Sample & Assay Technologies Deutsche Bank Annual ...€¦ · The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income,

Sample & Assay Technologies- 1 -

QIAGENSample & Assay Technologies

Deutsche Bank Annual Healthcare Conference

Boston, May 4, 2010

Peer M. Schatz, CEO


Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations from certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. In addition certain statements contained in this news release are based on company assumptions, including, but not limited, to revenue allocations based on business segments. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC).

Regulation G: The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income, net income, and earnings per share over a specific period and the comparable period, which information is presented on a “non-GAAP financial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press releases for information on the company’s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.

Forward Looking Statements


Sample & Assay Technologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic

reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic

reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic

reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA,

Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic


reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic


reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils,

Neutrophils, Talin, ...

Complexsample

DNAPureAnalyte

InformationAssayTechnologies

Target Detected

Yes

No

SampleTechnologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic

reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic


reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,

Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic


reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic


reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils,

Neutrophils, Talin, ...

Intro


Typical Products: From Sample to Results Sample & Assay Technologies on Automated Platforms

Fully Automated Platforms

Assay TechnologiesSample Technologies

Intro


Revenues:

2009:

US$1.010 M

04–09 CAGR: 23%Net income1:

2009:

US$ 200 M

04–09 CAGR 28%EPS1:

2009:

US$ 0.93 04–09 CAGR: 19%

Product Range:>500 consumable products

□

Sample Technologies: to collect, separate, purify, isolate, stabilize and store samples

□

Assay Technologies: to make such isolated target information (DNA, RNA, proteins, etc.) visible

Instrumentation for above consumables

Customers: >400,000Academic researchPharma/BiotechApplied testing (veterinary, forensics etc.)Molecular diagnostics

IP (06/09): >2,100 patents

(757

issued, 799 pending, 550+ licensed)

Employees: >3,500

employees based in >35 subsidiaries

QIAGEN at a Glance

(1)

Excluding acquisition, integration and relocation related charges as well as amortization of

acquired IP and equity-based compensation (SFAS 123R)For further information on the adjusted (adj.) figures, please refer to the reconciliation tables in

QIAGEN’s

Q4/FY 2009 press release.

Intro


Technology and Innovation Leader

R&D at QIAGEN:

Investment: Approx. 12% of sales

People: >700 employees in R&D

Multiple locations:GermanyU.S.SwitzerlandSingaporeChina

Multiple disciplines:ChemistryBiologyPhysicsEngineering and others

Fast, proven innovation cycles:

Stable 4-5% revenue growth fromnew products launched in last 12 months.

Technology Leadership


QIAGEN’s Global Footprint

Americas Approx. 47% of Sales

Europe Approx. 37% of Sales

Asia Approx. 14% of Sales

Rest of World Approx. 2% of Sales

Sales Strength

Q1 2010 percentage of salesbased on constant exchange rates

MARKETS

MDx/

Companion DxApplied TestingPharmaBiomedicalAcademia

Others

Sales Channels

>1020in

>500in

SPECIALISTS


200

220

240

260

280

Net salesQ1 2009

DivestmentOlerup

Price Volume Newproducts

Acquisitions Exchangerates

Net salesQ1 2010

Growth Drivers First Quarter 2010

Organic Growth -

Outperforming the Industry*

0

Organic Growth 11%

~20%

~ 2%

US$M

~ 5%

~ - 2%

(in Q3 2009)

* Industry data include: Illumina, Luminex, Cepheid, Techne, GenProbe, Sigma Aldrich, Bio Rad, Mettler, Meridian, Beckman, Waters, Becton Dickinson, Roche, Thermo, Millipore, Bruker, Celera, Affymetrix, Immucor, QIAGEN, Tecan, Innogenetics, Life Technologies

Source: Company data, analysts’

reports

~ 4%

~ 5%

~ 6%

Sales Strength


Leading Position - Multiple Growth Drivers

Product and Technology Continuum

SAMPLETechnologies

ASSAYTechnologies

PublicPrivate

Life ScienceResearch

PharmaceuticalIndustry

AppliedTesting

MolecularDiagnostics

DiscoveryDevelopment

VeterinaryForensicBio defenseFood

PreventionProfilingPersonalizedHealthcarePoint of Need

Growth Drivers


Molecular Diagnostics Prevention - Profiling - Personalized Healthcare - Point of Need

QIAGEN‘s Position

Platforms for all laboratory sub-segments(from prevention to PON)Technology scales across all platformsBroad assay portfolio : 15 PMA/510K, >40 CE marked, 10 SFDAStrong brand, good reputation, powerful infrastructure

Market Situation

High market growth ~15%New areas emerging: companion diagnostics, point of needMDx allows significant cost reduction in healthcare

OpportunitiesNew platform launches 2010 - 2012Full assay portfolio, many assays in pipelinePersonalized medicine and point of need testing

Growth Drivers


Revenue Development By Customer Group

CAGR 2010-2015

~15%

2005 2010E 2015E

PreventionProfilingPersonalized HealthcarePoint of Need

Growth Drivers


Growth Drivers in Molecular Diagnostics Prevention

MarketScreening market: High volumes / low prices ($8-20)Strong market growth – approx. 15% -20%Huge untapped potential market potential

