Danaher (DHR) 22 Apr 212021 Q1 Earnings call transcript

My name is Lori, and I'll be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's First Quarter 2021 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. [Operator Instructions] I will now turn the call over to Mr. of President Vice Gugino, Investor Relations. Matt Mr. may you begin your conference. Gugino,

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

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

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

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

Well, core morning, thanks, quarter portfolio. very Matt, In strong growth XXXX, delivering the revenue a everyone. off our across of got better-than-expected start, and to first good we

production and our was development molecular Cepheid's performance our demand for COVID-XX growth of to in Our by broad-based revenue and contributions driven strong base core tests. business, ongoing and vaccines therapeutics double-digit diagnostic the point-of-care

top per free earnings outstanding and cash record also Our flow growth contributed performance share line generation. to

the first unique our our quarter improvement. are testament well-rounded a results and commitment continuous to Our to positioning portfolio of

powered long-term our believe advantage. by Danaher System, We drivers. sustainable, durable attractive secular that collection and the exceptional end with Danaher franchises this powerful Business markets serve an and have competitive of reinforces We combination market-leading all technologies that differentiates growth

Cytiva, three quarter at let's of some revenue Pall, So in delivered to Sciences first to growth. results. Radiometer, capture segments businesses, sales quarter including Biosystems, better-than-expected our and Leica market billion we believe reporting first Diagnostics. core our with We All Life with We particularly by Hach our continue and that, share, growth, turn larger $X.X Videojet. led of of generated XX% the

we've prioritized product of both and XX%, market investments sales by revenue advantage market, Europe. our we've System We recovery share term. last growth and led and growth to our several Through Over high in achieved tools, and enhanced near in the impact the impact introductions Western notable ensure North more China. both growth years, over gain. long the Danaher the high-growth High-growth believe competitive we're across were was broad-based up that and by developed XX% saw America new innovation, markets. we've and largely Business growth Geographically, than well driven positioned developed markets in marketing,

first margin higher-margin to the of product points profit XXX higher mix. to due gross Our quarter, year-over-year sales basis positive impact the increased largely and XX% in volumes

net versus up XXX% lower Our $X.XX XXX per year-over-year, basis XXX% operating share higher continue earnings to than margin up points XX.X% of in limited a of of including of see year. was expenses, we margins year-over-year. related billion diluted $X.X cash other We last and operating Adjusted quarter, expansion free profit common were of core travel points increase result basis margin an XXXX and gross more generated flow costs. as the as of

Pharmasystems, library DNA vials, and technologies cartridges, fill sequencing complete innovative, complementary automated segments. and Now methylated the first And tolling Cytiva completed to brings critical Swift adding bolt-on enrichment and Most Vanrx broad acquired first next-gen capabilities acquisition notably, across aseptic mergers $XXX in a samples. million IDT solutions acquisitions bioprocessing for portfolio final to DNA, and syringes used we capital all quarter, of workflow. than preparation which their and Cytiva IDT more deployed a which towards Biosciences, provides with step of the RNA three and

significant make of all and organic to initiatives continued Danaher. across high-impact also investments growth We

in and investing than businesses, billion a $X durability equally drivers underlying growth expansion past to COVID-related given XXXX support meet Pall needs Life today we in demand, of customer’s investments into meaningful but the Cytiva, these we've our growth future. will the continue capacity well production Between four serve. the and they the to of term, they're the see where more tremendous invested we're six Cepheid, to Near Over and Sciences. months, at the markets of businesses, important Beckman Biotech support these runway these long-term ahead

