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TRANSCRIPT
Sample & Assay Technologies- 1 -
QIAGEN – Sample and Assay Technologies
2008 Piper Jaffray Europe Conference
London, June 25, 2008
Peer SchatzChief Executive Officer
Sample & Assay Technologies- 2 -
Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and geneticvaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations for certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC).
Regulation G: The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income, net income, and earnings per share for the first quarter 2008, and the comparable period of 2007, which information is presented on a “non-GAAP financial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press release dated May 5, 2008, for information on the Company’s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the Company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.
Forward Looking Statements
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Revenues: 2007: $ 650 million 04–07 CAGR: 22%Net income: 2007: $ 112 million 04–07 CAGR 24%1
EPS: 2007: $ 0.63 04–07 CAGR: 17%1
Product Range:>500 consumable products □Sample technologies: to collect, separate, purify, isolate,
stabilize and store samples□Assay technologies: to make such isolated target
information (DNA, RNA, proteins, etc.) visibleInstrumentation for above consumables
Customers (>400,000)Academic researchPharma/BiotechApplied Testing (veterinary, forensics, biodefense etc.)Molecular Diagnostics
IP (08/07): >1’500 patents (550+ issued, 480+ pending, 500+ licensed
Employees: >2‘700 employees based > 30 subsidiaries1 excluding acquisition, integration and relocation related charges as well as amortization of
acquired IP and equity-based compensation (SFAS 123R)
QIAGEN at a GlanceIntro
Sample & Assay Technologies- 4 -
Sample and Assay Technologies
Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...
Complexsample
DNAPureAnalyte
InformationAssayTechnologies
Target Dectected
Yes
No
SampleTechnologies
Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,
Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...
Intro
Sample & Assay Technologies- 5 -
Sample and Assay Technologies
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Financials
Intro
Technology Leadership Sales Strength
MARKETS
Research
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
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Sales Strength
MARKETS
Research
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Financials
Sample and Assay TechnologiesTechnology Leadership
Technology Leadership
Sample & Assay Technologies- 7 -
Any Analyte
QIAGEN Sample TechnologiesEnabling Access to the Content of Any Biological Sample
AnyApplicationAny
BiologicalSample
Technology Leadership
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QIAGEN Assay Technologies
Assay Technologies
Technologies:
□ All forms of DNA, RNA, methylation, proteins
□ Amplification of target or of signal (including: PCR, real-time PCR, multiplexed PCR, Rolling Circle Amplification, HybridCapture)
□ Helicase Dependent Isothermal Amplification technology (HDA)
□ Whole Genome/Transcriptome amplification
□ RNAi assays
Formats
□ “Open” kits (generic)
□ “Closed” kits (target-specific), e.g. molecular diagnostics
Automation
Hardware designSoftware developmentElectronic engineering
Technology Leadership
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QIAGEN Sample & Assay TechnologiesManual use or Automated on QIAGEN Instruments Technology
Leadership
20 cm
5 cm
Sample Technologies
Assay Technologies
Consumables
- Forensics- Clinical
Instruments
50 cm
- „Everywhere“
- Pharma
- MolecularDiagnostics
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Technology and Innovation LeaderTechnology Leadership
R&D at QIAGEN:
Approx. 10%-11% of sales
>460 employees in R&D
Germany, U.S., Switzerland, Singapore and China
Chemistry, biology, physics, engineering and others
Fast, proven innovation cycles:4-5%-points of sales growth comes from new products launched in last 12 months
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EpigeneticsGene function analysis
o Market volume in 2012: US$ 4Bo Market CAGR: 60%
QIAGEN’s expanded EpiTect portfolioo Sample Technologies
– Whole Bisulfitome amplification– Bisulfite conversion (2007)
