Quidel Corp. (QDEL) Canaccord Genuity 32nd Annual Growth Conference Transcript August 14, 2012 10:00 AM ET Executives Doug Bryant - President and CEO Randy Steward - Chief Financial Officer Ruben Argueta - Investor Relations Analysts Jeff Frelick - Canaccord Genuity Presentation Jeff Frelick - Canaccord Genuity
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We’ve been around for awhile actually since 1979. Most recently, in the last three years anyway we’ve done a number of things to change our overall position in the diagnostic space. We’ve done a number of things to try to broaden our company’s revenues beyond just mainly infectious disease and flu in particular.We did complete an acquisition in early 2010, acquiring Diagnostic Hybrids. We also entered into an agreement with Northwestern University to develop an integrated platform to do HIV viral load testing in Africa. And we also entered into an agreement with a firm here in the area called BioHelix to develop what has will surely become the world’s first hand-held disposable molecular device. Here is the financial overview, there is nothing significant. I don’t think here other than to say, you’ll note that, our R&D spends has ramped quite a bit -- a big chunk of that about $10 million or $11 million of the increase that was due to the acquisition of DHI. But generally speaking, we’ve increased R&D in order to develop the products that I’ll talk about here in a second. We expect our R&D to stay somewhere around $30 million going forward and it get leverage as something of the things that we need to resolve from a technical perspective that are now behind us. We are in good shape from a cash position. As I mentioned before, we have little debt, I guess, on Friday we announced, we re-negotiated our credit facility. We have a credit facility that enables us to access $140 million, in general percent, should we need that. It’s a company made up of a team, many of us approaching 30 years actually in the diagnostic industry, why is that significant. Surly with so many guys with that much experience, we know how to get things in fact we are one of the few company’s, if any other company in our size that had four FDA clearances last year. So clearly, we can develop product, clearly we can get things to the FDA. And then I would say, with the experience we can also pick the things that are going to matter to customers.
In term of competencies we are a market leader in developing manufacturing point-of-care rapid diagnostic tests, the brand is QuickVue, physicians that don’t know, who Quidel are, who we are will know what QuickVue is and many of the packaging for this products, you will have seen, when you visit your own physicians offices from time to time. We are an absolute leader in flu testing, strep testing, pregnancy testing and handful of other products as well.We also through the acquisition of DHI became the most significant player in the cell-based phorology segment and about 75% of clinical virologists throughout the United States use our products. So fairly high market share there. We have significant molecular assay devolvement experience. Many of the people on our R&D organization came from either Abbott or from Gen-Probe where they developed molecular-based assays before we have been developing assays that are fairly quick space. In addition, you may have read that we are going to get some funding help from Life Technologies who is interested in helping us fund the development of those assays moving forward. We have great brand strength and three categories, one is respiratory disease, infectious diseases, and women’s health, we also demonstrated expertise in regulatory affairs as I mentioned and we have pretty significant distribution networking, including the most recent increase in our direct sales organization in early 2012. The whole portfolio can be described in three main buckets. The first two, the rapid test and the cellular, of course, we have a significant presence and now and we expect moving forward to developing even greater presence in the molecular space. Read the rest of this transcript for free on seekingalpha.com