Forward Looking Statements - Sample to Insight - QIAGEN · · 2013-04-26UBS Global Life Sciences...
Transcript of Forward Looking Statements - Sample to Insight - QIAGEN · · 2013-04-26UBS Global Life Sciences...
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 1
Peer M. Schatz
Managing Director and CFO
UBS Global Life Sciences Conference
September 23, 2003, New York
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 2
Certain of the statements contained in this presentation may be considered forward-looking statements
within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained
herein relating to QIAGEN's products and markets and operating results are forward-looking, such
statements are based on current expectations that involve a number of uncertainties and risks. Such
uncertainties and risks include, but are not limited to, risks associated with management of growth and
international operations (including the effects of currency fluctuations), variability of operating results,
the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets,
as well as the nucleic acid-based molecular diagnostics and genetic vaccination and gene therapy
markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's
products (including seasonal fluctuations), difficulties in successfully adapting QIAGEN’s products to
integrated solutions and producing such products, the ability of QIAGEN to identify and develop new
products and to differentiate its products from competitors, and the integration of acquisitions of
technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has
filed with the U.S. Securities and Exchange Commission (SEC).
Forward Looking Statements
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 3
QIAGEN’s Mission
QIAGEN
is the world´s leading provider of
innovative enabling technologies
for the separation,
purification and handling of
DNA and RNA.
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 4
Revenues: 2002: $ 298.6 million 96–02 CAGR: 33%Net income: 2002: $ 33.3* million 96–02 CAGR: 36%*EPS: 2002: $ 0.23* 96–02 CAGR: 34%*
Product range: • Approx. 320 consumable products• Instrumentation• Increased range of in-licensed technologies
IP: • 246 issued patents, 201 pending patents• Over 400 patents under license
Customers: 400,000 scientists worldwide
* excluding one-time charges related to the acquisition of GenoVision A.S. as well as
restructuring charges related to the closing of QIAGEN Genomics, Inc.)
QIAGEN at a Glance
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 5
Academic and Industrial Research Market
Genomics & Drug Development
MolecularDiagnostics
Gene Therapy
QIAGEN’s Customers
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QIAGEN Products
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 7
BacteriaCellsTissue Blood
Roche BiochemicalsLife Technologies/InvitrogenAmersham PharmaciaSigmaPromegaNew England BiolabsBD ClontechApplied Biosystems
Applied BiosystemsMolecular DynamicsMolecular DevicesAffymetrix
Biologicalsample
DNA/RNApreparation
BioassayDetection
Building Blocks of Life Science Applications
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 8
DNA
DNA
DNARNA
DNARNA
DNA
RNA
DNARNA
Extraction of Nucleic Acids
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 9
Bio
log
ica
lsa
mp
les
Nucleic Acids/Genetic Information Format
Assays/Application
Bacteria
Tissue
Blood
gD
NA
SequencingSNP-Genotyping
Microarrays
tRN
A
pD
NA
Vir
al
RN
A
mR
NA
mt
DN
A
Oth
ers
Expression Profiling
Plants
Animal
Viruses
Others (Cloning, PCR...)
QIAGEN Product Dimensions
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• Solid-phase anion-exchange chromatography
• Selective adsorption on silica surfaces
• Filtration
• Magnetic bead technology
• Thin membrane technology
• Hybrid capture on latex beads
• Endotoxin removal
• Cationic detergent technology
• Dendrimer technology for transfection
• Over 240 issued patents, over 240 pending applications
• Over 400 patents under license
QIAGEN Technologies
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Labor
QIAGENproducts
Labor
Off-the-ShelfChemicals
Traditionalmethods
QIAGENsolutions
Purification Achieved at Low Relative Cost
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 12
Ma
rke
t sh
are
100%
TraditionalMethods
Competitors
QIAGEN is Substituting Traditional Methods
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Traditional method QIAGEN
Time 24–48 hours 20 –25 minutes
Purity Low High
Ease of use — +
Nontoxic reagents — +
Automation possible — +
Scaleup possible — +
The QIAGEN Solution
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QIAGEN
Traditional methods
Ra
ng
e o
f a
pp
licatio
n
Customer benefit
Commercial Competitors
Competitive Environment
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samples (autom.) 1 6 48 96 (>20,000)
EasyOne
$28,000
BR M48 - M96BR 3000
$40,000-80,000
BR 8000 and UHT systems$70,000 and up
ConsumablesConsumables
samples (manual) 1 6 48 96
BioRobot Productline
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ManualUsers 99%
