QuidelOrtho Corporation (NASDAQ:QDEL) Q4 2022 Earnings Call Transcript

Doug Bryant: Yeah. Hey, Andrew. We did go — the $300 million to $500 million is still our range. So that’s consistent and we can talk about the government contracts. But that’s — we are not treating that as normal and usual.

Joe Busky: Yeah. And it is exactly, it’s consistent with what we said at Investor Day, we were saying $200 million to $400 million for endemic state and it’s up $300 million to $500 million, because you have got this level of government contracts that we know we have in hand.

Doug Bryant: Yeah.

Joe Busky: So that’s — there’s no change there.

Doug Bryant: Yeah. That’s what I was trying to say.

Joe Busky: And there’s no change in what we have defined as a normal flu season either the $230 million to $270 million, which is the same guidance we gave for 2022. We are back to that what we are calling a normal flu season. That’s — and that’s inherent in this 2023 guidance.

Doug Bryant: Yeah.

Andrew Cooper: Okay. Perfect. That’s helpful.

Doug Bryant: Do you want to talk about total respiratory as well?

Joe Busky: Yeah. Those are the main two pieces and then you have got what I will call just of the respiratory, which would be molecular and RS

Doug Bryant:

Joe Busky: strep

Doug Bryant: Yeah.

Joe Busky: in the $80 million to $105 million range.

Doug Bryant: So those are the three pieces.

Joe Busky: Exactly.

Andrew Cooper: Perfect. I had a rare adult footing strip right now. I appreciate that piece of the business. Maybe just next on some of the OUS business, specifically in Labs, can you give us a sense for sizing of — you mentioned the EMEA tender impact versus supply chain kind of dynamics versus the China just lockdowns and give us a sense for as those lift, how big each of those could contribute from a growth perspective?

Joe Busky: Well, I can start and then Doug you can add any color. For EMEA, I wouldn’t — Andrew, I wouldn’t say that the tenders timing was significant. It was really more tender timing in — from 2021 into 2022 Q4 that’s causing the issue with the growth rate in Q4 of 2022. So I fully expect that we are going to get EMEA into the low single-digit growth range, which is where it was in 2022 as well. So there’s really no — nothing new there. We still expect EMEA to be in the low single-digit growth range in 2023. In China, it was a really difficult quarter, no doubt for China. But when you look at the outpatient — the decline in outpatient visits in the overall market, our number, it makes sense.

Doug Bryant: The number of patients was down

Joe Busky: Yeah.

Doug Bryant: 25%, so it pretty much mirrors what happening

Joe Busky: Yeah.

Doug Bryant: And it’s not different than what we see from other companies in that country as well.

Joe Busky: Correct. And we have seen — since things have opened up, we are seeing flow through on our boxes increased nicely and so we do have a lot of confidence in the double-digit growth in 2023 for China, as I mentioned.

Doug Bryant: In fact, it’s been that for a couple of months now.

Andrew Cooper: Okay. I will stop there and hop back in the queue. Thanks.

Doug Bryant: Okay.

Joe Busky: You bet.

Doug Bryant: Thanks, Andrew.

Operator: Thank you. The next question comes from Patrick Donnelly of Citi. Please proceed.

Patrick Donnelly: Hey, guys. Thank you for taking the questions.

Doug Bryant: Sure.