DHR - Earnings call transcript Q4 2021

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Operator

Hello. My name is Ashley, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to the Danaher Corporation Fourth Quarter 2021 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. now call will to I Instructions] turn over the Mr. [Operator Relations. Vice President Gugino, of Matt Investor Mr. Gugino, your may you begin conference.

Matthew Gugino

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

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

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

Rainer Blair

Matt, thanks, today. us Danaher tremendous morning, appreciate We capped for the to good a by fourth joining quarter. everyone. finish Well, very and you on XXXX a call off strong year the was

the as cash which believe of initiatives throughout earnings generation. portfolio, with up And across at core low for particularly free year pleased helped innovation double strength has digits was our us market year. a the expansion capacity our share capture the number highlighted accelerated businesses. revenue We're was as and the strong we performance well-rounded and by Our well our growth outstanding of flow business base

are all these beyond Now that uncertainty execution high-quality, Despite to and come products their our of our big testament executing what record associates Business with dedication characterize results in has our associates our in portfolio market-leading ever above also up of humbling inspiring, the and have support committed last as Danaher. team longer customers, Really, shined to contribution. been invaluable showing environment. on and the technologies day, their and working results breakthrough now the circumstances The to purpose-driven we're in System. and challenging indeed. the a serving as is they higher and the customers time and going several percentage franchises it and to life every going to cash margins, the exceptionally forward, Danaher XX,XXX are is stronger operating that us, a for their very of future has for growth throughout pandemic, the years see community a higher recurring outstanding this of to remain a global shifts, bright We're over launching and flow today as action well a comprise grateful seeing we in ahead our light trajectory positioned through continue transformation revenue. We're

our financial XX% at points our adjusted We So of towards acquisitions, basis capability We joined let's growth, our just customers. a and free XX billion margin over value a $XX a take core growth closing The greater great expansion, core our per share the four $X example with bring our that, segment to nearly providing in Life for Aldevron, of earnings XXXX It's XX% us of acquisition, to of billion Sciences and delivered all across in results. how frontier full deals look platforms. M&A beachhead flow. fantastic XXX deployed closer largest year genomic important strategic of revenue enhance operating we're using August, medicine. cash capital of

to the businesses. our throughout also innovation we made Now year, accelerate significant organic investments across

was annually. year-over-year R&D $X.X spend approximately than up and XX% is billion Our more now

scanner and slide innovation Biosystems through digital their in New XXX as driving SCIEX products, our and pathology proprietary growth gains the XXXX enhancing Aperio Triple ZenoTOF XXXX further which are share trajectory. markets Leica while respective Quad GT

expansion total capacity year, really bioprocessing, quarter. our happy at doubled our technology Pall In more Now single-use $X.X particularly expenditures capital Cepheid, Cytiva. report cell than we in XXXX. came media investments businesses, which billion plants to Cepheid, And at Utah respiratory reflects production in tests capacity across for online to in all fourth the new that our in I'm and and production were expand the our South Carolina substantial and for Beijing culture

the term attractive customer now believe have markets. spend equally quarter growth market the ahead support us support it investments and see they're near on these term, to meaningful And critical some significant been fourth we helped in let's we time gains. end achieve these opportunities the For to results. And share very in important demand, long

with generated XX.X% segments. $X.X approximately Our high-growth contributions were geographically, quarter. up which Gross profit and were expansion. teens markets per now up up the core cash all including And and in led points We was share XX.X%, business, Adjusted free North growth basis up in by profit for were XX% both sales our strong from and growth operating of of margin in approximately we across points, than saw And billion, we $X billion developed full the three diluted basis margin flow, net have strength revenue XX.X% America China. up XX% XX% of $X.XX margin base growth and was year-over-year. approximately broad-based core our XX%. was of XXX XXX more XX% nearly earnings delivered high year,

