QuidelOrtho (QDEL) 7th Annual Evercore ISI HealthCONx Conference summary

Business performance and segment trends

• Labs business, about half of revenue, is growing mid-single digits in 2024 after 10% growth in 2023, driven by customer segmentation and integrated analyzers.

• Immunohematology is a stable, low single-digit growth business with strong customer loyalty and global leadership.

• U.S. Donor Screening is being wound down due to low growth and margins, with revenue dropping from $115–$120M in 2024 to $40–$50M in 2025, and minimal in 2026, improving EBITDA margins by 50–100 bps.

• Triage (non-respiratory Point of Care) is growing mid- to high-single digits, benefiting from cross-selling via the Ortho legacy team.

• Respiratory revenue is stabilizing at endemic levels, with 2024 guidance at $150M and a 30% YoY drop expected in Q4.

Product and market dynamics

• Over 50% of flu testing now uses combo tests (flu A, flu B, SARS), a durable and stable-priced product.

• Respiratory seasonality is returning to pre-pandemic patterns, with ILI spikes expected in December.

• Cross-selling of Quidel products by Ortho’s global salesforce is gaining traction, especially in China, Asia-Pac, and Latin America.

• China represents 10% of revenue, with mid- to high-single digit growth expected, minimal impact from value-based procurement, and only minor reimbursement headwinds.

Financial outlook and guidance

• Labs and Immunohematology are expected to maintain mid- and low-single digit growth, respectively, in 2025.

• $100M in annualized cost savings targeted, with the second $50M benefit realized in 1H 2025 and 100–200 bps EBITDA margin improvement expected.

• Long-term, the business targets mid-single digit top-line growth, with potential for high-single digits if Savanna succeeds, and mid- to high-20s% adjusted EBITDA margins.

• EPS growth is expected in the double digits or teens, and free cash flow conversion targets are at least 50% of adjusted EBITDA, aiming for over 100% of net income by 2026.

• Leverage ratio is expected to improve from just over 4x in Q3 2024 to the 2.5–3.5x range over the next few years.