Danaher (DHR) 24 Oct 232023 Q3 Earnings call transcript

Good morning. My name is Todd, and I will be your conference facilitator today. At this time, I would like to welcome everyone to Danaher Corporation's Third Quarter 2023 Earnings Results Conference Call. [Operator Instructions]

I will now turn the call over to Mr. of President Vice Bedford, Investor Relations. John Mr. may you begin your conference. Bedford,

Chief and Good Rainer us and Financial Matt Officer. thanks and on Vice everyone, our Blair, Officer; Executive McGrew, the President are joining Chief today for morning, President and us call. our Executive With

financial any the anticipated the information G containing presentation financial on I'd call, supplementing non-GAAP during point for heading the our required earnings Regulation our reconciliations details of Form our that performance available Quarterly note provided and the the to quarter, of measures call to all release, www.danaher.com, section historical future other by the under today's relating SEC Earnings. like website, XX-Q and out and Investors third the slide are

archived our of Investors call of call. the heading this portion this the November X, our later will be and next be will until Presentations XXXX. also will call remain today on website audio archived quarterly Events under available of until section replay The A &

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

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

the turning I'd Before the also to through the part to of Danaher since call out Veralto combined like over results. third highlights that financial Rainer, quarter, Danaher of point Veralto include and our the end will was

their later detail that about We save the businesses reporting this with quarter results will then. be and remaining provide separately we'd week, Veralto until Veralto businesses then any third for ask the questions will Danaher. please you

Danaher's the Danaher's only for financial guidance the that to results Veralto will year. reflecting section excluding subheading available I'd fourth Veralto, like quarter full operations, website the exclude under on Reports. Our for Investors historical are our the continuing operations mention and also continuing Financial of

like With call that, turn I'd to over to Rainer. the

and the Well, us appreciate good morning, joining We John, everyone. thank call on you you, today.

and anticipated the as our Life offsetting with in softer-than-expected testing more slightly came higher demand in of revenue ahead Biotechnology quarter third in expectations Core revenues performing than Sciences.

DBS-driven a Our remains operating challenging better-than-expected what and consistent flow cash team's in environment. also to earnings enabled us and execution dynamic deliver

years better Danaher on respective We of teamwork. and exceptional customers, in Corporation, outstanding ahead. to execution strategic serve value Veralto long-term shareholder and for team's testament successful their quarter completed transformative deliver and their opportunities to Veralto creates This was priorities and leader launch of September global separation focus spin-off create this The the believe also both greater Veralto a product a for a quality. is On XX, water we the Danaher. in the

decades. vital X-plus wish world's contributions their and want the endeavor most Veralto Jennifer the exciting safeguard thank they to help their I all the for past very associates best them to resources. we to Danaher And on embark the as Honeycutt Now over

Now Danaher the human a franchises revenue We've lineup going sciences of forward, Danaher technology positioned durable, is accelerating power markets high well committed more great improve health. attractive to and got science a innovator, focused models, of with end and life diagnostic leading business in our and recurring our our to differentiates of technology Business free flow forward. long-term and financial reinforces our us cash by and us sustainable enhance strength, and competitive going unique advantage. well further all strong science portfolio combination generation to positions leading powered portfolio This the System,

detail. to let's more third our results with in So turn quarter that,

John Danaher revenue financial our billion as headwind third end of $X.X results. approximately our a quarter were in Sales revenue the Veralto of of the business mentioned, and and was quarter including part X% Veralto's highlights for the quarter, the core COVID-XX third XX.X%, through a declined in base decline Now since third X.X%. include

COVID-XX revenues. including High-growth digits, China single core declined remains decline down driven were primarily developed Geographically, digits, revenues economic a in markets lower low markets in where by the high landscape double mid-teens challenging.