In and full Danaher. free flow XXX% it figure this net conversion fact, our the for cash year XXth year consecutive has XXX% from to income marks the was exceeded

now more segment. So detail XX%. revenue the Life revenue results reported XX.X% go let's core into with up quarterly Sciences on increased our across

results these broad-based achieving Now most core low were better strong with double-digit growth. major companies or operating

a XX% gate. with couldn't approximately the revenue. fact, business quarter revenue off total part team's great pleased we in to start million be with and of $XXX delivered the growth Danaher, In That as of in more and the the year is finished performance Aldevron over out

both level trends with results our businesses more growth revenue Non-COVID Cytiva businesses in this again Biotech, than segment to related double strong quarter. with growing continued outpace core up Pall our processing low remained and Our XX%. bioprocessing digits

which and therapeutics, of $X drove We continue revenue the COVID of vaccines across and development to support production activity in XXXX. significant customer billion

in produced near demand to including cartridges grew in non-respiratory revenue number Cepheid single-digit saw of Moving Coulter than pandemic. the Biosystems Radiometer, test and the an XXXX start greater approximately that Reported than $XX remained hospital-acquired of and and the companies, more XX% XXXX clinical drove and led prior pre-pandemic quarter. tests and led levels. Diagnostics. shipped number across to And This at menu, respiratory acceleration million growth to also revenue testing. our up Diagnostics, Leica core all collectively growth Cepheid. XX% million diagnostic respiratory operating at largely the volumes XX.X% total of we the and XX core shipped during shipped in as by tests produced urology testing XXx approximately infections was telehealth, activity patient of crosses high cartridges, core Non-COVID Beckman by dropped or

fact, COVID-XX, our four-in-one test our Flu XX% RSV shipments, accounted In the test approximately represented for for combination A, respiratory B of remainder. COVID-only test and Flu while QX

Reported Environmental our X.X% to Solutions X%, on revenue core move & Applied revenue was with segment. let's up growth. Now

product and delivered quality platforms for identification growth quarter. water core the high single-digit both Our

and coding improvement, team's consistent businesses outperformance. consecutive activity a municipal differentiating many accelerated businesses, and third Now strong was strength across industrial by and approximately markets. core food in had Country strong Videojet is of demand revenue beverage end continuous commitment mid-single the management to funding has up that delivered a consecutive now execution of quarter XX%. were close double-digit our with and our and its pandemic was have up environment markets. and its led support market during growth to broad-based Identification, put quality the end were double-digit in the accomplishment digits which of core and with truly the Customer and Product driven XXrd growth. growth, a on year marking commercial combination, to and industrial globally a projects tremendous water testament across best-in-class hold quarter In packaging color This resumed. low out

both for that me markets. highlight seeing, we're what with our we geographically quarter, the the as in trends in and a let end So backdrop saw

activity across to markets strong the high strong continues trend reflected and results to driving seen This of book developed revenue both throughout the is growth. return pre-pandemic major a demand healthy above is in our geographies. and So order we've growth levels which customer growth, most

seeing certain recent not to widespread we're targeted While decline have our implemented activity. COVID-XX any customer regions lockdowns outbreaks, address in

Danaher, and impact. business, the given certainly to addressing not scope these Danaher chain supply we're our of management our the DBS manage tools price action mitigate constraints to ongoing across immune System but working inflationary and and and proactively pressures, challenges as and we're accelerate size such leveraging Now also closely with pressures. using Business customers to cost suppliers and daily the We're

achieved last is double approximately price our price each which points three the we've of XXX historical quarters, realization. fact, In nearly basis of

bioprocessing site our evidenced a access Lab customer pre-pandemic funding end project holding to all Now be strong in the demand Sciences initiation focus Biopharma this we more franchise. And sector. while development believe on is and at business, billion of and by end genomic standard market biologics and support Sciences. to equipment in productivity, as the continues levels, are across installations well investments Life seeing care we're by driving performing therapies normalized shifts supported the across treatment markets. Life research, significant towards the environment. We're strongest capacity customer across in accelerating our production robust work $X.X and major positioned within

vaccines and addition, continue Now related COVID-XX we to activity significant in this see production development and to persist expect And longer therapeutics. term. we demand of

our Our to future the world enduring as customers customers for area effective including other an that ongoing assumption the increasingly vaccines there virus. mRNA are market, for and important diagnostics view the with therapeutics applications production levels. the COVID-XX more treatment of volumes need or broadly, new will near clinical for modalities, investments. remain And at be pre-pandemic In potential patient as prevention an and endemic an planning transitions approaching as

and Our other outbreaks, allowing protocols continue to and procedures to diagnostic manage through adapted screening checks, recurring customers wellness them largely procedures. their routine have

as causing are of Europe, PCR point-of-care like widespread variant. the in of persists for modest Cepheid's In material of these demand surge we're global global China While the Molecular lockdowns certain impact measures. selective a experiencing test and from respiratory any negative not Diagnostics, disruptions heightened result pockets further recent regions Omicron

of more Hemisphere, we Additionally, to quarter. customers' our in and continue four-in-one trends for active respiratory Northern into both we're combination seeing these driving season preference test, the the first a expect

