QIAGEN – Sample and Assay Technologies€¦ · -2-Sample & Assay TechnologiesSafe Harbor...

Sample & Assay Technologies- 1 -

QIAGEN – Sample and Assay Technologies

2008 Piper Jaffray Europe Conference

London, June 25, 2008

Peer SchatzChief Executive Officer


Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and geneticvaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations for certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC).

Regulation G: The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income, net income, and earnings per share for the first quarter 2008, and the comparable period of 2007, which information is presented on a “non-GAAP financial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press release dated May 5, 2008, for information on the Company’s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the Company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.

Forward Looking Statements


Revenues: 2007: $ 650 million 04–07 CAGR: 22%Net income: 2007: $ 112 million 04–07 CAGR 24%1

EPS: 2007: $ 0.63 04–07 CAGR: 17%1

Product Range:>500 consumable products □Sample technologies: to collect, separate, purify, isolate,

stabilize and store samples□Assay technologies: to make such isolated target

information (DNA, RNA, proteins, etc.) visibleInstrumentation for above consumables

Customers (>400,000)Academic researchPharma/BiotechApplied Testing (veterinary, forensics, biodefense etc.)Molecular Diagnostics

IP (08/07): >1’500 patents (550+ issued, 480+ pending, 500+ licensed

Employees: >2‘700 employees based > 30 subsidiaries1 excluding acquisition, integration and relocation related charges as well as amortization of

acquired IP and equity-based compensation (SFAS 123R)

QIAGEN at a GlanceIntro


Sample and Assay Technologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...

Complexsample

DNAPureAnalyte

InformationAssayTechnologies

Target Dectected

Yes

No

SampleTechnologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,

Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...

Intro


Sample and Assay Technologies

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials

Intro

Technology Leadership Sales Strength

MARKETS

Research

PharmaBiomedical

MDx

Inside SalesE-commerce

Appl. Testing


Sales Strength

MARKETS

Research

PharmaBiomedical

MDx


Appl. Testing

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials

Sample and Assay TechnologiesTechnology Leadership

Technology Leadership


Any Analyte

QIAGEN Sample TechnologiesEnabling Access to the Content of Any Biological Sample

AnyApplicationAny

BiologicalSample



QIAGEN Assay Technologies

Assay Technologies

Technologies:

□ All forms of DNA, RNA, methylation, proteins

□ Amplification of target or of signal (including: PCR, real-time PCR, multiplexed PCR, Rolling Circle Amplification, HybridCapture)

□ Helicase Dependent Isothermal Amplification technology (HDA)

□ Whole Genome/Transcriptome amplification

□ RNAi assays

Formats

□ “Open” kits (generic)

□ “Closed” kits (target-specific), e.g. molecular diagnostics

Automation

Hardware designSoftware developmentElectronic engineering



QIAGEN Sample & Assay TechnologiesManual use or Automated on QIAGEN Instruments Technology

Leadership

20 cm

5 cm

Sample Technologies

Assay Technologies

Consumables

- Forensics- Clinical

Instruments

50 cm

- „Everywhere“

- Pharma

- MolecularDiagnostics


Technology and Innovation LeaderTechnology Leadership

R&D at QIAGEN:

Approx. 10%-11% of sales

>460 employees in R&D

Germany, U.S., Switzerland, Singapore and China

Chemistry, biology, physics, engineering and others

Fast, proven innovation cycles:4-5%-points of sales growth comes from new products launched in last 12 months


EpigeneticsGene function analysis

o Market volume in 2012: US$ 4Bo Market CAGR: 60%

QIAGEN’s expanded EpiTect portfolioo Sample Technologies

– Whole Bisulfitome amplification– Bisulfite conversion (2007)

o Assay Technologies– Methylation-specific PCR– Methylation-specific real-time PCR– MethyLight Assays: detection and quantification

of six cancer-related genes– Control DNA

Sample and Assay Technologies for EpigeneticsTechnology Leadership

Announced on June 18, 2008

Leading in Epigenetics Solutions


Sample and Assay Technologies for Micro RNATechnology Leadership

Leading in miRNA Solutions

Announced on June 25, 2008

Micro RNA Regulates gene function analysis

o Rapidly emerging area of molecular researcho Already >820 human miRNA molecules identified

– miRNAs are linked to some types of cancer– miRNAs are associated with heart disease

QIAGEN’s expanded miRNA portfolio– miRNA Sample Technologies:

• miRNeasy– miRNA Assay Technologies:

• miScript primer assay and plate• synthetic miRNAs• miRNA inhibitors,


Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials


Significant Marketing and Sales PowerSales Strength

Sales Strength

MARKETS

Academia

PharmaBiomedical

MDx


Appl. Testing


Significant Marketing and Sales Power

~ 1,200 Sales and Marketing Professionals

Sales Strength

America Approx 50% of Sales: Sales and Marketing Force: 468

Europe Approx 38% of SalesSales and Marketing Force: 465

Asia Approx 10% of SalesSales and Marketing Force: 246

MARKETS

Biomedical

MDx


Appl. Testing

SPECIALISTS

Channels

Pharma

Research


Revenue DistributionFirst Quarter 2008

RoW2% of sales

North America106% Growth

Europe35% Growth

By Product Groups By Geographic Regions

92%

7%

50% 38%

10%

Others

CER = Constant Exchange Rates

Instruments11% growth

Asia25% growth

Consumables 68% Growth

sample technologiesassay technologies

Sales Strength


110

160

210

RevenuesQ1 2007

Price Volume Newproducts

Acquisitions Exchangerates

RevenuesQ1 2008

0

Organic Growth 10%

~ 2%~ 4%

~62%

~ 43%

US$m

Organic Growth DriversFirst Quarter 2008

Organic Growth - Outperforming the Industry*

* Industry including: Beckman, Bruker, BioRad, Mettler, ABI, Affymetrix, Fisher, Walers, Thermo, Techne, Invitrogen,Sigma, QIAGEN, Millipore, Roche Applied Science, TecanSource: Company data, Analyst reports

~ 9%

~ 4%

Sales Strength


Sales Strength

MARKETS

Research

PharmaBiomedical

MDx


Appl. Testing

Financials


Addressing Key Growth MarketsGrowth Drivers

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001


Disseminating Technologies Into Four Markets

Product and Technology Continuum

MolecularDiagnostics

Pharma

Research &Development

Academia

Life ScienceResearch

AppliedTesting

SAMPLETechnologies

ASSAYTechnologies

Growth Drivers

Marketleader

Marketleader

Marketleader

Marketleader

R&DContri-bution

R&DContri-bution

R&DContri-bution

R&DContri-bution


Leading Position – Multiple Growth Drivers

Product and Technology Continuum

SAMPLETechnologies

ASSAYTechnologies

Shar

e of

Rev

enue

FY08

$87

5-90

5

~$240MPublicPrivate

~$150MDiscoveryDevelopment

~$70MVeterinaryForensicsBio defenseFood Testing

~$430MSample TechnologiesPCR assaysOEMHPV (approx 60%)

Life ScienceResearchPharmaApplied

TestingMolecular

Diagnostics

Growth Drivers


Leading in Molecular Diagnostics

Sales in MDx: approx. $430 million in 2008, estimated#1 (excluding blood banking and viral load monitoring)

Sample technologies: proven standard

Assay technologies: unparalleled breadth (>120 assays)PCR and real-time PCR assaysMultiplexing leader: QIAplexLeading in key assay areas (HPV)Broad platform base

Regulated portfolio – global and growing5 FDA (PMA approved or 510k cleared) products38 CE-marked assays, 6 CE-marked sample preparation products9 SFDA approved assays 98 general purpose reagents

Molecular Diagnostics

Growth Drivers


Global In Vitro Diagnostics MarketBy Segment (2006E)

MDx: Fastest Growing Segment in In-Vitro Diagnostics

Growth Drivers

Note: IVD market estimates vary by source and range between ~$29B–$35BSource: RBC Capital Markets, Nature Biotechnology (August 2006), Digene internal reports, Recap, Kalorama, BioCentury, L.E.K. Analysis

ClinicalChemistry

CAGR 2.6%Molecular

DiagnosticsUS$ 2.4B

CAGR 17.0%Blood GlucoseCAGR 11.5%

OtherCAGR 3.5%

HematologyCAGR 3.9%

Immuno-assaysCAGR 4.7%

MicrobiologyCAGR 5.7%

HemostasisCoagulation

CAGR 10.2%

Point of CareCAGR 10.9%

In Vitro Diagnostics Estimated market volume: ~US$ 33B (2006)

CAGR 2006 – 2010: 7%

Molecular Diagnostics Estimated market volume: ~US$ 2.4 billion (2006)