Life So at than let's increased and more the Sciences Cytiva led combined look rate growth drove XXX% detailed across a Sciences COVID-related now portfolio. core in the - revenue Cytiva, Cytiva Sciences, vaccines a companies results of take our all revenue Life XX.X%. a bioprocessing platform, IDT. We as and and strong and core operating Biotech. of result accelerating double-digit and Pall demand across reported growth was at production the revenue largest up a businesses, development look revenue acquisition, core Pall our Life our In therapeutic Beckman by XX% of more for saw

our us share activity, grew range. believe product quarter, business within to low Excluding that underlying market the and their biopharma particularly We in bioprocessing our ability gain cell to workflows impact across XXs line. needs COVID-related the in customer’s enabled single-use continue of our meeting media the culture

to half the capacity X-in-X Cepheid, shipped core single and quarter. led Moving and the again core the largest Flu COVID-only increased RSV. revenue grew of response was more and Reported Cepheid's digit to of unprecedented XX platform better achieved COVID-XX tests core team XX%, half our by revenue Each growth, revenue growth. than test production were in which for combination XX% the XX%. achieved tests, respiratory were Flu high million or test, B over operating the for cartridges revenue other up Diagnostics. the demand rapid and Roughly test point-of-care shipped molecular In A, first companies in

demonstrating for demand increasing saw and Cepheid's urology, Cepheid's test non-respiratory health, molecular also We sexual menu, of market-leading tests diagnostic broad offering. the applicability including hospital-acquired infections across

Moving Environmental to was X.X%. X.X% Applied our revenue revenue up segment. and Solutions & grew Reported core

was high slightly single digits. platform and product Our was up Water identification Quality up

our saw sales, back mission-critical chemistries around Our across the equipment good variety providing in day-to-day businesses water for which and growth single management. from testing, core underlying recovery normalized customers and Identification, new Water and first investments water world. growth got and growth treatment momentum and projects and the during running Quality in at our and returned benefited we're support Product saw to and underlying as the Esko encouraged demand quarter, applications businesses customer’s a up of and customers revenue consumables in by improvement the from operations, marking quarter. mid analytical double-digit digit the market packaging initiating in In good more saw color analysis coding X-Rite and we We levels.

from pre-pandemic levels trends and we're world we with revenues. environment. a some saw is that levels or across all of an working what We're growth. in form uptick let's Service by activity geographies. collectively near at So this markets our in look the to strong the in approaching seeing the as Customer new quarter, of context pre-pandemic and walk levels end during funnels adapt order book we - take around seeing the sales equipment and through segment this

a of in this some impacted. of end to lockdowns, demand recovery While of is of across that underlying the wake dynamic most markets see we're were widespread starting pent-up our result

involved the trend several US we've reopening, has way closer reopening, activity. non-COVID-related experienced including be currently And we've driving remains terms the significant the clinical largely is In double-digit underway the biopharma across Sciences, later-stage some have in market to direction. the increase take we while world US The around that of all in back trials. progress. setbacks of impact. majority along demand. on Europe if rates of of China look any back dynamics is right these driving the the biopharma been activity There moving normal. an appear not Within the projects robust. And all a furthest at Now broader COVID-XX are this in and record therapeutics vaccines the not yet, seen therapeutic slowdown is seen country We're the activity, ramp-up geography, to in areas the by broadly. today, any but process be market or of improving growth in vaccination to and quarters in Life across recently bioprocessing just of in appears levels over those with vaccine biopharma COVID-related the in is activity material not last certain the in

production mission we're are patients we the pipeline. to heightened And vaccines Our see customers given production to breadth make diagnostics, XXXX, today faster. biopharma our which the uniquely we're treatment rapid continue more new for well available to and point-of-care across is and offering testing. adding a In playing the in into in operating companies the significant life-saving and therapies development demand of positioned their our role of in future, support capacity clinical to the more and molecular

only presence leading and the is that offering, various COVID-XX, believe the instrument amongst to As uniquely of hospital we visits COVID-XX rebounded near look with modalities hospital placement. support is seeing, speed, labs, molecular we're Consumables and are Across most customer’s that as needs, and settings. encouraged positions durability consider across last Cepheid's result, the pandemic procedures by workflow at the as Cepheid's the in demand levels accuracy well. testing but and not landscape strongest beyond accelerating patient their the the testing advantages at elective and we're the business or geographies we and volumes year. positioning as major of the the point combined growth care, of testing for reference of have from pre-pandemic a momentum

the business in on and equipment market, and medicine. and treating and normal across essential capital as solid remain get And customers consumables investments. Finally, water food testing back like packaging side initiate growth the picking is safely operations to applied more up operations

look briefly and expectations let's the second the for quarter ahead year. our Now to full

deliver and expect business our growth quarter in second We core growth mid-XXs anticipate range. growth contribution the a COVID-related We double-digit revenue low revenue revenue low tailwind. core double-digit base core in to from

we fall-through operating XX% of for expect approximately quarter Additionally, the remainder of second the and have to profit in XXXX.

