DHR,DHR.PA - Earnings call transcript Q2 2021

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Operator

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

Matthew Gugino

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

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

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

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

Rainer Blair

our call us the today. in Matt. second you XX% everyone. very And to strong We with with helped quarter. appreciate morning, thanks, joining broad-based core on saw our Well, We're over deliver which across us the is Business Danaher performance cash terrific per executing revenue growth, Systems every of leading generation. to testament our share a XX% and well and portfolio growth day. outstanding with the rounded who more This exceptional are free than earnings start the results strength portfolio, We year the to adjusted team pleased the good flow committed another and positioning

growth the contributed innovation share prioritized which investments advantage with and to strategic significant enhanced accelerating During We we through acquisitions. across we Danaher increased our and production our capabilities, to portfolio high organic in our the several market of quarter, gains believe impact competitive all businesses. second strengthen our continued of growth

today frontier DBS fast believe of our together, Putting and expand for of and the sustainable differentiates leading strong growing important our provides Aldevron, announced outperformance. about also presence a we our and combination Danaher it pending long-term portfolio acquisition the We medicine. will genomic foundation which into driven all execution

with that, results. quarter second to turn our let's So,

Our $X.X XX% in delivered from and all were strong revenue up more developed core each XX%. and segments. markets three and three markets, contributions nearly or up quarter. XX.X%, of than growth with of growth XX% Geographically, of more billion Western we Revenue largest grew Europe, North the high sales China, our was markets were America, our reporting in

points prior-year adjustments higher that profit did by to margin gross due not margin the related impact the the Cytiva of in product increased to of higher primarily mix Our basis favorable purchase XXX accounting to volumes, sales and acquisition repeat XXXX. XX.X%, impact

with our Aldevron and vaccines to field to gene technology. Danaher and to genomic of important and margin cell forward lower including business protein, operating and margin of related and operating talented million expansion, we operating DNA closes. to year-over-year. adoption The where of $X.XX share We of revenue travel DNA, in were accretive welcoming this gene than generate into basis Aldevron, expense primarily of earnings pharmaceutical therapies, net anticipate addition XXX will margin medicine, more plasmid transaction Danaher biotechnology We customers. we're and common We XX.X%, and result seeing points per June, XX% to margin be accelerated pre-pandemic of $X.X Our revenue strong higher the to quarter, RNA levels. of flow costs a over Aldevron of a XX% in In and compared XXXX. mRNA XXXX, look innovative high announced team multiple annual below Adjusted capabilities will as cash remained incredibly expand serving expect increased up quality producer on as up core of billion the generated levels the the gross our XX% once acquire diluted profile. intention the profit free a as academic, to growth to editing continued $XXX and other we

acquisition, addition Aldevron portfolio. accelerated we growth In across organic the several also investments to announcing

diagnostics. quantify spend commitment XX% year-over-year toward made our Danaher by scientists great significant our required to for innovation development examples through undetectable support solutions One competitive bring just identify, that These manual to Coulter automation impactful research and we core accurate our a of a level, a launched And more of our the to recently XXXX that for steps helping Diagnostics, innovation. increasing biotherapeutics spectrometry our development to than how small the compact up At introduced and At is efforts, designed characterize we across values future. customers typically for XXXX, we precision SCIEX, a and more our laboratories solution Beckman new of advantage Danaher preparation. ZenoTOF of advance development growth to enhancing few invest to at continuing we're to previously the XX% and sample at molecules enables are system research and DxA high mid-sized defines Fit, our and have the resolution mass reduces customers.

both making customer we're to are by demand, where expand of driven runway support term, they meaningful market investments But long-term substantial tremendous market we capacity drivers in serve. these underlying to share the Cepheid. growth Near supporting the see ahead, the Additionally, across important businesses gains. they're existing these investments and bioprocessing our businesses the growth structural and equally given

into investments future. support our across accelerate total competitive XXXX reinforce as of to going capital We will in well the of believe be continue in trajectory portfolio these our our $X.X We strategic today billion and expect forward. invest the we advantage our to growth Danaher and expenditures customers' inorganic and combination needs approximately across our organic

our Now, businesses based, go growth. results on let's the Sciences major with was reported XX%. detail of core delivering increased into Life revenue in or up quarterly our most revenue broad segments. core across with more growth XX.X%, platform XX% the This better

strong see and Biotech. combined XX% our demand to for growth of solutions with more Pall core revenue continue We with bioprocessing than Cytiva

double we revenues months robust and Our were over order first rates. activity vaccine non-COVID year. and billion first and customer related consistent exceeded digit, bioprocessing COVID-related up the business was six therapeutic the of with the $X saw quarter where low