PortfolioToday: digene HPV screening testTomorrow:

digene HPV eHC

screening testdigene HPV eHC

16/18/45 genotyping testamplified assays:

CT/GC, Trichomonas, Vaginosis, Group B Strep plusadditional opportunities in e.g. cancer screening and others

PlatformUltra high throughput:

QIAensemble

SP + QIAensemble

2000High –

mid throughput:

QIAensemble

SP + QIAensemble

400/3000+Low –

mid throughput: QIAsymphony

+ QIAensemble

400/3000+

Highlights 2010Launch QIAensemble in EuropeData on clinical trials of next generation HPV tests and platformsApproximately 40,000 patient involved

2005 2010E 2015E


Growth Drivers


Growth Drivers in Molecular Diagnostics Profiling

MarketIncreasing molecular infectious disease testing Market growing with approx. 10% -15%Ongoing requirement for rapid development of new tests(e.g. SARS, H1N5, H1N1)

Complete portfolio based on different assay technologiesartus RT PCR assay portfolio > 120 different assays15 FDA (PMA approved or 510k cleared) products

>100 CE-marked products, 10 SFDA approved assays Multiplexing assaysPyrosequencing assays

PlatformsQIAsymphony SP + ASQIAsymphony RGQQIAsymphony PyrQIAsymphony Plus

Highlights 2010Launch QIAsymphony RGQ in Europe, with 10+ CE-marked assaysStart of clinical trials (FDA) CMV, EBV, ResPlex II, artus Influenza

2005 2010E 2015E


Growth Drivers


Growth Drivers in Molecular Diagnostics Personalized Healthcare

MarketMarket driven by need of drug efficiency and patient safetyMarket growing with > 20%> 15 partnerships with pharma for companion diagnosticsincl. Amgen, Pfizer, BMS, Astra Zeneca, Merck, Lilly, ImClone, BI, ....Biomarker research provides future targets

PortfolioKRAS, BRAF, EGFR, EGFR cIII, PI3K, ...

Pathogen genotyping

PlatformQIAsymphony SP + ASQIAsymphony RGQQIAsymphony PyrQIAsymphony Plus

Highlights 2010Submission KRAS test with AmgenNine further test under development

2005 2010E 2015E


Your

Nam

e H

ere

Growth Drivers


Growth Drivers in Molecular Diagnostics Point of Need

MarketRapid turnaroundNo laboratoryAcute care (ER, mobile)Huge market growth from very small basis

PortfoliocareHPVInfluenza Bacterial testsHAI

PlatformHandheld based on fluorescence analysis /(ESE)

QIAcare

2005 2010E 2015E


Highlights 2010Launch careHPV

First PON assays for applied testing on ESE platform

Growth Drivers


Applied testing (7% of net sales, 28% growth)Ongoing initiatives in food testing, forensics

Molecular diagnostics (45% of net sales, 15% growth)Fully on track to launch QIAensemble screening platform in EU and U.S.Fully on track to launch QIAsymphony RGQ platform plus menu in EU/U.S.PHC: All key programs on track, actively entering into new partnershipsGood growth despite base effect from 2009, flu and weather in U.S.

Pharma (21% of net sales, 13% growth)Discovery remains soft

Development benefiting from PHC activities and new products

Academia (27% of net sales, 12% growth)Only small fraction of stimulus money spent, impact will extend through 2011Optimistic outlook for 2010

QIAGEN’s Core MarketsTrends

Growth rates based on constant exchange rates

Growth Drivers


QIAGEN Group Revenue and EPS Growth 2004 - 2009

All figures excluding business integration and relocation related charges as well asamortization of acquired IP and equity-based compensation (SFAS 123R).

CAGR2004-2009 = ~23%

CAGR2004-2009 = ~19%

Revenues

EPS adjusted

Financials

in U

S$in

US$

M

360 398466

650

893

1010

100200300400500600700800900

10001100

2004 2005 2006 2007 2008 2009

0.390.46

0.560.63

0.80

0.93

0.00

0.10

0.200.30

0.40

0.50

0.60

0.700.80

0.90

1.00

2004 2005 2006 2007 2008 2009


QIAGEN Group Operating Cash Flow and Free Cash Flow 2004 - 2009 Financials

Operating Cash flow

Free Cash flow

Free cash flow computed using net cash from operating activitiesless capital expenditures.

in U

S$M

in U

S$M

53.8

91.2101.5

84.8

173.0

217.0

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009

41.2

77.5 72.5

50.3

133.6

164.8

0

50

100

150

200

2004 2005 2006 2007 2008 2009


Key Investment Considerations Strong Growth at Low-Risk

Strong Strategic PositionAddressing high growth marketsFocused, complete and technology-leading portfolioCritical mass, well functioning global organizationGlobal footprint with activities

Innovation is keyProven innovation leadership in industry79 product launches in 2009 – 14 in Q1 20104-5% of revenue growth from new introduced products

Strong Financial PerformanceExceed Q1 adjusted EPS on strong revenuesGuidance 2010

Revenues: US$ 1,120 – 1,170 EPS, adj.: US$ 0.90 – 0.96

Summary


Thank you!

Documents

Sample & Assay Technologies Deutsche Bank Annual ...€¦ · The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income,