Common Shares

Market Environment

Stock markets globally moved up in 2019 after a weak year in 2018. During 2019, investors responded to accommodative monetary policy including interest rate cuts by the U.S. Federal Reserve and European Central Bank, as well as some additional clarity in trade relationships. Slower economic growth and geopolitical strains in 2019 caused uncertainties for investors but did not prevent brisk advances in stock prices in markets around the world.

Market benchmarks for the year were very strong. The S&P 500 index in the United States finished up 28.9% in 2019, while the NASDAQ Biotechnology Index in the U.S. finished up 26.8%. The DAX index of the 30 largest companies in Germany rose 25.5% during the year, and Germany’s TecDAX, of which QIAGEN is a member, improved by 23.0% for the year.

The molecular diagnostics and life science tools segment grew at a healthy pace in 2019. Expanding use of new technologies such as next-generation sequencing (NGS), liquid biopsies and gene editing helped drive demand for molecular testing instruments and consumables in research. Funding for academic and pharmaceutical research grew at mid-single digit rates. In healthcare, molecular testing continued to disseminate for precision medicine in oncology, diagnosis of infectious diseases and identification of rare diseases, despite uncertainties in reimbursement and government policies. In 2019 QIAGEN delivered 4% growth in net sales at constant exchange rates (CER) and 9% growth in adjusted earnings per share CER. QIAGEN sales grew among its Molecular Diagnostics and Life Sciences (Pharma and Academia/Applied Testing) customers, led by the Americas and Europe/Middle East/Africa regions. Growth drivers included the QuantiFERON-TB tests, universal NGS technologies, QIAsymphony and QIAstat-Dx automation systems, and the Precision Medicine portfolio. QIAGEN intensified its focus in 2019 to allocate resources to the highest-potential growth drivers in its Sample to Insight portfolio while improving profitability, enhancing shareholder value and maintaining flexibility.

Global Shares Listed in the U.S. and Europe

QIAGEN’s global shares have been registered and traded in the United States since 1996, trading on the New York Stock Exchange since January 10, 2018, after listing for more than 20 years on NASDAQ markets. The global shares also have traded in Germany on the Frankfurt Stock Exchange since 1997, and the Prime Standard segment since its launch in 2003. The dual listing of global shares on NYSE and the Frankfurt exchange offers advantages for QIAGEN, our shareholders and employees, increasing the potential market opportunity to attract investors, particularly those in the U.S. that can only invest in U.S. dollar-denominated investments, and enhances liquidity. Unlike American Depositary Receipts (ADRs), QIAGEN’s global shares provide equal rights for all shareholders and can be traded on either exchange, in U.S. dollars or euros.

Share Price and Liquidity

QIAGEN’s share price performance was mixed in 2019, declining 1.9% in U.S. dollars to $33.80 on the NYSE and rising 2.6% in euros to EUR 30.46 on the Frankfurt Stock Exchange (XETRA). Our shares continued to offer high liquidity, with average daily trading volume of approximately three million shares in 2019 (two million on the NYSE and other U.S. trading venues, and about one million on the Frankfurt Stock Exchange (XETRA) and other German exchanges). QIAGEN continued its commitment to disciplined capital allocation and shareholder returns. During 2019, QIAGEN repurchased 2.0 million shares on the Frankfurt Stock Exchange, under a program announced in January 2018. This program ended June 30, 2019, with a total of 4.9 million shares repurchased in 2018 and 2019 at an average price of EUR 32.0528 per share, for a total value of EUR 155.7 million (approximately $180 million) at the times of the purchases. As of December 31, 2019, the free float, which affects weighting of QIAGEN shares in various indices, was approximately 96%.

Shareholder Structure

QIAGEN has a global investor base comprised of more than 300 identified institutional investors, including about half in North America, about one-third in Europe and the remaining shares in the Asia-Pacific/Japan region. Members of the Managing Board and the Supervisory Board in total held about 2% of QIAGEN’s outstanding common shares at the end of 2019.

Annual Shareholder Meeting

At the Annual General Meeting on June 17, 2019, in Venlo, the Netherlands, shareholders voted in favor of all resolutions proposed by the Board of Directors, in many cases with majorities above 95% of the shares represented at the meeting. Shareholders present or represented at the meeting held approximately 161.9 million shares, 70% of QIAGEN’s approximately 230.8 million issued shares as of the record date for the meeting. Details of attendance and voting results are available at https://corporate.QIAGEN.com.

Investor Relations and Engagement with Shareholders

QIAGEN is committed to offering shareholders, analysts and communities around the world transparent, comprehensive and readily accessible information on our performance, strategy and future prospects, as well as our vision and mission.

Interactions with existing and potential investors continued at an active pace through 2019, with QIAGEN executives taking part in many individual discussions during roadshows and investor conferences around the world. QIAGEN hosted an Analyst and Investor Day in New York on June 20, 2019, attended by about 100 market participants. Some investors and analysts also visited our sites in Hilden, Germany, and Germantown, Maryland, during 2019. Approximately 25 securities analysts, based in the United States, France, Germany and the United Kingdom, followed QIAGEN in 2019.