Danaher (DHR) 22 Oct 202020 Q3 Earnings call transcript

Good morning. My name is Crystal and I will be your conference operator today. At this time, I would like to welcome everyone to the Danaher Corporation’s Third Quarter 2020 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. now call will to I Instructions] turn over the Mr. [Operator Relations. Vice President Gugino, of Matt Investor Mr. Gugino, your may you begin conference.

are President Thanks, under measures non-GAAP call Crystal. Matt Financial the Earnings. this today Officer. will on for available the McGrew, joining website, Blair, Good The section Presentations morning, President X, everyone call. and quarterly today our & Executive With and during Officer will this www.danaher.com, financial Chief the our Executive next and our section thanks Vice of November later us portion Rainer will and by provided all be remain our until A Chief the be Events I slide Form call, and required today’s quarter replay XXXX call. Regulation presentation of call XX-Q other of to Quarterly the XXXX. SEC audio our out on and our also call that archived heading to website point our like relating are supplementing would earnings until under the reconciliations on and heading any release, the G archived Investors third available of information Investors us the

devices applications available certain references and period-to-period financial results are also performance. more that regulatory supplemental will metrics only materials significant describe materials in the continuing relate and remarks certain Unless products company-specific describe references may to of from quarter in these are year-over-year which During decreases operations markets. impacted or submitted and otherwise increases year-over-year. year-over-year or to presentation, metrics performance. describe and have factors third certain in The for XXXX and impacted factors we the to to the pending refer approvals supplemental that additional noted, financial of We all certain all

our occur and including laws, in anticipate federal developments the statements may we the forward-looking These statements will believe that SEC they make to statements the do today. differ to results made except may we of or date any not call, as regarding a that from and by securities meaning statements, statements law. in of forward-looking uncertainties, make forth or will actual those assume speak statements of we update any any or are filings including subject risks set only within During that the the forward-looking forward-looking are and as future. we events These materially forward-looking required number obligation

to a the references its presenting of revenue result a size the are Danaher’s sales acquisition revenue over on overall and to core As revenue to period-to-period the call sales period like acquisition. Cytiva Cytiva With basis to comparing prior impact would turn Cytiva on core sales period we the includes Cytiva current the sales growth growth, that Cytiva and to I growth profile, including sales, historical core the of that, of calculation Rainer. to

customers presented challenges is executing and met and have Well, doubled core impactful cash and support performance a and third our Matt delivered opportunities team’s they turned the into pandemic, customers our on our to dedication stay community. global during of we the pandemic. focused as onset the the COVID-XX Since them for testament patients, good results the over morning, growth revenue, an our thanks XX% EPS more everyone. flow. This the mid-teens quarter outstanding than free adjusted in year-over-year to with strong We

the very symptoms for similar, further health in X-in-X B the but RSV patient a critical viruses are on patient results, directly and crisis this update Flu continues our recent rapid from clinicians in testing this to like provide I’d by differ help we demonstrated sample. So, of COVID-XX. fight global best launch you A, a diagnostic the minutes with how approximately be Flu to contributing single global XX leader treatments to run before combination effort tackle to commitment against test answers third quarter we the tests to a and the ensure greatly. through Cepheid are The And the global of these for will was COVID-XX, each team’s outcome.

of symptoms progression. antibodies consideration appear as Coulter to IgM risk to can over flu rapid greater innovative identify intubation to Cepheid’s in a further of proud Cepheid enhanced fast and head The testing severe to which be season, with as IL-X the we testing and critical test with X-in-X crucial IgG diagnostic assays. Now, inflammatory help will we believe IL-X of serology tool a the patient’s The assay patients, infection evaluate We our ventilation. and into develop serology pandemic. clinicians typically after the complimentary providing virus, Diagnostics’ team’s it’s shortly insight we response tests, immune in mechanical new Beckman’s and the assay IgM course a the IgM capabilities incredibly response Beckman clinicians COVID-XX detect arsenal easy-to-use and can begin are

post-vaccination While antibody the testing role future, surveillance limited a in it relatively pre use today, population critical and the for and play trial clinical is may COVID-XX of studies.

of COVID-XX support of vaccine and therapeutic new the for projects more We Cytiva’s vaccines currently including therapeutics every and scientific virus. vaccine the are than globally, community’s are Speed U.S. also XXX the Warp in and in products involved pursuit solutions Operation proud the Pall and majority underway the to

that leader and of vaccines the and production market to contribute the offering expertise to and bio-processing differentiators key the meaningfully treatments. technical workflow, the breadth COVID-XX development across enable our are us As of

growth. improvement quarter core approximate sequential in by America underlying XX% of now, base was mid-teens approximately business basis So, Europe. a India. up take $X.X quarter developed North X%, were improvement the by – at points revenue core markets was and growth, growth the Western revenue China markets Geographically, XX% to in up second was in results. up an sales from a sequential led our X% approximately approximately approximately and High decline third with tailwinds up third let’s quarter. X,XXX driven look billion contributed revenue revenue while our COVID-related generated We

