Fulgent Genetics (FLGT) Piper Sandler 37th Annual Healthcare Conference summary

Business performance and growth drivers

• Achieved consistent revenue outperformance and raised guidance annually, driven by organic growth and successful integration of past acquisitions.

• All three business areas—precision diagnostics, anatomic pathology, and biopharma services—performed strongly, with reproductive health and rare disease segments leading growth.

• Gross margins have steadily increased, reaching over 44% in the last quarter, attributed to technology investments and operational efficiency.

• Laboratory services revenue nearly doubled in three to four years, outpacing market growth.

• Engineering-driven automation, proprietary systems, and in-house technology development have enabled cost control and efficiency.

Strategic investments and capital allocation

• Maintains a significant cash reserve, having invested in R&D, built a state-of-the-art laboratory, and executed over $100 million in share buybacks.

• Actively evaluates M&A opportunities to expand market reach and consolidate the industry.

• Investments in technology and infrastructure have improved efficiency and consolidated operations.

• Plans to continue using cash for acquisitions, R&D, and potential further buybacks.

Competitive advantages and innovation

• Offers the largest genetic test menu in the industry, with 22,000 tests and rapid turnaround times, especially in reproductive health.

• Proprietary algorithms, custom panel design, and a one-stop-shop approach differentiate offerings.

• Recent product launches include a novel NIPT (NOVA), faster whole genome sequencing with RNA integration, and an ultra-rapid genome test for NICU applications.

• Bundling RNA with ultra-rapid genome testing enhances diagnostic yield in rare diseases.