be believe we certain these continues China

products. Moving to cardiac our nonrespiratory point-of-care business, and which includes transfusion labs, medicine

grew prior analyzers and XXXX the XX%, expect period. this that commercial our respectively strategy revenues labs base. The growth expected continue year-over-year. to Third business. continues the is in we year growth period and constant to and X% year X% and mid-single-digit show working, Last integrated prior achieved quarter compared analyzers revenue growth automated integrated to go-to-market in to in our automated revenue grew X% compared currency installed within of

and to in want the separate largely highlight now Donor out XXXX. by the Moving grew breaking the donor winding transfusion as Screening of transparency U.S. I we impact greater line declined as by to medicine. of donor provide XX% revenue X%, and business items that screening quarter down to screening to Immunohematology expected. end are the immunohematology

million higher in business performed and The revenue On had our versus year-over-year cabo flu down total our prior in expectations to side respiratory with the was the the quarter XX% third test, well million COVID-XX $XX strong quarter. revenue and $XX revenue period. a year from respiratory of the due we or basis, Blue Sofia during COVID-XX in QX performance COVID-XX

slightly ordering normal their for that period. RSV the expected and I'd fourth patterns flu points note were inventories also strep began in which prior season. at were to distributors flu, our to addition, respiratory year typical quarter, a the In products which levels, compared down distributor

primarily COVID-XX million. prior was the down in by higher year point and to adjusted period of of compared year the profit year versus moving by P&L. Non-GAAP quarter including expenses and operating million the gross and down sequentially shows decrease third $XX The XX.X% period. prior by basis period. flu expected XXX margin in R&D XX.X% and SG&A Now Slide $XXX X prior the driven $X was million sales XXXX decreased

million at We QX in and continue costs ahead XXXX OpEx and we in And benefit a to total $XX savings be second expect marketing cost sequential our realized of QX. on the basis, of have of selling due to the cost already we taken. by half expect to timing looking least offset actions to

result, be OpEx a relatively flat total expect to As we QX. to

higher period. quarter represents in achieve Adjusted we contributors. which offset million QX the $XXX for million points EBITDA earnings cost of $X.XX EPS in pandemic. by diluted lower prior respiratory to year-over-year XXXX our savings taken, XX.X%, in margin margin revenue dollars per year-over-year adjusted interest respiratory period period. to quarters adjusted high offset and share was $XXX expense and cost prior year prior since the change which the in in X EBITDA tests, revenue due savings first Adjusted was improvement a both This higher EBITDA the period, are year was in the the Adjusted by due margin initiatives. have growth was $X.XX to to basis the primarily was the actions to compared diluted year compared current Notably,

with rate line effective expectations. quarter was third which our adjusted Our in full is year XX.X%, income tax

Turning $XXX now quarter sheet on We the of finished to million X. the Slide cash. with balance

had our is million This debt revolver. of of first QX, As Keep continues we down. pay from allocation revolver. million million on be end in to $XXX the pay priority in the borrowings we down second mind, begin $XX a quarter of to as decrease capital the our $XXX

which XXXX quarter adjusted $XXX was flow million, of cash recurring free represents Third EBITDA. adjusted XX%

in free cash XXXX. the full adjusted flow to expect to fourth positive quarter the year and be continue for We

cash In adjusted our EBITDA. in half the flow recurring adjusted free addition, exceed 'XX second half to we of expect second

ratio relatively ratio During X.Xx agreement. leverage consolidated and our current including on of expect levels our flat current the as third to pro quarter defined is from of the remain projections, financials consolidated permitted our our leverage current base and forma we the year-end. EBITDA X.Xx, under at adjustments Based 'XX, to

Lastly, X. on Slide

that well we I earlier our Following now the in comments year initiatives. have will made note XXXX of guidance company business the joining cost in as I'd full executing the upon review conducted the with our guidance. increased provide line Brian after our the some that is savings year. we as visibility

grow quarter in labs, U.S. fourth medicine, $XXX with revenues and of EBITDA in We a $X.XX assumptions expect will diluted between are million, to and excluding on expected We million set XXXX we revenue of the a to equates which margin billion between that transfusion full to and assume $X.XX commentary XX.X% be adjusted of the of expectations year follows. digits. $XXX total XX.X% and Donor based and Screening, range in shared business this between EPS adjusted expected the These XXXX earlier year, non-respiratory low $X.XX reported adjusted growth of $X.XX. billion, digits mid-single EBITDA line including single