The to facilitating fourth conversations scalability More respiratory the in lower a health in menu and seen Cepheid value new throughout bringing where approach whether hospital faster XXXX, focused both broadest Now XX all customers. as of upcoming at and in new tests decisions. the diagnostics system recently, care we are the systems to shipping XX,XXX and patients, placed systems the with install our customers total with about sites instruments out these the their technology GeneXpert central and and the test bring is networks clinic consistent worldwide. same light this confidence and in placing can quarter will XX,XXX record closer and the we treatment delivery system on with customers and In of thoughtful for in sets integrated near provides first did pandemic expectations we've to customers the The several the instruments base more or long-term their million reference having year, quarter we're the care anticipate dynamics test further approximately XXXX. urgent used number the than our of they GeneXpert of same network for their existing they're unique to adding architecture a our achieve in that lab market testing results, cartridges lab. higher throughput quality on the an team's

COVID-XX to looking endemic significantly respiratory now disease, that the be will testing So was an market where that we will the expand pandemic. with point-of-care ahead, the in assumption it prior from believe molecular

continue around speed, environment. share will to and Cepheid's test Given install an endemic we menu Cepheid combined base, gain positioning and advantaged in believe accuracy workflow, an leading with

on which pre-pandemic robust we moving both is a applied to equipment. for markets, back the order levels, customer consumables activity So see rates and to largely

an is environment In resumption throes pandemic. were on prompted of fact, project-oriented installations activity and of put accelerating more site funding access and the in that the the projects normalized improving with hold many has

full for So of now let's base endemic. revenue our change will quarter vaccine to growth. therapeutic our revenue quarter first as as of our year. core vaccine greater by the therapeutic-related turns we ahead of confidence and durability Beginning is with virus business and in driven part revenue our impact COVID-related the the of the This and the XXXX, COVID look first include now expectations

growth percent for So first single-digit full our quarter be core the the year we high revenue expect base XXXX, and to business in now range.

Additionally, XX% of and to up operating first profit XX% in XX%. for full quarter year between we and historical rate generate expect fall-through to XXXX, XX% and the from the pre-pandemic

wrap for to another up, now year terrific was So XXXX Danaher.

better, the while performance, through and expanded growth, team in higher upon against We're environment all financial COVID-XX. transformation a tremendous ahead recurring action company and for to stronger to and to continue today purpose-driven portfolio stronger executed results successfully our supporting this challenging through our a us building contributing Our seeing We're deliver faster foundation. fight customers flow directly of cash margins, outstanding there global is the runway revenue.

Danaher continue portfolio back with that, value Thank as the Danaher the come. With generating sustainable Business resilient force, you. long-term shareholder businesses, driving our talented call years team Matt. over believe for System turn will of our And to and to we I'll

Matthew Gugino

Rainer. formal Thanks, concludes That comments. our

Ashley, ready we're now to take questions.

Operator

JPMorgan. take We'll Instructions] go question first [Operator our from Tycho ahead. with Please Peterson

Tycho Peterson

Rainer, just high about you know previously guided I the base to grow this you $X and vaccine for heading the latest single billion you digit. backlog us Can give on into therapies? year. business maybe talked thoughts

assumptions of around vaccines and changed? So the therapies have any

Rainer Blair

So just that's confirm, to right.

changed. the base And business as single digits. have XXXX, business For continued guiding the therapeutics assumptions to we're our not relates no, it to high our orders. in We and vaccine strength saw

continued down the XX% same we build QX, our to we orders exceeded roughly about here terms backlog. sales roughly orders the and from to comp, backlog outpace say of time, that We sales. revenues have XXXX. in we a and were in fact, In for mid-teens vaccine sales growth. bioprocessing forward and built business we're still orders in to therapeutic the looking in flat At Nonetheless,

as to continue the the business, that been here other for words, business has double-digit quarters. COVID, core so for low we case grow, the to expect Now in course, non-vaccine many and in therapeutic-related the of area