Our was third margin XX.X%. the gross for quarter profit

was lower Biotechnology points, segment Diagnostics and and XX.X% in the primarily costs related volume of down of to XXX the our margin basis operating Veralto. to due Our impact separation of

and and generated to quarter of cash in a in Adjusted flow Strong the $X.X billion net earnings common the flow cash than to actively resulting were organic diluted of of high-impact important and flow growth conversion free opportunities. per Danaher billion M&A at income free pursue most share ratio generation $X.X to year-to-date, continues XXX%. enables free We one net year-to-date us $X.XX. metrics cash more be

as digits medical as and was revenue Bioprocessing earlier-stage down core and across look from declined our closer mid-single end color markets and Now discovery what our our some give XX%, in results seeing today. lower in our and revenue segment research core Biotechnology Reported declined let's lab over result filtration XX%, a XX%. we're on revenue take was the down a you of anticipated, demand customers. while at portfolio

with declined were third the In market into coming core our bioprocessing, revenue base business mid-teens, expectations consistent quarter. conditions and

XX% pressures. are driven customers working was China inventory during capital continuing by levels. the through of environment a a pandemic built down also activity up while funding and weak the still quarter, in funding underlying result lower to approximately conserve as Our

on XX% what quarter in with consistent today, we in base we're business outlook our seeing quarter. saw that third of are fourth maintaining we're which full conditions decline year the approximately assumes bioprocessing, Based market in what the

increase. Although average continuing XXXX. in for and performance, impacting to underlying at dislocations these biologic is annual demand approximately global demand recent are to market biologics XX% XXXX, has continues medicines grow an grown for of Since rate our

tremendous be year in conviction approvals and and FDA pace approvals These positive several as bioprocessing using biologics year to the cancer long-term growth single-digit indications leading biologic market opportunity reinforce biologics, for is such on the Alzheimer's in a this trends record In our addition ahead immunotherapies. to more franchise. patients of including meaningful outlook high medicines, our the disease for for

scalability lipid manufacturing the investments costs. and customers' nanoparticle uniquely The customers lipid industry's how of they the to great Now innovation in and breakthroughs. and as pursue pace formulation recently in support is therapy of needs Cytiva's the launched automates life-changing and Cytiva nucleic is improve a advancements end-to-end yields first medicine system, is the biologic quality, nanoparticle reproducibility our streamlines positioned accelerating, in and manufacturing NanoAssemblr supporting acid NanoAssemblr, around workflow, process. helping are innovation example

segment. declined a and base X.X%, in down revenue Turning low to decline our X% business. revenue single-digit Life core Sciences our was Reported including

and progressed. the Our declined environment quarter customers research life challenging biopharma already Life further Sciences collectively see China as remains pharma funding science driven businesses instrument by demand markets. deteriorated we in to China, stable and part Outside applied digits, mid-single continued where at while an softness in of

digits commercialized, quarter. which pipeline growth proteins Our are of and drug next-generation gene plasmids, and more consumables been sequencing editing stages projects are by across genomics primarily in in business writing low basic the base declined declines and research. than development solutions, in or offset was used in have later Double-digit that the single

deliver released cell cultivation automates discovery is preclinical fast medicines. track of reduce trials. Our to to artificial animal cell that culture models are on the which and that and CellXpress.ai, processes. Devices and reliance scaling improve accelerate an in human-relevant intelligence-driven engineered innovative manual helping potential therapeutics Life workflows to continue traditionally Sciences and system the recently development solutions biologic Molecular growing The CellXpress.ai lines, businesses reproducibility can

We're greater that a Abcam, to enhance record bring also customers. diagnostics. and has scientific for which August, Abcam In a discovery, for value our acquire long consumables we and track community. innovation, quality research a antibody announced strategic portfolio, capabilities to actively advancing of breadth leveraging outstanding life the key M&A partner our of are as critical protein positions intention product to leading of them and our drug producer science

and Danaher strategy entry give help furthering will discovery the accelerate to attractive process. drug complex The map this addition Abcam market, of diseases into our highly

core will and earnings look innovative Danaher Abcam be once multiple expect the We incredibly to accretive and levels, forward team closes. growth, transaction this to welcoming including on talent,

with Now testing core our moving base at COVID-related declined growth lower Diagnostics volumes XX.X%, by to segment. mid-single-digit offset revenue declined more our Cepheid. XX% revenue in Reported business and than respiratory

way and point-of-care and Our clinical single-digit diagnostics blood core core solid with gas revenue delivered Radiometer high led immunoassay lines. growth. across mid-single-digit growth the businesses results collectively both product

