QIAGEN Reports Full Results for Third Quarter and First Nine Months of 2019
- Q3 2019 sales in line with October 7 announcement, adjusted EPS at high end of outlook:
- Net sales of $382.7 million (+1% actual, +3% at constant exchange rates, or CER, vs. initial outlook of ~+4-5% CER)
- Net loss per share of $0.71; adjusted EPS of $0.36 ($0.36 CER vs. ~$0.35-0.36 CER outlook)
- Decision to discontinue development of new NGS instruments and prioritize resource allocation, Q3 2019 pre-tax charge of $276.8 million in operating results (73% non-cash), $0.89 per diluted share after taxes
- Q3 2019 Sample to Insight portfolio developments
- Molecular Diagnostics: QuantiFERON-TB sales rise +18% CER, but overall sales -2% CER due to reduced sales in China and from companion diagnostic co-development projects
- Life Sciences: +7% CER, led by +10% CER expansion in Pharma and +6% CER growth in Academia / Applied Testing
- New Illumina 15-year strategic partnership enables QIAGEN to commercialize companion diagnostics and other IVD kits for clinical decision-making on Illumina’s diagnostic sequencers
- QIAGEN updates full-year 2019 outlook for net sales growth of ~+4% CER and adj. EPS of ~$1.43-1.44 CER; Q4 2019 net sales growth of ~+3% CER, adj. EPS of ~$0.45-0.46 CER
VENLO, Netherlands–(BUSINESS WIRE)–$QGEN–QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced results of operations for the third quarter and first nine months of 2019.
Sales in the third quarter of 2019 rose 1% (+3% CER) to $382.7 million, weaker than expected due to reduced sales in China beyond headwinds created by the 2019 decision to discontinue the GeneReader NGS System joint venture, and also lower revenues from companion diagnostic co-development projects compared to the third quarter of 2018. These challenges overshadowed better trends in the Life Sciences and the QuantiFERON-TB test growing 18% CER, and the Americas and Europe / Middle East / Africa regions rising at a single-digit CER rate. In light of the recently announced new strategic partnership with Illumina in NGS clinical decision-making, QIAGEN also announced in October it was discontinuing development of new NGS instruments and other measures, resulting in a pre-tax charge of $276.8 million in operating results for the third quarter of 2019. This led to a net loss per share of $0.71, while adjusted EPS was $0.36 ($0.36 CER), at the high end of the outlook for the period.
QIAGEN revised its outlook for full-year 2019 sales to about 4% CER growth, and tightened the outlook for adjusted earnings per share (EPS) to the upper end of the previous range to $1.43-1.44 CER. This reflects an outlook for net sales growth for the fourth quarter of 2019 for about 3% CER, which includes about 2-3 percentage points of headwind from anticipated lower revenues from companion diagnostic co-development projects after the cancellation of some projects linked to the decision to stop the development of new NGS instruments.
“We have attractive fundamental growth opportunities and are determined to become a stronger and more differentiated leader. This conviction has been strengthened by the partnership with Illumina, which is set to expand our global presence in clinical decision-making using NGS technology,” said Thierry Bernard, Interim CEO of QIAGEN. “Although we have revised our outlook for 2019, we are reaffirming our commitment to value creation and preparing for further growth in sales and adjusted earnings in 2020.”
“We are maintaining a sharp focus on operating efficiencies and disciplined capital allocation to support growth and increase returns. The majority of the restructuring charges taken in the third quarter of 2019 involve non-cash items related to ending development of new NGS-based instruments. In addition, we plan to complete the transfer of various activities to our QIAGEN Business Services centers to gain scale and efficiency in supporting our customers and internal processes,” said Roland Sackers, Chief Financial Officer of QIAGEN.
Please find the full press release including tables here
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