Danaher Corp.

The increase in demand at Danaher's bioprocessing businesses (Cytiva and Pall Biotech) within the life sciences segment stems from the ramp-up of COVID-19 vaccines and therapeutics. Danaher is involved in most vaccines and therapeutic projects currently underway, including all those in the U.S. that are currently on the market or in later-stage clinical trials. Some of these projects could extend for many years, particularly if a booster third shot becomes standard, countries start vaccinating children under the age of sixteen for COVID-19, or new variants of the virus begin to spread. On the testing side, Danaher continues to see very strong demand for Cepheid's rapid point-of-care molecular test. In our view, Cepheid's industry leading position, with the largest installed base

...COVID-19 tailwinds should drive Danaher's earnings and cash flow generation higher than we expected earlier this year. Danaher continues to experience very strong demand for its products used in the development of COVID-19 vaccines and therapeutics and for its COVID-19 testing solutions. These tailwinds were a larger contributor to sales and EBITDA margin expansion during the first quarter than we had expected. This performance combined with its healthy backlog led us to revise our estimate of the revenue contribution from COVID-19-related products in 2021 to about $4 billion (about 15% of revenue) from about $1.3 billion assumed in our research update published in March 2021. We expect these sales will be roughly split between products associated with vaccines and therapeutics, and those associated with testing. We still believe COVID-19 related revenues will peak this year and gradually decline in subsequent years, with testing-related revenue declining at a relatively faster pace. Our...

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