QuidelOrtho Corp Q3 FY2024 earnings call

• Leadership Changes: Added Jonathan Siegrist as CTO and Lee Bowman as CHRO. Mike Iskra (CCO) and Rob Bujarski (COO) leaving; leadership structure being flattened for agility. • R&D and Product: Focus on R&D priorities, including Savanna respiratory panel entering clinical trials in 2024 respiratory season, with market entry in late 2025. • Cost Improvements: Implementing cost/process initiatives in procurement, supply chain, etc., expecting incremental margin contributions in 2025-2026.

Third quarter revenue was $727 million. Recurring revenue (excluding instrument, COVID-19, and U.S. Donor Screening) was $598 million in Q3, with 1% growth. Year-to-date revenue was $2.1 billion, and recurring revenue was $1.74 billion (5% growth). Regionally, EMEA grew 12%, other region (Japan, Asia-Pacific, Latin America) 8%, while North America declined mid-single digits. China Labs grew 5% Y/Y, but overall China revenue was down 1% Y/Y. Labs revenue had 5% growth, with integrated and automated analyzers up 7% and 17% respectively. Transfusion Medicine: Immunohematology revenue grew 3%, donor screening declined 20%. Respiratory revenue was $72 million in COVID-19, down 11% Y/Y due to higher prior year COVID/flu.

• Full Year 2024: Total revenue $2.75-$2.80B, adjusted EBITDA $530M-$550M, adjusted diluted EPS $1.69-$1.91. • 2025 Outlook: Top line mid-single digits ex COVID/Donor Screening, labs mid-single digits, transfusion medicine low single digits. Expect $100M annualized cost savings realized by first half 2025, adjusted EBITDA margin improvement 100-200 bps.

• China Risks: Anticorruption policies, potential reimbursement changes for cardiac products in Chinese provinces. • Respiratory Season Risks: Timing of revenue recognition due to potential shift to Q1 2025. • Inflation and Merit Increases: Impact on margins from merit increases and inflation.

Q: On 2025 adjusted EBITDA margin, building blocks?

A: $50M cost savings, org structure changes, merit increases, inflation, respiratory season timing.

Q: Labs business visibility?

A: Predictable due to 5-7 year contracts.

Q: China cardiac reimbursement?

A: Potential impact <1% of 2025 China revenue, not VBP related.

Q: Organizational changes rationale?

A: Flattening, speed, efficiency, customer focus.

Q: Cross selling legacy Quidel?

A: Focus direct sales, early stages, triage product line.

Q: China stimulus impact?

A: Monitoring, potential tailwind, but early stages.

Q: Cost savings beyond 100M?

A: Second tranche in 2025-2026, exit of donor screening business.

Q: Respiratory competitive landscape?

A: Leader, similar market share to 2023, working to increase share.