PRESS RELEASE: QIAGEN Reports Strong Fourth Quarter and Fiscal 2009 Results
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Fiscal 2009 Net Sales Exceed $1 Billion
Venlo, The Netherlands, February 8, 2010 - QIAGEN N.V. (Nasdaq: QGEN; Frankfurt,
Prime Standard: QIA) today announced the results of operations for the fourth
quarter and the fiscal year ended December 31, 2009.
The reported net sales for the fourth quarter 2009 exceeded the guidance and
reported net sales and adjusted earnings per share for fiscal year 2009 were at
the high end of company's expectations provided by the Company on November
9, 2009. Reported net sales for fiscal 2009 exceeded US$1 billion for the first
time in the Company's history.
Fourth Quarter 2009 Results
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|QIAGEN's Fourth Quarter 2009 |
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|in US$ millions, except per share information Q4 2009 Q4 2008 Growth|
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| |
| |
|Net sales 289.1 237.2 22%|
| |
|Net sales at constant exchange rates 272.1 237.2 15%|
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|Operating income, adjusted 83.4 66.6 25%|
| |
|Net income, adjusted 57.6 43.7 32%|
| |
|EPS, adjusted( )(US$) 0.24 0.22 9%|
| |
| |
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For information on the adjusted figures, please refer to the reconciliation
table
accompanying this release.
The Company reported that consolidated net sales for its fourth quarter 2009
increased 22% to $289.1 million from $237.2 million in the same quarter of
2008. Excluding the favorable impact from foreign currency exchange rates, net
sales for the fourth quarter 2009 would have increased 15% from the fourth
quarter 2008. Reported operating income for the quarter increased 6% to $42.9
million from $40.4 million in the same quarter of 2008, and net income for the
quarter increased 80% to $44.5 million from $24.7 million in the same quarter of
2008. Diluted earnings per share for the fourth quarter increased 50% to $0.18
in 2009 (based on 241.0 million weighted average shares and share equivalents
outstanding) from $0.12 in 2008 (based on 202.0 million weighted average shares
and share equivalents outstanding).
On an adjusted basis, fourth quarter operating income increased 25% to $83.4
million in 2009 from $66.6 million in 2008, and fourth quarter 2009 adjusted net
income increased 32% to $57.6 million from $43.7 million in 2008. Adjusted
diluted earnings per share increased to $0.24 in the fourth quarter 2009 from
$0.22 in 2008.
Fiscal Year 2009 Results
+----------------------------------------------------------------------------+
|QIAGEN's Fiscal Year 2009 |
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|in US$ millions, except per share information 12M 2009 12M 2008 Growth|
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| |
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|Net sales 1,009.8 893.0 13%|
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|Net sales at constant exchange rates 1,038.6 893.0 16%|
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|Operating income, adj. 296.1 252.7 17%|
| |
|Net income, adj. 199.6 163.3 22%|
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|EPS, adj.( )(US$) 0.93 0.80 16%|
| |
| |
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For information on the adjusted figures, please refer to the reconciliation
table
accompanying this release.
For the year ended December 31, 2009, net sales increased 13% to $1,009.8
million compared to $893.0 million in 2008. Excluding the unfavorable impact
from foreign currency exchange rates, net sales for the fiscal year 2009 would
have increased 16%. Operating income as reported for fiscal 2009 increased 24%
to $180.2 million from $145.7 million in 2008. Net income increased 55% to
$137.8 million from $89.0 million in 2008, and diluted earnings per share
increased 45% to $0.64 in 2009 (based on 213.6 million weighted average shares
and share equivalents outstanding) from $0.44 in 2008 (based on 204.3 million
weighted average shares and share equivalents outstanding).
On an adjusted basis, operating income for the year ended December 31, 2009
increased 17% to $296.1 million in 2009 from $252.7 million in 2008, and
adjusted net income increased 22% to $199.6 million from $163.3 million.
Adjusted diluted earnings per share in fiscal 2009 increased 16% to $0.93 per
share from $0.80 per share in 2008.
QIAGEN's fourth quarter and fiscal year 2009 results include the results of
operations from the Company's recent acquisitions, the most significant of which
were SABiosciences Corporation, acquired in December 2009, DxS Ltd., acquired in
September 2009, and Corbett Life Sciences, acquired in July 2008.
Reconciliations of reported results determined in accordance with generally
accepted accounting principles (GAAP) to adjusted results are included in the
tables accompanying this release.
"2009 was a very successful year for QIAGEN," said Peer Schatz, QIAGEN's Chief
Executive Officer. "Net sales and adjusted net income demonstrated significant
growth. Net sales grew 22% - significantly faster than the overall market
growth. Strong growth in net sales and adjusted net income as well as an organic
growth rate of 13% define the most successful year in the company's history and
drove revenues to surpass the $1 billion mark. The solid foundation of
innovation-driven, organic growth also allows us to plan for strong growth in
2010 and beyond.
