Bruker Corp at Stifel Healthcare Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Dan Arias - Stifel Financial Corp. - Analyst : <_ALACRA_META_ABSTRACT>Yes. For sure. Good finish to the year. I think maybe there's lots of stuff to talk about in Life Sciences, topical and longer term. I think maybe we'll start with some growth commentary we can work our way into China and NIH and vaccines and all those things at some point later. But maybe just as sort of a backdrop. When I think about Bruker, I think about a company that has enjoyed an above-average growth rate for an extended period here. If I go back and look at growth through 2023, it was in the 14%, 15% range, it was mid-teens, which is well above the peer level. And I think 2024 is headed towards something like 4%, which is lower but still above where our peers are coming in for this year. Obviously, tailwinds and headwinds that are in place. Can you just maybe describe where you see the company when you net out the puts and takes, where you see the growth backdrop as being right now?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Yes. Okay. If I think about 4Q, there are issues for the industry for sure and China and Biopharma are two of them. How much of the revision that you made because you did change the outlook for the finish of the year. How much of that relates to China and how much of that relates to Biopharma?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. Can you maybe make a comment on Biopharma? Where are you most represented? That's been an area of the business where if I think about what your strategic vision has been over the years, it has been to increase your exposure to Biopharma because long term, that is the best end market in town. How successful have you been there? Where are things good? Where are things less good there?

Question: Dan Arias - Stifel Financial Corp. - Analyst : What is your view of where Biopharma is right now and where they might be two, three quarters. I mean it feels like things are improving. It doesn't feel like there's some step function change coming in the coming quarters, although I'll let you tell me whether you think that's different. So what is your view on just the trajectory of Biopharma into 2025?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Yes, sure. Just to make sure that I understand your comment there. So moderating Biopharma from here, is that in your mind because of the comps that you're talking about because it's been stronger in past periods or because you believe end market conditions are set to moderate further into 2025?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. And the second half of the year, though would be -- there will be time for us to talk all about 2025, but it's November, you can't help but be asking the '25 questions at this point. Do you feel like by the end of the year, you're back in a more stabilized or at least inflected place not with a trajectory that's straight up, but at least headed in the right direction? Or is your view that overall 2025 Biopharma is just not going to be a great year?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. Let's talk about China. I mean, I look at this clock and it goes by pretty quickly. And if I were to get through 30 minutes and we hadn't touched on China. I don't know if they would let me come back next year. Obviously, there's a lot to be said about what's going on in China. The tariff conversation is most in people's faces, I would say. How do you think about that as a company that has a relatively complex supply chain? You have high ASP items, but you also have market shares where it's not easy to look for alternatives. You serve some of these markets that are potentially disruptible from the conversation. So I threw a lot at you there, but like in your mind, what is the early conversation on what tariffs might mean to Bruker?

Question: Dan Arias - Stifel Financial Corp. - Analyst : What is your thought on pricing? And what you -- I mean, one of the concerns is that inflation will tick up as all of this transpires and you'll find yourself in a situation where stuff is just a lot more expensive. Pricing in Life Sciences tends to be in a generally fairly tight range for 100 basis points, 200 basis points, 300 basis points a year. I think you've been in that range. But I also know that like over the years, one of the things that you guys have tried to do has been smarter about supply chain, kind of integrate these businesses that have been separate at points in the past, so that you have a, I guess, a more holistic view of what's going on. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2024 / 1:35PM, BRKR.OQ - Bruker Corp at Stifel Healthcare Conference Has that translated to you thinking that you might be able to price differently in certain parts of the portfolio if you needed to or at the end of the day, is like, hey, Dan, look, this is a business where we think we can drive 200 basis points of price regardless of what we have right now.

Question: Dan Arias - Stifel Financial Corp. - Analyst : I have a specific investment question related to some of your deals in a minute. But before I go there and leave China, on the stimulus side of the China conversation, you have been one of the companies that's talked about seeing a little bit of something going on there, some activity that's percolating. I think Frank mentioned BioSpin is the area where things have popped up first. Is that -- should we think of the stimulus effect being mostly taking part in BioSpin? Is that going to represent a majority of what you think comes to you? Or are there some CALID and Nano elements that you think come up as well?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Is there a risk in your mind that if it takes until the beginning of the year for order activity to really pick up, that the lead times that we know are associated with NMR and the things in BioSpin that, that could take you to the end of the year or to 2026. How do you think about capturing stimulus impact in '25, given multi-quarter lead times?

Question: Dan Arias - Stifel Financial Corp. - Analyst : What about the lower-end NMR devices? I always remember these examples of some of the smaller magnet systems being used for applications like Honey assessment and wine, et cetera. Or what you -- is what you expect out of BioSpin and '25 more large magnet usage and orders? Or will both sides of the portfolio benefit?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. So the point is there are smaller systems that could be installed in less than three or four quarters could help BioSpin, not necessarily in November, December, actually earlier than that? -- Okay. Let's talk about NanoString, and then I'll ask you about some higher level P&L questions and we'll see what we have time for. NanoString was on a $10 million a month trajectory pretty consistently, I'd say, out of the acquisition of yours. Recently, it stepped down. Biopharma demand is a part of that. Can you just maybe comment on what the new trajectory might be into 2025? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2024 / 1:35PM, BRKR.OQ - Bruker Corp at Stifel Healthcare Conference

Question: Dan Arias - Stifel Financial Corp. - Analyst : Where does the enthusiasm come from? I realize Frank and Joe are not sitting here with you to help the case. But for anyone who went to AGBT in 2024, even outside of the conversation around litigation or just investment behind the company, the conversation on platform comparisons and competitive strengths and weaknesses was not in favor of NanoString. So what did you guys see that makes you think that you can completely turn around a research base and drive uptake that NanoString wasn't able to?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. That's helpful. Any update on the timing around the case for CosMx in the US that's something you know about?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. Okay. Let me hit on just organic growth and EPS into next year with the obvious caveat being that we'll get the full look when you decide to give it either in January or February. But when I look at the model, I say to myself, okay, it feels like there could be like a 3% to 4% organic growth level that maybe you underwrite if you don't believe that stimulus comes into the picture. And that to your point on Biopharma, you don't see a major improvement next year. And then if you do see those things and you start to layer 50 basis points to 100 basis points on top of that, would you disagree with that framework for growth next year?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. And then on the bottom line, I think you'll finish the year -- this year right around $2.40. At the Analyst Day, mid-teens EPS growth is one of those things that you kind of tried to orient us around. Is 2025 a year where you think that kind of idea works for you is such that if you look at Street numbers and you look these, there have been various numbers thrown around for 2025 for earnings for good reason. I mean, there have been things coming in and out of that story. But if I just think about $2.40 and 15% EPS growth on that number, is that sort of an underwritable base to begin with?

Question: Dan Arias - Stifel Financial Corp. - Analyst : Okay. Look forward to it. That takes us to time. So Gerald, thanks a ton for spending some time on this. I'll tell you, I wish you an early Thanksgiving holiday, -- if I don't see you before then. We'll talk to you soon.