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Siemens Healthineers Fiscal Q2 Dx Revenues Rise 23 Percent on COVID-19 Antigen Test Demand

NEW YORK – Siemens Healthineers said on Monday that its fiscal year 2021 second quarter revenues rose 8 percent year over year on a reported basis and 13 percent on a comparable basis.

For the three months ended March 31, the Erlangen, Germany-based company reported total revenues of €3.97 billion ($4.78 billion) compared to €3.69 billion in the prior-year quarter.

Siemens Healthineers said its Q2 Diagnostics revenues were €1.24 billion, up 23 percent year over year from €1.01 billion, driven in part by continued high demand for COVID-19 rapid antigen tests.

In the quarter, the Diagnostics segment booked revenues of €190 million from rapid COVID-19 antigen tests that were mainly distributed in Germany. At the same time, its core Diagnostics business continued to develop positively, the firm said.

Bernd Montag, CEO of Siemens Healthineers AG, said on a conference call to discuss the firm's financial results that it recently introduced the Atellica VTLi Patient-Side Immunoassay Analyzer, a test for high-sensitivity cardiac troponin I. The point-of-care analyzer is the first product launched as a result of Siemens' 2019 acquisition of Dutch firm Minicare, he said.

"This patient-side analyzer is the first high-sensitivity troponin I test from a fingerstick [that has] lab-test quality and hence [expedites] the diagnosis of heart attack," Montag said. "The substantial reduction in turnaround time achieved when introducing this wireless handheld analyzer may offer clinicians a fast pathway to help diagnose and treat their patients, helping to accelerate care and improve patient outcomes."

Also, Siemens Healthineers CFO Jochen Schmitz said that its rapid antigen test sales of €320 million for the first half of this fiscal year was slightly ahead of its expectations. In March, the firm received a "special approval" for the use of its rapid antigen test by laypersons in Germany and recently in France, Schmitz said. Separately, the firm has just obtained the CE-mark for use of test by laypersons, he said.

He further noted the strength of the firm's base business.

"If we take out the rapid antigen test sales as well as sales from other COVID-19-related tests you get to a very solid, comparable growth number in Q2 [for Diagnostics] in the mid- to high-single digits," Schmitz said. "In Q2, like Q1, we saw solid growth in the core business. We see this as a positive proof point that growth for routine testing is being sustained."

In other areas of its business, the company's Imaging segment posted Q2 revenues of €2.37 billion up 3 percent year over year from €2.31 billion, and its Advanced Therapies segment reported revenues of €408 million, down 3 percent year over year from €421 million.

Siemens Healthineers reported a Q2 net income of 447 million, or €.41 per share, compared to €414 million, or €.41 per share, in Q2 2020. Adjusted EPS was €.44.

The company's fiscal Q2 R&D expenses were €331 million, down 2 percent year over year from €339 million, and its SG&A expenses were €569 million, up less than one percent year over year from €565 million.

At the end of fiscal Q2, Siemens Healthineers had €559 million in cash and cash equivalents.

The company raised its revenue outlook for fiscal year 2021, saying it expects comparable revenue growth of between 14 percent and 17 percent compared to previously announced expected growth of between 8 percent and 12 percent. The company now expects its fiscal year 2021 adjusted EPS will be between €1.90 and €2.05, up from €1.63 to €1.82 announced previously.

The outlook is based on a few key assumptions. Its revenue from rapid COVID-19 antigen tests is now expected to be around €750 million, up from the previous assumption of €300 million to €350 million. The company also expects higher demand in its core business compared to its outlook from fiscal Q1 2021, and it expects revenue and earnings contributions from Varian Medical Systems following the closing of the acquisition in April 2021.

The firm announced the acquisition of Palo Alto, California-based Varian Medical Systems in August for $16.4 billion in an all-cash deal.

Siemens Healthineers said that it also assumes that pandemic-related demand will not persist to the same extent beyond fiscal year 2021.