o Assay Technologies– Methylation-specific PCR– Methylation-specific real-time PCR– MethyLight Assays: detection and quantification
of six cancer-related genes– Control DNA
Sample and Assay Technologies for EpigeneticsTechnology Leadership
Announced on June 18, 2008
Leading in Epigenetics Solutions
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Sample and Assay Technologies for Micro RNATechnology Leadership
Leading in miRNA Solutions
Announced on June 25, 2008
Micro RNA Regulates gene function analysis
o Rapidly emerging area of molecular researcho Already >820 human miRNA molecules identified
– miRNAs are linked to some types of cancer– miRNAs are associated with heart disease
QIAGEN’s expanded miRNA portfolio– miRNA Sample Technologies:
• miRNeasy– miRNA Assay Technologies:
• miScript primer assay and plate• synthetic miRNAs• miRNA inhibitors,
Sample & Assay Technologies- 13 -
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Financials
Technology Leadership
Significant Marketing and Sales PowerSales Strength
Sales Strength
MARKETS
Academia
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
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Significant Marketing and Sales Power
~ 1,200 Sales and Marketing Professionals
Sales Strength
America Approx 50% of Sales: Sales and Marketing Force: 468
Europe Approx 38% of SalesSales and Marketing Force: 465
Asia Approx 10% of SalesSales and Marketing Force: 246
MARKETS
Biomedical
MDx
Inside SalesE-commerce
Appl. Testing
SPECIALISTS
Channels
Pharma
Research
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Revenue DistributionFirst Quarter 2008
RoW2% of sales
North America106% Growth
Europe35% Growth
By Product Groups By Geographic Regions
92%
7%
50% 38%
10%
Others
CER = Constant Exchange Rates
Instruments11% growth
Asia25% growth
Consumables 68% Growth
sample technologiesassay technologies
Sales Strength
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110
160
210
RevenuesQ1 2007
Price Volume Newproducts
Acquisitions Exchangerates
RevenuesQ1 2008
0
Organic Growth 10%
~ 2%~ 4%
~62%
~ 43%
US$m
Organic Growth DriversFirst Quarter 2008
Organic Growth - Outperforming the Industry*
* Industry including: Beckman, Bruker, BioRad, Mettler, ABI, Affymetrix, Fisher, Walers, Thermo, Techne, Invitrogen,Sigma, QIAGEN, Millipore, Roche Applied Science, TecanSource: Company data, Analyst reports
~ 9%
~ 4%
Sales Strength
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Sales Strength
MARKETS
Research
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Financials
Technology Leadership
Addressing Key Growth MarketsGrowth Drivers
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
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Disseminating Technologies Into Four Markets
Product and Technology Continuum
MolecularDiagnostics
Pharma
Research &Development
Academia
Life ScienceResearch
AppliedTesting
SAMPLETechnologies
ASSAYTechnologies
Growth Drivers
Marketleader
Marketleader
Marketleader
Marketleader
R&DContri-bution
R&DContri-bution
R&DContri-bution
R&DContri-bution
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Leading Position – Multiple Growth Drivers
Product and Technology Continuum
SAMPLETechnologies
ASSAYTechnologies
Shar
e of
Rev
enue
FY08
$87
5-90
5
~$240MPublicPrivate
~$150MDiscoveryDevelopment
~$70MVeterinaryForensicsBio defenseFood Testing
~$430MSample TechnologiesPCR assaysOEMHPV (approx 60%)
Life ScienceResearchPharmaApplied
TestingMolecular
Diagnostics
Growth Drivers
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Leading in Molecular Diagnostics
Sales in MDx: approx. $430 million in 2008, estimated#1 (excluding blood banking and viral load monitoring)
Sample technologies: proven standard
Assay technologies: unparalleled breadth (>120 assays)PCR and real-time PCR assaysMultiplexing leader: QIAplexLeading in key assay areas (HPV)Broad platform base
Regulated portfolio – global and growing5 FDA (PMA approved or 510k cleared) products38 CE-marked assays, 6 CE-marked sample preparation products9 SFDA approved assays 98 general purpose reagents
Molecular Diagnostics
Growth Drivers
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Global In Vitro Diagnostics MarketBy Segment (2006E)
MDx: Fastest Growing Segment in In-Vitro Diagnostics
Growth Drivers
Note: IVD market estimates vary by source and range between ~$29B–$35BSource: RBC Capital Markets, Nature Biotechnology (August 2006), Digene internal reports, Recap, Kalorama, BioCentury, L.E.K. Analysis
