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Qiagen Q1 Revenues Dip 5 Percent, Exceeding Analyst Estimates

NEW YORK – Qiagen reported Monday after the close of the market that its first quarter revenues declined 5 percent year over year on a reported basis as well as at constant exchange rates (CER).

Revenues across its non-COVID business dipped 1 percent compared to a year ago, the firm said.

Qiagen reported total revenues of $459.0 million, or $462.0 million at CER, for the quarter ended March 31, compared to $485.0 million for Q1 2023. On average, analysts had expected sales of $457.3 million for the quarter. Qiagen's Q1 CER revenues also surpassed the company's previous guidance for CER revenues of at least $455 million.

In a statement, Qiagen CEO Thierry Bernard said the Q1 results "showcase the areas of resilient growth from our strategic investments — particularly with the double-digit sales growth in QuantiFeron, QiaStat-Dx and QiAcuity — as well as our commitment to improving efficiency."

Sales of consumables and related products declined 5 percent year over year to $409 million compared to $431 million in the year-ago period, while non-COVID-related sales in the product group was unchanged year over year. Instrument sales declined 10 percent to $50 million from $55 million, which Qiagen attributed to cautious customer spending, although placements under multiyear reagent rental agreements "kept up a solid pace."

The firm's molecular diagnostic revenues decreased 3 percent year over year to $244 million from $250 million, while life sciences product sales were down 8 percent to $215 million from $235 million.

Sales of the firm's sample technologies declined 11 percent to $155 million from $173 million, while diagnostic solutions sales increased 5 percent to $170 million from $163 million.

Within sample technologies, Qiagen said the Q1 results showed higher consumables sales for automated kits used on the QiaSymphony, QiaCube Connect, and EZ2 instruments, which were offset by "cautious capital investments among customers into new instruments" and the adverse impact of COVID pandemic demand in the year-ago period. Sample technology sales in non-COVID product groups declined at a low-single-digit CER rate over Q1 2023, Qiagen said.

Sales in the diagnostic solutions business, meanwhile, were driven by solid growth in consumables, Qiagen said. Revenues for the QuantiFeron tuberculosis test increased 11 percent to $101 million from $92 million in Q1 2023. Revenues related to the QiaStat-Dx system were up 19 percent to $25 million from $21 million, which Qiagen said was due to increased instrument placements and double-digit consumables growth in both respiratory and non-respiratory panels. NeuMoDx sales, meanwhile, dropped 29 percent to $9 million from $13 million.

Bernard said on a call with investors in October that Qiagen was reviewing its options for the NeuMoDx business. A second panel test for the NeuMoDx system, to detect chlamydia and gonorrhea, was cleared in the US in January.

On a call with investors Tuesday morning, Bernard said Qiagen plans to announce its final decision regarding the NeuMoDx business at its capital markets day in June. "We continue to work on several scenarios," he said, including finding a partner to support the business or shutting it down.

The firm has also submitted its QiaStat-Dx gastrointestinal pathogens panel to the US Food and Drug Administration, Bernard said on the call, and still expects to launch the test in the first half of 2024. Currently, "Despite having only one panel available in the US, we are still able to place instruments, [and] that's very encouraging," he said.

Qiagen also reported sales in its PCR and nucleic acid amplification business declined 12 percent year over year to $68 million from $77 million, while sales of its genomics and next-generation sequencing products fell 1 percent to $55 million. Within PCR, QiAcuity digital PCR sales rose at double-digit CER rates, Qiagen said, due to consumables demand "and ongoing high level of instrument placements."

In the quarter, Qiagen launched the QiaStat-Dx Analyzer 2.0, enabling users to view, comment, and confirm test results remotely. It also expanded the QiAcuity dPCR portfolio with the launch of PanCancer Kits to simultaneously detect multiple EGFR and BRAF mutations. On the call, Bernard said Qiagen expects FDA approval for QiaAcuity in 2024 and plans to develop a hemato-oncology menu for the system.

Qiagen also launched its Biomedical KB-AI, an AI-driven knowledgebase to extract causal relationships between genes, diseases, drugs, and biological systems for use in drug discovery by the pharmaceutical and biotech industries.

Qiagen also said that its PaxGene liquid biopsy product, a noninvasive sampling approach for cell-free DNA in urine, is ready for launch in mid-2024.

Qiagen posted net income of $80.7 million, or $.36 per share, compared to net income of $85.0 million, or $.37 per share, for Q1 2023. On an adjusted basis, EPS was $.46, above the consensus Wall Street estimate of $.44.

The firm's R&D spending decreased 6 percent to $51.3 million from $54.7 million, while its SG&A costs declined by 6 percent to $138.7 million from $147.6 million.

Qiagen finished the quarter with $513.7 million in cash and cash equivalents and $379.5 million in short-term investments.

The company said that it expects second quarter net sales of at least $495 million at CER and adjusted EPS of at least $.52 per share at CER. For full-year 2023, Qiagen reaffirmed its outlook for net sales of at least $2.00 billion at CER and adjusted EPS of at least $2.10 per share at CER.

In Tuesday morning trading on the Nasdaq shares of Qiagen were down approximately 1 percent at $41.69.