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

Executive leadership and integration

• New CEO Brian Blaser brings over 25 years of diagnostics experience, including leadership at Abbott and prior work with Ortho.

• The executive team is described as seasoned, with deep industry knowledge.

• Integration of Quidel and Ortho Clinical Diagnostics is complete, maintaining a focus on quality and customer service.

Near-term priorities and strategy

• Restoring investor confidence and operational efficiency are top priorities, with a focus on customer needs.

• Margin restoration includes a $100 million annualized headcount reduction, impacting results in H2 2024 and H1 2025.

• Cost savings initiatives target $100M in annualized savings, resolving supply constraints, and increasing free cash flow.

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

• Aspirational goals include mid- to high single-digit sales growth and mid- to high 20% adjusted EBITDA margins.

Business unit performance and opportunities

• Four business units: Labs (50% of revenue), Point-of-Care (25-26%), Transfusion Medicine (23-25%), and Molecular (1%, fastest-growing).

• Labs focus on integrated analyzers to drive higher-margin immunoassay revenue; only 30% of installed base is integrated.

• Transfusion Medicine is winding down U.S. donor screening, positively impacting growth and margins.

• Point-of-Care and Molecular Diagnostics are positioned for growth through innovation, menu expansion, and international expansion.

• Respiratory revenue declined 48% year-over-year, while non-respiratory revenue was stable.