Our our gross profit operating XX.X% profit points. was was basis of margin XX.X% up and margin XX

of was year. generation, XXX and quarter. flow XXX% basis the the to points, per billion were basis and us cash segments year-to-date, outstanding cash the more respectively, our combined margin core of each with XX positions Our We core margin strategic free actively in opportunities. XXX% common up of earnings conversion cash XX% well up with quarter income versus $X.X M&A flow achieving pursue net strong net with $X.X balance in generated up to sheet, This flow last XX% share profit diluted points or of $X.XX operating Adjusted expansion. three billion free

driven to Danaher, capacity COVID-XX. on a and continue at across investments organic support also particular accelerate growth to Cytiva, We focus increasing demand Cepheid, with Biotech expanding by Pall production

So, detailed at by of core results at growth more now, IDT. Pall or Cytiva led and look rates portfolio. let’s a more the Sciences Life and our XX.X% at Sciences, up and Beckman XX% across XX% core than Life Biotech was take revenue more

as more driving declines and continuing demand automation genomics research COVID-XX our science from biopharma to revenue the achieving labs installations are low XXXX, see core reopen, Triple better environment on the benefited In capabilities on moderated MS and increased their the by spectrometer and out and most part customers this strong and trends. building vaccines Quad order the demand as We driven Echo improving life therapeutics. in to growth our mass products, academic sensitive businesses, customers instrument-oriented single-digit SCIEX for and from market. continued from such new working

and than revenue more up Leica XXX% core procedures to and Cepheid continue XX% pathology mid XX.X% GeneXpert quarter. led record at diagnostics, resume placements. and reported by testing at result wellness moderated core checks over volumes our Moving was businesses, revenue as to and throughout Radiometer System a revenue was care COVID-XX up the elective acute growth Declines Biosystems, and growth. single-digit as Diagnostics Coulter Beckman delivered core of

and Solutions quality industrial in and the Applied chemistries X% Demand steady, driving back Moving were water water got to our municipal core at continued quality businesses, activity similar more identification up revenue product North as projects and facilities were revenue end-markets to running. with encouraged for and by platforms. consumables softness operations in our we by offset in our America down customer’s quarter segments, order Across and and our declines China and growth was reported Environmental both supporting results and this resume water customer equipment equipment globally. remained mission-critical trends day-to-day the and moderated &

and food water the data through combined our during bring in services collect, and the globally Hach expertise, operating quarter, of demand of workflows. capabilities Videojet product in Informatics, analyze beverage Informatics driven will particularly Aquatic customers’ to Consumables low a leader continued Now, across closed customers end-markets. us Aquatic the solutions. these the core growth pharmaceutical deep their water-focused operational Videojet strong volumes identification keep packaged help large platform, greater efficiencies performed At manage at applications Hach’s with and to acquisition consumer businesses Solutions goods, essential was single-digit North America, help and well as pandemic. and revenue by software

trends phased Now customer we the Europe saw continues and end-markets. let’s across during regions. by quarter, re-openings activity take for with these segment the at proceed our look in that context U.S. across as what to a as recent Geographically, increase

Sciences, regions well setbacks comprised in material is bio-processing We businesses and continues demand we more bio-processing healthy our increased scale over And of are levels. in way, the related have collectively development pace. and have keeping to approaching reopening, XX% the last increased the what impact during areas the accelerated an activity Within our across in orders and far. of but offering activity on an process so Non-COVID at by occurring driven the progressing several quarter quarter, exposure Pall meaningfully bio-processing recently and remains experienced Biotech any in by COVID-XX with Life and workflow. not the eye bio-processing that pre-pandemic saw therapeutic comprehensive activity these quarters. Cytiva line than seen of with we lead most China vaccine with production most

we labs reopen XX% one capacity now mentioned people are as academic that open And China, the that to closer Now, I approximately the pre-pandemic levels. to as the research estimate in reduced any at labs to of number at in XX% capacity. of measures are time limit some academic and is number around world distancing lab in social continuing and earlier, allowed research

consumables to treating installations remain testing much systems million resume wellness and order continues market initiate volumes base also past number seeing to more of water third and as Europe capital global point-of-care delivered business the through by record molecular settings. X shipped to Moving continue labs, of elective first ahead XX% across markets. in In consumer the procedures America increased tests fourth that project another quarter than The to launching packaging cartridges their testing and see in we equipment to safely of patient the clinical installed we our production expect and estimate for investments. million ramp new customers delayed Since China the meaningfully products. and its reopening. checks year. and the lab customers test leading and the molecular of like now XX% Cepheid global equipment over applied patient more than We team March, rapid as markets, with hospital improving test has developed approximately production North hospital and strong COVID-XX the start quarter are reference solid to quarter. volumes books capacity sustained the tests in are diagnostics, X and increased third earlier essential to Across in for operations and levels, both as are given in demand starting new slightly pre-pandemic quarter. currently and resumed ship medicine Previously food, Cepheid expanding XX% we

