Ad-hoc Announcement pursuant to Article 17 Market Abuse Regulation
QIAGEN announces measures to prioritize resource allocation in its Sample to Insight Portfolio
Venlo, The Netherlands, October 7, 2019 – QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) today announces measures to prioritize resource allocation to the most attractive growth opportunities in its Sample to Insight portfolio, in particular in light of a new orientation for its next-generation sequencing (NGS) activities.
The measures to free up resources comes as QIAGEN announced a new strategic collaboration with Illumina Inc. to advance the use of NGS technologies in clinical decision-making. As a result, QIAGEN has established a new orientation for its NGS-related activities that involves focusing development activities on this collaboration as well as expanding its offering of universal NGS consumables solutions for use with any sequencer. QIAGEN intends to continue supporting customers of the GeneReader NGS System, which is a complete Sample to Insight system for the processing of smaller targeted gene panels but has now decided to suspend ongoing NGS-related instrument development activities.
Additionally, QIAGEN is implementing initiatives, which are to be completed by the end of 2019, that include shifting its Global Operations organization to a regional manufacturing structure and expanding the scope of activities at QIAGEN Business Services (QBS) centers in Wroclaw, Poland, and Manila, Philippines.
As a result of these initiatives, QIAGEN plans to take a pre-tax restructuring charge of about $260-265 million (or about $1.14-1.15 per share after taxes), and predominantly in results for the third quarter of 2019. This charge includes approximately $195-200 million of non-cash items that are primarily related to the decision on NGS instrument development activities and comprised of charges for the impairment of software and instrument development, licenses, partnership valuations and other assets. Any related workforce reductions will be handled in a socially responsible manner with respect for affected employees and in compliance with local labor laws.
5912 PL Venlo
Frankfurt Stock Exchange, regulated market (Prime Standard)
Vice President, Head of Corporate Communications and Investor Relations
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