not typical $XX market revenue, fluid we XXXX test Now greater million market coming for flu respiratory of our to assume season respiratory similar expected changing QX year XX% In respiratory our our a Note are year with that from $XX full not to we assumptions season million earlier increase test. a saw our than view, higher in related and from full product year. to we timing revenue revenue this the this and year share on XXXX outlook. the combo is

the of We of year we year. million since second financial includes QX, COVID-XX adjusted detailed $XXX $XXX the flow February. report We results assume XX% about increase including not savings that plan free of year exceed rentals. expense in included million SG&A assume $XX full in be EBITDA, cost XXXX expected in of assume XXXX annualized we provide XXXX adjusted did million $XXX least prior in expected last our in of full government earnings will part our expense full guidance And we assume million. and year year million, year we assume to as interest that excluding when related which to our range We million, bonus cash meet full revenue qualitative 'XX And at accruals $XXX half of addition, approximately $XXX of half our not of second period XXXX were $XXX contracts in million note year-over-year XXXX. million also performance In CapEx $XX to target. million in reagent a we the to in to

XXXX labs growth top COVID-XX mid-single digits, a increased cross-selling of per which legacy More forecast excluding But winds the the million the which U.S. to number year, mix. we to our low $XX be business Quidel expectations we that expect we and expect down. directionally, Screening efforts year, U.S. use mid-single in $XX Screening Donor in U.S. the as includes respiratory line this excluding methodologies as and in to tests are the single transfusion Donor expecting growth million Expected of to year, use XXXX, we we same in product on digits; that outside products of exit growth, market the this share but digits revenue, medicine come and flu

year-over-year to decrease to the million at to of related million, $XXX of realize contract first half that revenue not to government in our benefit the is expect least COVID-XX expect XXXX. $XX the We repeat. in announced XXXX is by remaining savings which previously annualized expected And importantly, we cost

We other expect these among things. initiatives,

'XX, the approximately to season. compared to the the margin We year-end of improvement XXXX timing of to expect rate adjusted EBITDA XXX deliver basis points on depending exit 'XX XXX respiratory

All right.

Based on provide our quarter efficiency are reinstate guidance Now making, initiatives. pleased 'XX the on wrapping outlook our for our we an remain business our focused performance cost we up, we savings are we financial top third to believe progress solid and and initial demonstrates XXXX. execute on priorities and as progress

about and look in future the updates optimistic quarters. providing to are path We forward ahead further

that, I the will for And the now open to with questions. please ask up operator line

[Operator Instructions] The Andrew with comes from William Brackmann first Blair.

points there, I 'XX was can laid you XXXX the think off EBITDA there, you I sort margin to exit to basis and rates. adjusted out left that compared pick XXX Maybe XXX Joe, up of to the where target related it

How high Can So the call just sort margin next math, of XXs somewhere adjusted And we the that you talk in thing low here? maybe in I for year? the other savings think cost building by my initiatives means, it, penciling that roll be does get the about level costing throughout annualized you $XXX any for that EBITDA year. in that there? in should million blocks

Sure.

thanks, So -- Andrew. and way, the by

So margin. of to this exit more of the that rate here's margin XXX blocks year's we how basis significant of together the put XXX building off improvement points

of Brian to first are yet, in really areas million there executed. that are then first the we've First, we'll initiatives prepared that but $XXX in these cost progress. have that year. we these haven't out. cost to are his Brian $XX actions in really And that additional already that That be the the of come laid half will roughly all million that savings savings relate out hinted the all going framed in And remarks the

I think example above that good is million probably on. executed procurement, areas. IT, structure, that savings that I of org and and the what already we've the what the of that this second that's be be will really And that across all tranche flattening over structure would the will of in say of things a $XXX cost types org

a could this we margin -- which in at the I last next the year. third a call There's this out, guys some negative should just that downside in regards have be course, thing respiratory we'll and and not what calculation. going say could, where year should within to or I for bad season to where is merit reiterate going -- the is with will impact our know The it, be to that this script, increase call, then have eventually of when [indiscernible] which inflation I'll And the X% I there X% X% or surprising. don't build roughly land be, business 'XX the for 'XX, then, roughly are in. in have to impact, which there's on point, say need be shouldn't will the to mention we'll the likely but really to an I employees but normal of a And margins thing

