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

Operator: Thank you. The next question comes from Eliza Garcia of UBS. Please proceed.

Eliza Garcia: Hey, guys. Thanks so much for squeezing me in here. Really appreciate it. So I appreciate there are kind of some moving parts in the Lab business and the open — the 600 open order that I think you have kind of given it could add incremental 2% to the topline if you were to kind of fill those orders. So I guess if you could maybe provide even like guideposts on how to think about what’s layered into the guidance or just an upside downside case kind of in the resolution of this, how quickly it could be or is there any capacity constraint in how to think about it?

Doug Bryant: Well, I think, it would be fair to say that have increasing visibility to the supply chain necessary to manufacture the instruments and it wasn’t by eliminating the entire back order that we got to the 2-point improvement in growth. It was to get it down to somewhere around $150 million or so

Joe Busky: Which was a normal level

Doug Bryant: which would be normal level if we would exit it typical year at about $150 million. So just to be clear, we are not — we are talking about probably an increasing close rate with boxes, which naturally would create a more back order. But we are pretty confident that we can observe the additional instruments as well and get back to a normal exit rate in 2023. But that’s not going to happen immediately either. We are improving and we have a little bit of encouraging news for the first quarter, but it’s not at the level quite yet that we are needing to be at. I hope that’s clear. Joe, do you want to add something?

Joe Busky: Yeah. So that’s right and as I would just add that, in the guide, we did not, just to be clear, we did not assume that the full backlog goes from $650 million to $150 million. We assumed that it came down modestly. It is going to take into 2024 to drill that all the way down to where we want it to be.

Eliza Garcia: Okay. Super helpful. And I guess just, A, could you confirm kind of, I think, you had said $350 million for flu, if that was — if that’s how the year shook out to 2022? And then you have been kind of pointing back to the TriageTrue opportunity OUS. How should we think about the high sensitive troponin test and kind of any updates around potentially in the U.S. as well to launch there?

Doug Bryant: Yeah. First question first I guess. To be clear, I think I heard you say the total flu is $350 million.

Joe Busky: In 2022.

Doug Bryant: In 2022.

Joe Busky: That’s correct.

Doug Bryant: Is that what she said?

Joe Busky: Yeah.

Doug Bryant: She stated that correctly.

Joe Busky: Yeah.

Doug Bryant: And then the second piece?

Joe Busky: TriageTrue

Doug Bryant: Oh! Eliza.

Joe Busky: and troponin.

Doug Bryant: Sorry. Sorry, that — actually I missed that. Yeah. We are at the point where we are working with the FDA to determine next steps with respect to that submission. And once we get through those conversations, we will be prepared to disclose where we are at. But right now, we are still working with the FDA.