Tycho Peterson

than Aldevron you And growing XX%. this have talked $XXX previously any year, changed? I of the assumptions about million know greater

Rainer Blair

we million. kind $XXX better right right and That's million growth than year a of closing $XXX off good here, expected mark around the slightly on is They're the number.

where expectations. we right is at think our should and Aldevron performing be So, we

Tycho Peterson

quite and basis what decline? Maybe for XXX Okay. on applied you Environmental points. operating I margins maybe Can were one last McGrew. down bit, drove touch a think, that just

Matt McGrew

that Yes, print investment in the probably a the the sure. strong three portfolio. fourth given the down It's here that's entire things. here it pretty XXX accelerated across in was Like quarter, first, quarter. most say, you the area said, the obviously, would I probably we spend

the quarter kind overcharge opportunity an I think fourth EAS. to took bit there of the a little we at investment of in

think that's the thing. I first probably So

The products in that we're here this a say second little elsewhere, that probably, at I procure, would a to I number they would more is thing of components legacy I There's than especially modestly chain. And there the kind challenges high of say, more seeing. are kind components. think pronounced are is the the Tycho. happening have harder specialty probably supply really a what's bit environment are of

a product daily but and of other And buys even cetera, about in So Trojan, a chain mix et lastly, issues margin some the more largely bit think there. think that little XX% you was then with management business quarter. doing being north supply lower too, I a here, there some redesigns, up, bit is kind if -- think with I which spot and offsetting think of issue was of bit I it

definitely the think good job drive I here of doing I that, because result news to what think that still I even QX those here, in get think QX, so, challenges And teams though, really is, what from like took through and of think to we and being we some looks that's and despite meet it a pretty able share all customer good DBS like demand. I we've and using in it seen a said,

Operator

like with Bank take De next America. would our question ahead. Bruin we go to of And from Please Derik

Michael Ryskin

calling question. taking for my Mike for This is Thanks Derik.

both First and of in all, post-pandemic. 'XX focus Cepheid, on

set expanding keep COVID spiffy up now, in endemic saying share. And tests POC going like pretty pretty being forward again XQ, off to market market drop a confident assuming the XQ, you you're short it being million the seems duration, you're XX then Given XQ. in

continued color give gains, million you your assume forward? [indiscernible]? the share to the that's by you COVID rate going do offset you be some the $XX going on market And place more so run could sort us what are is revenues this testing, that year, just XX,XXX that boxes expectations expect other deterioration does that that? in Or of continued sort beyond So of

Rainer Blair

as spiked. start spiked, thought started Delta dynamic, incredibly then dominant around become the know, then we that you It might XX made with days we came is assumptions ago, the I'll and that Delta situation and the Omicron around right? COVID and variant with,

in but our So the But there's I couple with health the with also that officials, takeaways. customers, think have incredibly a public dynamic. both environment is we discussions of

The going do is of that a first one with endemic of call officials health frame is 'XX, will we we COVID that and confidence. of think lot beginning perhaps XXXX, turn to endemic the talk time greater about being that public the it when end

business we XXX high XX as a in single look point we XXXX As to what XXX And we're we've talked of triangulating and customer growing a at see digits XXXX step about, eventually they where million having happening at XX basis see test to our here, down that's in result feedback at headwind XX base XXXX, into area. for and to there. our the as from

number that, down now steps 'XX is so And a Now and much as we our in It's the there early about again, customers there's And beyond our right there forward for XX days, be with in larger -- and thinking pre-pandemic there's once that in you this likelihood change. once tests. think we're that that and still than around in business, million But again going testing a respiratory beyond. XXXX, dynamic. that could will large discussions probably again, working the think XXXX.

about that's happen of a that There's we think COVID number from in of the the million. and that think lot XXXX so occasions, business see growth So, base then, a now continuing number we're rate primary testing, how course, but that, perhaps to of sort we planning rated strength XX And a the XXXX there's total aspect XXXX, the about to good really XX XXXX, We've course, dynamic. several lot our our and and you business, our feel we're at as moving same at off forward between we like that's of million time, that our and we of discussed setup. as to about with. But the portfolio. the grow year see working of going

Michael Ryskin

color the appreciate Really one there. Matt. maybe for And Okay.