business. like quarter. some in I nice the the there ask if sounds just you It labs had placements could then And Great. on

in of sort revenue the for business? about just that well. demand underlying thinking into but that some And for balance Can as should maybe that nice we visibility sort you remind also the the in also You're QX, 'XX? of business seeing us your growth the consumables for recurring be how of

the contracts, good the Yes. say, and have patterns, very contracts X- we we know, to there's with I X-year are business, our visibility Andrew, customers these of business that these predictable hematology there's customers. would really ordering the as particularly nonrespiratory labs business, for with immuno you have because and most

predictable. nonrespiratory the so is specifically your is the And very it business, side which of labs, question,

even caused that next, So we and timing slip the pretty generally quarter into there's have by X visibility would may between to variability QX good always visibility there. say I next got into we but year, the good

The question Jack Research. Meehan from comes Nephron with next

I $XXX wanted guide to season, COVID. ask I my little checking more a million, on of just bit respiratory $XXX million the math, the guess,

season that million forward you -- just think just about the to what have to actual be been like quarter. given might is love It's on -- respiratory hear spike, went versus $XX pulled I that like unusual guess, just about I any fourth great. implies the in would summer been $XX -- demand? comments how million I would but that guess thinking what

Jack, question. the this Thanks is for Joe.

just at space. we look put out, it's guide variability it you rings if the respiratory put out, So -- that or the that that in is we true predominantly the the

is nonrespiratory As fairly question, to I the just the said side predictable. the previous business of

ILI, X%. in it about last really pick up X% knows down a our that at the which you're lot year. And So midpoint early The year-over-year. It's seen just began tick. it, time is yet. everyone to the to respiratory guide of as nonrespiratory. looked I can start XX% for beginning season we guide metric haven't really all look that And in Last we is or all to at of that flu was right, public at The the range level it respiratory not there's space. a

this into from Southern higher risk So QX in for be we're a somewhat Hemisphere, account average season. could the chance based than on seeing being the versus year? the last So the we and land trend going QX. missed that on it didn't year, volumes data last overcalled the flu we 'XX there QX year had is so strong year, revenues of timing COVID last are that result, that we and the prudent to may a to but overall but we both back QX a expected the and flu we quarter year, -- QX with respiratory in last as continue to and QX

don't really just we again. to So intend that do

guide to year, numbers this have COVID So said, that down about we've just we that planned the we've has as -- in -- quoted. I the you the come range

flu I as think year. would that's slightly well versus a the fair down prior And number. come

color comments. the sure on Okay. magnitude could Got possible And then there? up but side, on China to exposed wanted if of the be that just the Chi potential follow to cardiac I'm would province related frame to it great. it. Is that's up your I not sales be just VDP, Yang any

I for There X% this it cardiac specifically to revenue. make believe of And revenue Yes. point, changes China BNP -- impact, Jack, different but We're are is at that the decreases various will want clear. potential be we in reimbursement is or China bolus provinces. again, just less EPB. assessing XXXX certain that's marker, still than sure this

The with Bill Craig-Hallum. next Bonello comes question from

So financial, one X questions, not. one

me assumptions I'm my and hoping like, but... quarter. QX of benefit that right, First math the of the outlook. it's providing unusual and in guidance. like $XX EBITDA about much bit in what's at midpoint, those if maybe able That's be and on prudence. between a it thanks basis simple, which the costs or little trying quarter It be It's helping helpful sort implicit okay, not would next of might connect understand, maybe assumptions decline the -- to assumptions EBITDA sales or like It help you of that sort the points looks sort down very doing am I really dots all, anything seems to accounts the appreciate underlying for there's revenue. this there XXX uptick of any down for and just marketing I'm was million and some sounds the whether so. maybe $XX -- million maybe

Good Bill, is this Joe. Yes, question.

the it previous of way assuming break on for about and question season. so midpoint through we as year just down QX I'll guide the again, the went the respiratory And this the

drop in revenue assuming are year-over-year, respiratory a roughly to QX We QX. XX%

one, I so to have is piece end. And of in a other big EBITDA as the other X majority be you're -- EBITDA the or revenue or that GP respiratory drop what But adjusted impact that EBIT decline will referring year-over-year. say, will mentioned pieces, a would guy that good which prepared I bad we then the in cost incremental some QX, bonus remarks. savings as the that in another But is offsetting