Cytiva full XXXX, we tailwinds is associated which core high $X core therapeutics, would an and growth. higher deliver now anticipate This of XX than ramping single-digit that billion. core contribution revenue teens million through capacity be the growth And up prior single Biotech the XXXX estimated digits approximately our XXXX will that $X.X the high year to revenue expect XX tests now be We previous ship our business, and full estimate we'll in will expectation base And Pall revenue at in to year tests. COVID-related high compared expect revenue the double-digit billion vaccines of we at include with and to Cepheid, of now continue rate. a to million to expect For revenue low for our year.

momentum to good the very about wrap up, seeing we're start strong the had year So to Danaher. and we across feel of a all

to differentiates balanced are We team all In of see our the well and tremendous even pursuit stronger sets commitment durable, to of believe Our world capability positioning our just an first continuous beyond. to testament to our in XXXX and us the improvement, company around of keep ways we'll for and this a strive a combination in outperform positively quarter better, results of to and our ahead building up opportunities meaningful We portfolio. do stakeholders. impact and us Danaher that.

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

Rainer. That comments. concludes our Lori, Thanks, for ready now formal we're questions.

line Instructions] first of Thank Our the you. Tycho JPMorgan. Peterson comes [Operator of question from

morning. good Hey,

Good morning, Tycho.

your and both durability? of also, But durability start And did. appreciate here Pall, stockpiling? the concerns? the vaccine testing didn't inventory number? strong Cytiva And kind of from order the very any that, of about you there, as you kind the how building of I'll guidance trends was give Obviously, the customers then numbers about We've then we do one given kind your I tailwinds. with bioprocess. about Did peers you the chain if raising Thanks. there. of I for supply hear heard there think think

Thanks, Tycho.

relates the we're just originally therapeutics strength And therapeutics total towards vaccine of and for over and So to of talk billion. I'm we're fact here, a the orders talking businesses XX%, was for for be vaccines you the that about orders - that. our Biotech, to confident give and primarily quarter here, and as $X.X us the the billion the now XXXX our growth it you estimated as than sense Pall growth we sorry, rest business $X will of look that year first Cepheid rather heard Cytiva

strength to So really in year. and here, continue drive build the full quarter, here continuing the see to first for we that that's as order noted here

and business, of and occasionally materials to communication, about on constant or product customers holding run we any a as don't as pockets with both sitting manufacturing that suppliers our stockpiling, Now vaccine it or finished our we're products. certainly, that of therapeutics. relates ensure have we either inventory, we idly by hear in our and up to raw But certain limited general, in

you you think margins. to durability now Okay. That's last just here talk helpful. And Science margin you're XX%. particular, upside In good then on the that maybe a on you as follow-up quarter, Life Obviously, XX% of side, well. Can the maybe had improvement? how about

through a ramp volume Well, here us our certainly, increased volume given we great in towards consumption also, deal consumables, positive. of a And has the the leverage. of the skew the mix course, of see

bit. well So the we to little margins costs in change we the travel moderate forward as businesses, we a and as get a margins situation, look to are to I comps very normalized invest back and strong. we as some come our those continue expect more as expect would And to

And Okay. I on before last just then deployment. off, capital one hop one

M&A space more up Obviously, for pick bolt-ons and in the we're broadly. seeing Cytiva. mentioned You IDT the

your landscape thoughts the appetite meaningful? on more curious something for Just

our excited how balance be that. been rebuild about sheet we've able and to quickly to continue We

us. a having of and actually we certainly we our all said Now that of year plenty it's that, ago said opportunity of acquisition, But we there's closed to that, our are work having ahead plenty just and of platforms, have the funnels there. think very do active four across that Cytiva

question, order just want some going to I kind your Matt. of you its - around Tycho, back just to of to sort growth. first get numbers give the

