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Sample & Assay Technologies- 1 -
QIAGEN – Sample and Assay Technologies
German Healthcare Conference
Zurich, October 2, 2007
Roland SackersChief Financial 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 genetic vaccination 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, 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).
Note: In this presentation, QIAGEN is using the term molecular diagnostics. The use of this term is in reference to certain countries, such as the United States, limited to products subject to regulatory requirements. Current QIAGEN molecular diagnostics products are one FDA approved product, four products with 510k clearance from the FDA, 38 EU CE IVD assays, six EU CE IVD sample preparation products, nine China SFDA IVD assays and 98 general purpose reagents.
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, 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 recent press release, 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: 2006: $ 466 million 03–06 CAGR: 15%Net income: 2006: $ 85 million 03–06 CAGR 22%1
EPS: 2006: $ 0.56 03–06 CAGR: 21%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‘600 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 & 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
Sample & Assay Technologies- 8 -
QIAGEN ConsumablesManual use or Automated on QIAGEN Instruments Technology
Leadership
20 cm
5 cm
Sample Technologies
Assay Technologies
Consumables
- Forensics- Clinical
- „Everywhere“
- Pharma
- MolecularDiagnostics
Instruments
50 cm
Sample & Assay Technologies- 9 -
QIAGEN Technology and Innovation LeaderTechnology Leadership
R&D at QIAGEN:
Approx. 10% of sales
>440 employees in R&D
Germany, U.S., Switzerland 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
Sample & Assay Technologies- 10 -
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Financials
Technology Leadership
QIAGEN has SignificantMarketing and Sales Power Sales Strength
Sales Strength
MARKETS
Academia
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Sample & Assay Technologies- 11 -
Strong Sales and Marketing Force
> 1,100 Sales and Marketing Professionals
Sales Strength
America Approx 46% of Sales: Sales and Marketing Force: 432
Europe Approx 41% of SalesSales and Marketing Force: 450
Asia Approx 11% of SalesSales and Marketing Force: 229
MARKETS
Biomedical
MDx
Inside SalesE-commerce
Appl. Testing
SPECIALISTS
Channels
Pharma
Research
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Consumablessample technologiesassay technologies
Instruments
Revenue Distribution
Asia RoW3% of sales
AmericaEurope
11%27%
24%
PharmaceuticalIndustry
Research
MolecularDiagnostics
AppliedTesting
By Product Groups By Geographic Regions By Customer Groups
All figures based on annualized estimates
90%
10%
52%36%
9%
48%
17%
8%
27%
Sales Strength
Sample & Assay Technologies- 13 -
Sales Strength
MARKETS
Research
PharmaBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Financials
Technology Leadership
QIAGEN is Addressing Key Growth MarketsGrowth Drivers
Growth Drivers
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Sample & Assay Technologies- 14 -
Life ScienceResearch
Market Size(US$ M)
MarketGrowth
QIAGEN Revs(% of Sales)
GrowthDriversAll figures are estimates
1,000 3-6% 27%Replacing traditionalBiomedical researchTranslational research
Pharma 1,000+ 6-10% 17%Personalized medicineClin. trials monitoringTranslational research
AppliedTesting 500 20-25% 8% Molecular biology
“going everywhere”
MolecularDiagnostics 2,800 15-20% 48%
Replacing trad. DxNew applicationsBecoming routine
Sam
ple & A
ssay Technologies
Growing By Leveraging TechnologiesGrowth Drivers
Sample & Assay Technologies- 15 -
Disseminating Technologies Into Four Markets
Product and Technology Continuum
MolecularDiagnostics Pharma Life Science
Research AppliedTesting
SAMPLETechnologies
ASSAYTechnologies
Growth Drivers
Sample & Assay Technologies- 16 -
Leading in Molecular Diagnostics
Sales in MDx (run rate Q2 2007): approx. $380 million#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
Sample & Assay Technologies- 17 -
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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Significant Untapped Potential for HPV Testing
Increased global awareness of the link betweenHPV and cervical cancer
Accelerated adoption into medical guidelines
Vaccine campaigns promote awareness
New genotyping tests expand market toinclude HPV positive patients
Significant untapped potential within developingcountries
Infrastructure + breadth of combined offering key
Substantial Growth Potential - Increasing Awareness
U.S.Current tests: ~ 8.4MPenetration rate: ~ 22%
EuropeCurrent tests: ~ 2.0MPenetration rate: ~ 6%
Asia/Latin America:Current tests: 0.9MPenetration rate: ~ 3%
Asia/LatinAmerica~ $280M
U.S.~ $490M
Europe~ $350M
Total: >$1.1 billion
Growth Drivers
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Multi-Channel Approach in Molecular Diagnostics
Awareness
OB/GYNstake sample
and send to lab
Laboratoryperforms test
OB/GYNscommunicate
result
Clinical Sales Force(80 Professionals)Focus: HPV Awareness
Laboratory Sales Force(170 Professionals)Focus: Complete PortfolioFocus: Transactional Sales
Direct to ConsumerAdvertising CampaignsFocus: HPV Awareness
Sample & Assay Technologies- 20 -
ImplementingPre-Closing
Integration PlanIntegration Planned to Take 12 Months
Resources
AnnouncementJune 3rd
ClosingJuly 30rd
Organization Fully Implemented
Pre-Planning
0-1-2 8 96 7 10 113 42 5-3 1Line functiontakes over all
responsibilities
Analyst and R&D Days Planned in 2008
12Months
TODAY
Growth Drivers
Target CompletionJuly 2008
Sample & Assay Technologies- 21 -
Sales Strength
MARKETS
Research
Pharma KAMBiomedical
MDx
Inside SalesE-commerce
Appl. Testing
Growth Drivers
0
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1993 1994 1995 1996 1997 1998 1999 2000 2001
Technology Leadership
QIAGEN Strong Financial Base – Exciting Model Financials
Financials
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200
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2003 2004 2005 2006 2007E
QIAGEN Revenues 2003 – 2007E
US$ millions
QIAGEN – Continuous Double Digit Revenue Growth Rates
Financials
CAGR2003-2006 = 15%
Revenues excluding the synthetic DNA business unit, sold in Q2 2004
Sample & Assay Technologies- 23 -
30
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110
2003 2004 2005 2006 2007E
QIAGEN Net Income 2003 – 2007E
US$ millions
QIAGEN – Strong Earnings Engine
US$ 0.32 US$ 0.56EPSAdj.
US$ 0.55-US$ 0.59
US$ 0.46US$ 0.39
All figures excluding acquisition, integration and relocation related charges as well asamortization of acquired IP and equity-based compensation (SFAS 123R)
Financials
CAGR2003-2006 = 22%
Sample & Assay Technologies- 24 -
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