Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Diasorin SpA (DSRLF, Financial) reported revenue and profitability in line with their plan, budget, and guidance for 2024, despite geopolitical tensions.
- The company successfully launched the Liaison Complex with respiratory panels, leading to better-than-expected performance in the molecular segment.
- Diasorin SpA (DSRLF) raised its guidance twice in 2024, indicating strong performance and confidence in their business strategy.
- The US hospital strategy is working well, with the company achieving its target of serving 400 hospitals by year-end.
- The company experienced double-digit growth in Europe, driven by successful placements and increasing volumes.
Negative Points
- Diasorin SpA (DSRLF) continues to face difficulties in China, with double-digit revenue decreases due to local competition and economic conditions.
- COVID-19 testing revenues have significantly decreased, impacting overall revenue growth.
- The company faces tough competition in certain markets, such as Iran, affecting export revenues.
- There is a mild start to the flu season, which has impacted the molecular diagnostics segment.
- The company is experiencing inflationary pressures and increased manufacturing costs, particularly in their new Shanghai plant.
Q & A Highlights
Q: Can you elaborate on the guidance for 2025, considering the headwinds like European immuno diagnostics and China? Does your guidance imply a 9-10% underlying growth excluding these factors? Also, how does the Liaison XXL expand your addressable market in the US?
A: The XXL system is designed to protect our existing install base while expanding into hospital and laboratory markets. It offers a 30-35% increase in throughput, allowing us to serve both large commercial labs and hospital markets. Excluding China, we expect double-digit growth in the US and high single-digit growth in Europe for 2025.
Q: How do you navigate the US market given the potential impacts from tariffs, vaccination hesitancy, and NIH budget cuts? Also, what is your outlook for China with a broader product portfolio by 2026?
A: Decreased vaccination rates could lead to outbreaks, which may benefit our diagnostics business. We haven't seen significant impacts from NIH budget cuts yet. For China, while it's not strategic in the short term, having products manufactured locally positions us well if the market improves.
Q: Could you clarify the target for Liaison Plex customers by the end of 2025? You mentioned both 100 and 150 customers.
A: Both numbers are correct. We have a funnel of 100 customers corresponding to 500 systems. Our ambition for 2025 is to have 150 customers using our platforms, aiming for a multiplexing business growth to €75 million, representing a 25% increase from 2024.
Q: What is the expected impact of VBP in China for 2025, and how do you see the immuno business growth drivers?
A: The VBP impact in China is expected to be €5-6 million in 2025. For the immuno business, growth is driven by a diverse portfolio, including Quantiferon, stool diagnostics, and infectious disease panels, with significant interest in our M product.
Q: How do you anticipate the LTG business performing, given the recovery in life sciences and biopharma segments?
A: The LTG business is expected to grow below the overall 8% guidance for 2025. We see recovery in life sciences and biopharma, with diagnostics representing 50% of the LTG business, providing stability against life sciences headwinds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