Instrument Users 1%
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 17
Low Throughput DiagnosticsEasyOne BioRobot MDx
Growth Areas in Instrumentation
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75%
11%10%
Consumables• 23% growth YoY• NIH improved again
Instruments
Synthetic Nucleic Acids• Synthetic RNA increasingly attractive• Synthetic DNA achieved profitability
4%Others
(Q2 2003)
QIAGEN‘s Product Breakdown - Worldwide
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QIAGEN‘s Consumables Business
0
20
40
60
80
100
Q2 2002 Q2 2003
Others
Synthetic NA
Instruments
Consumables
Net
Sale
sU
S$
mill
ions
+23%
Consumables ConsumablesConsumables
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 20
Period
Gro
wth
vs
pri
or
ye
ar
calculated under actual currency rates
Synthetic DNA business achievedprofitability
Growth in QIAGEN‘s Product Lines
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Q1
2001
Q2
2001
Q3
2001
Q4
2001
Q1
2002
Q2
2002
Q3
2002
Q4
2002
Q1
2003
Q2
2003
Consumables
Instruments
Synthetic NA
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Organic revenue growth Q2 2003 at CER
-8
-6
-4
-2
0
2
4
6
8
10
PE A AM* BE M BR FS I* T Q
% r
evenue g
row
th
* Molecular Biology divisions Sources: reported financials
Revenue Growth Comparison in Life Sciences
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US/
Can Ger UK F Nor CH Aus JP NL Italy
Total
Q2 03
Total
Q2 02 Growth
Production 135 265 45 30 475 565 -16%
R&D 23 202 12 26 263 239 10%
Sales 210 132 37 24 3 17 16 39 7 485 472 3%
Marketing 39 42 4 2 2 4 6 1 100 130 -23%
Admin 84 105 4 5 1 12 4 8 4 3 230 262 -12%
Total 491 746 45 31 18 104 20 83 4 11 1553 1668 -7%
Employees June 30, 2003
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International Presence
L.A.
CanUK
DFCH
Aus
JMaryland
SFONL
I
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Rapid Change of Market Dynamic
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Entering the Next Stage: Functional Analysis
SamplePreparation
Sequencing+PCRCollection
Stabilization
SamplePreparation+ +
Functional Genomics“Understand the Function”
Discovery Genomics“Find the Gene”2001 2003 Future
Microarray (AFFX +33%)QPCR (ABI +21%)
GenotypingClinical
pDNAfrom
Bacteria
Low complexityLower value contribution of QIAGEN products
High complexityHigh value contribution fromQIAGEN products
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 26
Arrays
DetectionAssay
High Quality Samples lead to High Quality Results
PurificationCollectionStabilization
Microfluidics
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DetectionAssayPurificationCollectionStabilization
... and others
... and othersPartner of
High Quality Samples lead to High Quality Results
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siRNA is more than a RNA OligonucleotidesiRNA is an Integrated Application
• Exciting market with very high growth rates
• High margins
• Only four licensees worldwide
• QIAGEN with largest sales andmarketing force in siRNA
• QIAGEN has the complete portfolio with
QIAGEN transfection reagentsQIAGEN sample preparation productsQIAGEN qPCR reagents
QIAGEN pre-developed assays
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siRNA
Transfectionreagent
silencing
Microarray
Quantitative RT PCR
–
A P G TTY
Protein Assay
RNAStabilizationExtractionPurification
+PCR
+Probes
siRNA is more than a RNA OligonucleotidesiRNA is an Integrated Application
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MolecularDiagnostics
Research Market
GeneTherapy
Genomics & Drug
DevelopmentClinical
Diagnostics
Research Market
GeneTherapy
Genomics & Drug
Development
Market Opportunities for QIAGEN
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 31
• DNA & RNA purification kitsTransfection reagentsPCR reagents & kitsBioRobot 3000/8000/9600& consumables
• Academic research labsBiotechnology companiesPharmaceutical companiesDiagnostic laboratories
Research
The Present: Research MarketResearch
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Worldwide Life ScienceResearch Budgets
Worldwide Research budget : approx. US$ 100bn
50%
15%
35%Big Pharma
Academia
Biotech
Research
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Academia (~45% of total Net Sales)• budgets released• return to normal (delays in 2001 and 2002 contribute to cautiousness)• outlook for QIAGEN’s focus areas for 2004 encouraging
Pharma (~25%)• budget increases projected by companies themselves is significant• spending still low but signs of acceleration• good outlook for 2004
Biotech (~10%)• comparable to Pharma
Diagnostics (~20%)• accelerating and rapid growth
Academia
Pharma
Biotech
Diagnostics
QIAGEN‘s Markets Entering the Next Stage:Functional Analysis
Research
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NIH Budget Growth
Source: DB Securities Inc., July 2003
R&
Dspendin
gin
bill
ion
US
$
Gro
wth
in R
&D
sp
en
din
gin
%
Research
* excluding US$ 1.3 billion in one-time facility charges
*
0
5
10
15
20
25