I maintaining if a to a substantial than We've moment to and take brand company added first year name, progress new with associates remiss all be in Danaher, reflect I'd Cytiva's fantastic of Danaher. made as on transition X,XXX the a new So, while part more established didn't talked saw, welcome and value we're a support and the engaged we ramping such to revenue capacity our than we and XX%. growing production When customers, world about to of more talented announced opportunities Danaher. creation strategic team we by acquisition, excited class significantly and the

our in and I they've expectations exceeded think to of every customers. that's it's and exceptionally And support really Danaher execute to the the our Danaher a testament way. System embraced continued to fair say team in who've Business Cytiva

newly Cepheid, more of testing, assays, gain our XX.X% acquired manufacturing approximately as volume to activity at the the growth core and Beckman by world. acquired In team Cepheid market respiratory each reported capacity and up to levels grew Diagnostics million quarter. Leica Biosystems approached as growth ship we expanded respiratory customers. more At XX diagnostic continued outside hospital and health by among than was than cartridges led pre-pandemic enabled and was testing XX%, revenue infection the around XX% and believe core Moving Diagnostics, XX% produce Cepheid. share patient led clinical grew revenue to sexual in we particularly

quality four-in-one XX%. This of the with provides A, XX by for of unique is As care. for Cepheid over installed accurate while represented evidence team's lab COVID-XX shipments, best-in-class, of last combination Flu clinicians at driven combination the approximately expected, XX% workflow results, and easy-to-use Cepheid accounted the test the of broad-based expansion thoughtful across base fast, tests the months and and COVID-only significant Flu our these B to approximately value point RSV was performance

revenue Videojet In end geographies driven to XX% XX%. reflected identification quality improving accelerated in running up quality food most Revenue markets. single-digit In projects. broad-based analytical Solutions Applied beverage and and quarter. was core consumables order chemical, chemistries across packaging began Environmental high to and approximately customers rates our and in than XX% up Moving with our management reported major acceleration & were platforms activity and up municipal, XX.X% Equipment growth our invest product growth identification, with and was markets. the in water up demand mid-teens end the up and got across color recovery across more businesses, our revenue product grew larger was and and quarter. accelerated segment, by a as for businesses water up both back This

time our what going So, and trends with let's some through markets. geographically spend quarter, across saw backdrop end a for that as this we

most to order Today, minimize to Looking in further the COVID-XX broadly operations. elevated. regions we're Biotech strong the biologic rise, COVID-XX Sciences, potential the reflected at ago. growth around conditions no and to the which increase emerging environment. therapies US, remains teams This and impact therapies seen above augmented growth site customer further and continues and led of and seeing with We more from most biopharma of the said, have variants customers, vaccines and pace the have at development are driving of pre-pandemic XX% it's our this across and Life saw is activity from we've in robust time new on move our genomic-based seen largely five have a the globally, Europe we've monoclonal rebound, development or the are taken to above production variants demand recent our action lifesaving at levels by by China. end across of with the mindful just approaching with or material growth. than trending our That the more trend continues continue in point, And as help world, lockdowns. on momentum healthy respective therapeutics. number where recovered, results years expect markets over selective we commercial impact returned markets, or work normal have customers X,XXX antibody-based funding our end we're as countries their Across outbreaks, major is In-person we're adapted revenue are there to businesses around positive levels seeing in activity of spend to and Most businesses. through rates year. we and

mature several years see gene therapy X,XXX tenfold over these a technologies the increase and development approval. as also therapies last in gain regulatory We candidates today, over

to candidates many research, rate in come. still of of this these are stage Given to expect years market remain the that we many strong growth early for

the In and both and biologics the genomic-based in there today. vaccines on is development addition demand related COVID-XX and medicines, growth to therapeutics, to market in significant

clear well guidelines in for from customers growth well interest and see At emerging address evolving global this increased of seeing market future. vaccination supply, the the we're continue expect it's variants segment into looking will to demand the as pace Given vaccination, we that vaccine foreseeable to next current the as globally, of biopharma durable year.

