Bruker Corp at Wells Fargo Healthcare Conference Transcript

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

Question: Brandon Couillard - Wells Fargo - Analyst : My first question directed to you. I mean, just off the jump. I mean, you've had the best organic growth for two or three years in the sector that's true again in '24. Understand like the story has gotten a little noisier recently, but the stock is now the cheapest in the group by a long shot. I'll leave the floor open to you. What do you think people are missing about the story right now?

Question: Brandon Couillard - Wells Fargo - Analyst : Yeah. I do want to dig into each one of those deals in more detail. The single biggest question I've gotten in the last week is really how comfortable are we, are you with the core business? You are coming off of three just phenomenal years in which instrumentation for everyone else was not so great. But your book-to-bill is not really flashing red lights. So how comfortable are you that there's not a delayed reset coming in the core business? And I guess, how do you characterize your visibility on the back half, maybe relative to what it's been for the past year. What, I guess, some of the puts and takes in market-wise.

Question: Brandon Couillard - Wells Fargo - Analyst : I want to dig into the end markets a bit. Biopharma, I think smallest piece. You're probably not the best proxy, but would you just unpack what you're seeing in biopharma from a capital perspective and your expectations for that in market in the second half?

Question: Brandon Couillard - Wells Fargo - Analyst : You are over-indexed to academic and government. Budgets, there are slower this year if you look at age, the NSF budget. China, a little bit softer. You've talked about some money is being reallocated towards defense in certain European countries. Geographically, is that an environment which you can still generate growth? And I guess, what is your expectations for ANG as you look out 6, 12 months?

Question: Brandon Couillard - Wells Fargo - Analyst : Well, since you mentioned China, Gerald, could you remind us what's embedded for China growth for the year in '24? And Frank or Gerald, what are you seeing in terms of stimulus-related interest? Do you expect that to maybe fall as soon as the fourth quarter? How is just the funnel there developing over the last couple of months? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 2:15PM, BRKR.OQ - Bruker Corp at Wells Fargo Healthcare Conference

Question: Brandon Couillard - Wells Fargo - Analyst : I want to touch on proteomics just broadly. It's seems to be the most advanced of your post genomics portfolio led by timsTOF, includes other products, biogenesis and services, one of them. But timsTOF now has completely built out portfolio. You've got five or six instruments. You just launched a new Ultra 2 at ASMS. You've got 1,000 instruments installed now, I think, is the latest update from maybe 700 at the end of last year, still growing nicely. What are the, I guess, macro forces that continue to push that business forward? Is it innovation? Is it timsTOF moving more into biopharma? And how do you feel about your competitive position relative to the number to or incumbent in the market, let's say, in mass spec proteomics.

Question: Brandon Couillard - Wells Fargo - Analyst : If you bundle all those together, is proteomics $600 million, something in that ballpark?

Question: Brandon Couillard - Wells Fargo - Analyst : Okay. Great. I do want to touch on the NanoString briefly. Number one, why is Bruker the right ultimate owner of this asset? Like why did it land with you and not somewhere else. How do you get comfortable with the legal risk? And what is the EU injunction being reversed mean for the monthly revenue run rate, which you've talked about being $10 million, does $10 million go to $15 million?

Question: Brandon Couillard - Wells Fargo - Analyst : Is there a pipeline at NanoString, you've talked about some new products that are coming out and that this business will be back to growth maybe in '25. It's a long way from the $170 million or $180 million it did in '23 before the injunctions happen around the bankruptcy was clarified like, is that you're shooting for to get this business back to.

Question: Brandon Couillard - Wells Fargo - Analyst : All of the acquisitions, I think NanoString is the only one that's lost generating, would it take on top line for that business to get to breakeven? And how are you tracking, I guess, relative to your initial expectations on things like cost out, how important is the legal spend coming down, relative to your initial deal model, which I don't think assumed breakeven on the accretion until '26, right?

Question: Brandon Couillard - Wells Fargo - Analyst : Lastly, we only have 30 seconds, Frank, relative to the $310 million in EPS for '25 that you talked about back in May at the update. Are there two or three things that need to go your way macro-wise for that to happen? Or would you characterize it as like mostly inside of your control especially in the context of the backlog that you're still operating with?