Deep Dive SAMPLE TECHNOLOGIES ADVANCING OUR LEADERSHIP IN SAMPLE PREPARATION November 21, 2025 #1 IN THE FIRST STEP OF EVERY MOLECULAR WORKFLOW Laboratory workflow Customers Academia / Research Applied testing Pharma Clinical Selected key applications(1) Biological sample Differentiated solutions for modular, integrated workflows Fast time to result, scalability and ease of use Platform-agnostic consumables PCR dPCR NGS Valuable molecular insights Sample technologies Critical first step in molecular workflo ...

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Group 1 - The company reported a core growth rate of 6% in the third quarter, which exceeded expectations [1] - The growth rates for the first three quarters of the year were 7% in Q1, 6% in Q2, and 6% in Q3, despite a challenging macro environment [2] - The company has been focusing on five growth drivers, which have been performing well [3] Group 2 - The company is facing challenges in various regions, including China and recent shutdowns in the U.S. [2] - The focus on specific growth areas has been beneficial for the company's performance [3]

Summary of Qiagen's Q3 Conference Call Company Overview - **Company**: Qiagen - **Industry**: Life Sciences, specifically focusing on sample preparation and molecular diagnostics Key Points and Arguments Financial Performance - Qiagen reported a **6% core growth** in Q3, which was better than expectations [1][2] - Growth rates for the year were **7% in Q1**, **6% in Q2**, and **6% in Q3** despite a challenging market environment [2] - The sample preparation business saw an underlying acceleration to **3% growth**, which is significant ahead of upcoming major instrumentation launches [3] Market Challenges - The company is facing challenges due to the **US government shutdown** and funding uncertainties, particularly affecting the academic environment [4][5] - The funding situation remains unclear, impacting long-term investment confidence in new instrumentation [6][8] - The instrumentation segment, which constitutes about **10% of the business**, is expected to take time to normalize due to funding perceptions [8][9] Margin and Guidance - Qiagen's operating margin guidance for the year is between **29% and 30%**, with an expected end at **29.5%**, reflecting a **300 basis points improvement** over the last three years [11] - The company anticipates further margin expansion in the midterm, targeting **31% by 2028** [12][13] - Headwinds include **dilution from acquisitions** and **currency impacts**, but operational improvements are expected to offset these challenges [12] Product Development and Innovation - Qiagen is launching new products, including the **Qiagen Sprint** for high-throughput sample prep and the **Qiagen Symphony Connect** platform, which aims to enhance workflow and integration [25][26] - The company is also introducing the **Qiagen Mini**, a cost-effective solution for sample prep in academic settings [28] - The focus on **digital PCR** is highlighted as a growth driver, with opportunities in **companion diagnostics** and **pharma** [35][36] Strategic Acquisitions - Qiagen's acquisition of **Parse** is seen as a strategic move to enhance its offerings in the single-cell market, with expected revenues from Parse projected to double from **$20 million to at least $40 million** next year [18][19] - The integration of Parse's technology is expected to create synergies with Qiagen's existing customer base, particularly in the academic and pharma sectors [20][22] Market Position and Future Outlook - Qiagen aims to diversify its product offerings beyond respiratory diagnostics, with significant growth in **gastrointestinal** and **meningitis** testing [30][32] - The company is optimistic about returning to a **3-4% CAGR by 2028**, driven by new product launches and market expansion [24] - The normalization of the academic environment is expected to boost sample prep sales, with a focus on maintaining a broad menu of diagnostic options [34] Bioinformatics and SaaS Transition - Qiagen's bioinformatics segment is experiencing double-digit growth, transitioning to a **SaaS business model** which may impact revenue recognition in the short term [39][40] - The acquisition of **Genox** is expected to enhance Qiagen's reach into smaller accounts, contributing to continued growth in this segment [40] Additional Important Insights - The company is leveraging digital channels for sales, with **60% of revenues** currently coming through these channels, aiming to increase this to **75%** [16] - There are ongoing cost-out programs focused on improving gross margins and operational efficiencies [14][15] This summary encapsulates the key insights from Qiagen's Q3 conference call, highlighting the company's performance, challenges, strategic initiatives, and future outlook in the life sciences industry.

