QIAGEN Reports Strong Fourth Quarter and Fiscal 2009 Results
(Thomson Reuters ONE) - Qiagen N.V. / QIAGEN Reports Strong Fourth Quarter and Fiscal 2009 Results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. Fiscal 2009 Net Sales Exceed $1 BillionVenlo, The Netherlands, February 8, 2010 - QIAGEN N.V. (Nasdaq: QGEN; Frankfurt,Prime Standard: QIA) today announced the results of operations for the fourthquarter and the fiscal year ended December 31, 2009.The reported net sales for the fourth quarter 2009 exceeded the guidance andreported net sales and adjusted earnings per share for fiscal year 2009 were atthe high end of company's expectations provided by the Company on November9, 2009. Reported net sales for fiscal 2009 exceeded US$1 billion for the firsttime in the Company's history.Fourth Quarter 2009 Results+----------------------------------------------------------------------------+|QIAGEN's Fourth Quarter 2009 |+----------------------------------------------------------------------------+|in US$ millions, except per share information Q4 2009 Q4 2008 Growth|+----------------------------------------------------------------------------+| || ||Net sales 289.1 237.2 22%|| ||Net sales at constant exchange rates 272.1 237.2 15%|| ||Operating income, adjusted 83.4 66.6 25%|| ||Net income, adjusted 57.6 43.7 32%|| ||EPS, adjusted( )(US$) 0.24 0.22 9%|| || |+----------------------------------------------------------------------------+ 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 2009increased 22% to $289.1 million from $237.2 million in the same quarter of2008. Excluding the favorable impact from foreign currency exchange rates, netsales for the fourth quarter 2009 would have increased 15% from the fourthquarter 2008. Reported operating income for the quarter increased 6% to $42.9million from $40.4 million in the same quarter of 2008, and net income for thequarter increased 80% to $44.5 million from $24.7 million in the same quarter of2008. Diluted earnings per share for the fourth quarter increased 50% to $0.18in 2009 (based on 241.0 million weighted average shares and share equivalentsoutstanding) from $0.12 in 2008 (based on 202.0 million weighted average sharesand share equivalents outstanding).On an adjusted basis, fourth quarter operating income increased 25% to $83.4million in 2009 from $66.6 million in 2008, and fourth quarter 2009 adjusted netincome increased 32% to $57.6 million from $43.7 million in 2008. Adjusteddiluted earnings per share increased to $0.24 in the fourth quarter 2009 from$0.22 in 2008.Fiscal Year 2009 Results+----------------------------------------------------------------------------+|QIAGEN's Fiscal Year 2009 |+----------------------------------------------------------------------------+|in US$ millions, except per share information 12M 2009 12M 2008 Growth|+----------------------------------------------------------------------------+| || ||Net sales 1,009.8 893.0 13%|| ||Net sales at constant exchange rates 1,038.6 893.0 16%|| ||Operating income, adj. 296.1 252.7 17%|| ||Net income, adj. 199.6 163.3 22%|| ||EPS, adj.( )(US$) 0.93 0.80 16%|| || |+----------------------------------------------------------------------------+ 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 $1,009.8million compared to $893.0 million in 2008. Excluding the unfavorable impactfrom foreign currency exchange rates, net sales for the fiscal year 2009 wouldhave 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 shareincreased 45% to $0.64 in 2009 (based on 213.6 million weighted average sharesand share equivalents outstanding) from $0.44 in 2008 (based on 204.3 millionweighted average shares and share equivalents outstanding).On an adjusted basis, operating income for the year ended December 31, 2009increased 17% to $296.1 million in 2009 from $252.7 million in 2008, andadjusted 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 pershare from $0.80 per share in 2008.QIAGEN's fourth quarter and fiscal year 2009 results include the results ofoperations from the Company's recent acquisitions, the most significant of whichwere SABiosciences Corporation, acquired in December 2009, DxS Ltd., acquired inSeptember 2009, and Corbett Life Sciences, acquired in July 2008.Reconciliations of reported results determined in accordance with generallyaccepted accounting principles (GAAP) to adjusted results are included in thetables accompanying this release. "2009 was a very successful year for QIAGEN," said Peer Schatz, QIAGEN's ChiefExecutive Officer. "Net sales and adjusted net income demonstrated significantgrowth. Net sales grew 