The largest revenue share we recorded for fiscal 2009 was in sales to customers
in molecular diagnostics (approximately 47% of total revenues) followed by sales
to customers in academia (approximately 26% of total revenues), in pharma
(approximately 21% of total revenues) and in applied testing (approximately 6%
of total revenues). Growth of our sales to customers in molecular diagnostics
was fueled by strong sales of our profiling solutions (including our influenza
and other infectious disease assays) as well as products addressing prevention
(such as HPV screening and genotyping) and personalized healthcare testing.
Sales to customers in the pharmaceutical and biotech industry conducting
clinical development continued to experience solid growth during the fourth
quarter, academic research markets continued to perform solidly and we are
looking forward to the effect of the stimulus programs which are expected for
2010 and into 2011.
Our acquisition strategy remains focused, consistent and value-creating,
providing complementary technologies, new commercial capabilities and geographic
reach. For example, during 2009 we further strengthened our strong content
engine for research and molecular diagnostics assays. In December 2009 we
acquired SABiosciences and added a portfolio of PCR-based, pathway-focused
panels that represent highly efficient solutions for pathway- and
disease-biomarker discovery and development and diagnostics development. The
acquisition of DxS Ltd. in September 2009 combined two leadership positions in
companion diagnostics to create a very powerful leader in a transformational
area of healthcare: personalized healthcare.
In addition we formed a very promising position in point of need testing. The
acquisition of ESE GmbH in January 2010 added to QIAGEN's instrumentation
platform a portable, battery operated, "ultra-fast time to result", analysis
system. This platform can run QIAGEN assay technologies in formats suitable for
point of need testing in healthcare and applied testing (e.g. veterinary, food,
environmental, biodefense testing), and in all other settings, where a
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PRESS RELEASE: QIAGEN Reports Strong Fourth -2-
laboratory infrastructure is not accessible and low-throughput molecular testing
and fast turnaround is required.
All three transactions contribute to key elements of our strategy to lead in
molecular diagnostics-based prevention, profiling, personalized healthcare and
point of need testing. With different platform technologies that address all
needs in terms of throughput, flexibility in assay technologies, convenience in
handling and efficiency in performance, an industry leading assays portfolio and
a pipeline that provides us with an ongoing stream of new assays to launch, we
are excellently positioned not only to participate from but also to shape
current and future trends in molecular based testing and life science research."
"QIAGEN experienced a successful fiscal year 2009 with reported revenues and
adjusted earnings per share at the high end of our expectations," said Roland
Sackers, QIAGEN's Chief Financial Officer. "Assuming constant exchange rates for
both fiscal years revenue growth was 16% and was fueled by a strong organic
growth of 13%, adjusted for the divesture of certain assets related to our
activities in HLA diagnostics (transplantation diagnostics) in July 2009.
Our consumable products portfolio contributed 10% growth (13% at constant
exchange rates) in fiscal year 2009 and our sales of instrumentation products
recorded a growth rate of 37% (42% at constant exchange rates). Net sales in the
Americas for fiscal year 2009 represented approximately 49% of our overall
business and recorded a growth rate of 10% (12% at constant exchange rates) and
European sales, which represent approximately 36% of our revenues, showed a
growth rate of 11% (19% at constant exchange rates). Net sales in Asia remained
strong, showing a growth rate of 39% (36% at constant exchange rates)."
Fiscal Year 2010 Guidance
Based on foreign currency exchange rates as of January 31, 2010, QIAGEN expects
revenues between $1,120 and $1,170 million in 2010 with a growth rate of 11% to
16% when compared to 2009 and adjusted diluted earnings per share between $0.90
and $0.96 including a diluting effect of $0.02 following the DxS acquisition in
September 2009. Based on foreign currency exchange rates as of November 9, 2009
(the date of the Company's third quarter 2009 earnings conference call), revenue
guidance for 2010 would have been approximately $35 million higher.
QIAGEN - Sample and Assay Technologies Highlights
* QIAGEN established the QIAGENcares program to support regions in need
for effective diagnostic testing solutions and announced the first two programs
under this Corporate Social Responsibility program:
o QIAGEN and the Chittaranjan National Cancer Institute (CNCI) formed a
collaboration to establish the first large-scale cervical cancer screening
program for women in Kolkata, India. The initiative will
be conducted over 5
years and is expected to reach 50,000 women.
o QIAGEN agreed to donate one million HPV tests over the run of this cancer
screening program.
* QIAGEN entered into an agreement to supply molecular sample and assay
technologies for a new national, PCR-based blood screening program for HIV and
Hepatitis C (HCV) in Brazil. QIAGEN will provide Bio-Manguinhos, the main
provider of vaccines and diagnostics to the Brazilian Ministry of Health, with a
significant volume of molecular testing solutions - sample and assay
technologies, related instrumentation, operational know-how and training. The
agreement is expected to run for five years and contains options for subsequent
extensions.