Company Overview - QIAGEN has a strong historical presence in sample preparation across tools and diagnostics [2] - The company has successfully expanded into higher growth areas of diagnostics, particularly in syndromic testing and latent TB testing [2] Leadership and Presentation - The presentation was led by Douglas Schenkel from Wolfe Research, with participation from Thierry Bernard and John Gilardi from QIAGEN [1]

Summary of QIAGEN Conference Call Company Overview - **Company**: QIAGEN (NYSE: QGEN) - **Industry**: Life Sciences Tools and Diagnostics - **Key Focus**: Sample preparation, diagnostics, syndromic testing, latent TB testing [1][3] Leadership Transition - Thierry Bernard has been with QIAGEN for nearly seven years as CEO - The company is undergoing a leadership transition, with a strong board and executive team in place - The transition is seen as a proactive measure to avoid complacency and to prepare for future opportunities [5][43][44] Financial Performance and Targets - QIAGEN has met or exceeded expectations for 24 consecutive quarters - The company aims for a 7% compound annual growth rate (CAGR) in revenue, a 31% EBIT margin, and $2 billion in revenues by 2028 - The company is on track to return at least $1 billion to shareholders, having already committed $500 million to return by January next year [8][10][12][13] Market Conditions and Growth Drivers - The market environment has become more volatile due to geopolitical uncertainties and economic factors - Despite challenges, QIAGEN is still growing at the top tier of the market - The company expects to achieve its revenue targets through its growth pillars, including sample technology, QIAstat-Dx, and QuantiFERON [9][10][12][16] Capital Deployment and Acquisitions - QIAGEN is focused on strategic acquisitions, with the recent Parse acquisition expected to contribute $40 million in revenue and enhance growth - The company has a solid balance sheet with no leverage, allowing for significant acquisition firepower - The Parse acquisition is seen as synergistic, expanding QIAGEN's reach in sample tech and bioinformatics [10][35][36][41] Market Dynamics and Customer Sentiment - There is cautious optimism regarding funding trends in the U.S. and Europe, particularly after the end of the government shutdown - QIAGEN's sales to NIH and CDC have remained stable, with no significant cancellations, although some projects are being postponed - The company is observing a mixed funding environment in Europe, with positive signals from Germany and the U.K. [19][27][28][24] Competitive Landscape - QIAGEN is not seeing significant limitations in syndromic panels compared to competitors - The company is experiencing renewed interest from pharmaceutical companies in companion diagnostics, which is driving performance in digital PCR [29][32][33] Future Outlook - QIAGEN remains cautiously optimistic about its growth potential, with expectations of organic growth between 3-5% in the near term - The company is committed to maintaining realistic yet ambitious guidance, focusing on profitable growth and operational efficiency [14][15][22][16] Conclusion - QIAGEN is positioned well in the life sciences tools and diagnostics industry, with a strong focus on growth, strategic acquisitions, and maintaining a solid financial foundation - The leadership transition is viewed positively, as it aims to bring new perspectives while maintaining the company's strategic focus [42][44]

Core Insights - QIAGEN has launched QIAsymphony Connect, an advanced automated nucleic acid purification platform, at the AMP 2025 meeting, aimed at enhancing liquid biopsy applications [1][2][3] Product Innovations - QIAsymphony Connect builds on over 3,000 placements of its predecessor and is designed for improved speed, sample traceability, and digital connectivity [2][5] - The platform features superior extraction performance, higher throughput (up to 50% more samples), optimized workflows for high-sensitivity oncology applications, full sample traceability, and seamless connectivity with laboratory information management systems (LIMS) [6][5] Strategic Partnerships - QIAGEN is showcasing its partnerships in precision oncology, including a collaboration with Myriad Genetics to develop a homologous recombination deficiency (HRD) assay for cancer profiling [3][5][12] - The QIAseq xHYB HRD Panel can be combined with the QIAseq xHYB CGP Panel for comprehensive genomic profiling, analyzing 724 cancer-relevant genes and key therapy biomarkers [9][12] Market Positioning - The introduction of QIAsymphony Connect reflects QIAGEN's commitment to advancing sample technologies and supporting laboratories in processing complex samples with greater precision and speed [4][5] - QIAGEN's presence at AMP 2025 emphasizes its leadership in providing Sample to Insight solutions for both research and clinical applications [3][4]

Company Overview - Parse Biosciences, co-founded in 2018 by Alex Rosenberg and Charles Roco, specializes in single-cell RNA sequencing and has grown to 110 employees [3] - The company initially launched as Split Biosciences before rebranding to Parse Biosciences [3] - Parse has raised over $50 million from investors, including a $41.5 million Series B round in 2022 [4] Acquisition Details - Parse Biosciences is set to be acquired by Qiagen in a cash deal valued at $225 million, with the transaction expected to close in December [2][6] - The acquisition is subject to regulatory clearance under the U.S. Hart-Scott-Rodino Antitrust Improvements Act [6] Financial Impact - The acquisition is projected to add approximately $40 million in sales to Qiagen's fiscal year 2026 [4] Market Position - Parse currently serves around 3,000 customers across more than 40 countries [4] - Qiagen, the acquiring company, has a global customer base of 500,000 and employs about 5,700 people across 35 locations [6] Technology and Applications - RNA profiling by Parse helps scientists understand active genes, which is crucial for distinguishing different cell types [5]