22% - significantly faster than the overall marketgrowth. Strong growth in net sales and adjusted net income as well as an organicgrowth rate of 13% define the most successful year in the company's history anddrove revenues to surpass the $1 billion mark. The solid foundation ofinnovation-driven, organic growth also allows us to plan for strong growth in2010 and beyond.The largest revenue share we recorded for fiscal 2009 was in sales to customersin molecular diagnostics (approximately 47% of total revenues) followed by salesto 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 diagnosticswas fueled by strong sales of our profiling solutions (including our influenzaand 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 conductingclinical development continued to experience solid growth during the fourthquarter, academic research markets continued to perform solidly and we arelooking forward to the effect of the stimulus programs which are expected for2010 and into 2011.Our acquisition strategy remains focused, consistent and value-creating,providing complementary technologies, new commercial capabilities and geographicreach. For example, during 2009 we further strengthened our strong contentengine for research and molecular diagnostics assays. In December 2009 weacquired SABiosciences and added a portfolio of PCR-based, pathway-focusedpanels that represent highly efficient solutions for pathway- anddisease-biomarker discovery and development and diagnostics development. Theacquisition of DxS Ltd. in September 2009 combined two leadership positions incompanion diagnostics to create a very powerful leader in a transformationalarea of healthcare: personalized healthcare.In addition we formed a very promising position in point of need testing. Theacquisition of ESE GmbH in January 2010 added to QIAGEN's instrumentationplatform a portable, battery operated, "ultra-fast time to result", analysissystem. This platform can run QIAGEN assay technologies in formats suitable forpoint of need testing in healthcare and applied testing (e.g. veterinary, food,environmental, biodefense testing), and in all other settings, where alaboratory infrastructure is not accessible and low-throughput molecular testingand fast turnaround is required.All three transactions contribute to key elements of our strategy to lead inmolecular diagnostics-based prevention, profiling, personalized healthcare andpoint of need testing. With different platform technologies that address allneeds in terms of throughput, flexibility in assay technologies, convenience inhandling and efficiency in performance, an industry leading assays portfolio anda pipeline that provides us with an ongoing stream of new assays to launch, weare excellently positioned not only to participate from but also to shapecurrent and future trends in molecular based testing and life science research.""QIAGEN experienced a successful fiscal year 2009 with reported revenues andadjusted earnings per share at the high end of our expectations," said RolandSackers, QIAGEN's Chief Financial Officer. "Assuming constant exchange rates forboth fiscal years revenue growth was 16% and was fueled by a strong organicgrowth of 13%, adjusted for the divesture of certain assets related to ouractivities in HLA diagnostics (transplantation diagnostics) in July 2009.Our consumable products portfolio contributed 10% growth (13% at constantexchange rates) in fiscal year 2009 and our sales of instrumentation productsrecorded a growth rate of 37% (42% at constant exchange rates). Net sales in theAmericas for fiscal year 2009 represented approximately 49% of our overallbusiness and recorded a growth rate of 10% (12% at constant exchange rates) andEuropean sales, which represent approximately 36% of our revenues, showed agrowth rate of 11% (19% at constant exchange rates). Net sales in Asia remainedstrong, showing a growth rate of 39% (36% at constant exchange rates)."Fiscal Year 2010 GuidanceBased on foreign currency exchange rates as of January 31, 2010, QIAGEN expectsrevenues between $1,120 and $1,170 million in 2010 with a growth rate of 11% to16% when compared to 2009 and adjusted diluted earnings per share between $0.90and $0.96 including a diluting effect of $0.02 following the DxS acquisition inSeptember 2009. Based on foreign currency exchange rates as of November 9, 2009(the date of the Company's third quarter 2009 earnings conference call), revenueguidance for 2010 would have been approximately $35 million higher.QIAGEN - Sample and Assay Technologies Highlights· QIAGEN established the QIAGENcares program to support regions in needfor effective diagnostic testing solutions and announced the first two programsunder this Corporate Social Responsibility program:o QIAGEN and the Chittaranjan National Cancer Institute (CNCI) formed acollaboration to establish the first large-scale cervical cancer screeningprogram for women in Kolkata, India. The initiative will be conducted over 5years and is expected to reach 50,000 women.o QIAGEN agreed to donate one million HPV tests over the run of this cancerscreening program.