saw versus a year, of the COVID-XX low X the of So the to revenue revenue core quarter. represents expect tailwinds across than to anticipate what by fewer as growth in points. fourth which be we more third last in quarter, ahead, look days we will we businesses related growth XXX sequential selling We modest our similar basis headwind deliver will be improvement double-digit offset core impact

our we pivotal in a up, to and results proud pleased wrap are to play are we really COVID-XX head So this with quarter on. tackling role

testament has to to unprecedented a team focused is into associates tremendous commitment Our challenges opportunities execution and our turned and customers. our our strong performance

the combination driving talented to businesses the strong of and With system XXXX and powerful and through Danaher future. our remainder as our the into we the believe will sheet, portfolio balance exceptional Danaher business of of team, outperform continue force well

CEO. to month Now, before as on few the Q&A, go to just my initial I share moment to thoughts I after take want a a

and really team more happening our few last a conviction reinforced the of in knew amount I and portfolio as of that organization. spend I exceptional had things the leaders. of One First, opportunity And had out. businesses always innovation to have stand time with we and over the the extraordinary has an considerable so, across more only been couple is doing months

continue investments our in us and to Our competitive businesses. building R&D across are sustainable allowing advantages commercial all initiatives

other me is and talent The we depth the Danaher. standout the across have for caliber of

innovative it system I of Danaher to we continuous business do. ultimate see do It’s passionate and our we and we what And our DBS and is It’s committed the associates advantage. are everywhere. it. Our clear culture their well, about what improvement. how who and It’s that drives are. It’s alive work competitive

outstanding that innovation, I the team by to an the will even excited strong is stronger building of company better, bright lies and move Danaher balance forward. keep powered I investments all enable Business us future sheet am and our for about what we and So, combination as believe ahead our System, Danaher.

I the Matt. that, back over with will to turn call So

Thanks, Rainer. That formal concludes for we Crystal, our are questions. now comments. ready

Instructions] JPMorgan. Your comes question [Operator Peterson that line you. Tycho from first with the Thank

quarter. and a on certainly Cytiva Rainer, notable acceleration from growth Congrats morning. good quarter. in the order Pall Hey, last impressive XX% was

the So, you where could touch manufacturing capacity additional you are you making investments? quickly on maybe can those to online come alluded and and how just scale-up

Sure.

all, question. Tycho thanks of good first So, for morning, the and

breadth the to larger second our think and vaccines about unique the particularly it one I the helpful be might and portfolio. in As therapeutics, of the scale think about here, opportunity and just backup

solutions. the We filtration are course process and management of companies the of upstream involved scale-up, through but culture with then incredibly bioreactors fluid many solutions, Pall Cytiva, upstream also of the actual development the being combination the all course themselves. of and media, and single-use And the including our then well-positioned chromatography in of cell downstream drugs

capability think over XXX that really are we that of portfolio and great and teams of gaining And the and saw moving playing are forward up and that top pipeline one there of you what well so here, capacity those are on or majority in quarter-over-quarter and the I breadth the of step was we in traction, vaccines in the those therapeutics another.

extraordinary nature of trust the of number in the us add-backs. portfolio, focus the so, our And our us have the of that customers teams, is giving an

we as think very that forward, as of you officially and COVID-orders there about just certainly positioning that, $X before to year-to-date continue give FDA. have think And ‘XX portfolio to combination here, sense to needs Biotech. of been customers well by have we so as and going about $X well you Pall Cytiva we and approved billion ramp, think And that a the any billion, our of we that’s the over expect vaccines of the capacity in beyond, very, play

extraordinary here capture So forward. again, and an opportunity for really of term really we see opportunity going share to an long amount the

headwinds a And I the trends are committed needs standpoint? to think flu guys of year? for from and X next to up you you question maybe know go still Thanks. tests in I about a need we but about the fourth talk a here have capacity Great. about you on you can on flu fourth light. The from manufacturing lighter million early kind quarter there scaling and where the that to Cepheid. talked early you season think any in similar then And quarter, guess been

had our just demand one, tests we from COVID on So. for Tycho, level set to that here have Cepheid. extraordinary

positions shipped. million September, the in uniquely as and the this in QX my And QX, million at in at need X-in-X you and had extraordinarily now the noted million at in shipped; of we opportunity are in X in fact, arrives. X address really X test, to shipped; end time, launched same tests to tests looking which tests comments able particular us order flu we also season QX, the be here the we In that and

distinguish as As right can know points and right care, COVID the and physicians that between of will answer imagine, to needs in the particularly quickly to flu patients hospitals you answer want and present, season. the

we really both go we COVID as So thinking of as season and the beyond. flu are being tailwinds testing this QX and into

some around to maybe for And put you. just that numbers

So, we to about we capacity And of as the capacity as sort call of X it closer be to if QX. QX, you in Cepheid, here this, And sort well. in adding million. QX to had. that expect of that to X talked about tests going That go we sort ramp of through we X about think increased additional to sort we are in ‘XX, million at to maybe begin had million that we

not to little QX But we as that are when we yes, Now, come in exactly people sure, keep going and for bit add updated. sort happens, online, throughout will to of that am sure of well. XXXX of as expect I we all a kind here then but

