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Meridian Bioscience Fiscal Q2 Revenues Climb 30 Percent

NEW YORK – Meridian Bioscience reported on Friday morning a 30 percent year-over-year increase in its fiscal second quarter revenues.

For the three months ended March 31, the Cincinnati-based company's revenues increased to $111.2 million from $85.3 million a year ago. The results were in line with the company's preliminary revenues announced last month.

Revenues from the company's life science division grew 32 percent year over year to $70.1 million from $53.3 million a year ago. Revenues for Meridian's diagnostics segment rose 29 percent to $41.1 million from $31.9 million.

Within diagnostics, molecular assays revenues were flat year over year at $4.4 million. Non-molecular assay revenues climbed 33 percent to $36.7 million from $27.6 million. By disease category, gastrointestinal assays contributed the most to the diagnostics segment with $20.3 million in revenues, up from $15.7 million a year ago.

On a conference call to discuss the firm's financial results, CEO Jack Kenny said that the company resubmitted Revogene SARS-CoV-2 test data to the US Food and Drug Administration in March, but the agency requested additional data. Although the test received Emergency Use Authorization in November, Meridian is not currently distributing it due to concerns about its effectiveness in detecting the Omicron variant.

Meridian is in the process of completing additional studies and expects to finish them in the next few weeks.

The Revogene installed base increased to 375 instruments from 370 instruments at the end of last quarter, Kenny said, adding a new Revogene manufacturing line completed validation of its first line during the quarter and began producing kits for its Streptococcus test.

Kenny also said the company is changing its timeline for new tests submitted to the FDA due to delays in starting clinical trials for the Curian Clostridioides difficile immunoassay and the Revogene gastrointestinal panel. The limited flu season impacted trials for the Revogene respiratory panel, which will be delayed until the next respiratory season. However, trials for a Curian Shiga toxin immunoassay are ongoing and FDA submission is expected in late September.

In the life sciences division, revenues from molecular reagents were $40.3 million, up 7 percent from $37.8 million a year ago, and revenues from immunological reagents were $29.8 million, a 91 percent increase from $15.6 million in Q2 2021. The product mix shifted away from molecular reagents to immunological reagents as a result of higher demand for COVID-19 rapid antigen tests, the company said.

Kenny noted that demand for COVID-19 products subsided in the last few weeks of the quarter as the respiratory season ended.

Non-COVID-19 immunological sales were roughly flat year over year, CFO Andy Kitzmiller said on the call.

Meridian's net earnings in the quarter increased to $28.8 million, or $.65 a share, from $26.3 million, or $.60 a share. Adjusted EPS was $.66 per share.

The firm's research and development spending fell 7 percent to $5.7 million from $6.1 million a year ago, while its SG&A costs increased 35 percent to $26.1 million from $19.4 million. The growth in SG&A costs partially resulted from filling some open positions and the easing of COVID-19-related travel and meeting restrictions, as well as increases in incentive compensation, the company said.

The company finished the quarter with cash and cash equivalents totaling $76.5 million.

Meridian raised its guidance for fiscal year 2022, saying that net revenues are expected to range from $330 million to $345 million, with life science revenues anticipated to be between $185 million and $195 million. The guidance for diagnostics revenues remains unchanged at between $145 million and $150 million. Non-GAAP EPS is anticipated to be in the range of $1.30 to $1.40.

This guidance anticipates that life sciences revenues will drop in the second half of the year as demand decreases for reagents used in COVID-19 tests.