color power some the forward. had on You pricing going

XXX inflationary much three to the Could and news general, an to on environment called labor throughout think you're any price out the second further just points obviously, the on I last if half end And the to logistics, quarter 'XX the a seeing comments business, you how you fall-through basis see of markets? your on Any you in in in in of continue comment customers? the pushback yet how lot. in price in quarters. runway do pass in we the be the fourth pressure,

navigating So this and how for for implications are the year? margins you that year

Matt McGrew

five, Teams 'XX. kind that's seeing as Xx working used said, that months, Yes. call to that here six show Sure. mean the think placeholder seen you over obviously, the been think I put No, think up. I saw get, of points I a it's And we of, we I I it, kind it of far as you're that good for we've price for six I quarters price in the to in mean basically think ago. last goes, harder quarters, we've price. couple And to pretty get QX. last are like XXX basis

to So good I 'XX. for a start guess it's place

put in kind down As 'XX, I out little bit of where guide it, through. of a margins a XX% of overall, XX% we fall we as more stand, far that to know go, sort call just to XX%. that's kind XX% I maybe from for And

talking you're to I little of think about. that incorporates of XX% bit a what kind XX%

by pressures going work of of to that with component a price. was offset you're of to a of and our kind the return longer-term I down But thought, think we frankly, to going see in maybe think I year-over-year from 'XX, is of I little outlook step if be. right inflationary the to it's about 'XX the think what sort I we be some line think bit

be largely the really to kind type other that's at piece issue. is and mostly The step-down be that we see, to mix a on volume going going of

about on think count for But headwinds pretty down testing why we're revenue where the XX%. XX% headwinds some framework the testing to to in it. about XX% a points, much it's average, average to not long-term the 'XX probably seeing COVID step and we right this thought. the it, it's though good right, of year, I pretty share I'm even in important down that's XXX think margin And in our basis throw lets fleet news is XX% our sort thinking on XXX to to much call front So big is us. to is pretty much from at think perspective. also It's which a I fleet going But

So of kind headwinds. think helps we the I that navigate as

Operator

And we'll Evercore. Kumar our Please question take Vijay with next from go ahead.

is Your line open.

Vijay Kumar

'XX, just Rainer. here, guidance here. fiscal solid some Hi, on Congrats I clarification. guess on one print the a

growing the driving it's double It bioprocessing LRP. perhaps high right to this way what's here like includes year-on-year, vaccines, guidance largest high definition think looks your your now I Danaher of your understood core to vaccines, correctly, just organic. I your that's think flattish if at growing base at of it's that core comparable Is ex-vaccine, business? which above base digits, the and means that's the on really peer assuming well single. very end how And about So that's trend? you But looks

on So comments some I'm bioprocessing. curious

Rainer Blair

Sure.

includes suggested, fact, at It's the vaccines digits. the So here, see business have that. be the important base growing that therapeutics. driven course, non-COVID of for once double low we level bioprocessing that of and full business And high the a number to strong. to business just COVID just you both quarter we as bioprocessing base continues One, entire And and growing for by that's seen again, in still factors. single is the the digits set, to and year at note

mind we our them two-year around our growth in here transformation We science business, in in here as we've and and XXXX, so that. life the see the instruments to back see the think you're base diagnostic you re-rated also business our guide for and you the that growing stack Keep additional that our driving think really very we've that feet see forth, investments made strongly We growth, businesses, street, of about and portfolio here. has about about as XXXX. in the on we the talked seeing non-bioprocessing saw that so continue that innovation, on

Vijay Kumar

Understood.

year. guess I have the shouldn't now Should the plus share, a one we drop for for benefited a headwind That's There is here the or have what Rainer. The COVID down helpful, Danaher? forward? transition that a we incremental XX% be why my seems and Maybe who from co-tails Maybe digit Danaher all I on So not like Matt. mid-single clarity cliff tailwinds? going sustainable margin cliff peers the talk to perhaps perhaps sustainability Is question most here. your means. XX% guess does a It what plus, Matt. about -- is the and of incrementals of