I’ll thanks. off hop step Thanks. and in. others let Okay,

from Bank Derik question with of comes next Bruin the of America. line de Your

morning. good Hey,

So, just to…

Hi, Derik.

I on to calls are Follow-up from have hi, X-in-X I on you thinking investors. – when follow-up some done am we is Can sort of some just of get pings these some I reimbursed tests. going And some mean, about pricing there for labs, these? for test? question, how and your you for are getting customers think the like paid on strategy with just multiplex How talk Tycho’s because about – of they to what’s get sort through what to concern pricing is the

sure. Sure,

that. for test customer have with, this are And we great off fact we shipping. already X-in-X are in and just that start let’s launched September So, set seeing demand in to here level

is of diagnose really and help customers care able are and the to hospital, be tool to point recognizing customers. incredible So, what this at an

type the of be it. of gives But that $XX. customers. depends on you course, a and test of here to $XX But of $XX customer to always so compares the the to volumes Now, – around $XX X-in-X depends and type Once test, and, again, sense COVID-only and this that of right priced this forth. test about the will per on

a reimbursement for we good perspective, Now, from of feel this reasons. very about number a

already X-in-X for multiplex multiplex tests to patient. what respiratory to is – the test and as of the be be useful they is test there for will type for and used all And then type think that suitable As time. so, about that, particular clinicians so are today a are that ailments going treatment used being you determine

And we dynamics here the so, very customers to as issues it the don’t our familiar see reimbursement relates any that are see with multiplex Cepheid test. X-in-X and

Great.

about Derik, higher to give as like a on price that that sure talked a just obviously, of sorry just we to that But of on well make context, it’s you we will numbers little about. think some got that, online. on we when level on bit maybe come X-in-X, how set kind point,

So, other XX% you the test of really flu. that you the think QX would adoption – when one, think that of I about because maybe be be to XX% high staggered X-in-X. And in about about of the don’t kind I kind and going experience think growth to think COVID-only. QX, that markets in And be seasonal going producing our have volume is we then got way thinking the COVID-only, are still is to –

It any. the high it not kind to not just And for demand if be by be like a staggered as in uniform be is more it’s is going to to is be going U.S. be of the might going going country adoption. that country, of to Europe So,

way be about split think to a would modeling that think maybe perspective, from just So, I that. about the

me I follow-up guess – well, the something on one And that let – on else. Great. actually,

SCIEX look like signs does little academic going? can a fourth dynamics is really any sort but like – sort the, of pacing mean, you talked quarter talk bit basically guess, like? what in I Just increased about potential what and of there, and terms of so, you spending environment I any labs? talk activity what mean I you sort the is the of flush? market customer budget – are about And of, and the see in and being the about sort of labs like end spend open, a just

Sure.

pick So, have Derik, lab up. activity seen the around world we

and we to we see lab improvement, we would or mentioned, say is level. America saw which XX%, North at and nearly China those And capacities As I Western sequential Europe, in XX% see that. a pre-pandemic at we at about

and some forth. to And see so now we systems, so, in customers limitations, measures so But install social our services teams as able to the to get are I distancing the related see provide to and earlier, mentioned capacity forth. the still

important market, instance QX. Triple in also Triple extraordinary our recently low-single said XX%, Echo high already powerful the market. driven confocal that, was driving a SCIEX versatile of grew QX, tools in that for is that. Sciences, confocal on and certainly Quad most the having that’s product has we spectrometers that tool most which microscope launches IDT which in of Stellaris, we the for are that. throughput at launched great Now, had digit And happy Life microscope, mass Quad front but seen is seeing I Beckman about business for our used is Leica which launch very uptake. new The incredibly drove positive the actually MS, by a Microsystems, for the And the were the – which an And then us the growth in and XXXX, that. mentioned been That uptake screening sensitive and customers, by

have of combination us in and install product future. the labs been invested also get these certainly But too think in and this being buffeted improvement I able aggressive the for provide we marketplace, to introductions that being more by been here have So, helpful. new services, we has sequential accessible, in

very you Thank much. Great.

question the with Scott Davis line of comes from next Research. Your Melius

Scott. Hi,

Rainer. Good morning, Good morning. Welcome.