System is result leveraging and instrumentation recent the in with strength Beckman single of early analyzer. product notable third direct retention better improve the commercial quarter. XXXX, to America, for Coulter rates The there's accelerating Beckman's Business across the DxI immunoassay. innovation, mid-single which also Beckman's digits digits new clinical Diagnostics team was and double-digit and globally, in grew execution. win next-generation in Europe and growth encouraging immunoassay seeing performance particularly in high We're traction been Danaher up chemistry North strong a has

paired testing growth with than Group health. core sexual menu A in XX% revenue core Cepheid, new increased in utilization growth XX% at innovation, revenue diagnostics, by molecular over In and nonrespiratory Strep product drive customers, including helped recent more

volumes $XXX of million quarter approximately exceeded B respiratory COVID-XX RSV. expectations COVID-XX, the our preference for in testing, of X-in-X Cepheid's a test $XXX for million. higher drove In revenue Flu higher A both prevalence of and Flu and A, our

and into quarter of planning expect respiratory previous fourth versus testing customers respiratory billion the our now year full our the billion. As of expectation begin $X.X $X.X the revenue season, we we approximately for move for

Customers who testing and across pandemic the test systems the are strength a last result onto consolidating platforms realize thoughtful of molecular the the few accurate, assays the point-of-care team's Cepheid's GeneXpert years. broad-based leading to during is their testing approach adding benefit additional placing increasingly The our testing easy-to-use from over of menu menu.

today's Their labs networks and is endemic Cepheid environment. believe health and well the has in more X.Xx GeneXpert led care revenue share gaining installed preference increase And to our and positioned in their to we our than across base both a within XXXX. for their installed since expanding base continue

look Now ahead fourth for briefly let's full and the year. the quarter at expectations

As continuing a full our revenue fourth core down expect the digits only fourth business Danaher's include In mid-single be base operations reminder, and we in year-over-year. both to our Veralto. and quarter year guidance quarter, exclude

as revenue COVID-XX for We demand lower also core in expect testing, vaccines percent to the a total result of high-teens therapeutics. range decline primarily and

quarter we margin approximately which Additionally, further operating initiatives productivity XX%, cost anticipated to of profit fourth expect the adjust additional our adjusted includes structure.

XXXX. anticipate year be our COVID-XX year full slightly. and revenue the lower to vaccines testing, double base total revenues for for the We demand down to expect of a business result also will decline as And in low core therapeutics. core digits we Turning

operating a margin XX%. year Additionally, profit adjusted full expect of we approximately

and pleased with and believe DBS-driven a we're our enabled third outperform up, wrap the Danaher on results to combination portfolio team's execution of quarter basis. relative to differentiated our So

spin-off successful the science of deploying health. leading-edge to technology With a are company focused now more and Veralto, to we improve human committed

customers most world. to challenges purpose-built the help some important of impacting around is patients Danaher solve the health

Our helping therapies. proven deliver cost enabling ability and diagnoses the to accurate faster, time needed more to innovate customers reduce sustainably is develop and and life-changing

ahead, look unique maximize the shareholders. team, our and technology optionality, the talented customers, Danaher us all to for our we sheet of balance value powered combination differentiated portfolio our Business science as So positions associates our by well and and System,

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

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

Brennan Cowen. TD [Operator come Instructions] question from Our Dan with first will

quarter. down amount this maybe mind, might field order in off there's out hoping color of the you're since is starting bit in what consistent a -- like of with of unpack on that. the you're about order seeing was trends of on I I a focus you little kind But portend you XXXX. Congrats think what's kind half and tremendous you side Maybe bioprocess the with on going seeing looking and here. bioprocess, talked know sounds in can as about for kind remains, just of being obviously, what with to if as what modestly the the we It of don't know, guys year. second QX, you

Sure, Dan.