30
1999 2000 2001 2002 2003 2004
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%NIH Budget $
NIH Budget Growth
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Diabetes
InfectiousDiseases
Oncology
FunctionalGenomics
CNS
NIH Budget Allocation –Shift in LifeScience Research by Focussing on Specific Areas
DrugDiscovery
NCE
Sequencing
2002 2003
Bu
dg
et
in U
S$ Bioterrorism
DrugDiscovery
InfectiousDiseases
FunctionalGenomics
DiabetesCNS
Oncology
NCE
Sequencing
$
$
$
$$
$
$Bioterrorism
Research
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 36
R&D Spending in Top 9 U.S. Pharma
Source: DB Securities Inc., July 2003
R&
Dspendin
gin
bill
ion
US
$
Gro
wth
in R
&D
sp
en
din
gin
%
Research
0
5
10
15
20
25
30
35
1999 2000 2001 2002 2003 2004 2005
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%R&D $
R&D Growth
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Labor
QIAGENproducts
Labor
Off-the-ShelfChemicals
Traditionalmethods
QIAGENsolutions
QIAGEN Technologies providecost reduction through:
• reduction of labor time• reduction of mistake costs
• standardised procedures• technology advantage
• ease of use
• highest efficiency with aportfolio addressing more than80 different applications
• automation solutions
QIAGEN reduces CostsResearch
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 38
time
assumed CAGRof overall market 10-15%
Assumed CAGR 15-25%
QIAGEN Share20%
Rapid growth expected for many years to comedue to substitution of a very large„Traditional Methods“ share
Traditional Methods
QIAGEN Opportunities in the Purification Market
Research
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MolecularDiagnostics
Research Market
GeneTherapy
Genomics & Drug
Development
Market Opportunities for QIAGEN
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a Leading Supplier to Molecular Diagnostics
• Clinical Laboratories
• Blood Banks
• Paternity testing services
• Clinical Research Laboratories
• Forensic and Identity
Laboratories
• Food & environment testing
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Molecular Diagnostics:An Exciting Growth Driver
• Market volume: approx. $2.5 Billion (2003)
• Rapid growth
• More and more tests available for infectious diseases, oncology,genetic testing, HLA, identity testing
• Critical need for standardized preanalyticalsolutions includingsample collection, stabilization, purification and handling
MolecularDiagnostics
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 42
• Standardized and proven solutions
• Strong product pipeline
• Unparalleled range of applications
• Extensive breadth of chemistriesand technologies
• Strong IP position
• Regulatory compliance
• Highly skilled R&D
• Sales & Marketing experience
• 10 years experience in MDx
• Very strong brand name in MDx
Proven Standards
QIAGEN’s Strength in Molecular Diagnostics
MolecularDiagnostics
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 43
gD
NA
Infection (HIV, HCV, HBV, CT/NG etc.)
Plasma
DiagnosticTests
Collection/Stabilization
Purification
bact.
DN
A
Vir
al N
A
Swabs
Blood
QIAGENAddressing Today‘s Needs in MDx
MolecularDiagnostics
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DiagnosisPredisposition
(screening)Monitoring(follow-up)
Prevention MonitoringTherapy
Gene expression
Protein expression
Mutation analysis
Translocation
Geneticmarker
Tumor marker Enzymology
QIAGENAddressing Today‘s and Future Needs in MDx
MolecularDiagnostics
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 45
gD
NA
tota
l R
NA
Bac
DN
A
Vir
al
RN
A
Vir
al
DN
A
mR
NA
Oth
ers
Infection (HIV, HCV, Bacterial etc.)
AssayDetection
Collection/Stabilization
Purification
Plasma
Culture
Blood
Others
Swabs
Tissue
Gene/Protein Expression ProfilingOncology, Predisposition Forensic, Identification
Others
QIAGENAddressing Today‘s and Future Needs in MDx
MolecularDiagnostics
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 46
m U
S$
Source: Roche Diagnostics R&D Day, 2003
0
500
1000
1500
2000
2500
3000
3500
4000
2001 2005 2013
Cancer, Metabolic diseases
Pharmacogenetic
Mono-genetic diseases
Forensic testing
HLA
Identity testing
Market Development in Molecular Diagnostics
MolecularDiagnostics
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Biologicalsample
DNA/RNApreparation
BiochemicalApplication
SampleCollection
DetectionAnalysis
PreAnalytiX
Integrated with Analytical Platforms
Direct Sales
Molecular Diagnostics
MolecularDiagnostics
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Biologicalsample
TaqPrepDNA/RNApreparation
DetectionAnalysis
TaqManPCR
Partnership between ROCHE Diagnosticsand QIAGEN
MolecularDiagnostics
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Nucleic Acids/Genetic Information Format
Bio
log
ica
lsa
mp
les
gD
NA
Oncology, Predisposition
Pre-natal, Others
Assays/Application
tRN
A
pD
NA
Vir
al
RN
A
mR
NA
mt
DN
A
Oth
ers
Gene/Protein Expression Profiling
Bacteria
Tissue
Blood
Others
Plasma
Viruses
Forensic, Identification
The PreAnalytiX Concept
Infection (HIV, HCV, Bacterial etc.)