include COVID-related in billion level We populations shots XXXX recognize each contribution approximately and the COVID-related do scenarios. $X to old not with and to or entering These year of potential XX revenue anticipate to vaccine assumptions billion backlog. around expansion an of in $X.X expect availability in booster of therapeutic uncertainty XXXX due these from the under

drugs numbers vendors with are of challenging scientific sophistication required their and complex with Given they them solutions the therapies, for who lab developed being manufacture the growing supply reliably most and the to to these partner looking production to move from can customers problems as discover scale. increasing

near market, and well and will screening as are portfolio drive to we're levels And as and US continue investments molecular meet for vaccination testing regions up variants and help persistent the volumes wellness diagnostics, us volumes into far demand which we're strong in the pre-pandemic Cepheid's and patients the US, half Outside our major approximately see to demand proactive bioprocessing In for returning growing revenue, comprehensive in for procedures. we check, declined, demand while or that. us at rates do confident Our future. of Cepheid the clinical testing are most just other makes have care. at of respiratory expertise diagnostics capacity scientific of lag testing routine positions customer In patient PCR elective seeing now outbreaks. in this the innovation point our emerging

quarter, up and the approximately XX expect in I respiratory million to XXXX. shipped in first shipped XX as tests million second now mentioned Now, the quarter, approximately tests we we earlier, million XX during ship from

the broadest share share. menu combination solution. that these it demand and test market leading significantly and speed, was disease, we of market expand pandemic. Cepheid's creates we installed assumption point will the around on ahead to advantages, of the with believe gain that we'll believe point-of-care And molecular molecular the from workflow positioning use Cepheid global continue for respiratory prior base The ahead, utilization an and of testing of COVID-XX the for Looking market be leading to endemic given the expansion the accuracy, market care gains, molecular Cepheid's opportunities will significant where ease diagnostic testing broader

see of economic and Moving demand municipal to the with healthy over order the applied increasing activity remains Across activity, which of and customers improvement continue consumables instrument-oriented water for half steady markets, and continuation year. equipment. we're seeing the rates accelerating the investment environment. treat a broader Customer in activity solid the line is as first we markets in accelerating globally, project test to consumable is with improving funding in

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

We single-digit deliver expect high-teens related growth revenue and revenue We anticipate to core growth third from high in contribution the growth to base high our a in quarter core range. core mid tailwind. business single-digit revenue COVID

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

growth. We in revenue XX% for expect be approximately XX% full-year XX% rate. core contribution revenue business, core expect our our revenue an core from XXXX, now anticipate to we approximately that growth revenue tailwind to will single-digits. be full of expectation increase now the high the will And up prior year, that the deliver an we base For COVID-related

to meaningful had this outstanding across year the So, seen to start opportunities Danaher a performance. we've wrap and great to build upon up, we've

Danaher our of for that, results portfolio and With reiterate team, to strong that a and Our a the sustainable power second today you, exceptional unique combination long-term quarter foundation Matt. differentiates back outperformance. our provides

Matthew Gugino

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

Operator

Instructions]. [Operator

Morgan. the Your J.P. line Tycho Peterson from first of question comes with

Tycho Peterson

particular you is about debates and you not you're around Can on out I came fact bit heading around field, you're stock the year. near about testing you're you the into thought outlook outlook, in the variants for be next of XXXX what talk little seeing Obviously, term the talked first more about know with in gives just the around I antigen. for would a hospital and Cepheid. one how XXXX? maybe in the in trends quarter. thinking PCR, still quarter confidence Rainer, Congrats what the the in think you the sustainable

So, year. more think we significantly dynamics. still testing could debate I some to as next But those off get there's whether all drop

Rainer Blair

As XXXX, sort a of the that set and think the baseline sets up things couple we about remainder of us how for XXXX of to just here.

