Danaher Corporation (DHR) Evercore ISI HealthCONx Conference Transcript

Danaher Corporation Conference Call Summary Company Overview - Company: Danaher Corporation (NYSE:DHR) - Date: November 30, 2022 - Participants: Rainer Blair (CEO), Matt McGrew (CFO), John Bedford (Investor Relations) Key Industry Insights Business Performance - Danaher is expected to close out 2022 with strong performance, leveraging its business system to navigate a challenging operating environment, achieving market share gains and effective pricing strategies despite inflation and foreign exchange headwinds [3][4] - The company has a unique portfolio with 75% recurring revenue from low cyclical end markets, indicating a positive outlook for growth in 2023 and beyond [4] Bioprocessing Segment - The bioprocessing business is projected to be a $7.8 billion market in 2022, with$800 million attributed to COVID-related vaccines and therapeutics, leaving a $7 billion non-COVID business [7][8] - The three-year compound annual growth rate (CAGR) for the non-COVID business is mid-teens for bookings and mid to high-teens for revenue, reflecting strong underlying demand [8][9] - For 2023, revenue for the non-COVID segment is expected to range from high single digits to mid-teens, with potential for over 20$800 million in 2022 to $500 million in 2023, reflecting changes in demand and vaccination rates [12][19] - Danaher is well-positioned in the mRNA vaccine space and anticipates continued demand for COVID testing, estimating 30 million tests for fiscal 2023, translating to approximately$1.2 billion in revenue [43][45] Instrumentation and Diagnostics - The life science research instruments segment is a 5 billion business, benefiting from a strong funding environment and new product introductions, with expected growth in the mid to low double digits [36][39] - The COVID diagnostics segment is experiencing fluctuations due to respiratory season dynamics, with a cautious outlook for Q4 2022 revenue guidance [40][42] Market Dynamics - Danaher is actively localizing operations in China to enhance supply chain efficiency and meet local market needs, despite current challenges from lockdowns and unrest [61][62] - The company maintains a strong balance sheet and is open to M&A opportunities, focusing on strategic alignment and financial viability [71] Additional Considerations - The foreign exchange impact was significant in 2022, with a 1.4 billion revenue headwind expected to continue into 2023, potentially affecting overall growth rates [58][59] - Pricing strategies are anticipated to remain strong, with expectations of around 300 basis points increase in 2023, down from 400 basis points in 2022 [65] Conclusion - Danaher Corporation is positioned for continued growth in 2023, driven by its diversified portfolio, strong market demand in bioprocessing, and strategic focus on innovation and localization. The company is navigating challenges in the COVID-19 landscape while maintaining a proactive approach to market dynamics and operational efficiency.