* QIAGEN significantly expanded its strategic position in molecular
diagnostics:
o QIAGEN acquired Explera s.r.l., a leading supplier in molecular diagnostics
and personalized medicine in Italy. With this acquisition QIAGEN is doubling the
size of its molecular diagnostics sales channel in Italy and is adding several
activities in the area of personalized medicine and access to a suite of CE-IVD
pyrosequencing assays.
o QIAGEN acquired DxS Ltd., a developer and manufacturer of companion
diagnostic products (CDx) for Personalized Healthcare (PHC). With this
acquisition, QIAGEN has added to its own activities in CDx and taken a strong
leadership position in the new era of PHC.
o QIAGEN acquired SABiosciences. This transaction added to QIAGEN's product
offering a leading portfolio of PCR-based, disease and pathway-based panels that
play key roles in biomedical research and the development of future drugs and
diagnostics.
o QIAGEN acquired ESE GmbH, a developer and manufacturer of portable, battery
operated, "ultra-fast time to result", multiplex UV and fluorescence optical
measurement devices which enable low-throughput molecular testing in practices,
emergency rooms, remote field areas, and other settings where a laboratory
infrastructure is not accessible and fast turnaround is required.
* QIAGEN launched 79 new products in the area of Sample & Assay
Technologies including the PAXgene Blood miRNA kit for use in cancer, biomarker
and miRNA research and the QIAamp Circulating Nucleic Acid kit for sample
preparation in prenatal or other circulating nucleic acid research. In addition
QIAGEN launched a number of assay technologies including two multiplexed,
PCR-based CE-marked digene HPV Genotyping Tests, a next generation CE marked
mutation profiling KRAS test as well as a BRAF test for use in cancer treatments
and assay technologies for epigenetic methylation analysis based on
pyrosequencing technology.
* QIAGEN and Pfizer entered into an agreement to develop a companion
diagnostic assay for PF-04948568 (CDX-110), an immunotherapy vaccine in
development for the treatment of glioblastoma multiforme (GBM). Glioblastoma
multiforme is the most common malignant primary brain tumor in adults and occurs
in around 25,000 patients worldwide each year. Pfizer's investigational drug
PF-04948568 (CDX-110) is a peptide vaccine which targets the tumor-specific
Epidermal Growth Factor Receptor variant III (EGFRvIII), a mutated form of the
epidermal growth factor receptor that is only present in cancer cells and occurs
in 25-40 percent of GBM tumors. The QIAGEN assay is designed to identify those
patients whose tumors express the EGFRvIII mutation, allowing for the
possibility of more targeted and personalized treatment.
* QIAGEN acquired a global and exclusive license for biomarker PI3K from
John Hopkins University and intends to develop PCR and real time-PCR assays for
companion diagnostic use with certain cancer treatments. A number of studies
suggest that mutations in the PI3K oncogene are indicative for successful
antibody treatment of patients suffering from lung, breast and other cancers.
The license includes all countries and allows QIAGEN to enter partnerships with
pharmaceutical companies to develop and market tests for new cancer drug
candidates.
Conference
Call and Webcast Details
Detailed information on QIAGEN's business and financial performance will
be presented during its conference call on February 9, 2010 at 9:30am ET. The
corresponding presentation slides will
be available for download on the
Company's website at www.qiagen.com/goto/ConferenceCall
. A webcast of the conference call
will also be available at www.qiagen.com/goto/ConferenceCall
.
Use of Adjusted Results
QIAGEN has regularly reported adjusted results to give additional insight into
its financial performance as well as considered results on a constant currencies
basis. Adjusted results should be considered in addition to the reported results
prepared in accordance with generally accepted accounting principles, but should
not be considered as a substitute. The Company believes certain items should be
excluded from adjusted results when they are outside of its ongoing core
operations, vary significantly from period to period, or affect the
comparability of results with the Company's competitors and its own prior
periods. Reconciliations of reported results to adjusted results are included in
the tables accompanying this release.
About QIAGEN
QIAGEN N.V., a Netherlands holding company, is the leading global provider of
sample and assay technologies. Sample technologies are used to isolate and
process DNA, RNA and proteins from biological samples such as blood or tissue.
Assay technologies are used to make these isolated biomolecules visible. QIAGEN
has developed and markets more than 500 sample and assay products as well as
automated solutions for such consumables. The Company provides its products to
molecular diagnostics laboratories, academic researchers, pharmaceutical and
biotechnology companies, and applied testing customers for purposes such as
forensics, animal or food testing and pharmaceutical process control. QIAGEN's
assay technologies include one of the broadest panels of molecular diagnostic
tests available worldwide. This panel includes the first FDA-approved test for
human papillomavirus (HPV), the primary cause of cervical cancer. QIAGEN employs
nearly 3,500 people in over 30 locations worldwide. Further information about
QIAGEN can be found at http://www.qiagen.com/.
Certain of the statements contained in this news release may be considered
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