Matt McGrew

right, I Vijay. mean, that's think I Yes,

less perspective, about growth talked that the the right? fact mean, reason the you're we it's too, here revenues, I And a XX%. of perspective, I of think our I the fleet margin both think like COVID XX%, I just portfolio mentioned kind more talked of to or seeing re-rating part the used what I more a right? vaccine, from is testing, so also We therapeutic a average, the about and kind said, be portfolio from and as rerated of lot, just we've

the we I if some But be going you We're and and that what XX% decremental those testing fleet you to interested. about feel And we looks you're will, some if fact see volume go revenue won't laid perspective. I XX%. and can you think forward profile have and headwind, get is about margin we'll out, talk to as 'XX, it from sort of have maybe a think the XX% headwinds. we I headwinds very think we said, headwinds, I we're comfortable like kind to above here XX%, average Now, with think a as like, of that, the like what

and a So will going a obviously you not you burdensome. I from -- be a to bit 'XX, headwind, that it it's here can think see while little perspective, overly in be margin

Operator

Davis next take Research. Scott from the with Please We'll Melius question go ahead.

Your line is open.

Scott Davis

Good talk favor you everybody. out M&A that growth Rainer, I anyways, hoping given year that the talk bit little can on helped much? kind the markets But in seemingly of you you down assets fairly about pipeline, valuation about in and Is meaningfully. gone overall. out public into are morning markets a Congrats was could great please. that side at private of on all If a

Rainer Blair

mean, I environment We've we to that. have there, want for of this dislocation. of our in time that to or viewed uncertainty And as times we environment an whether you history, a examples is even first anxiety of the opportunity ourselves. there's always thrived that in, over that Well, see out call or this Sure.

the businesses If performed you out couldn't think anxiety wonderful of has fantastic that powerhouses. back at and some turned turn Also, teams crisis acquired proud been more to be we really going job. of there be those the a time. the of years, back done if we now has SCIEX into that to That's around Cepheid about Pall there, some deals think period the financial The a team asset. have or real you -- how

this and we that in team here great up. sheet, a of deal sit set strong outstanding portfolio, we so, a like with optionality. rock-solid And And environment balance an a

financial our your they the gamut, meets And that M&A ever. question, that with the about our competitive towards and hurdles when strategy our been allocating capital market, as continue to we'll be here our we first-class end advantage private, M&A cover always as adaptive or public as and that's has whether And asset have in funnels attractive driving past. that continue and as bias towards so, the They we happen case. to will think

like we we where like So sit, we set up. the and

Scott Davis

little a a That's been would helpful, that pass launches Beckman. Is to of a bit COVID? COVID then out the it there product like Rainer. with back schedule altered talked see there of those be with because Rainer, that response bit ability And pushed or changed? that were they about were has get the on. and How Were just And Has color you and I'll -- on new things perhaps these customer little product? launches? all helpful? And impacted customer

Rainer Blair

our innovation case, actually has accelerated In us. Sure. for COVID

that and the Quad we to Of Triple obvious forward accelerated to of getting increased our which in four-in-one. XXX in $X.X we the Those has turn able to And that were innovation, sensitive are all billion, was the the which obvious XX% COVID-only able XXXX, course, Triple up that ZenoTOF same and that the test mentioned, by the the But quickly sort manifested at of by pandemic, expenditures of the were very for pulling And forward Quad pull sense subsequently opportunity it the accelerating thereafter you've then, GeneXpert the in pathology examples. noted R&D fantastic were outstanding. those most real here, market. time, and in into course, imaging, into launches market, examples slide we us. GT the

Operator

Cowen. with Brennan question next go Please from Dan ahead. our take We'll

Your line is open.

Dan Brennan

question, booster on in 'XX to steep and model and vaccine. were dose be just good I first as probably now base. it good, assuming you're just down our a drop the from initial the outlook we pretty boosters, as off 'XX not regimens to including going that uptake We in therapeutics looks nearly go the two vaccine as initial guess the

base, two, mean first including it know discussed one? kind I be and fair got high that of the you've single to wondering, think is reasonable base? that IT there's healthy about but a vaccine that first, now think still you're you've digits, single therapeutics going the question, in digits I just to previously the guess, fact I is to the number And then down, step that in So number high

Rainer Blair

base. with to be Sure. for vaccine the a that there that Well, endemic vaccination, in from continuous our And start and is therapeutics two the why requirement. of let's off be will COVID-XX going things. global will One, and be that comes that requirement belief just in a

was in basis I business, our talked broadly with think in base we of growth points a groups up 'XX a new kids But previous about about and think single-digit headwind and some more And here high as from talked receive this here is vaccination world's strong the XXX questions. coming of if about the there particular. discussed recurring back guide to such, also in there, and minute demand XXX that We we at that term, the our age will longer we testing.

