QuidelOrtho (QDEL) Baird 2024 Global Healthcare Conference summary

CEO transition and business outlook

• New CEO joined after retirement, attracted by the combined capabilities across the healthcare value stream and both centralized and decentralized testing.

• Underlying business is stable and growing, with long-term contracts and high renewal rates in the Labs segment.

• Cost structure is being realigned, with significant savings initiatives already underway.

• Focus remains on continuous improvement and leveraging the combined business model for future growth.

Labs business performance and growth drivers

• Labs business shows mid-single digit growth when adjusting for instrument backlog, supported by long contracts and high retention.

• Immunohematology is stable with lower growth, but complements the Labs segment.

• Strategic shift toward integrated instruments aims to capture higher-growth immunoassay market, which is more profitable.

• Integrated instrument mix has increased from 20% to 30% over five years, with further runway for growth.

Geographic and segment opportunities

• China represents about 10% of business, growing at high single digits due to under-penetration and favorable technology positioning.

• Clinical chemistry dry slide technology in China is not currently impacted by VBP, supporting continued growth.