Thank you.

you wants than do on predecessor, differently? differently to kind to anything board focus the Anything your of Rainer. Hey,

getting associates all this here QX. the opportunity great to over question. a transition Danaher the for months they the to that and is That Tom thanking me and like great start the here with right now, take for to have Board And fantastic is provided and also a what start me last I off out would in

a decade, course, great of with our there and And deal for So, consistency my have that, and expect with worked on laid the foundation science build making see a innovation. board, Tom to that topic will fantastic very have for and Board. And about and what you is and and passionate sure. the is course, you us continuity I of of a I stronger company, that also the of can am technology plan, Tom

You that heard today as well me already on comment as talent.

see forward And capabilities, to we here chart so, scientific continue you quite our in be talent, course company. and a will our external, internal and continue those in our science technology investing significantly us here in leading innovation to as or whether as

then we – some and also be how to similarities, a and when Now, relates on couldn’t closed innovation stronger, situation find deals, equity to as with company a initially and, have a Danaher. which in make change performance that, I some will balance us our more deal, see role, the expected Cytiva’s mean, ourselves this add that, and having free to continue that’s And is a and that cash had can all and I as team more you be the here after flow capital rebuilding. smaller is just the I we stronger transitioning to raise our with is And And particularly, part the move pleased Cytiva expect even I us said of with focus we to into better started continue the you allocation perhaps certainly, of sitting where really with great ability bias, forward. growth the that sheet, making situation freedom. on no here degree being than would put it we one, we to but just thought M&A

so being a M&A us sized able then and stronger back forward, And also do position into strategic and puts perspective get as go we position in to quickly. an from medium of that certainly deals, pretty small a

not guys or Rainer. us helpful, should material help sized I Maybe of type deal going could if expect the that That’s you that’s am understand you Is Aquatic forward? that. we sure not?

it’s yes, and little a million you it. on of for mean, is Scott, bit a call at water the Rainer Informatics, color in us. size a about of deal $XXX deal. it. can can – sub-$XX this for But give I type talk pretty I $XX a in the profitability, So, mean, million and it’s deal, to kind it, deal million a small little I revenue least

So, huge. it’s not

is to that it But deals exemplary we of new. It’s nothing continue like. the

seen us Informatics like portfolio our that deals out and strengthen here round do and have we You technology Aquatic and positioning capability.

So, certainly, types smaller see deals you will more and a that consider of we of those one.

you wish Perfect. you Well, Rainer. good well. luck to We

Thanks, Scott.

of line Schenkel Your next the from comes Cowen. question with Doug

Hi, Doug. Welcome.

with levels on. associated going durable post-pandemic, just view to the today you post-pandemic much thus, we balance believe outlook placements those, opinion going to acute desire about do mean, first given guys. build out. even a capacity do used demand our the think the to future with the and revenue do placing least should Hey, good durability you be be this the morning, capacity I build for the elevated of the being the guess along continue lot building what’s question Thanks questions. But well demand are to for They those fulfill vaccine used these foreseeable revenue I even pandemic your get at the to for taking potential? how are I you point, back Tycho’s and in can be I people to RX in as associated on as the demand? out as subsides? you And more development GeneXperts of lines, same How after post-pandemic the related want are surge today. to and topic guess to you pandemic-related on go will

the look like broaden through me that higher been investments, base about or what start that we degree would world post like here. like transitioning bit is a we hear the the to with made the our we already do world And looked it. and to and pre-vaccine of it does to long-term have to think even I recurring for And let What call – take portfolio is, how and Doug. the business, you revenues. moves growth the your pre-COVID, what higher a versus question way Thanks, Danaher frame with profile have vaccine a let earnings

X% about that time, digits that point, our your and good grower. going thinking, very feel were as were to the in point even to to would Cytiva we And were X% we this at X% it’s low-double that diligencing with growth so, we a profile portfolio. about X% pre-COVID be yet, had we we to Cepheid grower. a included X% close that And of didn’t where representing already at we the about at growing although own And

we are top in a breadth XXXX, our with and with portfolio at And in see that, approval. the the actually getting believe recover in so XXX in an vaccine increase improve. this, to what both needed back media, there as care, including the going that that we in this because to of investments, culture some potential point, that? that and easy, leading up are is think see why point revenues of this XX% business we XX% receive over are innovation COVID, of to testing Because then many just So, as because the might improvement. prior workflow now base your menu bioreactors, most a all, of in off we it chromatography also of mentioned picks pipeline our some about seeing we single of and extraordinary backs it see capacity positions unique. earlier, and are think the filtration with over to be type marketplace. our of more. you multiplex post-vaccine Then you our growth But the Cytiva, as and really our many have which we And are increase will use for the for is talked more you paying start will care to on represent will of installed really activity Well, and add so durable then the low-double-digit we our we point the ultimately with base, that I world, Cepheid, technologies, first which is markets really we therapeutics we year that and the things, traction independent continue now core add about improve positioning of long-term or future, process the even of these cell as that vaccines increases add XXXX,