ClinicalChemistry
CAGR 2.6%Molecular
DiagnosticsUS$ 2.4B
CAGR 17.0%Blood GlucoseCAGR 11.5%
OtherCAGR 3.5%
HematologyCAGR 3.9%
Immuno-assaysCAGR 4.7%
MicrobiologyCAGR 5.7%
HemostasisCoagulation
CAGR 10.2%
Point of CareCAGR 10.9%
In Vitro Diagnostics Estimated market volume: ~US$ 33B (2006)
CAGR 2006 – 2010: 7%
Molecular Diagnostics Estimated market volume: ~US$ 2.4 billion (2006)
CAGR 2006 – 2010: 17%
Viral Infections
Non-ViralInfections
GeneticTesting
Oncology
Blood banksOthers
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Multiple Platforms in MDx
Sample Technology Automation(Broad portfolio of QIAGEN solutions)
• Hybrid Capture
• Ultra-high
• HPV
• HDA +Hybrid Capture
• Ultra-high
• GC/CT• others
• Assay technology
• Throughput
• Assays
Detection
Sample Processing
Biorobot MDXBioRobot 8000BioRobot M48BioRobot EZ1QIAsymphonyQIAcube
QIAensembleRapid Capture
• Qual. PCR QIAplex low
• Medium
• HLA and others
• QIAplexmultiplexing
• Medium
• ResPlex, MVPplex(HAI)
QIAxcel(eGene)
Real-time PCR cycler(standard lab
equipmentABI, Roche,
Corbett)
• Quantitative PCR
• All (open platform)
• 120 real time PCR assays
Endpoint PCR cycler(standard lab equipment,
off patent 2008)
• Liquichip(Luminex)
Growth Drivers
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v
Selection of PlatformsSystems can be mixed and combined
Sample Processor(Under Development)
Sample Processor AssaySetup Detection
Sample in - Result out
Hybrid Capture assaysAmplification assays
Sample in – Result out
Hybrid Capture assaysAmplification assays
Sample in – Result out
PCR and other Amplification assaysSingleplex-Multiplex
Ultra-High Throughput
> 2’000 samples per shift
Low – Mid Throughput
50–250 samples per shift
Growth Drivers
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Sales Strength
MARKETS
Research
Pharma KAMBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Technology Leadership
Strong Financial Base – Exciting ModelFinancials
Financials
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2004 2005 2006 2007 2008E
Revenues 2004 – 2008E
US$ millions
QIAGEN – Continuous Double Digit Revenue Growth Rates
Financials
CAGR2004-2007 = 22%
Revenues excluding the synthetic DNA business unit, sold in Q2 2004
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506070
8090
100110
120130140150
160170
2004 2005 2006 2007 2008E
Net Income 2004 – 2008E
US$ millions
QIAGEN – Strong Earnings Engine
EPSAdj.
US$ 0.39 US$ 0.46 US$ 0.56 US$ 0.63 US$ 0.76-US$ 0.80
All figures excluding acquisition, integration and relocation related charges as well asamortization of acquired IP and equity-based compensation (SFAS 123R)
Financials
CAGR2004-2007 = 24%
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Guidance1
Feb. 12, 2008 Reported
Net sales (US$ m) 198 - 205 207.1 Exceeded2
EPS (US$)3 0.15 - 0.16 0.18 Exceeded
Exceeded on Revenues & EPS Guidance
1 based on January 31, 2008 foreign currency exchange rates2 US$ 206.2 million using January 31, 2008 foreign currency exchange rates3 excluding acquisition, integration and relocation related charges, amortization of
acquired IP and equity-based compensation (SFAS 123R)
First Quarter 2008Key Performance Metrics Financials
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In US$ millions unless indicated Q1 2008 Q1 2007 Growth Net sales (US$m) 207.1 127.9 62%
Operating income (US$m) 2 58.7 32.8 79%
Operating margin 2 28% 26%
Net income (US$m )2 36.9 22.6 63%
EPS (US$) 2 0.18 0.14
Financial Performance Exceeded Expectations
First Quarter 2008At a Glance
1 US$ 206.2 million using January 31, 2008 foreign currency exchange rates 2 excluding acquisition, integration and relocation related charges as well as amortization of acquired IP andequity-based compensation (SFAS 123R)
1
Financials
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Leading, focused: sample and assay technologiesStrong financial performance Strong growth projected: organic growth rate: ~15%
Proven innovation leadership in industrySuccessful acquisition track record
Core competency drives growth opportunitiesMDxPharma<->MDxApplied Testing
Leading catalytic acquisitions to expand:Sample and assay technology leadershipRegional footprint
Key Investment ConsiderationsSummary
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Thank you!