with off one more start Let's time here. QX

have be were what here, results is in that which clear with seeing been X.X, last we similar base to And to sort we're the business a down XX%, bottom quantitatively have with continue But But likely we orders. so was expected. for So say around expected. consistent full to we do have year for with our the through you QX that as to lot QX, quarters. seen this we book-to-bill. consistent an what from a the think few of our like we bioprocessing here QX And give looks And for expect book-to-bill I not also, be that inflection -- I of along. bouncing a sense would at

a sense of versus down give a said, X just we Orders like QX. bit been were at X.X. Dan, And has quarters. dollar maybe color, other some saw. book-to-bill It's terms just like to here been for little of that Rainer what in little too, actually QX the

of that X anticipate it, been as here like will kind have another kind of XX%, I that well. I here. we stack Orders quarters. on And be look at it triangulation that QX kind XX% down last think X-year call of, think a XX%, for the in I is

I said, lot like but it looking Rainer no change looks real like we're here. So QX, a QX, at think

if just you out little maybe then could. zooming And a just it. bit, of kind Got one,

and and which -- helpful way any year? environment, have see think think calendar better it. to about visibility, the to all and way way talked can of to get if this obviously, XXXX, into have framework dynamic we we see, a about as growth we but can margins thinking we -- us, like for any But new as earnings we which QX -- ahead all early flipping we -- about you you're any about revenue Just we the which all

really the think as second XXXX, it's I context important Dan, to you half. the towards look here of understand

strength Diagnostics you testing either. So changes Once for driven lay respiratory me we our let exceeded was out Diagnostics bioprocessing QX by at we Cepheid. better expected, as at again, was than briefly. here that don't Beckman expected, expectations. and And that and believe

instruments. That's weaker bottom our for by do XXXX believe instruments in reminder, we're XX% less here And life that the a as we So us is science in offset total at than bioprocessing. partially life science of business.

the markers our and So what important QX, all in, we some a think bioprocessing solid outperformance there's And are diagnostics, bioprocessing really there, change with and diagnostics, prior QX, instruments. life and quarter you about to no around in science think as expectations.

QX. perform expect similarly the to we've about as We to in talked past continue in those

instruments, step Now continue we there as or it and life to in relates science incremental we've here some to QX. seen in expect down weakness that QX, slightly would

really as QX QX. change second as no a for to So half, offsets there's the that with context, revenue

to So XXXX to also full and bottom. bioprocessing And change the year represents believe the expectations no our we continue that we're the year, for holding there's here.

and guide, the next January play given we it here call We are as macro, markets plays out as we want out and our our January couple see relates provide then broader want for earnings where Now a as always to to how the the call. guide and to QX see of build earnings XXXX on before months in we do. always, today QX

Our come Vijay from Kumar ISI. next question Evercore with will

back wanted to One, I bioprocessing. go to just this

Like 'XX? at that minuses how X.Xx, of in going inflect the we bioprocessing, outlook, restocking orders should below levers grow on book-to-bill are that China bioprocess? move there's to look guess, know a broad is don't we that I if bioprocessing phenomenon. if pluses strokes as Should generally or revenues and have you with I year So right? next the could any

very QX similar we think We to book-to-bill So back develop really saw had same. I The Vijay, actual the the was market data, which I is see, we come anticipated. that to was as QX. the

tension some And our as of bottom. as to and burnt off of with You possible ensure is call been try and the here the much the customers this is that that's we're why the working prior know take in inventory year. out confident from that we've that here system

But quite before there's to it's And as here and it about see so we what quarter lot here, pieces hard for important XXXX, XXXX. moving talk another it QX draw a relates for some also generalizations. why us looks it's of like in data to that's the in to