we our which that long-term that lastly, And the think you biased really was X% M&A. and see conservative, strategy as X% so, well. there capital for prior here think we to the that growth allocation pandemic assumption to high we likely toward Then had that can single-digit is

profile. growth in growth positioning really And going believe result of top that do aftermath of to higher our the on the is of a of the add You pandemic we that profile that here. in a our as result all durability and

government Now, there’s macro of of taxes, lots a in to terms things risks, here. of of are number consider there variables think spending, here

is to here forward. little But what it’s see be growth more and we So, profile conclusive. here stronger fundamentally going early durable a bit

Super one Derik’s think, helpful. of And was one more it quick on, I questions. follow-up then just

Just are keeping neighborhood end it ratio to to pretty down business position has debt-to-EBITDA strong your by the get this year. clear your that in in a been this Xx of year, mind seems the going in how of you be

for everything given on? a demand your just clean, But last is going You ton is infrastructure. is in there answering – referenced How M&A of M&A balance here question. organization on that’s the sheet ready my the but

you. just wondering would your now? am readiness you I Thank how right characterize M&A So,

great question. It’s a

firing only provides just this that the transition be right Biopharma we Danaher, that speaking think EBITDA extraordinary, continue is extricate not efforts transition also of you up they that cylinders that to services in numbers I good that are with current from the debt there. are sheet, and there, balance sheet real now our that Cytiva, those the the we organization neighborhood in the the balance the are to say, and based we us our would and ourselves and GE standing business, pleased and flow in free on GE a all, making see more results but see progress confirm the are there cash we couldn’t we First in all I very position. could on profile, of into

So, we leadership that always, that we generate, opportunities take can the and to capacity management the at that Danaher, maintain ensure we provides us, market advantage of.

able ambidextrous And eye market and our – and that, and keeping Cytiva doesn’t that being of to that complete from take take opportunities here Danaher into with advantages so, while we keep advantage provides. transitioning are the being nearly us

again. Thanks great. Okay,

Evercore Your Kumar of next question ISI. with line from the comes Vijay

on no I contribution played a of I but out, trends a perhaps Congrats is Rainer, for here. a here was guidance timing and out step accelerating. flesh Is Cytiva, our or strong at looking XQ which about steps quarter on basis Cytiva perhaps down maybe am so look modest the question QX at the guys. of Q a order XXX in talk in how points orders? accelerating Hey, element really surprise, why the which Maybe contribution implies Cytiva. that here, context down the if

to Vijay, good and Thanks, you. hear

So, producing less, to did that, the we growth expect said consumer-oriented But in expect about important back and already that similarly these companies vaccines. earlier. helpful in to if been bioprocess really back that It’s three what continue QX, perhaps keep for from it’s QX think and impactful it particularly similar QX to you working are was we a is we days talking come see And Matt incrementally today, calculation. that’s we the important industry businesses or better. had our as having COVID to mind in up base the and about perform business in tailwind Cytiva, to to

are speed government. are see financed BARDA clinical think this And involved, that hopeful producing oftentimes vaccines operation near biopharmaceutical is vaccines of course, – and you and see only if up very So, companies not therapeutics those ramping they they that about approval and work the is for. for they capacities to already where trials are federal quantities, through the

there’s so, there. of aggressiveness And great a deal

at back we the to first then approvals hopeful there fourth quarter And will so, end and see end that of are ramp or here as and in, coming you quarter, start happening then additional the QX. And happens already that that in an expect also the in I well. see QX of at would the as that’s

kind of Pall year-to-date maybe The sort of gotten, are way is probably of that booked, north Vijay, have as going context Cytiva XXXX, just those we are to that some XXXX. billion around a have that of those $X have in and orders talked are of are we between to but COVID it, orders Biotech. rest I about that orders about mean, move ship XX% already we to think going here the got to

sort P&L, to just that to book played give of was it’s of like order about. idea out move going how Just through its talking you and Rainer some is way the

Rainer, follow-up That’s helpful, the that, more you order Matt. spoke book. one on about

you. mid-XXs, Because am up, we trends. As investments? strong vaccine assuming you the should incremental been economy am incremental levels manufacturing well do incremental two I need above up as and make spend to just reopens. quarters, historical here. really It’s be about the ramps about steps And thinking Thank travel margins? I How margins thinking last

Yes.