CAGR 2006 – 2010: 17%

Viral Infections

Non-ViralInfections

GeneticTesting

Oncology

Blood banksOthers


Multiple Platforms in MDx

Sample Technology Automation(Broad portfolio of QIAGEN solutions)

• Hybrid Capture

• Ultra-high

• HPV

• HDA +Hybrid Capture

• Ultra-high

• GC/CT• others

• Assay technology

• Throughput

• Assays

Detection

Sample Processing

Biorobot MDXBioRobot 8000BioRobot M48BioRobot EZ1QIAsymphonyQIAcube

QIAensembleRapid Capture

• Qual. PCR QIAplex low

• Medium

• HLA and others

• QIAplexmultiplexing

• Medium

• ResPlex, MVPplex(HAI)

QIAxcel(eGene)

Real-time PCR cycler(standard lab

equipmentABI, Roche,

Corbett)

• Quantitative PCR

• All (open platform)

• 120 real time PCR assays

Endpoint PCR cycler(standard lab equipment,

off patent 2008)

• Liquichip(Luminex)

Growth Drivers


v

Selection of PlatformsSystems can be mixed and combined

Sample Processor(Under Development)

Sample Processor AssaySetup Detection

Sample in - Result out

Hybrid Capture assaysAmplification assays

Sample in – Result out

Hybrid Capture assaysAmplification assays

Sample in – Result out

PCR and other Amplification assaysSingleplex-Multiplex

Ultra-High Throughput

> 2’000 samples per shift

Low – Mid Throughput

50–250 samples per shift

Growth Drivers


Sales Strength

MARKETS

Research

Pharma KAMBiomedical

MDx


Appl. Testing

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001


Strong Financial Base – Exciting ModelFinancials

Financials


100

200

300

400

500

600

700

800

900

2004 2005 2006 2007 2008E

Revenues 2004 – 2008E

US$ millions

QIAGEN – Continuous Double Digit Revenue Growth Rates

Financials

CAGR2004-2007 = 22%

Revenues excluding the synthetic DNA business unit, sold in Q2 2004


506070

8090

100110

120130140150

160170

2004 2005 2006 2007 2008E

Net Income 2004 – 2008E

US$ millions

QIAGEN – Strong Earnings Engine

EPSAdj.

US$ 0.39 US$ 0.46 US$ 0.56 US$ 0.63 US$ 0.76-US$ 0.80

All figures excluding acquisition, integration and relocation related charges as well asamortization of acquired IP and equity-based compensation (SFAS 123R)

Financials

CAGR2004-2007 = 24%


Guidance1

Feb. 12, 2008 Reported

Net sales (US$ m) 198 - 205 207.1 Exceeded2

EPS (US$)3 0.15 - 0.16 0.18 Exceeded

Exceeded on Revenues & EPS Guidance

1 based on January 31, 2008 foreign currency exchange rates2 US$ 206.2 million using January 31, 2008 foreign currency exchange rates3 excluding acquisition, integration and relocation related charges, amortization of

acquired IP and equity-based compensation (SFAS 123R)

First Quarter 2008Key Performance Metrics Financials


In US$ millions unless indicated Q1 2008 Q1 2007 Growth Net sales (US$m) 207.1 127.9 62%

Operating income (US$m) 2 58.7 32.8 79%

Operating margin 2 28% 26%

Net income (US$m )2 36.9 22.6 63%

EPS (US$) 2 0.18 0.14

Financial Performance Exceeded Expectations

First Quarter 2008At a Glance

1 US$ 206.2 million using January 31, 2008 foreign currency exchange rates 2 excluding acquisition, integration and relocation related charges as well as amortization of acquired IP andequity-based compensation (SFAS 123R)

1

Financials


Leading, focused: sample and assay technologiesStrong financial performance Strong growth projected: organic growth rate: ~15%

Proven innovation leadership in industrySuccessful acquisition track record

Core competency drives growth opportunitiesMDxPharma<->MDxApplied Testing

Leading catalytic acquisitions to expand:Sample and assay technology leadershipRegional footprint

Key Investment ConsiderationsSummary


Thank you!

QIAGEN – Sample and Assay Technologies€¦ · -2-Sample & Assay TechnologiesSafe Harbor...

Documents

Transcript of QIAGEN – Sample and Assay Technologies€¦ · -2-Sample & Assay TechnologiesSafe Harbor...