Now at into in we XXXX. we if This this going China expect before into, X on and here impact QX what's on also that, that to going as have seen doesn't January. see and to last midnight said XXXX But with you go is develops having inventory well. dynamic calling in the stop do XXXX XXst the how want stabilization of we a will, quarters,

for Understood. you. giving Thanks numbers. the Matt, one stand-alone for

think XX.X% cost margins should ex-EAS, 'XX for actions. and million for includes, about the cost right Danaher $XXX actions, next be right about that's we rough should sort that to looks I out ex perhaps here, that is how like all about year, of fiscal actions, What's believe, for thinking next way the it stand-alone numbers, of the margins year? Is think is come Matt? XX% jump-off that cost for point and us, -- so I

big think growth I when cost a yes, I of to mean a core driver the just because is we'll going But part, action out think update we right. I margins. give kind you're come of complete Yes. be the on

million $XXX in the actions. I'd $XXX QX talked of is and million characterize probably think it way QX. about We I cost onetime

in but roll next another and said, like again, So onetime help year, of the a if that right, will. number, is sort that you you cost forward that QX. $XXX And be, here of actions, kind net million would will

We here other pretty of will will have them that pieces, margins. meaningful some impact

core impact. will there headwinds. an other going cost some be FX, as now, we I sit have will an to right like think So is of, and have impact, said, growth first, here

as January, offsets is go So what away here in end we million $XXX when one-timers tailwind sort then to number we if to to XXX that guide about take 'XX. will, right probably net margin are up for you we'll the where year. those get points, see that and the next for of here of think basis But probably are that

Our with Scott question Davis Melius will from next Research. come

bottoming your mentioned has down said. in But of I kind side, prepared -- the you remarks, all, you us kind have or different through I of Rainer, walk just us markets on we think that think of Veralto number. don't of gone? Percent out? something China you China how -- through that any now and in first sales, bottoming or is walk of But hopefully that XX% maybe the biopharma materiality color on out China second, is what or could outlook and the

Scott, Sure, for thanks the and question.

So XX% revenue. total number think China here the a think I just post good is of as Veralto, to materiality about to a

let take now you the your what to in me through And portfolio point, across quarter. we here third saw the

a and several previously. with capacity, start change let's not mentioned environment see has There, that excess now here by as funding weaker for in which did market XX%, we quarters demand, been down and bioprocessing. was impacted So a

anticorruption margin, at some weaker the Life equipment well not expected the country, slowed margin. the worse of some as this, of tenders, some the initiatives overread was installation at macro a at on than in which equipment the margin, down Sciences but to as

back we're and Diagnostics, volumes, And normal. consistent largely in it's to seeing patient

into going change that we So in expect to XXXX. also this going don't QX we this expect is to and -- expect here continue forward

worst as to the bioprocessing; So seen in at normal. we Diagnostics a back largely and haven't the expected Life margin and here; Sciences, change

rates. in of least drama switch feel multiples, Okay, despite very -- didn't helpful. the just I reality cheap in environment? some to out there pipeline, of of is at at higher you It of gears, was that talk necessarily like as this kind But priced of relief multiples there. rate environment, moderation. And rest the that at type there's rate the about would some fully M&A seems is Abcam expect even look higher the reflect you some certainly your

rate individually. always is valuations on time our not asset it, tell would that doubt we the active, that And reflect likely environment. the a take for look no I based at very Scott, there's funnel, do we end and model financial as some some do, market, as what higher which interest still the and you we is sustained

When reiterate, financial we market, go on lights actual as we individual the the if down all that And well. do expectations deal lastly, as our company end -- and to to flip bring trigger average as we'll to excuse financial as on I've ensure model valuations pull some order ways aspects rate said, still well meets And together the those think here then green the reflect we target always it comes have deal, all me. in environment. the market model, -- to interest then the

Our next from Bank question Ryskin comes of with Michael America.

the life up are pretty that follow a little guys step-down in bit versus XQ on me science sequentially the XQ, that versus was clear It expectations. your sounds and biggest like you weakness. Let

that and it XQ. LS notes have in We mid-single instruments now declined grew mid-single-digit our XQ digit

by the you're to little in slowdown? parse Do the some by bit, you you out seeing SCIEX broader customer, geographies, could versus Beckman, weakness you're biotech? of that it's pharma where tied seeing So a think

to And just on slightly just return a would because order but already any more a provided longer that some have -- XQ, commentary little visibility you growth you LS get you when on bit thoughts book, that you could have on there. -- term any think thoughts longer instruments

So some forward would be commentary helpful.

