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Siemens Healthineers Q1 Dx Revenues Rise 17 Percent on Surge in SARS-CoV-2 Antigen Test Demand

NEW YORK ─ Siemens Healthineers on Monday reported an 8 percent year-over-year increase in its fiscal 2021 first quarter revenue and a 17 percent year-over-year increase in diagnostics on the back of a surge in demand for its SARS-CoV-2 antigen tests.

Confirming a preview of its financial results announced last week, Siemens Healthineers said that for the quarter ended Dec. 31, 2020, it posted revenue of €3.87 billion ($4.67 billion) compared to revenue of €3.59 billion in Q1 2020. On a comparable basis, revenue rose 13 percent year over year.

The Erlangen, Germany-based company's Diagnostics segment revenue was €1.18 billion, an increase of 17 percent compared to €1.01 billion in Q1 2020. Its Diagnostics revenue rose 24 percent year over year on a comparable basis, the firm said.

The company added that it saw a significant contribution from rapid COVID-19 antigen tests in Europe, the Middle East, and Africa (EMEA) and a return to growth in its core diagnostics business. High demand for its rapid antigen tests also had a positive impact on comparable revenue growth in the EMEA region and particularly in Germany, the firm said.

Last October, Siemens Healthineers announced it had received CE marking for its Clinitest Rapid COVID-19 Antigen Test for the detection of SARS-CoV-2.

The Diagnostic segment’s adjusted earnings before interest and taxes (EBIT) margin improved significantly compared to the prior-year quarter, the firm said.

Siemens Healthineers' "comprehensive portfolio of imaging and diagnostics enables us to make important contributions in helping healthcare providers around the globe to master this pandemic successfully," Bernd Montag, CEO of Siemens Healthineers, said in a statement.

In its first fiscal quarter, "growth was strong in EMEA and Asia, more than offsetting temporary softness in the US, where we continue to expect growth to normalize throughout fiscal year 2021," Montag said in a conference call to discuss the firm's financial results.

Siemens Healthineers saw strong performance in its Diagnostics business based on a few factors, Montag said. "First, our core routine care business delivered solid mid-single-digit comparable revenue growth and improved margins," he said, and added that it also saw a strong contribution from its COVID-19 portfolio of testing, which include antibody and molecular tests, as well as an antigen test.

Especially in Q2, the firm expects a "further meaningful contribution" from sales of its antigen test, but it then anticipates a "slowing of revenues in H2 due to increasing vaccination and price erosion," Montag said.

The firm anticipates rapid antigen test revenue in full-year 2021 to be between €300 million and €350 million, compared to its previous expectation of about €100 million.

Additionally, in its core business, Siemens Healthineers saw a normalization of reagent volumes and made progress in the market adoption of Atellica by inking further large deals, Montag said.

Siemens placed almost 90 Atellica modules with an undisclosed customer in Australia. Further, the company made progress during Q1 with Atellica installations for major clients such as Quest Diagnostics, Montag added.

Its Imaging segment posted revenue of €2.32 billion, up 5 percent year over year from €2.2 billion and up 9 percent on a comparable basis.

Further, its Advanced Therapies segment posted €412 million in revenue, up 2 percent year over from €404 million and up 6 percent on a comparable basis.

Siemens Healthineers posted a fiscal Q1 net income of  €437 million, or €.40 per share, compared to €304 million, or €.30 per share, in the prior-year quarter. The firm said its adjusted earnings per share was €.49.

In fiscal Q1, the firm's R&D expenses fell 2 percent to €329 million from €335 million, while its SG&A expenses dropped 12 percent to €549 million from €621 million.

At the end of the quarter, the firm had cash and cash equivalents of €563 million.

Siemens Healthineers raised its revenue growth outlook for fiscal year 2021 to between 8 percent and 12 percent on a comparable basis, up from a previously estimated increase of between 5 percent and 8 percent.

The firm said that it has raised its outlook based on ongoing pandemic-related demand and higher confidence in the normalization of its underlying business. The company added that given the dynamic of the COVID-19 pandemic, it expects that the coronavirus product demand it saw during Q1 will slow down through the remainder of fiscal year 2021 and beyond.

The company also increased its guidance for the adjusted earnings per share range to between €1.63 and €1.82 per share, up from between €1.58 and €1.72 per share previously stated.

Further, Siemens Healthineers announced that it has appointed Darleen Caron to its managing board, and as its chief human resources officer and labor director.