QIAGEN Sample and Assay Technologies

Transcription

1 QIAGEN Sample and Assay Technologies Baird 2008 Growth Stock Conference Chicago, May 13, 2008 Peer Schatz Chief Executive Officer -1 -

2 Forward Looking Statements 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 genetic vaccination 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. -2 -

3 QIAGEN at a Glance Intro Revenues: 2007: $ 650 million CAGR: 22% Net income: 2007: $ 112 million CAGR 24% 1 EPS: 2007: $ 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.) visible Instrumentation for above consumables Customers (>400,000) Academic research Pharma/Biotech Applied 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 subsidiaries 1 excluding acquisition, integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R) -3 -

4 Intro Complex sample 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,... Sample 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,... Pure Analyte DNA Assay Technologies Target Dectected Yes No Information -4 -

5 Sample and Assay Technologies Intro Technology Leadership Sales Strength MDx Appl. Testing Pharma Biomedical Research Inside Sales E-commerce M A R K E T S Growth Drivers Financials

6 Sample and Assay Technologies Technology Leadership Technology Leadership Sales Strength MDx Appl. Testing Pharma Biomedical Research Inside Sales E-commerce M A R K E T S Growth Drivers Financials

7 QIAGEN Sample Technologies Enabling Access to the Content of Any Biological Sample Technology Leadership Any Biological Sample Any Application Any Analyte -7 -

8 QIAGEN Assay Technologies Assay Technologies Automation 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 Hardware design Software development Electronic engineering Technology Leadership -8 -

9 Helicase-Dependent Amplification (HDA) Licensing and Supply Agreement with BioHelix Technology Leadership Technology Isothermal reaction, no thermocycling required High sensitivity and specificity Simple reaction workflow User-friendly assay design Fit Broadens assay technology portfolio (PCR, RCA etc.) Compatible with multiple detection technologies QIAsymphony QIAensemble Luminex Liquichip QIAxcel Opportunities Singleplex and multiplex assays for Molecular diagnostics Pharmaceutical drug development Applied testing Research Sensitive, specific and runs on many platforms -9 -

10 QIAGEN Consumables Manual use or Automated on QIAGEN Instruments Technology Leadership Consumables Instruments Sample Technologies 50 cm 5 cm - Forensics - Clinical - Everywhere Assay Technologies - Pharma - Molecular Diagnostics 20 cm

11 QIAGEN Technology and Innovation Leader Technology 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

12 QIAGEN has Significant Marketing and Sales Power Sales Strength Technology Leadership Sales Strength MDx Appl. Testing Pharma Biomedical Academia Inside Sales E-commerce M A R K E T S Growth Drivers Financials

13 Strong Sales and Marketing Force Sales Strength Europe Approx 38% of Sales Sales and Marketing Force: 465 America Approx 50% of Sales: Sales and Marketing Force: 468 Asia Approx 10% of Sales Sales and Marketing Force: 246 S P E C I A L I S T S Channels MDx Appl. Testing Pharma Biomedical Research Inside Sales E-commerce M A R K E T S ~ 1,200 Sales and Marketing Professionals

14 First Quarter 2008 Revenue Distribution Sales Strength By Product Groups By Geographic Regions Consumables 68% Growth sample technologies assay technologies North America 106% Growth Europe 35% Growth 92% 50% 38% 7% 10% Others Instruments 11% growth RoW 2% of sales Asia 25% growth CER = Constant Exchange Rates

15 Organic Growth Drivers in First Quarter 2008 Sales Strength US$m 210 ~ 9% ~62% ~ 43% 160 ~ 2% ~ 4% ~ 4% Revenues Q Organic Growth 10% Price Volume New products Acquisitions Exchange rates Revenues Q Organic Growth - Outperforming the Industry* * Industry including: Beckman, Bruker, BioRad, Mettler, ABI, Affymetrix, Fisher, Walers, Thermo, Techne, Invitrogen, Sigma, QIAGEN, Millipore, Roche Applied Science, Tecan Source: Company data, Analyst reports

16 QIAGEN is Addressing Key Growth Markets Growth Drivers Technology Leadership Sales Strength MDx Appl. Testing Pharma Biomedical Research Inside Sales E-commerce M A R K E T S Growth Drivers Financials

17 Disseminating Technologies Into Four Markets Growth Drivers Market leader Market leader Market leader Market leader Molecular Diagnostics Applied Testing Pharma Research & Development Academia Life Science Research R&D Contribution R&D Contribution R&D Contribution R&D Contribution SAMPLE Technologies ASSAY Technologies Product and Technology Continuum

18 Leading Position Multiple Growth Drivers Molecular Diagnostics Applied Testing Pharma Life Science Research Share of Revenue FY08 $ ~$430M Sample Technologies PCR assays OEM HPV (approx 60%) ~$70M Veterinary Forensics Bio defense Food Testing ~$150M Discovery Development ~$240M Public Private SAMPLE Technologies ASSAY Technologies Product and Technology Continuum

19 Growing By Leveraging Technologies Growth Drivers All figures are estimates Market Size (US$ M) Market Growth QIAGEN Revs* (% of Sales) Growth Drivers Molecular Diagnostics Applied Testing Pharma 1, % 17% Life Science Research * Consolidated annualized revenues 2, % 48% % 8% 1, % 27% Replacing traditional New tests Molecular biology going everywhere Personalized medicine Clin. trials monitoring Translational research Replacing traditional Biomedical research Translational research