So the have towards performance accrual missed a we QX This because targets. not are did we bonus performance have loan in our targets, previous do we those we year year, a tracking accrual. and

increase a -- that roughly is to QX. big part That's in the that SG&A dynamic million story. So $XX a $XX million of in year-over-year causing

glad of and this not organizational then and for maybe talk the and how And about you to just then a that you're financial, making helpful, us might year. super think the have can bonus disruption announced, also the but that That's Okay. just risk little accrual the we you rationale changes risk? mitigate bit changes. what I'm what And about you you're a to more doing

the customer impact. Mike really Bill, no this and this business customers. the closer CEO and eliminate really, question. transition great our about all and earlier team, organization, Thanks was for has impact year. really did went getting the to improving Commercial for Rob our roles through Officer level, significant to decision COO At especially Brian. Chief efficiency had the we Yes. a in on speed, our our job flattening the the a And Sure, as our is

now at to me. functional got report in and place unit -- business commercial at of top kind of changes All very of strong these organization. leaders are We've to are regional who the going our

I'm our excited about value in more this to organization operate what bring terms of and our it more customers. means So and to ability effectively

change . of force organization? terms kinds any other force is organized? transparent relatively a anticipating way sales sort there mean, the And you the of sales of structure? to the it is -- sales be Or And the in is will the in just team? commercial are in change it I

transparent Yes. This level. team will to relatively be, consolidated sales structure. the regional interface our We've Bill, customer at the

from have is really, the at to our in at nonexistent. change consolidated any here we've So top from the top There at And really affected that, again, our business. units X. of the the regions business X isn't our of a X organization customer-facing to But -- all. lot X, of doing again, impact and

question Lu Li UBS. The with next comes from

I to want the back to part. China go

I think biomarkers? you mentioned not cardiac think really you pressure other just the just the related. impacted core the Do it's that be is Or could VBP well? categories as -- reimbursement

cardiac. we've it's to is complex what the on be limited in is believe said But we're Based I and believe and Yes. hearing monitor to now continue going research as done, we'll environment, to we the China and we however, watch only that -- it cardiac and remarks, a closely. it now, right

and there wet They've region. not slide testing VBP business have chemistry technology, chemistry immunoassay weighted we're actions -- which on in more been far the heavily been utilize testing focused the on. clinical and our the Yes. dry in focused

would also Savanna know approval Got and Any many you then of it. And then on the great. update color line? have kind any time be the do platform want to

Yes.

So on RPVXX panel Savanna, our to we trials. track with enter be continue on to clinical

expecting of During 'XX. panel later of and this part sort ramp-up in in will year's any objective the the start not in season have revenue we'll significant respiratory 'XX We're XXXX. that of be assay that from Most with impact of being for XXXX. approval the that the

Citi. Patrick Donnelly The with [Operator from comes following Instructions]

well. you in I'm Brian, as jump can Joe, sure

when you What expansion. about, key it are Just like on the bps the path high to think EBITDA the high sounds levers to beyond next do that that When you look you about you year, guys side. nice this talked that XXs mid- to Where those levers XXX where mid- you margin towards additional XXs? organization, story see the to next $XXX at see million continue opportunities? leg do the

Yes.

the So mentioned direct of looking whether efficient R&D, everything costs of in costs, initiatives components we're earlier, plastics which improvement across indirect cetera. more instrument really seeing to as products, distribution, to logistics, number process of what includes P&L, to lot phrase Joe kind entertainment, do from at can we the et be a and in biologics chemicals it's business a cost more and travel

lot we're the doing tackling of of on work cost just the there's a So blocking basic that and sort the P&L. -- side of

more our segments focus that. we the by we doing differentiation win. fastest-growing competitive in but our where And on doing we're our not addition, right most competitive teams only with profitability and to we to attractive, win a commercial profitable organization most doing rate, and our have that, improve also In improve

our across are those we'll be of these some implementation the as those get of forward. of visibility programs, business. areas we as further of providing move additional really And key the So focus into we

helpful. of That's And just maybe in you variables, geography about some side layering China, then longer setup on I think that just for about the Okay. are on cardiac, EVP. And what you helpful. then term, 'XX, talked that I how the when think you about one both for guess be would another China?