I So, Vijay, and start here to I on will it Matt. pass will then

we are to and all, first expansions. absolutely of continue in So, invest capacity

up that were in jump And our were the will additional continued has to about brought as we well. continue you And to investment, as also company then – QX, XXXX, are, into the that. assumptions go margin expect And in I that Matt, at see the think, and organization. you related to in of of expansion out we Danaher course, plays course program just you on that. that standing investments accelerating as capacity are capacity certainly Cytiva we fact, in and related the here into In but fold can

think Yes, for I you Vijay. are QX, think I right,

have had sort on through really We QX, fall the of QX, growth. good have seen we

that think think are the kind QX rates. the have is as to And businesses of number of, probably come a QX, more, Cepheid. where mix And contributing OpEx bit through saw travel the I now Like it. impact. some we a mix, Things sort talked again trade sort and that’s said, look you some you XX% are of as look are a as XX% less certainly use. from growth Pall we and going QX. do at growth’s the about then, growth to at in from think good and on And lower going to and we and of QX think in better have really really, is we where a Biotech, of Cytiva a had are getting as about though, I Rainer other of that mentioned, we we fall then part to going you I spend show accelerated with come the

We already we some have projects have that got got underway.

you for of will, and have example, accruals, frankly, are have be in, an – a a will on year-over-year us. there impact sort outstanding for it. I pretty the Cytiva, we if It going think to headwind seen that some have of some will for things example, year-end got And growth we Cepheid, probably bit some around be that. on is where growth bonuses we like and of lastly given

have into we up as to it get where EPS put So pretty bit moderates been, think little going still that, are feel with think I here, even able QX still we growth I we from probably good some to here. a but be

That’s helpful Thanks, guys. context.

UBS. question next of the Dan Your line from with Brennan comes

questions. Good morning. Thanks for taking the

the outlined So wondering Pall kind I know can vaccine raise of for little or for plus if opportunity the addressable just you magnitude $XXX and the development of and your just vaccine a of help I Cytiva therapeutic ongoing. and you us just ultimately the that’s up scope opportunity therapeutics think higher million through just business, given kind bit biologics for like so or am the

how the therapeutics is you market got you out for that look addressing kind as nice you it’s big of that we So, to in hand, related the and orders COVID? vaccines feel both but are

are just a vaccines. Dan, that’s of that of so and let It’s little background different a And to me bit a question. this on great remember little there bit topic. very types refrain give important

very solid makes that still defined number projections, pretty and challenging. unknowns are here a there fact, In of

seen a recently derail of kinds the there given, which more with J&J around FDA forth, these through You and any number get to these that very and therapeutics and are approvals with we are including that vaccines of ultimately Lilly think questions know line. and rigorous that time go we given the wildcards, there at close companies can these and adverse are approved is have lot processes efforts are not reactions that so finish of

“winners” very important So, approval, it’s to the is prior really future difficult. to are what picking understand that

in other that The thing is ways. different that’s these very produced also are hard vaccines

is as of the materially in there terms similarities, required a you that example, that batch can per inputs are they the important by of get of produced very and for magnitude an production. very, amount of of doses are number which any While are how orders change kinds

much annual We like doses. also we it number is influenza, are it of shot to have one-time needs, Is to around an questions that the be injection to of of degree great see kind there a in that of make. estimates of or get discussion a a booster affect questions population life with going lot and then be accept ultimate for the of these and everybody use going a actually big what type that order them to will immunity. to deal lastly, get vaccinated And about that is vaccines herd you any goal course for

what see very having a but the certainly so, get very, helpful. in the doses, year what there. whether booster next good will it’s we highly it’s sort coming out prior feel very we about that, the that to at start to hardcore perhaps Matt numbers, of get orders, so much the about seeing positive said $X become we the And and number or or as we data very come tough. we defined clear so, holds trials, said, billion approval, look have see year-to-date here back quarter you come and we picture know thing. to I to more were closer this approvals that of to the will shots But and clinical we next in again And that are that we future that see if required as So, month – challenging then here FDA in down

that X today for the of we end third too, got remember quarter. the billion have that and of as Well, that, is orders Dan,

about we So here go to we what’s we of talking about short-term guys that longer adding have the will in of are while an as opportunity order forward the keep perspective, anything you just Rainer sort from talking in sort term, QX it.

into of So QX start some upside learn to and approved here as sort and think of as vaccines we we still we the near-term, as get some I it. kind frame have then variables get of then start we better gives it of unknown view kind of give what these think of But that can bit far, to a so you I we got. you a guys have the

know a we clarity will plays next frame got as have probably we the into hopefully some to that more, you think how as out. then We I on year, early better that. get we QX And get for have

we get antigens of potentially, COVID rapid point-of-care to cheaper is into XXXX there with testing I and much alternatives. is a Thanks just it then kind related and know more vaccine as as a the out maybe there one I to Cepheid, addressed you. of figure on target thank times, that. for a testing couple have know moving evolves, think particularly And as you kind the lot more but similarly how and done you a of faster Great,

to Cepheid think to should the two contemplating different kind areas. you batch-based kind give you how we just out of we be are under of ‘XX are the anyway, as because of look [indiscernible] position kind interesting sneak those in So an not some of where I about scenarios, to think sitting between framework early us

would any color on great? So that be

Yes.