Financial Data and Key Metrics Changes - Net sales increased by 6% to $533 million, with core sales (excluding discontinued products) also rising by 6% at constant exchange rates [5][10][12] - Adjusted diluted EPS was $0.61, exceeding the outlook of at least $0.58 [8][16] - Adjusted operating income margin remained steady at 29.6% of sales, with cash generation strong at $466 million for the first nine months of 2025 [10][11][16] Business Line Data and Key Metrics Changes - QuantiFERON grew by 11%, driven by strong instrument placements and consumable demand [6][12] - Sample technologies returned to growth with a 3% increase in sales, while QIAcuity maintained double-digit growth [7][12] - QIAGEN Digital Insights delivered solid double-digit growth, supported by the integration of Genox [7][12] Market Data and Key Metrics Changes - Sales in the Americas rose by 7% at constant exchange rates, while EMEA grew by 4% [14] - The Asia-Pacific region saw a decline of 2%, primarily due to a mid-teens decline in China [14] Company Strategy and Development Direction - The company announced the acquisition of PARS Biosciences to expand into the AI-driven single-cell market, enhancing its sample technologies portfolio [5][22] - A $500 million synthetic share repurchase program was announced, aiming to return over $1 billion to shareholders by 2028 [5][11] - The company remains committed to achieving a 7% sales CAGR from 2024 to 2028 and aims to exceed a 31% adjusted operating income margin by the end of 2028 [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging macro environment while maintaining solid growth [4][8] - The adjusted EPS target for 2025 was raised to about $2.38, reflecting improved profitability despite currency headwinds [8][25] - The company anticipates continued growth in core sales and expects to mitigate the impact of tariffs and the U.S. government shutdown [8][41] Other Important Information - The company is on track to launch new sample prep instruments and expand its syndromic testing portfolio [19][23] - R&D investments increased to 9.2% of sales, focusing on key growth pillars [15][16] - The company is preparing for a leadership transition, with the current CEO planning to step down after more than 10 years [9] Q&A Session Summary Question: Can you discuss the PARS acquisition and its competitive landscape? - The acquisition of PARS is strategic and synergistic, allowing QIAGEN to enter the fast-growing single-cell analysis market with instrument-free technology that processes millions of cells [30][32] Question: What is the traction for the new panels in syndromic testing? - QIAGEN Sack continues to deliver strong growth, particularly in GI and meningitis panels, with expectations to exceed midterm revenue guidance [34][36] Question: How have the new panels contributed to platform growth? - The three key panels have significantly contributed to U.S. performance, with more instruments placed in the first half of 2025 than in the entire previous year [37] Question: What is the impact of the U.S. government shutdown on sales? - The shutdown is expected to impact sales, particularly in academia and research, but the company has maintained its guidance for the year [41][43] Question: Can you elaborate on the tariff impact on margins? - The company expects a 90 basis point impact from tariffs, which is net of mitigation efforts, and does not anticipate a larger impact for the next year [45][46] Question: What are the expectations for 2026? - The company is positioned for growth between 5-7% in 2026, depending on market conditions, while maintaining a focus on profitability and cash generation [50][53]

Financial Performance - Core sales increased by 6% CER to $532 million, exceeding the outlook of ≥5%[5,9] - Net sales reached $533 million, a 5% CER increase compared to Q3 2024[5,7] - Adjusted diluted EPS was $0.61 CER, a 7% CER increase, surpassing the outlook of ≥$0.58 CER[5] - Adjusted operating income margin remained steady at 29.6%[5,24] - Operating cash flow for 9M 2025 was $466 million, a 3% decrease[5] Product and Portfolio Developments - QIAstat-Dx and QuantiFERON both experienced 11% CER growth, leading the portfolio[5,8] - Sample technologies showed a 3% CER growth[5,8] - QIAcuity digital PCR and QDI delivered solid contributions[5,8] - Parse Biosciences acquisition is expected to contribute ~$40 million in sales in 2026[22] Outlook and Capital Allocation - The company reaffirmed its 2025 net sales outlook of +4-5% CER (+5-6% CER core growth)[5] - The company increased its adjusted diluted EPS outlook to ~$2.38 CER (previously ~$2.35 CER)[5] - At least $1 billion of returns to shareholders is planned for 2024-28 (absent M&A)[14] - $500 million share repurchase program is authorized for completion in January 2026[15]