million to we well, And inside and profile vaccine therapeutics how solid in from There forward COVID lot then let's different As And see also XXXX? testing, years, about. out, and of the plus of as additional the which it, think COVID that's to earnings new just that's million continue. now, you developed down with towards, call play say, still growth going pipe. that And from there to vaccines start that being a a does at mid-single-digit to and be that, XX is, question, talked have is are have all about, it's look tests going XXXX. your have important that once you think I okay, tests the Matt that over do more we'll about again, base, we as therapeutic XX the portfolio as is are are you course, well, and which then endemic a transformed of of will this in as revenues stepping talked in in XXXX rock center

of you really Now of when of in fall XXXX of things of well going number terms base of as of XXXX there's are all that the a in growth as we you think between up a and our up, wrap in the how course, like lot still through. in might lot have spikes the terms looks air forward that

Dan Brennan

don't side up, business. impressive Certainly, follow on double the on just a if as your one particularly is bioproduction, of you maybe digit the then mind. And growth, more Excellent. low

that I Some that think, top really 'XX. we've seen Rainer on in the XX% accelerating, in has CapEx the about, 'XX of industry of talked XX% of is in growth type cost CapEx margins the

color we of So double what like you kind of the low the seeing? And you're that like here I'm of or base some a are there order could book wondering, the upside investment could over little on business, years? maybe have next give or period maybe just couple in hyper digit, like a

Rainer Blair

Sure.

the about backlog talk talked growth many business. continues continue we've seen not there. breadth are of we That's reach we what the we But global the our kind the majority you're the all And non-COVID in for rate portfolio to quarters. play, these out double-digit to important those the of that about itself. with here strength investments. the of and that in of announcements the seeing bioprocessing of great low industry imagine of also for on course, So our our fact that indications build And on if of you can and do market, market those the

the continue of so for there about hand upside? Sure, business, book at But But and to number. good thinking we're low develops, that's and be. be how a there double course, could processing now, digits And non-COVID could in update. and that planning is order the looking in we'll

Operator

take Research. Jack we'll And ahead. our Please Meehan from next question with go Nephron

Jack Meehan

to one rates. big raising start looking been getting we've Fed is the of questions So is the

And two sides mix durability think the commercial finally, rates thoughts much great be of could any maybe of demand customers? factor you and on higher then color from do And demand? on between and those have how interplay get development to around would Just your on market? biopharma a

Rainer Blair

you Could a could question, garbled. second please? you repeat came -- It I'm through little the sorry,

Jack Meehan

Sure.

Sorry.

development with Just thoughts commercial customers higher rates on from side versus how those the on might products. influence demand

Rainer Blair

rate. the Well, course, and where with those go. we'll it's start see of let's Well, early Understood. days,

at broadly, As and see or we we a But extraordinarily those cash see be see be high. growth we impact positions generally the these you Fed is speaking, in we to higher look incrementally example able if would of in look in you biotech that markets play where rates markets that our to that An even could be, rates. drive market the companies, different. perform end the of at and aggregate,

We investments to strongly. continue going in see there

part any don't in the relates question. to that overlap that Fed rate And to those so near-term And it in And are we particular already of some but course, anticipate the development higher increasingly would, also as due of there that your with impact area. growth biologic drugs, production, of of just markets. incredibly the in they and ensuring the markets, penetration in the developed are commercial out driving growth not efficacious

really demand beyond we country's in drivers policy very continue see monetary one So see to that light. positive and a here the any going

that The any increases impacted policy are less Fed one incremental in, play is by specific we of we the thing. discussed. markets So be that rate would being

Jack Meehan

bioprocessing just on you CapEx CapEx. question Day, but to CDMO the all a billion Back Dan in about at similar going talked going players. $X.X own I in ask the asked Analyst your then about the from CapEx side. the wanted Great. focused And of

talking single-use bioprocessing, peers about Some your of are the investment more broadly going of speaking. in lot and just a

that on talk So, as how just demand broadly going and that on, about views you look across versus whether supply your you just everything feel -- speaking?