MolecularDiagnostics
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PreAnalytiX‘s ObjectiveGold Standard for any Analytical Platform
DNAand/orRNA
AnalyticalPlatform
Roche/BM Abbott
Organon Chiron
Bayer Gen-Probe
BDGene etc.
PCR LCR TMAbDNA NASBA SDABiochip Southern
Doctors OfficeClinical
Laboratory
Sample Nucleic Acid Collection Stabilization
& Lysis
Nucleic Acid Isolation/Purification
MolecularDiagnostics
W W W . Q I A G E N . C O MUBS Global Life Sciences Conference, September 23, 2003, New York Slide: 51
PreAnalytiX
MolecularDiagnostics
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ClinicalDiagnostics
Research Market
GeneTherapy
Genomics & Drug
Development
Market Opportunities for QIAGEN
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•Industrial-Scale Products
•Other Services
•pAlliance: Valentis/DSM
Gene Therapy Products & Services GeneTherapy
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Academic and Industrial Research Market
Genomics & Drug Development
MolecularDiagnostics
Gene Therapy
QIAGEN’s Customers
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In $ millions unless indicated Q2 2003 Q2 2002 Growth
Revenues 86.3 72.7 19%
EBIT margin (%) 20.0 13.0
EBIT margin (%) adj. 20.0 17.0*
Operating Income 17.3 9.4 85%
Operating Income, adj. 17.3 12.2* 42%
Net Income 11.1 4.6 143%
Net Income adj. 11.1 6.8* 64%
EPS in $ per share $ 0.08 $ 0.03 167%
EPS, adj., in $ per share $ 0.08 $ 0.05* 60%
WA Number of Shares 146.7 145.9
* excluding charges related to the acquisition of Genovision A.S
QIAGEN Second Quarter 2003
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2003 2003 2002
Q2 Q2 Q2 Growth Rates
Reported
Constant
Currency Reported Reported
Constant
Currency
Total Revenues in USD 86.251.000 79.479.000 72.747.000 19% 9%
Consumables 75% 75% 72% 23% 13%
Instruments 10% 10% 11% 17% 6%
Oligos 11% 11% 12% 1% -5%
Other 4% 4% 5% -2% -8%
Total Revenues 100% 100% 100% 19% 9%
Gross Margin 65% 67% 67% 16% 10%
Income from operations 20% 23% 13% 85% 98%
Income from operations excl.
Acquisition costs and In-
process R&D 20% 23% 17% 42% 52%
Net income 13% 15% 6% 143% 152%
Net Income excl. Acquisition
costs and In-process R&D 13% 15% 9% 64% 70%
EPS in USD 0,08 0,08 0,03 167% 167%
EPS excl. Acquisition costs
and In-process R&D in USD 0,08 0,08 0,05 60% 60%
QIAGEN Q2 2003 – at Constant Currencies
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In $ millions unless indicated 6M 2003 6M 2002 Growth
Revenues 165.8 143.3 16%
Operating Income 33.4 25.1 33%
Operating Income, adj. 35.0* 27.9** 25%
Net Income 22.1 14.1 57%
Net Income, adj. 21.6* 16.3** 33%
EPS, $ per share $ 0.15* $ 0.11** 36%
WA Number of Shares 146.4 145.6
Employees (number) 1,553 1,668 -7%
Cash, Marketable Securities 63.2 57.6
Net Debt 53.1 52.0 2%
* excluding costs related to the closure of QIAGEN Genomics, Inc.** excluding charges related to the acquisition of Genovision A.S.
QIAGEN First Half 2003
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(Q2 2003)
Japan 11%
Europe 32%
Distributors + RoW 8%
North America49%
Geographic Distribution of Net Sales
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Operating Margin Improvement over next Quarters
0
20
40
60
80
100
120
140
Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003
0%
5%
10%
15%
20%
25% Fixed Cost
Revenues
Operatingmargin
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• one core expertise – one core focus area
• 80% of QIAGEN‘s business is core (rest directly flanking businesses)
• highest market share in its core markets
• focus on market penetration - not on breadth of product offerings
• standing between the challange of raw sample and purified nucleic acids
while analytical tools change, this challenge always remains
• very strong in clinical diagnostic marketdifferent growth drivers than research market.
• large unconverted market still using traditional methods, e.g. phenol.
Substitution is primary target – market growth provides upside.
Key Investment Considerations