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Meridian Bioscience Fiscal Q4 Revenues Fall 14 Percent, Full-Year Revenues Grow 5 Percent

NEW YORK – Meridian Bioscience reported on Tuesday that its fiscal fourth quarter revenues declined 14 percent year over year.

For the three months ended Sept. 30, the firm reported revenues of $65.7 million, down from $76.2 million a year ago.

Meridian reported Q4 diagnostics revenues of $39.2 million, up 14 percent year over year from $34.3 million. Within diagnostics, the firm reported molecular assays revenues of $4.1 million, down 28 percent year over year from $5.7 million, and non-molecular assays revenues of $35.0 million, up 22 percent year over year from $28.6 million.

Meridian said in a statement that the key contributors to non-molecular assay growth were BreathID products, the addition of the BreathTek product line, and an increase in sales of LeadCare products that hadn't shipped during part of Q4 2021 due to a product recall.

Q4 revenues for the firm's life science segment were $26.5 million, down 37 percent from the $41.9 million of the prior-year quarter. Lower overall demand, primarily due to reductions in COVID-19 testing, drove the decrease, Meridian said.

Within life sciences, immunological reagents revenues were down 8 percent, to $14.2 million from $15.5 million, and molecular reagents revenues fell 53 percent, to $12.3 million compared to $26.4 million a year ago. 

The company reported Q4 net earnings of $5.7 million, or $.13 per share, compared to $6.7 million, or $.15 per share, in Q4 2021. On an adjusted basis, Meridian reported EPS of $.20.

Meridian ended fiscal year 2022 with $81.5 million in cash and cash equivalents. The firm also has $175.0 million of available borrowing capacity under its commercial bank credit facility.

In fiscal year 2022, Meridian's revenues increased 5 percent year over year to $333.0 million from $317.9 million. Diagnostics revenues increased 22 percent to $155.9 million from $127.8 million a year ago. The segment saw a 5 percent decrease in net revenues from molecular assays to $18.2 million from $19.0 million and a 27 percent increase in non-molecular assay revenues to $137.7 million from $108.7 million.

Life sciences revenues fell 7 percent to $177.1 million from $190.1 million a year ago. The product mix within the segment shifted from molecular reagents, which declined 30 percent to $91.8 million from $130.5 million, to immunological products, which grew 43 percent to $85.3 million from $59.6 million. That change was the result of lower overall demand for molecular reagents, largely due to reductions in COVID-19 testing and the shift from molecular testing to rapid antigen testing, Meridian said.

Meridian Bioscience reported net earnings for the year of $42.5 million, or $.96 per share, compared to net earnings of $71.4 million, or $1.62 per share, in fiscal year 2021. On an adjusted basis, the firm reported 2022 EPS of $1.38.

The firm also had $10 million in estimated legal expenses in 2022 related to a possible resolution of the Department of Justice investigation into its Magellan LeadCare business. Meridian noted that it has not yet reached a resolution with the DOJ but "continues to actively work" with the agency.

"Our strong balance sheet and operating fundamentals position the company well as we navigate the current macroeconomic uncertainty and establish a new baseline for the Life Science segment in the endemic phase of the COVID-19 pandemic," CFO Andy Kitzmiller said in a statement.

The company also announced that last month, it acquired select assets from Estel Biosciences, including intellectual property for the design and manufacture of recombinant proteins using an insect cell expression system.

Meridian will not issue financial guidance for fiscal year 2023 in light of its pending merger with a Korean consortium of SD Biosensor and SJL Partners, which it said is expected to close before the end of calendar year 2022.

In morning trading on the Nasdaq, Meridian's shares were down slightly to $31.99.

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