- way therapeutics, and it, it. we think the did, sort I Maybe to for million is asked in about in vaccine Cytiva least I at it $XXX think it, in had Pall think, of QX. the You and of, call of continuation about kind about the how

going consistent X that's be QX, think pretty and I here, to X.

here we be, probably we'll of going the pretty think more about I to I that's when billion rest given vaccines about and that think will going So like the fact Cepheid then therapeutics, year go to do up full the doing thought. the we you of I the be initially in sort bit as we're maybe $X for a volume consistent. talked it, than of part, said, the And which kind we've ramp little year, through think

$X revenue. So billion that's probably another

for of the piece will ramp vaccine Cepheid $X and total COVID one piece, therapeutics, the So and billion piece, tailwind. revenue, pretty the year. that steady kind And the other up through

we're of XXXX helpful. That's know Okay. vaccine question work the like? 'XX, into obvious of to all spills Should we we that going assume set up first the some for that's over quarter get I also is looks what only it's XXXX? but

Yeah.

ramp continue think eight $X various into here. approved that's the the expect currently. vaccine And and we that So billion again, to to that $X and assuming, thinking vaccine jurisdictions, orders are that backlog And about billion, the and build therapeutics with XXXX. we way now, are is of on growth the right going after therapeutics, I which we're have vaccines in

So assumption or And that's any kids shots vaccinations under there. not booster of assuming that's XX. the

to see further we expect XXXX. So therapeutic well vaccine and into do production

a of, Tycho, of we're billion 'XX But $X that, and of to probably way billion maybe, a of sense I the call I'd mentioned if is, I on think Yes going you about kind too, think it, the numbers 'XX, X.X, frame simple was just you cumulatively. know backlog. it it to Rainer X.X give it see that orders because frame

last we I sales did year. going in this think $XXX do year. in We billion to sales we're think million $X

- vaccines end billion the are that take booster/third point said, year really that's it, at for in backlog there kids really 'XX. like this And We're up Rainer So we sales a not December of we that shot. that out of call kind into this that stand Rainer to $X.X doesn't why going is of assuming $X.X a of either. to at where less, kind sort fall we not just be assuming as are assumption, mentioned, today with with

what's really on largely. cleared that we're the So market are eight now, that seeing developed the that's the markets ramp just here in and the

others Very in. guys. Thanks, let I’ll jump Okay. helpful.

Thanks.

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

Vijay. Hi,

Hi, Rainer. Congrats morning. on a print pretty solid this

to all Just question. that appreciate follow last up the color. I on

So booster. that in revenues, of, or children and and it, million And XXXX, $X.X XXXX in vaccine cumulative 'XX. did $X.X, guys therapeutics $XXX include does not you call of

Just assuming a people towards third booster, I most leaning think are shot.

booster $X.X, that a make Would XXXX. third about another I'm $X.X potential recognized as curious. we've the math perhaps that $X.X, shot half in incremental imply would of Given sense? like

Vijay, Yeah. and a early tell. there's I little to the and a what the just a the most think like think looks in people, booster. assumption little I - mean I it's that right a amount or third early think you're tell. mean are I I think, But again, is shot to it I timing it's assuming

we framework So how that's you because what include wanted why doesn't of that but thinking we're half we sort you. maybe numbers that know inclusive laid of second out you early out kind give stand where we're really a 'XX. in seeing and about the bit of not in an an of that you update, so for of the now, it that's still unknown, sort early to just as of the still plays that but in just pretty I that here is - But 'XX, give kind

And asking with fiscal COVID in Understood. could perhaps has of whether exposure has 'XX. It's look how then broad to to been I debate companies for The in did not been follow-up grow what think I can the I'm earnings future for have peers frame And 'XX. tailwinds. And like. guidance debate the strokes. the your some one on more

earnings being of that you companies 'XX I of levels. end can think one grow the fiscal off few guys up could

those alluded Am should Cepheid, And your earnings right through 'XX comments gaining post-pandemic. on in I fact, biopharma. increased in about to like think in flow of some being base strong looks other broad share strokes really to 'XX? above Rainer, about thinking the that demand. It some you installed of tests I

as we're little the in how a about just into lay of of confident Vijay, back it's having feel durability can COVID saying, this So is imagine. around get dynamic as a early our was environment thinking you we let on to And out ways XXXX 'XX. But Matt 'XX me specifics, revenues. away. specific said the that,

lay So let little out a me and try this bit.