the the First of ship that expect for through XX what seen. And XX guide we've in before. all, we now XXXX COVID, And only that up gain to test either million is from here COVID tests four-in-one. taken we we've confidence or million really

expected in QX, has really here That a shipping that given recall the really at our that we've point the our US. us and originally the of of We're to here's still slowdown XX XX% in we're why? shipped you'll that million demand we're testing plenty in XX% of outside everything million capacity for ship up solution As producing. care. that we US, of ramped And our the XX QX. of perceiving and inside demand, confidence there's not currently cartridges

it's true see trending tests continue while the for demand core solution. see So, in to downwards, lab that we our strength testing we

COVID-XX. more The the breakouts makes Flu tests of in in of world, bit here also in that we're are towards elsewhere solution we're considering seeing for which, concerned B which that other course, us some we'll addition the thing A, a US, the is start seeing the think And RSV RSV but that we testing four-in-one about skew of

different. materially would feel previous that would and have XX So, that million where for million think see comfortable don't XXXX tests we'll XX we we anything our in today, be guide year, about sit we we that as indicate this tests

largest we've base pandemic, XX see outside tests XX% in the of We by of continue and the plus the our the and since menu beginning with plus tests US in the installed plenty course, Keep XX have to US. testing of mind, increased opportunity.

should unique the feel proposition because we that that point at strongly that once to So, of we value available feel again be demand of us care.

Tycho Peterson

A follow-up on Aldevron.

we you little synergies? that's about think on for five when just I how the year. expansion asset you thinking talk years. a know online looking next coming capacity spoke deal bit this you've mentioned been I there's you're about at that Can about

could rate with I'm you point half growth particular. and XX%. implied how Definitely in So, if to And outlook Pall curious then, that. you're get But think Cytiva, a I to talk of about greater thinking synergies the and growth, closer growth to just is than XX%. to

Rainer Blair

As we are synergies Pall. medicine at market, into we the as Cytiva initially at entry as in as great really a that are to Aldevron, it globalize look are product DNA, really here related the and standalone opportunity or scope really looking of actually to not it the revenues protein that see mRNA, of as and genomic seeing our with regard, plasmid US. lineup, Aldevron's to capacity plenty specifically existing expand in inside well that. in There's majority invest, and The

two. So, a adding XX%, XXXX perspective, one billion opportunities EPS as and we adding business growth as $X.X from EPS see is XX year at said, we And in points of like well about to growing to be profile, year going in overall $X.XX to Danaher's that. $X.XX this great growth in globalize basis

Matt McGrew

planning be what that's kind Tycho, perspective, they But historically prudent have than bit laid of I sort think, growth of again, that to from perspective, we've just a XX%. our of sort a out. from little better

with to have type you historically up, That's little the where come sort setting success more kind I why that had of of higher. of bit been lot will, versus a if acquisitions a think they there in for we've we've past. of

Tycho Peterson

I book? Matt, book bioprocessing think said revenues. order that order comment What up can the I up? just was XX%. you was assume you bioprocessing the on

Matt McGrew

of XX%. was It north

Operator

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

Michael Ryskin

is Mike Derik. this Ryskin Hey, ones. quick for on A couple

the cartridges the seeing you're to COVID-only. The better prior, roughly COVID lot clarify, which that some strong. doing saying going contribution a is And order more vax is like is pricing COVID Just out. the for have with fiscal coming the on you're solution if should versus four-in-one the unchanged but it book and year, sounds from you're better XX%,

there some this there? half reconcile want of that. to other are some back So, is Or moving year? pieces just uncertainty the Just

Matt McGrew

through about to performance is we sort is million I Mike. way took COVID kind would about full I number better here for sort that the in the most year. think is And the that up that $XXX tailwind the of year, what QX I of for that cartridge we think the the rolling full saw think of think of

the $XXX we think you if think would be. where we up about contributions, thought we're million I So, versus COVID

be to through going that of sort the that side. full of to just QX the rolling All year is for beat COVID.

think close the going was as we about in we to be COVID far of which going of XX% kind forward, was what the as think four-in-one probably QX we – As only, the QX, goes, contribution that four-in-one. still XX% saw here pretty is was to

Rainer outbreak might Given different said and well, season more we're a of we what think a RSV last did respiratory sort little we said what a Rainer we the in than year saw but the of year. or of we as south, last bit seeing have here around what that

but QX, move it something in a where out, sort thinking, to XX/XX. as more kind We'll comes of the of moves of that fourth sort like So, that split forward, we're more see XX/XX, we quarter.