go Sorry, ahead, Rainer.

environments about really count. just speed, used care and of in are Dan Lot and GeneXpert the the this are care question, I accuracy of workflow the and is in really Yes. is at point hospital those going different right. was a care most Cepheid of when say critical that talk to critical settings tests solution, used the that, in people antigen

So, call make a what going those therapy clinicians prescribe. on the basis of to to as that they test are

right, be be to just to right. it it So, has has

cost breathing the modalities on of we at infections with the time very right approach tests point-of-care extraordinary testing hospitals, the about standard, of that’s we the other And for testing the infection And in we what other the point-of-care or is the the answer that the the so that GeneXpert a system. at ramp the and of durable we that’s see And gold either lower number of right as place expect is at through really why right higher very, depending why that Cepheid test see see quarter, the us And standard. independent durability. as right types modality you we you we this right multiplex per gold and with to fourth that’s up to have to rates. that think X settings, from X and in go But can million more see and quarter X-in-X amount see along expect this you continuing an XXXX. particular as X really

continues the So approach. And a our unique durable have top very XX% to and really year, I add base strongly installed about is that puts on increased installed strong by of grow. the positioning very this base that GeneXpert us in the and feel that we position that of Cepheid, fact

Great, thank you.

Your next comes from line Wolfe question Steve Beuchaw the with of Research.

Hi, Steve.

here, I and put here and now the side, DxA is both some talk you then areas on or then will weakness any are growth it on ahead it to available for, one more and categories XQ? the could your in both the on China one of I ask the was important back clear. you that then a of perspective second hospital all be whether how for some it testing now so are I quarter in for prospectively? granularity China, ask the just of settings you. progressed regions you wonder you ask can is planning have we need, this what COVID broader next about given about and questions for you actually And queue? expectations queue. I folks and to specialty jump business to and Dx relates business sit in back think in are just strength Thank of into through how if to the diagnostics question, capital will that back the Q&A. Dx, One am was cardiovascular helpful the to two going you Hi, bioprocess I on Dx, I morning. that comparative to my going be talking just ask right just not about get good extent testing I it’s and Beck go getting are believe here other the the in then settings which capital how acknowledging fourth get Beck that about in specialty regional recovering I Beck wonder comfortable it’s might and very generally to where course care the related quarter hospital for you to on that touched in in have the which would extent of that to year, apologize longwinded get will as and platform, kind given window and they in on And if or it

start of that know the the all we unique an and story with worries. with is as China. Well, has recovery Steve. let’s No recovery. extraordinary see as terms you been China Thanks, in of speed breadth China of what the

course which our China this we of lab approaching to see extraordinary return nearly and volumes in level, we are what’s some to unique also or of is degree we do normality. businesses. industrial only that patient at a the pre-pandemic capacity, more about see And return not So, also see

So, Europe broader America the to in and recovery Western contrast in North China based. is

about recovery said, the our we very we have businesses And or Pall, of like And industrial there. so as nice we with you as see we saw, are EAS expect China build that portfolio. seeing QX, we in and portfolio essentially, have And some XX% as in the think really growth well, economy here across continues that to momentum. to here in acceleration QX we that’s businesses of

pleased by return in well expectation, as the we’re market. we and Beckman really about our team our developed Diagnostics the really in Those business. very, of performance that the continuing have has here business, think business exceeded volumes done very that patient and to the there, in innovate and grow Now,

about heard IL-X. the You

of IgG. You heard top on about IgM

placement. as in significantly. we we of our see funnel also what cycle capital, in and at we we’re have saw are here the been the level around a in they certainly shortened to innovation not and very QX. and have QX capital than deal starting but And So, our great of think discussion yet up pick the equipment pandemic, of are No times earlier momentum doubt better we what accelerated they prior to saw

of continuing return; the volume generally cautiously to that type so, will seen be And here are and some we seen those by impacted that testing continues now so for this COVID to yet around happen. that move differently procedures hotspots have to is pop Beckman for patient we be these impacted ramp to in we world, margin that wellness something progression see the the elective not conversations optimistic patient anything Diagnostics and around forward in we Also what volumes, meaning, starting as significantly – positively. to the up to QX, saw pop and we that monitor, see with more haven’t and hotspots, on continue

Thanks for and to here, welcome the there Rainer. call the perspective

Appreciate Thanks, Steve. it.

We for to closing presenters remarks. questions. for allotted time back end reached the our turn I now of the the will call have

joining Thanks, for us Crystal everyone today. and thanks

around all We day are questions. for

everybody. healthy. Thanks Stay safe and

call. concludes conference This today’s

now may disconnect. You