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Qiagen sees no immediate impact from global supply bottlenecks

Qiagen sees no immediate impact from global supply bottlenecks
Qiagen sees no immediate impact from global supply bottlenecks   -   Copyright  Thomson Reuters 2022
By Reuters

FRANKFURT -U.S.-German biotechnology company Qiagen NV said on Thursday it was not currently affected by the latest supply chain bottlenecks as it had already been stockpiling supplies at its production facilities amid pandemic-related uncertainties.

The company, which makes genetic diagnostics kits including COVID-19 tests, can rely on its existing supplies for a few more weeks despite bottlenecks due to the recent pandemic outbreak in China, finance chief Roland Sackers told a news conference.

“Of course, in the medium term, we are also dependent on components that have to arrive. But the lockdown, especially in Shanghai, must be resolved soon,” Sackers said.

“Thank goodness we don’t have any products now that are highly perishable,” the CFO added.

Qiagen’s COVID-19 tests had helped it to boost sales in 2020-2021 and recover from a tough 2019 with profit warnings, a slump in China business and a CEO departure, but it expects a sales decline in 2022 as coronavirus testing demand wears down.

On Tuesday, Qiagen raised its 2022 sales guidance, saying it now expected the figure to drop by 6% or less compared to its previous forecast for a drop of around 8% – the first decline in a full year since Qiagen has been listed.

The company said the reason for the upgrade was its stronger-than-expected first-quarter performance as investments in its non-COVID-19 product range were starting to pay off.

“The growth was driven by our very broad portfolio. It really wasn’t one particular product that we were able to highlight,” Sackers said on Thursday.