20 Leading in Molecular Diagnostics Growth Drivers Sales in MDx: approx. $430 million in 2008, estimated #1 (excluding blood banking and viral load monitoring) Sample technologies: proven standard Molecular Diagnostics Assay technologies: unparalleled breadth (>120 assays) PCR and real-time PCR assays Multiplexing leader: QIAplex Leading in key assay areas (HPV) Broad platform base Regulated portfolio global and growing 5 FDA (PMA approved or 510k cleared) products 38 CE-marked assays, 6 CE-marked sample preparation products 9 SFDA approved assays 98 general purpose reagents

21 Global In Vitro Diagnostics Market By Segment (2006E) Growth Drivers In Vitro Diagnostics Estimated market volume: ~US$ 33B (2006) CAGR : 7% Molecular Diagnostics Estimated market volume: ~US$ 2.4 billion (2006) CAGR : 17% Hematology CAGR 3.9% Other CAGR 3.5% Immuno-assays CAGR 4.7% Clinical Chemistry CAGR 2.6% Molecular Diagnostics US$ 2.4B CAGR 17.0% Blood banks Others Viral Infections Microbiology CAGR 5.7% Blood Glucose CAGR 11.5% Oncology Genetic Testing Non-Viral Infections Hemostasis Coagulation CAGR 10.2% Point of Care CAGR 10.9% MDx: Fastest Growing Segment in In-Vitro Diagnostics Note: IVD market estimates vary by source and range between ~$29B $35B Source: RBC Capital Markets, Nature Biotechnology (August 2006), Digene internal reports, Recap, Kalorama, BioCentury, L.E.K. Analysis

22 QIAGEN s Platforms in MDx Growth Drivers Sample Technology Automation (Broad portfolio of QIAGEN solutions) Sample Processing Biorobot MDX BioRobot 8000 BioRobot M48 BioRobot EZ1 QIAsymphony QIAcube Detection Rapid Capture QIAensemble Endpoint PCR cycler (standard lab equipment, off patent 2008) Liquichip (Luminex) QIAxcel (egene) Real-time PCR cycler (standard lab equipment ABI, Roche, Corbett) Assay technology Hybrid Capture HDA + Hybrid Capture QIAplex multiplexing Qual. PCR QIAplex low Quantitative PCR Throughput Ultra-high Ultra-high Medium Medium All (open platform) Assays HPV GC/CT others ResPlex, MVPplex (HAI) HLA and others 120 real time PCR assays

23 Selection of Platforms Systems can be mixed and combined Growth Drivers Ultra-High Throughput > samples per shift Sample Processor (Under Development) Sample in - Result out Hybrid Capture assays Amplification assays Sample in Result out Low Mid Throughput samples per shift v Hybrid Capture assays Amplification assays Sample in Result out PCR and other Amplification assays Singleplex-Multiplex Sample Processor Assay Setup Detection

24 Successful Integrations Overview Highlights Projects well on track: 84% completed/on track Handover into line management On track to meet targets Synergies Timelines Accretion Consolidated laboratory sales channel Expanded clinical sales channel (over 100 in US) Geographic expansion, synchronization R&D programs running New marketing campaigns Website ( DTC Partners Integrations on Track

25 QIAGEN HPV Competitive Platforms Growth Drivers HC2 HPV FDA approval status FDA approved* Filing expected in late 2009 Clinical validation DNA extraction Trials on >315,000 women Not required Based on HC2 technology Not required Can be added Sample input volume 4 ml 1 ml Instrumentation LBC sample prep time Assay run time Rapid Capture FDA approval samples 3.3 hrs 350 samples 4.5 hrs QIAensemble Filing expected 2009 ~1,000 samples/ 5.5 hrs Continuous loading 2,000 samples / 7 hrs Continuous loading * FDA PMA approval: >30,000 patients with 3 year follow-up

26 QIAGEN Strong Financial Base Exciting Model Financials Technology Leadership Sales Strength MDx Appl. Testing Pharma KAM Biomedical Research Inside Sales E-commerce M A R K E T S Growth Drivers Financials

27 QIAGEN Revenues E Financials US$ millions CAGR = 22% E Revenues excluding the synthetic DNA business unit, sold in Q QIAGEN Continuous Double Digit Revenue Growth Rates

28 QIAGEN Net Income E Financials EPS Adj. US$ millions CAGR = 24% E US$ 0.39 US$ 0.46 US$ 0.56 US$ 0.63 US$ US$ 0.80 All figures excluding acquisition, integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R) QIAGEN Strong Earnings Engine

29 First Quarter 2008 Key Performance Metrics Financials Guidance 1 Feb. 12, 2008 Reported Net sales (US$ m) Exceeded 2 EPS (US$) Exceeded 1 based on January 31, 2008 foreign currency exchange rates 2 US$ million using January 31, 2008 foreign currency exchange rates 3 excluding acquisition, integration and relocation related charges, amortization of acquired IP and equity-based compensation (SFAS 123R) Exceeded on Revenues & EPS Guidance

30 First Quarter 2008 At a Glance Financials In US$ millions unless indicated Q Q Growth Net sales (US$m) % Operating income (US$m) % Operating margin 2 28% 26% Net income (US$m ) % EPS (US$) US$ million using January 31, 2008 foreign currency exchange rates 2 excluding acquisition, integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R) Financial Performance Exceeded Expectations

31 Key Investment Considerations Summary Leading, focused: sample and assay technologies Strong financial performance Strong growth projected: organic growth rate: ~15% Proven innovation leadership in industry Successful acquisition track record Core competency drives growth opportunities MDx Pharma<->MDx Applied Testing Leading catalytic acquisitions to expand: Sample and assay technology leadership Regional footprint

32 Thank you!