Quidel's CEO Presents At Goldman Sachs Healthcare Conference (Transcript)

Quidel Corporation (QDEL)

Goldman Sachs Healthcare Conference Call

June 05, 2012 06:20 pm ET

Executives

Doug Bryant - President & CEO

Randy Steward - CFO

Analysts

Isaac Ro - Goldman Sachs

Presentation

Isaac Ro - Goldman Sachs

Thanks everybody for attending. Isaac Ro from Goldman Sachs; I am the Life Science analyst here and certainly happy to have the management team from Quidel here with us today. So you know as with all the other presentations I want to make sure that I will keep it as interactive as possible and so by all means please don't be shy to ask a question. Raise your hand if you like anytime in the conversation and we will be sure of calling you and for those of you on the webcast as well, please feel free to ping me with an email if you want. I am happy to read back your question anonymously of course and we will go from there.

So with that as a backdrop, Doug if you maybe first get everyone situated. There has been a lot of going on at Quidel in evolving the company over the last couple of years and Doug to make sure we get proper context, so if you could spend a few minutes and can give us a background on the company and your key financial goals for this year that will be great.

Doug Bryant

Okay sure, terrific. The company has been around for a while. The history of the company actually is predominantly rapid point of care diagnostic test as early as 1985 we developed and commercialized a pregnancy test fold truly thereafter by a group based prep test. And then in the 1999 we co-developed with Glaxo the first flu assay which has had several iterations to that product. And so for the most part up until about 2008, we for the most part a company that participated very nicely in the rapid point of care diagnostics space. I came on Board in 2009. The Board gave me the mandate of diversifying our product portfolio, developing a broader based diagnostic business, a business that's certainly less dependent on flu. We don't mind the seasonality of flu. We dislike it when we don't see any flu at all.

But certainly the seasonality doesn't bother us; it’s the volatility that is a big concern for us. Beginning in 2009, the first step in the process was to bring on board R&D talent, also business development talent. We began creating a pipeline basically from scratch and we focused on a couple of different areas; we focused on a next generation platform to stabilize our presence in the space in which we compete today and then we embarked on molecular diagnostic and the other and I certainly can talk a little bit more about that if you like.

We did effectively three deals if you will. We entered into a collaborative agreement with a company called BioHelix; BioHelix is in the R&D that has now created the world’s first handheld molecular device called AmpliVue and will be launching that first product here in the US in Q4. We also entered into an agreement with Northwestern University who had developed a novel extraction technology that will become the basis for the cartridge that goes into our integrated platform.

And then we also did an acquisition; we spent in early 2010, $130 million on a company called DHI, Diagnostic Hybrids. And the two major things that we got there were R&D synergies they had significant molecular diagnostic and assay development capability and they had an awesome group of scientists who are terrific at characterizing and developing monoclonal antibiotics.

Fast forward to last year, last year was a year in which we finally saw some of the fruits of all that investment. We had four assays cleared here in the United States and to be marketed. Each of those was a 510(k) clearance. And during the period, we also saw a number of technical issues so that in this year, 2012, we should see an acceleration in the topline -- an acceleration in terms of product development and currently we have five assays in clinical trials in the United States and so we expect to see a little bit of productivity gain this year is such that in 2013 we actually see topline acceleration.

Two major things that were milestones for us; we’re launching a product called Sofia. We’re also launching the AmpliVue C. difficile product. Both of those should be responsible for pretty good lift 2013 longer terms in terms of our goals, we’ve stated publicly before that by 2015 we expect to be around $250 million in revenues. That’s about $100 million more than we have today. Big drivers to that of course are the Sofia platform as well as the molecular platform.

Isaac Ro - Goldman Sachs

And maybe just start with Sofia and give us a little more depth as to the customer, what your experience will look like, how do you compare that competitively against some of the other offerings in the marketplace?

Doug Bryant

Today, here in the United States we’ve launched just Sofia with the flu product and so my comparison competitively is only there I can say that we knew that we had something as we were developing and this assay is actually about 100% more sensitive than our legacy products. So we knew that we would see during the clinical trials better performance for both sensitivity to flu A and flu B. We didn’t realize how well it would compare with PCR.

Read the rest of this transcript for free on seekingalpha.com

More from Stocks

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Is Tesla's Stock Set to Nearly Double to $500?

Is Tesla's Stock Set to Nearly Double to $500?

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why