think the programs and vaccine upside we be we with being we including not I kids based might in including vaccine that vaccinated, billion that entered including on potential And talked nor boosters, at As the point, mentioned, stage therapeutic XXXX pipeline. $X backlog. this earlier assumptions, not in about the other

broad about is very And well or therapeutic solutions, independent If in of of both billion terms modality, downstream really that you very story. and see of think of there. in $X the backlog very, that portfolio, upstream the positioned that we're our vaccine we beginning that sort

for so think we going is diagnostic time. or at to we'll and testing, testing of about for long Now be already endemic, COVID, point is be a the as COVID care testing

so think And for a uniquely we while XXXX market, being some folks talking the about testing for year positioned. Cepheid peak are is

durability secular And water science million to drivers. decentralization business, life health research, sustainability attractive and if our we of group XX raised same number believe tests you You really of recall, to example tests. that circles the think in point-of-care Biologics, highest you about packaging you environmental of to are continue installed needs my the you'll the just menu course, and proliferate. the very XXXX as in center, have, from and as representing XXXX. diagnostics about then, quality along with concentric base, we molecular we more Cepheid Cepheid's And our And really growth that are tests roughly the million think about care. do as recall a base XX we number exposed of that of expanded strong be in with here, we'll in generally think And doing being then we workflow. to the continue

XXXX we positioned outperform in and net-net, uniquely So to we're beyond. feel

Well, guys. that is comments, impressive. Thanks Congrats. the for

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

Hi, Doug.

to essentially it's of questions. go wondering And help now low us for back Hey. high-teens guidance. were just I assuming we core you math think between I'm Thank the and along you I question. Good bridge operating updated particularly lines, a guidance for wondering environment, you're guys. just from And could half the the range what relative improvement to want a prior revenue year? if digits growth? taking core delta those seeing at your I'm where last to of growth my morning, for your as perspective we most the to business you look the where specifically, the More are ahead second update. double

Sure, Doug.

So let's year come the back frame top there and the full digits. to year the full now year core single, double teens. COVID be guide we the high be going start base a tailwinds And from at high to would low single-digit we that mid full growth to simple high if see in at business

funnels this if order capital than business, customer at have in are for upgrading are operation. initiate see activity of and and we form of customers to new seeing we continuing And much doing are And revenue normal see certainly service the to that we're as access around site projects, sustaining levels resume new also with instrument we the base to strong Now levels at then, had an that adapting work our uptick with we customers environment, better the investments. approaching as or sales have the we starting some near more book normalized and growth. Even world course, pre-pandemic start current in and levels.

turnaround Cepheid still Cepheid right solution. we've mentioned the testing spoken a million tests the at tests perspective, solution, point-of-care being minute the here actually versus we a XX workflow, easy see COVID the just accelerating ago, answer from being see to And testing durable the about. here million I've XX that as in Now we short

And no XX to falloff increase seeing we're think about one did tests. by each is about million to QX the for about way we in that expect quarter. Cepheid and here So demand in million

So in And QX, XX important COVID in XX-XX. one XX our XX QX. an QX in was only foreign versus million and recognize mix point in to is QX, million here million

XX months QX, into in XX-XX go that summer for here so back and the that Hemisphere, as see mix for COVID, forth, Now XX the back going XX-XX. - to to for [ph] Northern going flu we then season to see in And QX XX-XX, enter X only we and QX. QX from we as we

in a that mix perspective. keep from assumption mind So

Now if year. here XX% segment, you Life for the full look we by see Sciences at this the growing over

robust Of related, the in double digits. course, bioprocessing remains low that's non-COVID

instruments talked we've improving. about, seeing we're As our

So improved about think $X SCIEX, COVID-related through And think of just then trends as like to talked about revenues of are the if work. as we and therapeutics course, a these vaccine return microsystem, you projects about and XXXX speak we of resuming billion.