it's Yes. Joe. Patrick,

environment, more our moving So think most is we take for still year we same we of watching to single-digit we're in be opportunity I pieces high But that see And 'XX as we very about I risk, going that's between China. talk yes, would I policies. XXXX all corruption make more solid. we growth to report in that probably But is on come our that still we you [indiscernible] more than and mean high on results we'll somewhere definitely as pretty digits. digits we frame there business opinion, and believe operating plan, space complex -- as it we we these And and that going this our is that said mid-single year, on, as still still before, we to -- well I February. frame single there's out to as the all as in given mentioned next as a closely it believe

Andrew The next question James. Raymond with comes from Cooper

already the remarks. you asked has a lot A lot in and prepared covered been

quick one one just for maybe So me.

where QuickVue. and do the I it's to efforts you with internationally side. been back go increasing out. haven't You talked long do on trying and about seen It's like plans deal legacy How mean in Quidel a time for that can that? XXXX really to operationalize said, I play cross-selling we the Sofia Triage that we the

on growth, for can contribute just sense a what think how terms over maybe term? longer XXXX you either force that, it? the how in or So in refocus sales you give the incentivize of And it you us

on that for but the My Yes. think cross-selling. observation question, -- progress is thank there, relatively made we've we're innings with you some early in that Andrew, I

than probably think product Triage there anything I with we've else. more our line do

more we largely effectively direct approach market force utilizing opposed And at distributors, so are commercial on on. our Again, that more is with Sofia strategy. we reliance as are can which to heavily focusing looking how the business dependent

the channel, there more the to our teams do we're way. and to we trying to shift effectively opportunity incent and that that can compete channel So direct understand is maybe to how that

[Operator Conor Instructions] comes The from with Markets. following McNamara Capital RBC

for is Conor. [indiscernible] David This

China billion coincide within starts Just ask, some what it with of the $XX funnel, current have opportunities wanted the were into you equipment to that XXXX? as stimulant rolling for the insights about

this stimulus? Is to relates it as China

That's to China. Yes. related

Yes. potential the little really initiatives but I still our policies terms see the being value-based that any how and tailwind, in that's early in a mean headwinds play it's could a stimulus going I understand to pricing to are correction think of implemented. be out for we us The potential market.

early on impact the just in stages the business. and still monitoring we're of our that so And

COVID Where more you during starting one into in to cycle years, equipment XXXX. on dynamics particular, now those immuno business. just then been X do XXXX? have happening those going A of lot of replacement see instruments placed X the And the the in contracts were

business whether do labs speaking, generally or we it's Well, business, point-of-care contract our cycles. our

positive on on a existing business. high we've lost new placements, our We and rates -- have ratio have we retention very

supports think I our really stability dynamic overall the underlying growth of mid-single-digit sort business business. So for and there the especially of labs our that rate, model

The final with Woodring from comes JPMorgan. Casey question

year 'XX the savings, see you question to the first little more Maybe of [indiscernible]? a those in 'XX see savings 'XX in kind you Would That would maintained? high tranche cost in second Or piggyback gap mentioned that EBITDA the you XXs bit margin run realize kind earlier. mid -- million about be between and of low the Patrick's XXs savings in to $XXX acquisitions would 'XX in would tranche. and target of help margin bridge rate to you cost on those you of and in and kind on

mentioned in would we in I going visibility cost Joe. more an savings think sizing we mind was continuous Yes, remarks, be of try we'll call through it. calls culture not It's tranche prepared Casey, for think that and it's that impact into to just keep to have on I the and 'XX. looking second this in Brian's moving And the And a 'XX would quarterly all provide are that to what up efficiencies. 'XX. I improvement get next again,

to So be more certainly come. there will

tailwind, well. the call other that's next a the the as exit business. if going the The margin a dilutive markets the be provide will, out of as improvement to as going donor know, for to you at as is that end business, and That's I'd of year, a tailwind you we area the exit other screening to

Okay. Got it.

So XXs you haven't that the yet. that 'XX that identified Is low cost savings in particularly? [indiscernible] assumes

And say I Street. have again, it a organization yet the of mentioned the different Brian fleshed would into of we out. that I flattening it say example way. the communicated fully is haven't a majority we would to today. Well, good the But that

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Yes. Sure.

the respiratory So the space. are leader we in

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when we as talk So looks can to again, we more that report what come, to February, in like. finalize on you we guys respiratory this season

today's Thank for you. concludes There are currently Thank you Hope no attending other queue. in your call. a day. call. great today's This rest of have you questions