Qiagen (QGEN) investor relations material

Business Performance and Market Trends

• Diagnostics growth is strong, led by QuantiFERON for latent TB, nearing $500M in sales this year and targeting ≥$600M by 2028, with expansion into new disease areas.

• Life sciences segment faces funding pressures in the US and China, impacting growth, while academic and government funding in the US is stabilizing but trust issues persist.

• 90% of revenue comes from consumables, which remain resilient; instrument sales lag due to capital spending caution.

• Pharma and applied testing segments show steady demand, with digital PCR and bioinformatics driving interest.

• QIAstat-Dx and QIAcuity dPCR platforms are driving rapid growth, targeting ≥$250M and ≥$200M net sales by 2028, respectively.

Policy, Tariffs, and Financial Outlook

• Ongoing policy uncertainty around tariffs and MFN status, with mitigation strategies in place since 2016.

• Expecting about 90 basis points of margin pressure in 2025 and 2026 due to tariffs, with mitigation measures planned.

• FX headwinds are present but partially offset by a natural hedge from euro-based costs.

• Confident in achieving $2B sales target by 2028, with some variability in growth rates across pillars and aiming for ~7% net sales CAGR (2024–2028) and ≥31% adjusted operating income margin by 2028.

• FY 2025 outlook raised: net sales expected to grow 4–5% CER (5–6% CER core), with adjusted diluted EPS of ~$2.35 CER and ~30% operating margin.

Product Innovation and Growth Drivers

• Launching three new sample prep instruments and new automation systems (QIAmini, QIAsymphony Connect, QIAsprint Connect) between 2025–2026 to address automation and high-throughput needs.

• Sample prep remains a core business, with a shift from manual to automated solutions underway.

• Digital PCR is positioned as a key future growth area, offering faster, more cost-effective results than NGS.

• QIAGEN Digital Insights (QDI) is expanding its SaaS model and AI capabilities, targeting ≥$200M net sales by 2028.

• Ongoing customer engagement and branding campaigns to drive adoption of new technologies.