Mike. Thanks,

on let's the here. So level set numbers

solutions. expectations XX% than holding of below modestly And performance less revenue, context our QX better mentioned, our up higher-end to than that of we science is specialized portion Danaher as with instrumentation life properly. instrument put tools Our in our the just less was

there. business have Applied led research resilient, Now these with that's environmental, particularly pharma if you life are markets When you that academic the think case were volumes the of associated well, But and took instruments. a also environmental. modest and about out by held aware testing was U.S. this biotech by along the I science PFAS service with up the end step-down, and and market, say food in

In there that's seeing as high here to We the environment, program rate pharma belts marketplace first the see their about were capital talking that's subsidized also it well. just as of and customers we're large is out available the as And of funding China, half in the year interest playing expenditures. as China, tightening very relates just we the sunsetting in of the the and lower comps loan well today in what China.

developed in only, largely to down margin related So softness was to some we anticorruption as And I talked wrap And biotech. in due just pharma geographically, the were there. our macro. really earlier, the about, just markets said initiatives to like the on weaker China, and

low year. I So singles on tools the at be and versus but for the think remain -- as still the full down we up we singles high expect there, wrap LS cautious to in QX

QX Now important as is of to said, 'XX, very reasons. a relates quarter it kinds think like I I all for here

biopharma in weaker mentioned, you expect about do I in say January. Life to it's a business, dialogue QX. how as market with going And we a us to a happens here also XXXX. Science we'll end as going know, our which, think into talk But fair in pharma and about XXXX to I customers that As it's lot the view lot we tell

to then XX not over going a growth going as structurally, little been an address I But longer quick major just outlook has to China not X, China as on a just touch because for bit. really for follow-up, term, helpful. the tools you industry you're ask And clear of I and a to I'm think That's Great. about made it the Danaher maybe want that. last years. 'XX part

really company, last a to growth? back everything total view it happened here going for to on do to level? is that's step be China it and of be your on basis? multiyear a it's Given meaning above what's still China Or forward company multiyear accretive think -- Will year, you return total sort over taking the process a going that to

fleet in for growth drugs. demand think think in accrete currently years, we're in demand a through things based And China, continues spent we're going in no from that's to at long during China. We the the biologic occurred China, funds average just the playing Mike. you pandemic, the iceberg that effort to is a there's of term, about the of if the The zero China several pharmaceutical at the tip COVID were look the out question of that reset if you industry that the over on many how perspective,

over large increasing But you which market time, population all advanced and enormous a those world. to things, demanding really moderate is back of and come middle has demand access a the has to an an end which class already and most the in medications

term are the going long China although fundamentals here forth the and in right so because we short different funding the if will, in you in a opportunity see the through, with are mid to here as continue and we sources an So reset place, term.

question from next Puneet take Leerink We'll Souda Partners. our with

bit a coverage here. of Quite

health that me So whose drugs discussed markets, consumer now, being even the ask diabetes care that's in and and markets food is are GLP-Xs something maybe the and indications let weight-loss expanding about here. and

offset you I if there for a context, also provide that of talk XXXX, wondering some just can market, mAbs. opportunities context So very versus you some these maybe And Alzheimer's, from GLP-X's could which headwinds? you within help potentially sort the of if can see in drugs on contributions anything large weigh if believe, that how about the the also is we should you

them. ] real, contribute growing and time they expecting Danaher Thanks, extent, [ is and GLP-Xs, to which let's to are over with to for Puneet. the those our to represented expect growth. we some Well, And are start all and, of

the of inputs of, class not use processes, in biologic Now a I'll such is second, of intensity your are instance, that, for a as standard the if of question to drugs having that said intense. mAbs, as you where GLP-Xs of back will, and part the come

how will on to we our synthetic you have business, for which mix And over and the that, to you modest business. a to contributes GLP-X, depending provides here that that This time. also have impacts this our So processes contribute processes. develops, tailwind degree that biologic think

those get expect to significant greater processes. around is to and Alzheimer's our there relates pipelines, drugs, your industry's that patients, typically than And it as Now use by in their GLP-X. the And as through way regulators than, the ultimately through a to the continue instance, we adopted be certainly development question and GLP-X of monoclonal those far are products more for then antibodies. tailwind make reimbursed

and Got it. could cost -- And reduction business maybe business if do talk for opportunities DBS and margins Abcam. where term the protein where the most Super. you the for antibodies for up wondering I eventually? you see here can impact? you algorithm business longer this in have the op what in follow the on reagents your I'm then biggest if Could have about

