Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Diasorin SpA (WBO:DIAS, Financial) reported a strong quarter with double-digit growth of 10% excluding COVID-related sales.
- The immunodiagnostic segment saw an 11% year-over-year growth, with significant contributions from the US and Europe.
- The company's hospital strategy in the US is on track, aiming to reach 600 hospitals by 2027, with 100 new hospitals added annually.
- The molecular segment delivered a 6% growth, with the Plex launch showing promising customer engagement.
- The company has successfully managed operational costs, maintaining a gross profit margin of 66% despite inflationary pressures.
Negative Points
- China continues to present challenges, with single-digit declines and no expected improvement in the near future.
- The LTG business, despite a good quarter, is expected to be flat for the full year due to softness in the life sciences market.
- The company faces competitive pressures in China, with local companies being favored by hospital systems.
- There is a potential slowdown in growth anticipated for Q4, with expectations of only 3% to 4% growth.
- The company is cautious about the impact of the Italian payback tax, which could affect financials if the situation changes.
Q & A Highlights
Q: Could you clarify the potential system placements for the Liaison Flex? Was it 100 or 500 systems?
A: It is 100 hospitals in the pipeline with 500 potential placements. 50% of these are new customers, and 50% are existing accounts.
Q: Your updated guidance suggests a slowdown in growth for Q4. Is this due to conservatism regarding the flu season or other factors?
A: The guidance includes the flu business, which we divested. We expect a deceleration in the LTG business and assume a regular flu season similar to last year.
Q: How do you feel about achieving your mid-term growth guidance in 2025 given challenges in China and other areas?
A: We remain confident in our strategy and expect to align with our 2027 guidance. The US market, which constitutes 50% of our business, is a key focus with ongoing programs and product launches.
Q: Can you provide insights into the immunodiagnostics growth in the US and Europe?
A: In Europe, we see increased testing volumes post-COVID, partly due to outbreaks like Parvovirus. In the US, volumes have not surpassed 2019 levels, but our hospital strategy is progressing well.
Q: Regarding the Liaison Flex, are there any additional sales and marketing investments planned?
A: We do not anticipate an increase in headcount as we retained the necessary personnel post-Luminex acquisition. Marketing costs will rise, but these will be offset by savings in R&D as development phases conclude.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
