QIAGEN to discontinue NeuMoDx integrated PCR testing system, support customers during transition period

Core Viewpoint - QIAGEN has decided to discontinue the NeuMoDx 96 and 288 Molecular Systems due to changing market dynamics post-COVID-19 and evolving customer needs for integrated PCR-based clinical molecular testing systems [1][11]. Company Overview - QIAGEN is a leading global provider of Sample to Insight solutions, enabling customers to gain molecular insights from biological samples. The company offers technologies for isolating and processing DNA, RNA, and proteins, along with bioinformatics software and automation solutions [5]. Financial Outlook - QIAGEN has reaffirmed its Q2 2024 outlook for net sales of at least $495 million at constant exchange rates (CER) and adjusted diluted EPS of $0.52 CER [11]. - The company has updated its full-year 2024 outlook for adjusted diluted EPS to at least $2.14 CER, up from a prior estimate of at least $2.10 CER [8]. Restructuring and Charges - QIAGEN expects to incur a pre-tax restructuring charge of approximately $400 million, primarily in Q2 2024. This includes about $300 million in non-cash items and cash charges related to commitments to customers and suppliers, severance payments, and other obligations [12]. - The restructuring charge will predominantly consist of approximately $90 million for inventory and about $210 million for long-term assets, including around $120 million for acquired intellectual property [12]. Customer Support and Transition - QIAGEN will continue to support existing NeuMoDx users during a transition period into 2025, providing maintenance, technical support, and necessary consumables [2]. - The company is engaging with NeuMoDx customers to discuss the implications of the discontinuation on the 2024 sales forecast, which is estimated at least $55 million CER [8]. Strategic Focus - The decision to discontinue the NeuMoDx systems allows QIAGEN to refocus resources on developing and commercializing other innovative solutions, particularly the QIAstat-Dx system, QIAcuity digital PCR systems, and QIAGEN Digital Insights bioinformatics business [7].