Michael Ryskin

markets bit you're far markets? didn't talk Could little as a you get the as comment a clean recovery? trends Can little some base just seeing instrument on you of in number. analytical in LCMS about business I SCIEX a what bit

Rainer Blair

really we're in recovery really it's back necessary are fully start where are or in the new of these to underlying customer adapting underway. still analytical with the near we're the rates seeing we there that readily normal low. And they're at If work levels very customers where well the or topic environments infection to activity pre-pandemic with markets,

of or core quarter. were service stronger, order marker. So, for over higher instrument are QX, science rates, major our core growth companies all SCIEX that as But Keep in better a the over growth in see XX% XX% at and our just really, here operating funnels life manifests itself we sales. mind, in

the seeing pre-pandemic you we're stack So, we're there, there. very to really rate. growth momentum or at very And some nice look growth near if two-year at

While accelerating driven our place of a more R&D and we our have we've XXXX. some mentioned great to customer areas introduced Sciences, investment SCIEX introduced traction cell sorter. CytoFLEX activity, where for new introductions. ZenoTOF, is have but also product at in we the is this instrument also I by Beckman And but say, the been the seen Life we we've

are all we those contribute think what to things instrumentation So, that is market. outperformance here the in

Matt McGrew

a sciences, were Mike, give overall, XX%. just to north up you and sense, just of XX% was of equipment outside life of north consumables

give to elsewhere of just So, we you as different that's sense what that all a from well. – saw not

Michael Ryskin

I it can One if last quick one in. squeeze

I think up called billion the even nice in $X.X of step Cytiva That's out the with year. for a pretty numbers. CapEx you

point of Just for for and more jumping specific wondering that XXXX off a is on much fair beyond? And for how Cepheid, is cartridges this side? more to bioprocessing COVID or the

Rainer Blair

inclusive $XXX even Cytiva, in Cepheid normally or be Mike, like think, CapEx. probably I million more of we'd

I you preponderance on the and delta that on there side. think that. Pall be is would as billion size going with the that the to Cytiva of bioprocessing increase at So, Cepheid say at that I the $X.X you're can seeing kind of

start two – numbers. increase. you'll the might will we driving big would of that, suspect ones be billion this year. over higher into three $XXX think, next the down suspect head to year. that So, we the of I those be But as between million come I end I those that see be number, time, the obviously, that and something touch. a at at we're probably sort Maybe $X.X does in that

I forward the then of a about lot a we've more level. couple landing lower were forward for way come demand that little the increases of a of businesses, a years a and bolus about, planning sort it, have growth a and we I probably think plus given bit down talked the just drivers. secular here for [ph] is already now, the all pulling to back been think you'll pull longer-term we've capacity As of those is This of

Operator

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

Vijay Kumar

a thinking the side on when of then, either stepping you or the exit curious morning. and for conversion, in order think timing what more a like year Maybe maybe bioprocessing, just approval. perhaps in right maybe way? around commentary thing on vaccine ex half. of bioprocessing, back one just The drug to this vaccines feels This light stepping the that's that cadence? And Rainer. about backlog, you Congratulations revenue it solid about the is XQ, major your that does up the print at business. is down And vaccines, industry a growth I'm we're think on Alzheimer's about when pace, it we had backlogs