and here, see volumes that not the continuing impact. continues Diagnostics, ourselves tests of about million think and really see about XX you we lockdown high As year. material the we through the the expected here a in to having to recover is at the And as businesses, I in teens. talked Point care, build Cepheid capacity core our lab reference

single well China, positive to digits. low you America, then Biosystems if it And has that build the remains see Western improving now consumables starting as So the And in the see perspective, solid lastly, but we strong at digits high as thinking up full EAS Europe mid equipment out Leica in we're and year. from with very single then recovery. placements digits for as territories. by low about demand teens, also it an with growth the high over a to year in Diagnostics, in for geography, double Beckman been, here North XX% the double

by frame and the that. thinking we're as about base well business with as helps geography, by as how COVID that's well as So that here, tailwind. Hopefully,

this sort lot detail. just markets, the and growth you extremely great in high follow-up. this at of first the Rainer. helpful, a Yes. of was strong of And I a think very That Maybe in terms referred that's is growth But or super to quarter. alluded end, quick to

just think, fundamental Some improvement. was that, I of

saw of in that of the it just some over balance year, market QX be was Some of that in expecting sustainable. expected is does comps. kind kind your to improvement growth you're sustained of we the But high like growth favorable what last point, sound

We do.

point out, in essentially year you last As down. shut particular, QX correctly was China,

said very we're but growth the example in the the with growth see So very year. that sustained, we full having strong XX% quarter high. numbers market very, markets, the businesses, first in being high-growth China in only best our for over also But of that, not the

Great. okay. again. Thank you,

Thanks, Doug.

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

Hi, Scott.

Matt. And Good morning. morning, guys? and Rainer good Yes. you hear Can Matt, me,

Yes.

hear you. can we Yes,

You're good.

Okay.

Okay. not or headset, new works so I'm I it if Good. a not. have sure

adds. facilities? give of about Rainer, anyways, Are bit talking adding So mean, color hopefully, new be you're existing how works. Just Can of new the around you about helpful. Or scope, us in the kind you I talking is But you about done? of a - a you process little it talked little little capacity And bit sense a in that on are would this? it facilities? lines the

So we Scott. that, of are talking about all

up facilities. opening are new We

targeted biopharma-related small as market. For several we starting in on at completed a up South partner as expanding be facilities initially recently plant joint example, deal but our China are new and increases. That the single-use technologies, we're again, both then throughout be Carolina. venture in a going will buying in developed Biotech And Pall Once other We've single-use capacities our for additional lines as the online, China, supporting well single-use will Cytiva. in, technologies, also out have in ground well. technology coming portfolio

term. online above here of the in shorter all So the and coming

issue? on in the it new seems guidance mean, history, play the which guiding that at it XX% profit I really Or at big - that is a obviously Does capacity level you're your at not this is incrementals to comes based conservative Now low first. all? a fairly probably into to,

No, huge year. Cepheid, think you I coming pretty capacity about stuff, for the too, lot us. about not for mean It's Scott. at of in good us this when a margin what's think online, a issue that's

drag. So the be margin, on if a it helpful, anything, won't it's probably but big

on Okay. a luck, All right. great guys. quarter. Good Congrats

Scott. Thanks,

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

quarter. a Thanks for COVID. questions. the Great. two the on And on congrats Maybe parter

implied around here consistent So are the what's share kind Like then remain of it's on overall that will you for the in just question terms with to kind capacity. of of 'XX. are you you that testing And just gets of number? And XXXX dovetailing thinking? of I b, Scott's know Can about Cepheid outlook how thinking your of market that assumptions kind the some therapeutics. maybe kind vaccine on that? you interesting,

