Salem Salem

Salem Salem asked for an update on the timing of Scale technology integration, expectations for throughput and quality, and its potential to attract new AI customers.

Answer

CEO Serge Saxonov stated that FLEX APEX is the primary solution resonating with AI customers due to its scalability, sensitivity, and robustness. He noted that Scale technology is not currently material to revenue but holds great potential for future products, with details to be shared in due time.

Salem Salem asked about the structure of the Bruker settlement royalties and whether the recent strength in China is expected to continue into the second half of the year.

Answer

CFO Adam Taich declined to provide specific royalty rates but detailed the P&L impact of the $68 million settlement, with portions allocated to revenue and as a credit to operating expenses. Regarding China, he confirmed the Q3 guidance reflects the pull-forward but expects the business to return to its recent strength in Q4 as inventory normalizes.

Salem Salem, on behalf of Luke Surgut, inquired about the confidence in QIAGEN's Q3 guidance given tougher comps and the perceived growth deceleration implied in the Q4 outlook.

Answer

CEO Thierry Bernard explained that the company is building on a high growth base in a volatile environment and emphasized focusing on the core growth rate for Q4, which excludes the significant impact from discontinued products like NeuMoDx. CFO Roland Sackers added that Q4's core growth rate is not expected to be significantly different from Q3's.

Salem Salem, on for Luke Sergott at Barclays, asked for an update on Guardant's exposure to Medicaid volumes, if possible by test, and the expected pacing of any potential headwinds from legislative changes.

Answer

CFO Michael Bell provided a direct answer, stating that Medicaid volume is 'very, very minimal' across all of Guardant's products and even less significant from a revenue perspective. He concluded that any potential impact from changes to Medicaid would not materially affect the company's overall volume or revenue.

Salem Salem, on for Luke Surgatt, asked for more detail on the equipment strength, specifically if it was concentrated in filtration and what the main driver was. He also asked for the current revenue split between equipment and consumables.

Answer

CEO Olivier Loeillot confirmed that the vast majority of equipment sales are within the filtration franchise, comprising both ATF and TFF systems. He also stated that the current revenue split between consumables and equipment is approximately 70/30, and he expects the consumable portion to grow over time as the installed base of equipment expands.

Speaking for Luke Sergott, Salem Salem of Barclays inquired about the revenue capacity and expected operating leverage of the Dublin auto-injector facility, as well as visibility on backfilling former CGM manufacturing capacity.

Answer

CEO Eric Green explained that the Dublin facility is currently ramping up, with full optimization taking 9-12 months and drug handling commercialization starting in early 2026. While not providing specific figures, he positioned it as a key growth driver for 2026 that will offset the CGM device wind-down. He expressed high confidence in securing new business for the available capacity.

Salem Salem of Barclays asked about the sustained outperformance of the Technology & Analytics Solutions (TAS) segment, questioning how it defies the broader market environment and how its strength in areas like real-world evidence offsets weakness elsewhere.

Answer

CEO & Chairman Ari Bousbib explained that TAS revenue growth of 8.9% exceeded expectations, driven by double-digit growth in real-world evidence, which constitutes about one-third of the segment. He noted that clients are proceeding with new drug launches, and decision timelines have normalized. Other TAS subsegments grew in the low-to-mid single digits. Bousbib also highlighted that leading indicators for TAS remain strong, with improved win rates and shorter closing times.

Salem Salem, on for Luke Sergott, questioned the reasons for the slight dip in Revio pull-through in Q4, asking if it was an 'air pocket' from the Spark chemistry or Vega launch. He also asked what the new low-to-mid $200k pull-through guide implies for instrument utilization.

Answer

President and CEO Christian Henry confirmed there was some impact in Q4 from customers using up old inventory ahead of the Spark chemistry launch and a backorder on some application kits. He clarified that the 2025 pull-through guidance of low-to-mid $200k primarily reflects caution around the NIH funding environment and the timing of studies, rather than an expectation that higher throughput from Spark would create a lasting air pocket or reduce overall sequencing demand.