Rainer Blair

that. bioprocess with start and about Let's how to think

half. with year So, to billion therapeutics do first this saw just to consistent the what be and for and half in in level-set, we expect vaccines $X you revenue, that second is to going

that the think in level step basis for now that I is prior So, if purely activity up to the And QX decel elevated. level you comps. more broadly QX, keep speaking, Danaher, And related activity remains total mind, thinking is the really X,XXX you're year appropriately. any so, characterizes And that about over points. Right? speaking

strength with We it Tycho, therapeutic. order the in plus to XX% vaccine revenue see has talked and continue about XX% Matt side on Orders, plus in the side. QX, on

good that. to why to be. So, strengthen billion here XXXX, very for for expect July we us XX activity to which is forward on is confident place backlog XXXX, continue a us, it this a gives of we're you that will in high. remains And which sitting think about talking about as looking level continue, of And quarters the $X.X number

seen the now great up. a developed and Keep deal to ramping in kicking market on space. We're in example. mind, three of and story. therapeutic in manufacturers China there's going market vaccine So, emerging a see to an vaccine been in some that has primarily say the the rollout we've There's starting

in Another Russia, one several more. of course, and kick to And starting in. just they're

expect we some for really sustained some period of that all provide So, to time. strength

Matt McGrew

the all kind of XXX,XXX to else, a here. just keep step just foot kind five and kinds And think each and about revenue. back was there's of QX, the comps than – just everything true of half to of just in second in into that been biotech, that just numbers the last maybe take as have bookings also and kind Vijay, mind head view, we a quarters of in in higher –

Rainer Blair

first Alzheimer's, to is the we absolutely Now on days. need drug. specifically coming industry question to of there's your afflicts world around as see Alzheimer this for solution. disease. it's making so At and you many know, science a particular real But drug with any the progress delighted comment that early Aduhelm, point, pharmaceutical a and back can't this we're on all,

As the target there's one population, others But drug, around a reimbursement, and quite the of the late bit processes. stage of number the I drug. that are other is you might discussion in size this of that say several of and questions. approval qualification know, a There efficacy are

elevated we what but see that disease those relevant breadth and say can impact to fair on penetration antibodies. have there of projects this the here it's has, and that so, do should for early can it Alzheimer's And say that and our team in indication confident our monoclonal we an all supply the more portfolio, of the we say Awfully of we that becoming those, are be market, we're more of with represented to capability the need.

Vijay Kumar

of the flying numbers A five one to around. that's think With revenue quick for quarters, straightforward. orders trying I above lot you're numbers. for one you. Appreciate Matt, simplify

margins – expenses impact incremental the for is comments come Assuming on margin mix XXXX, XXXX mix for ignoring fiscal back? or as any

Matt McGrew

had you, frankly. quarter people in second quarter crystal good kind quarter. – mix, Vijay, especially through bit Like the activity, little to late but got we to I'm some again, fall things. to as insight ball the doing into still I'd are love into a more the pretty we here of little half, the have activity to besides a little for see starting you but are bit, travel hoping in the resume we said, we get bit more XXXX for just starting A in-person and the

come costs It's back, mind, my back do and because how things. costs I so, when there's happens. the will I two fast believe And in we that come do some have think,

talk hopefully But little that, two. just later for bit provide it's here that balancing it's difficult I'm uncertainty down. little able the today. on get early get to we we about it's that And of more the it. when really pin be think to are out So, more there's hoping color to that's still think we a into as that where in bit enough that think a and year. But there I a about unfortunately, us I fall kind those we XXXX

Operator

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

Scott Davis

broad E&AS, mention was there. it meaningful surprised. labor thought so? more I leave just there, I in in challenges might really logistics margins, Is on impact E&AS. based and there a you some I'd costs and particularly if

Matt McGrew

point. fair a It's

seen definitely have it. We

is now, modest. travel inflationary think, sort for us, I supply similar again, to definitely our you pressures. DBS of would and it and able seeing here with able I say on will, moved of that. on the if through quarter, that of to manage we're it, seeing are a And to perspective, the better it we've right think some price pressures that, the we as we daily I work, through from are definitely but just being some side chain

are part us, we that in metals. where not it happens. resins, plastics, Again, in in it We a seeing see but for huge do

bit around for two challenge has I think by been things as an is well. our think Fewer saw, Scott, pieces us, biggest move chain a means And as then, I everybody particularly definitely globally, expensive freight electronics, the the us obviously read more flights supply has chips it's a for and cargo to issue. air. the little

PPV. anything into work that I forward us. abate, believe little we've not some some does seen second half probably able step so clearly it with and here that price do work again, as bit a of impact. the move been through that haven't if we little for material might challenge and far, hard bit a So, But to up and a

Scott Davis

that, think? times with use that to make real delivery hard so Matt. like orders this Can like high? of are on any metric on-time and things follow-up looking confidence still Does really kind sense you even since to of Just wonky at

Rainer Blair

with that. And the But making cost on partners expectation. stepping quality, investments. We but our supply listen. not and remains talk, customer's have who's And we drive our that, and what core focus to delivery, supporting going been who internally, also our value, we're here can delivery associated on-time necessary don't we us control plate customers our up on the And to or compromise starting meeting compromise exceeding processes. The with and that, we Northstar. our on anybody with

Scott Davis

congrats CEO in on And Well, your Rainer, start, great congrats, a tenure. guys.