Rainer Blair

a Sure. Well, let characterize little that me bit.

are what precious as their a projects in seen typically large in that increase about, talked about and five to the question biotech the market. huge monoclonal are last which your number the the facilities, we cash smaller companies outsource in see about invest that is you you don't before, there investments These of strength talked really the we of we've antibodies derivative So manufacturing fact want the years, a to CDMOs. CDMO in of if just And we'll into funnel. that think the over that

If acid we've you now the the seeing there a development that through those capacity. clinical their about nucleic trial And process funnel. increase seen way in work requires think you're therapies, and XXx

to that's those demand that commercial. our capacities here, pandemic going term we've through mentioned the we that they bottlenecks continue care I our aggregate long So they're is And way to are helping of also you can we investments integrate then CDMOs are if that also that, a with that's help short which, our globe drugs that the And then, term, quickly to point the impact choice at not drugs portfolio why deliver what And that has also customer see forward. these that in XXXx and of all increase on we're and supply we and customers of so And this as just going work experts the but to -- in important made. it build those this market and to the customers and them we for the portfolio, get for And so the cost. that take requirement. can course, about. developments a the of as confident the drugs are can lower partner CDMO course, necessary pulling owning the investments broadest horizontally what's the their of of production XX the continue commercial, go around in more is so ensure be capacity is our

Operator

ahead. question from Please Citi. go the with next take Donnelly Patrick We'll

Patrick Donnelly

for most bioprocessing Rainer. cadence to a But little we question. the Hi, the on you I bit the from get forward. up follow that's piece. taking I the just know touched look what question Thanks wanted certainly I the could going think investors. like about

seems could we go single billion comes about then And as kind mid-high there. business. and to it's but handle the and next of you in a the of little a I a wanted that down, low business some, the vaccine decent the piece digits really just somewhere maybe maybe trajectory? about comes takes vaccine shake good little you COVID hoping I where talk it. again, circle as you base bit a on just in like a offset feel back can for get and But proxy double the about variable. through that is And to bit but So puts kind I out whole years. mean wanted enough growing the base business that then to few 'XX better just of like $X.X the piece, more like talk, good it sounds It you a underlying sounded just was guess, digits. that down, I

Rainer Blair

right. that's think I

Again, vaccine hand. we see going assumption we're the being bioprocessing starting that at flat mentioned As COVID-related and to XXXX, XXXX. therapeutic look on the I be probably roughly here the one endemic in the They'll pandemic business.

On the start to X.X. to you going from hand, you we're -- seeing you is, will, if what other compounds happen start X.X seeing

those with become So some of in current efficacious and so the a vaccines environment are as less variance, and the less viewed therapeutics current factor.

recognize you starting with efficacy are variance new we're and On for the show have therapeutics monoclonal for in those much need you higher to antibodies the recurring here as other starting proposed recurring that the the around here not booster market quite have. just are to And companies to see the already as shots, that globe. starting effective, be those revenue that then hand, but

said high we and that's we've good So continued move that to baseline a bioprocessing about to around think in forward And think it. we've with 'XX to grower. about think think we look that's think view, as we a that's lot will it I the And that long-term to how as our guide business, way the in well. as single-digit like a said, 'XX 'XX. And

Patrick Donnelly

as conversations into any that Okay. year. should yet? Great. orders No, a about that's and beyond maybe building that? Or think mostly then within typically helpful. that taking order for book you're And XX-month we I of order a book Is the know 'XX

Rainer Blair

order beyond that. XX-month a in book conversations It's

Patrick Donnelly

to one, not last want for check topic I the Margin versus just right? And bioprocessing, Okay. the just it's Matt. profile, for on pretty same that. double COVID similar,

Matt McGrew

margin asking? In is Yes. between that COVID and what not, bioprocessing, you're difference

Patrick Donnelly

exactly. Yes,

Matt McGrew

-- of I we're goes mean I depending it's would say the that difference. margin again, profile wise no but all, mix product-wise, real No it's same.. on No. just Yes. what there, in

Operator

any with conclude will Q&A for to call. today's the additional call back the And portion Gugino over this I'll Matt turn remarks.

Matthew Gugino

questions. us joining for everyone, on the thanks, for and call We're day Ashley, around today. all Thanks,

Rainer Blair

Thank you everybody.

Operator

participation. And your you today's Thank for this conclude program. does

at may time. any You disconnect

Danaher (DHR) 27 Jan 222021 Q4 Earnings call transcript