QuidelOrtho (QDEL) Morgan Stanley’s 22nd Annual Global Healthcare Conference summary

Key accomplishments and strategic focus

• Leadership transition brought renewed focus on customer satisfaction and cost structure alignment, with significant savings identified and ongoing progress in strategic planning.

• Integration of two companies completed, shifting focus to cost optimization and margin improvement.

• Portfolio review confirmed satisfaction with current business segments, with emphasis on profitability and growth through targeted investment.

Business performance and growth outlook

• Labs business remains stable, with mid-single-digit growth expected in the second half of 2024, supported by long-term contracts and a shift toward higher-margin immunoassay offerings.

• Immunoassay share has grown from 20% to 30% over five years, with continued expansion anticipated.

• Integrated analyzer penetration is expected to increase gradually due to contract renewal cycles, offering long-term growth potential.

Product and market development

• STI testing and menu expansion, including a new panel for the Savanna platform, are key growth drivers, with launches targeted for 2025.

• China business continues to deliver high single-digit growth, benefiting from a differentiated dry chemistry offering and localized manufacturing.

• Recent government stimulus in China has not yet produced significant impact, but the outlook remains positive.