So Puneet, to close we transaction. on this have yet

won't growing protein to digits. a that able consumables and detail into in take market. acquisition second I a We talk to reiterate we be over here. market want to model So be estimate us really that about But any $X high highly the single billion entry and gives do this its content an to attractive

moving over clinic. because from of importantly, very approaches, believe, biopharma to to and and detection protein other now is the detection technologies new we And research time,

even to you their help and of accelerate drug so these identify that helping someday complex map how progression. diseases hopefully see diseases, in earlier strategy And discovery fits can our

team earnings We're talked long-term a brand with still this, in on great And a a accretive us really terrific we're now, talent. by and sustainable company looking in but the to welcoming business Now differentiated transaction Puneet, is We've this and to this focused model. here. right also in closing mid-XXXX. forward growth, about this is

Rachel comes from question next JPMorgan. Our Vatnsdal with

want up questions more I So a on to with follow few nuance China.

So first, any you some to mentioned impact had Life that the Sciences corruption segment.

that quantify there? hospital seeing well? you pharma diagnostic through, the care you can could as to the into are bleed health in impact and And that impact So has biotech us settings? just you and started then walk Or

China just and started over about shifting volume-based of the side another is And for we more dynamic procurement. then Diagnostics to China, hearing that recently

walk exposure So hearing you you're be? to that and that what your through can front what potential would us on

where of as well this with starting can the capital it particularly saw delayed I effect. were here. postponed, really larger we've frankly, installation hardware, way, being seen There do a But some so transitory Rachel, equipment. if anti-corruption, Sure. equipment see wane we that as tenders say as we weeks, that

So as And we that come in weeks. applies in what back to the really last at Life the of normal, what will, both saw if see there you we well margin to couple Diagnostics. Sciences as in

or headwind. positive growth short view initiatives it So I think we multinationals the in in for is midterm even the long a a this Frankly, as would not playing as term, China. the anticorruption levels field

Diagnostics. think the think we kind think be to think it way headwind $XX over of the as of procurement, couple to going Beckman it's the far best Rachel, about I us a of that years. value-based kind is As next annual Most at I is about here million of for

math is a revenues, price there, million. assume maybe type simple $XXX mean BPP XX% of reduction maybe and you XX% to of of kind kind ], the to and is the that $XXX of So million subject can I [ of get sort Beckman

So here. we think that's X-, X-year kind run rate kind of of a

over manageable for us the pretty period. and So modest

Great. around And Diagnostics. is follow-up then just my

versus billion. respiratory $X.X So assumptions the you guys that for year expectations around listed to billion prior $X.X

listed And think average, softer XXXX, next given respiratory about billion this we $X.X year Is well? expectations about number that year really the on should into should for we as guys how year just for expect respiratory? still, by endemic then think this respiratory to way million, heading a for you So $XXX market?

think Yes. good billion. I it's $X.X I mean the on question a

respiratory did this baseline we September more we last year, saw of in October, frame. is had the time and past be, than that the we because seen I kind little usually bit year ILI spiked that Just right? Rachel, That up. similarly, would my and earlier where a think better probably another I think season normal, something like we in that's started sort of February the January, have

do forward years We typically, $X.X forward. that. look we planning we So I of as couple billion years about I the base mirror couple the if trying of last think of planning I of that, a where But going sort kind from about to would be and sort and that. purpose at think ILI would it of last look perspective, of think as

I'd where be. of So I that's think kind

question now John closing to back And that our the was remarks. last over I will for turn today. call Bedford

around Thank joining. be We'll you, for everybody, the for questions. the rest day of

Thanks, everyone.

this And your participation. does thank conclude today's call. for We you

disconnect at may You time. any