Operator

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

Doug Schenkel

comes angle go post-COVID. a regarding to of it some to and growth on of want different all questions durability I when of the kind back try take to things

on outlook in earlier on Cepheid, there the for So, volume XXXX. question testing was an

about install You've by XX% the noted of the increased pandemic. beginning since your GeneXpert before, base

some in your over might right You've used much of purposes? an efforts has under because some categories have boxes. that confidence term. there to these effort these in as success And about boxes had of for if about especially you talked placements, data durably of old there accounts the how share having greatly got been assays picked testing over boost into Essentially, to pull could the the indexed that TAM that be those forward the sure about world before on you on initiatives, non-COVID-XX additionally, utilization the possible place the are increase as move on goal up was that it can also are where with also possible advancements would for past you in previously I your some signs wondering is smart areas we driving make some newer management, specific in been outlook may talked instruments ask the new you're as development which were coming coming you as durability? I where notable Cepheid to long you going, quarters by pandemic for the the being made additional company. including that assay some

lingering I of of concerns and terms going assuaged a the QX, in menu was what's newer lot positive outlook we think saw further on with strong by expansion about what this signs in which with some category for accounts. combining be really assay would

Rainer Blair

assays. particularly have strength. here COVID and today or have manifested, second an is us on the which plus, new here here that, settings just and care – is in strong QX, a instance, up we've be and not here, installed for as pillar our XX% one on increased the customers. order the in strong places you're again, everybody Once able but point think to base to by develop we out sexual for and in of saw pandemic I since of in XX% day every to in that's the assays, phone. our and help need with provide this are course, level-set beginning those infections they to health the hospital would with instruments that's but whether looking that we pandemic play acquired needs, and of available the new places at that tried which of course, also starting to and with haven't been before. requirements strategically, And near-term And very thousands wanting that the that we've quarter, the plus, additional do menu use to COVID we where where to And always, beyond the see to in we seen perhaps of launch

we're so, of the in in only US, rest but progress to we pleased that expect with And the And continue here very made not that. world. as we the

is we're out continue play point. the going the The to expect So, be that here forward. second very and to see traction, starting menu case quarter to and in gaining that important

please on lead relates as every that Now, And well to you it expect broaden know to in are breadth, depth over day. time. over to working as new can that, assays assays, that new time, continue as we menu

our part activity absolutely daily that's here. So, of a

Doug Schenkel

you really Cytiva of specific side COVID. is we've potential the seems said, a few Pall the The and Hopping for it category, That heading say regards to upside, there with uncertainty COVID clear but it is is is the times, in happens for were if were demand equation, pretty slow into services question talked basic think, backlog as demand to and XXXX comfortable been expected was a a the about problem. presumably, purposes. biopharma this related this still billion. in basically category. slow, and good were fair that? over an with compensate be to fair the to solve products you're Even and A thinking investor to $X.X I still has that supply to to important if some slow of essentially what you're has where across about services to essentially reallocate able there broadly products that presented enough for more hasn't and opportunity there fantastic way other going these been, to this to for area been Is demand of demand Our thinking to if things? enough that products that services, just that's COVID