Just the with into with building a demand us what can you capacity are? are to COVID bioproduction capacity as out, see? the eventually And you - able of filter that total base meet kind where kind share in terms today business? tight that how being of flows the things of How then from does additional you

for coming start let's tests to and slowdown of back Cepheid today. testing the demand see COVID in seeing the durability Cepheid COVID. really no So for we're with that, what We

the installed center tests testing proposition as point important we'll the and keep in we've of XX%. wander that since by the terms are to as setting while the concentric so of gene workflow, year Cepheid's experts there market, the that now might see testing, it's at case. that's here and those circle, in of of really Also, this of increased So the the care from in see point I if accuracy beginning last care in the to terms and distant that and base proposition earlier, if mind. we more that value to of mentioned we take really that back value Cepheid year speed that's over peak - the But continue assumption, offers of

largest actually care a installed provide point-of-care we a durability US, for same approved of future. globe. getting diagnostics to inside setting into outside us that At is base that's broad expect molecular XX tests here base the menu, of strong our the installed the the US, XX the test So significant increase. time, the around And

that's So roll as you allows us vaccines forward, what increase first of world. to continue here think continue years to as XXXX about quarter-over-quarter to will take to all, to going likely the entire And out the shipments. increase our we capacity

others high as as is mid-XXs. a the of XX%, effectiveness their in Secondly, some them on continuum,

prefer And already not there's around And world a so who we're number the vaccinated. breakthrough to of get seeing also infection. people

of shipment and for our will are here going point we're us us who to in here at the with months, level so continuing XX the that outlook XX giving conversations that So also care. we our XXXX. test testing based just the be in confidence that likely able XXXX, customers And maintain be had very next gives the to of on to

we're is million XX what So XXXX. for looking for,

capacity, to on continuously in But capacity we've last think we mentioned as over the even settings, with think in very invest capacity. we the hard. to question have I GE, think we - certainly, in increase our months we expanding an capacity here as other your invested particular, to XX Now close about continued those tight? total If in about Cytiva capacity, prior and is arrangement are where significantly I've very we continued to had increases. running we

with together working supply suppliers make we're needs to in customers XXXX and forward. sure we're able our that here our to going and So the

forward? of question, should other therapeutics vaccination capacity bullish we Now significantly. that this pipeline grow to we're development you very aspect online, once and drugs, the based do how And the have to biologic of peak, think going your capacity on which about continues here, again,

if and you are supply certainly continue make needed capacity capacity to vaccines significant. they're even we and customers. going the put COVID-related our requirements us point. much therapeutics the that today very very that on confident We're investments in here tomorrow of the future dialogue aside, to forward specifically with So be And needs that

just Rainer. follow-up. Maybe terrific, Sounds one quick

but a of a did we be it's showed know for did, high likely boxes there's past, usage to the that I in placed. lot asked continued are level Cepheid, on survey been a these that Just

now these about dramatically COVID? were in how just the be way boxes any beyond rate COVID get Thank as much that you growth before what of like we Cepheid think of could you. get thinking what to the this to base installed given larger to sense Just was COVID, and continue about beyond going used

or based pre-pandemic us frame the we've growing on menu of digits continue sort expanded Well, low post going double post-herd about really expand of which to where and Cepheid and the speak will you've pre-pandemic in vaccination, our we saw since forward. immunity heard time, at that

the think on low hand. Cepheid very double-digit at so at continued be it the minimum, should way growth And to the is, about drive one able we we

testing now other top base that in disease, have of need On sort to COVID-XX, seen and hand, layer on an endemic rate you the do of testing have this we we that past. the type really of

So both durability that's how we're thinking about in it, near future. and and here, term that's the confidence the in in what gives the us

Great. Thank you, Rainer.

Wells comes question next Leonard from of of Your Dan line the Fargo.

Dan. Hi,

Hello.

few a questions. So

high the commentary at detail. level, in is base the think much still item conservatism the view given all you on that your single-digit off, guidance, how do business line But outlook low I comp? of into First single-digit the a appreciate high baked on all

as So what look reason and base really of as we at good there's the our of an for here this we see remains view year, that. business, appropriate

increased forecast single that's from instrument continuing the placed we go on as continue volumes up base In Environmental we've to business think and business, We to And running why see business in activity rate Solutions capital pick digits, forward. to & we a return. continue good here levels consumables labs our with is mid see the base high project that opening and be our patient appropriate. to up, Applied single strong at this

of have to As we we it. the ahead year, the think us look of a and about way part think year good the for appropriate still that's

my and incremental offset maybe to from Okay. inflationary from pressures, ability you follow-up. lockdown? I And that. operating appreciate efficiencies are during a thinking about How your learned then prospects you've inflation for even