· QIAGEN entered into an agreement to supply molecular sample and assaytechnologies for a new national, PCR-based blood screening program for HIV andHepatitis C (HCV) in Brazil. QIAGEN will provide Bio-Manguinhos, the mainprovider of vaccines and diagnostics to the Brazilian Ministry of Health, with asignificant volume of molecular testing solutions - sample and assaytechnologies, related instrumentation, operational know-how and training. Theagreement is expected to run for five years and contains options for subsequentextensions.· QIAGEN significantly expanded its strategic position in moleculardiagnostics:o QIAGEN acquired Explera s.r.l., a leading supplier in molecular diagnosticsand personalized medicine in Italy. With this acquisition QIAGEN is doubling thesize of its molecular diagnostics sales channel in Italy and is adding severalactivities in the area of personalized medicine and access to a suite of CE-IVDpyrosequencing assays.o QIAGEN acquired DxS Ltd., a developer and manufacturer of companiondiagnostic products (CDx) for Personalized Healthcare (PHC). With thisacquisition, QIAGEN has added to its own activities in CDx and taken a strongleadership position in the new era of PHC.o QIAGEN acquired SABiosciences. This transaction added to QIAGEN's productoffering a leading portfolio of PCR-based, disease and pathway-based panels thatplay key roles in biomedical research and the development of future drugs anddiagnostics.o QIAGEN acquired ESE GmbH, a developer and manufacturer of portable, batteryoperated, "ultra-fast time to result", multiplex UV and fluorescence opticalmeasurement devices which enable low-throughput molecular testing in practices,emergency rooms, remote field areas, and other settings where a laboratoryinfrastructure is not accessible and fast turnaround is required.· QIAGEN launched 79 new products in the area of Sample & AssayTechnologies including the PAXgene Blood miRNA kit for use in cancer, biomarkerand miRNA research and the QIAamp Circulating Nucleic Acid kit for samplepreparation in prenatal or other circulating nucleic acid research. In additionQIAGEN launched a number of assay technologies including two multiplexed,PCR-based CE-marked digene HPV Genotyping Tests, a next generation CE markedmutation profiling KRAS test as well as a BRAF test for use in cancer treatmentsand assay technologies for epigenetic methylation analysis based onpyrosequencing technology.· QIAGEN and Pfizer entered into an agreement to develop a companiondiagnostic assay for PF-04948568 (CDX-110), an immunotherapy vaccine indevelopment for the treatment of glioblastoma multiforme (GBM). Glioblastomamultiforme is the most common malignant primary brain tumor in adults and occursin around 25,000 patients worldwide each year. Pfizer's investigational drugPF-04948568 (CDX-110) is a peptide vaccine which targets the tumor-specificEpidermal Growth Factor Receptor variant III (EGFRvIII), a mutated form of theepidermal growth factor receptor that is only present in cancer cells and occursin 25-40 percent of GBM tumors. The QIAGEN assay is designed to identify thosepatients whose tumors express the EGFRvIII mutation, allowing for thepossibility of more targeted and personalized treatment.· QIAGEN acquired a global and exclusive license for biomarker PI3K fromJohn Hopkins University and intends to develop PCR and real time-PCR assays forcompanion diagnostic use with certain cancer treatments. A number of studiessuggest that mutations in the PI3K oncogene are indicative for successfulantibody treatment of patients suffering from lung, breast and other cancers.The license includes all countries and allows QIAGEN to enter partnerships withpharmaceutical companies to develop and market tests for new cancer drugcandidates.Conference Call and Webcast DetailsDetailed information on QIAGEN's business and financial performance will bepresented during its conference call on February 9, 2010 at 9:30am ET. Thecorresponding presentation slides will be available for download on theCompany's website at www.qiagen.com/goto/ConferenceCall
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