QuidelOrtho (QDEL) The 44th Annual William Blair Growth Stock Conference summary

Executive leadership and company overview

• New CEO with over 25 years of diagnostics experience joined, bringing deep industry knowledge and leadership stability.

• Integration of two legacy diagnostics companies is complete, maintaining a focus on quality and customer service.

• The company operates globally with a commercial team of 3,000, presence in 130+ countries, and achieved $3 billion in revenue in 2023.

• Four business units cover labs, point-of-care, transfusion medicine, and molecular diagnostics, serving a $48 billion market with over 330 products.

• No product overlap from the merger, enabling cross-selling opportunities across geographies.

Near-term priorities and strategic focus

• Restoring investor confidence and focusing on customer needs are top priorities, with enterprise-based cost savings targeting $100 million in annualized savings.

• Margin restoration underway, including a $100 million annualized headcount reduction impacting 2024 and 2025.

• Efforts to remove pandemic-related inflation, resolve supply constraints, and instill a continuous improvement culture are ongoing.

• Growth targeted in under-penetrated immunoassay business and outside U.S. markets, with accelerated menu expansion in high-margin areas.

• Capital priorities include prudent balance sheet management, optimizing manufacturing and supply chain, and disciplined evaluation of inorganic growth opportunities.

Business unit performance and growth opportunities

• Labs unit is the largest, stable, and predictable, with integrated analyzers driving higher-margin immunoassay growth and targeting a $19B TAM.

• Transfusion medicine is steady, with global leadership in immunohematology and positive impact expected from winding down U.S. donor screening.

• Point-of-care segment is under-penetrated internationally, with menu expansion and cross-selling as key growth drivers.

• Molecular business, though currently smallest, is positioned for high growth with the Savanna product, which has received CE mark and FDA approval for initial panels.

• The company is leveraging commercial scale and R&D investments to drive long-term value and capitalize on decentralization trends in healthcare.