System We've Business and day been to apply set the really before, tool us the Danaher environments that these in offset we kinds helps every this. and of

closely that working performance On hand, price with variations the we're and our that ensuring there. have and one tool working are our we the suppliers sets we

forward, then pricing the And going margins able to on solutions that we're ensure engineer we work protect our also day every our we value value course, the ensure IP-protected to of and Of we side differentiated that of the going capture and oftentimes week. forward.

you. Thank that. Appreciate

Thank you.

time for one more question. have We

Your final line question will of come Donnelly of Citi. Patrick from the

Patrick. Hi,

your bioproduction touched Thanks. to how are questions outside I of but little wanted lot kind a again, point, about talk in in demand Obviously, market years wanted which, over enough on out do to market guys? looks years? you're the think to ago, Hey, piece vaccine to rate like bit confident just that feels understandably. what Great. But the bit Rainer, about But are your being market, What capacity drill you that fill of the it's seeing the a that world? the to you're building point, talk in vaccine. you the bioprocessing a post-vaccine demand demand the on couple how next growth the headlines on you can underlying just And you you kind the world, then few multiple little a like of it away? gets that in bioprocessing, of in

of number points to here. a consider is There Patrick. Sure, data

single-digit is are start in me Let the COVID the outside great of with now drugs efficacious the demand, vaccine. very these and of again, drugs fact percentages, biologic penetration speaking world in that and still throughout highly the that

penetration relatively of is efficacious low. drug highly still the So these

the the surge traditional the the of apply small any at from, significantly. world, be have you very, to relates look number to pharma pipeline expect in transition you that very if of growth continued investment a drugs to see solutions and drug you you in the solid online. technologies And into trials when clinical sort on the clinical low it risk development, if throughout see biotech associated pipelines, the of use basis. instance, of additional will of double sort the cross-contamination, those that stainless whether hand, to and leverage success for as growth other here the certainly and And to the drug we coming On a do. projects - and continues we to in rates flexibility sustained rate, for be future, which and expect see to steel or the capital lower here ease that additional we And traditional we ramp going growth manufacturing catalysts for that number and in digits even of and that very here you that capacity single-use in greater of impulses provides the have require

customers for the support that capacity their we're the here confident very we're in putting that to and is So place in required growth future our future.

the And one you've kind peers from other that questions deployment appreciate seen the just step little thereof to previously, thinking I about or into has interest helpful. your like some of really some evolved industries up follow talked then in That's on CRO space wanted I of it. bit places. I but type lack of We've in world. earlier. cap know a other

just was wanted is into? interested market a your get be I to So wondering, in And getting that that. you'd that on thoughts

than this scientists is or leverage. making heavily as minimum, to this nature influencing in not, - economic bundles are the very again, And decision And more of say in opposed So very acquisitions and we're we point really the here with But your to The happy purchasing things a, several of at year, dollars. really be companies market industry, to a are Cytiva, the specific are customer industry, revenue, number IDT it's once the coming in with the high being can a and of to I We're just and which to to happening obviously market. $XX value why Phenomenex. we've solutions often specific the increasing of that with approach kind the taken in. to in that is back points millions if on forefront million. points. drug is drug X% comment by that tens $X a week, Pall, what want is getting don't want of providing value practical all businesses the recurring that of with X% proprietary Because pain instance, yield exactly our very is the These of one of billion solutions, high faster customer’s of importantly, for that? biologic by touch intimacy technologies we and material

that is So focused and that's about fact to the way we're our think how strategy we be. the way the is,

color. the Appreciate helpful. Very

will any for Gugino Matt to return the I call Thank comments. you. closing now

day thanks, Thanks, around everybody, questions. Lori, and today. all joining us for We're for

That you. Thank quarter does XXXX Corporation's the call. results conference Danaher earnings first conclude

You disconnect. now may