Rainer Blair

that number And that I that about on talked reiterate we are out are there, not to what strength to before assumptions move that in think relation we assumptions and number. so. in in the which backlog non-COVID let's

backlog, that well the that's in whether stage or the elsewhere, year, imagine approved and we're this we're as Europe can late are billion $X.X includes to. which in addition approved those that you in So, in all trials, close $X that very vaccines, shipping to the as billion US those

a countries and worldwide be XX what absolutely the can a the we these market imagine that And So, know a about how in are includes those thinking shot. it from kids, the is nor China of And you we're younger doesn't that's from on included a part our number. under, vaccination was we that. which now to booster to that vaccines have but booster have moving from a know big include I we we we talking basis it assumed shots, pretty is But know Israel, part of schedule, numbers that emerging here, UK, about. not

assumption. an appropriate So, we've kept think that's that out. that And we

genomic non-COVID antibodies quarter very the as one than with we order remain over above, therapies the term. double of quite five digits the it, we utilization related look you to the the consistently long and pipeline, more in have demand, add, an here which that gene will we the very you that, has the magnitude low other five more that here, strongly the capacity feel and then perhaps we of confident just And to ago. than which where medicines projects or even years Now over robust years the feel XX% in pipeline, talked cell X,XXX just the pipeline, number projects over and in ago, development about in X,XXX for is been monoclonal mid

Operator

Leonard of Daniel last your And the line with from will Wells question come Fargo.

Daniel Leonard

I if may. Two,

for dynamics see market and The an more there on thinking with first any think up still stocking inventory one in change equilibrium, your in hearing such? When we're the on around such. Is when of customer and to bioprocessing. about you filters catches supply demand? supply going shortages We're do

Rainer Blair

with Let me start this.

and think supply a I there that, there's in use in is where but I strong might filters, and pockets as general, be there some shortages, single the products of capacities such and, particularly, of mentioned, with market that think the perhaps we that Danaher would a to opposed those as I continued prescribe type broad-based has to shortages the industry to individual made. as ramp investments you product some shortage

continue So, accompany to I that support growth been is the able do the has that. here what to industry and think

relates believe question, very, we inventory in of ensure our to rigorous are here asked need. that need possible customers and to we such, as there's it to very inventory who our industry. as we that get in interactions your that encouraged visibility as we've that sitting as the the here they us And give us orders don't what they with give have Now, been their to early pockets

might really You the the that case, can of it's size there ignore but overall the industry. two places that perhaps material never one that or might be not be in

to with of support and working suppliers So, we but other, our each visibility, ramp us Everybody a to we earlier, with through up the tight mentioned also chain. think customers our great who supply. it on course of value that who had is also industry is with with deal the have we

Daniel Leonard

go to Or margin COVID My sales might you of tailwinds Vijay's have increase you the rate follow-up that that expense those these away? Are today Could there a the bridge question world on is to expense tailwinds the to just when maybe where abate? earlier any starts similar expenses side. moderate? base perhaps maybe

Matt McGrew

been we've broadly the that and it's the sort would answer back, you of in the not of here is, and been if about we've last, about expenses speaking more quarters, as coming Dan, and think of say be in think the historically, second where kind XX% think the to it's like it's kind we start more five has business, across maybe think in I the look forward I ramp going XX%. through. it's And VCM today, half of I way to just to guess, been fall probably I COVID, XX%. sort our seeing been

a been this in X% that And think so, bit base see where for growth, I to in we the basis expenses of sort of going investments part And timing normal, what the little I is will uncertainty longer-term on two-year is but you more think with that continue we to And think think, and if business think again, that, of is not that not base be X% in on, to expense year we'll our today, kind sure I XX%. – to points XXXX. I we benefits, and seeing go-to-market. come that innovation plus making only about what have XXX the – were stack see core that is we're what still which of and the a we'll here make are closer the is back is we I'm that

growth on travel of Rainer going come And and to as back we're the some office have that to side. and that inclined making are those so, I kind to to we think making while are recognizing off investments, myself both costs keep the think get And I want to we back the that we're paying investments start again.

is a So, maybe, if XX% I is it half, bridge be the the would XX% today, bit to and I more probably like XX% it probably in guess. like over something time, second I more way little had Dan, think to think,

Operator

would to Gugino have Mr. questions. closing like the allotted over I back to for time We reached for turn remarks. the call

Matthew Gugino

morning. we're Crystaal. And questions. us Thanks, everybody, this for day for all Take care. Thanks, joining around

Operator

conference today's This concludes call.

now You disconnect. may

Danaher (DHR) 22 Jul 212021 Q2 Earnings call transcript