Revvity, Inc. Wells Fargo 21st Annual Healthcare Conference

Yeah. Good morning, Evan. Thank you for inviting us. I think, as we have talked about, Human Cell Design is a great tuck-in acquisition for our reagents business, and it fits perfectly well with what we have talking about how our reagents business has been doing good on the preclinical stage. As you go from preclinical to clinical, you go through looking at tissue culture, cell culture, cell lines, and human cell designs that are as close to looking at humans possible. Going through this process, the Human Cell Design portfolio fits very well in our reagents business, and I think it will be a great tuck-in acquisition.

Yeah, I think 2Q, as we have talked about on the earnings call, it played out pretty much as we expected. I think, as you said, diagnostics did slightly better than what we had. Both Reproductive Health had a great quarter. Immunodiagnostics did very well. On the life sciences side, software was as expected as we had forecasted. Instruments on the platform side, we have got a very strong backlog. On the reagent side, we were low single-digit growth. So it is pretty much played out, with a little bit of nuance up and down here and there, but pretty much along what we had thought it would do.

Yeah. I think pharma biotech, the phenomenon has not been just from the last quarter. I think, I would say there was a lot of uncertainty last year that carried into 2025 that came from a bunch of issues, whether it was tariffs in, tariffs out. I think for us, what we use as a marker is the meeting of Pfizer at the White House sort of was somehow a key point in the turn, and then brought certainty into the investments and the spending and then it brought through a start of the resurgence of pharma biotech after a prolonged period of time. I think the calming down of the chaos allowed for pharma biotech customers to start planning and reinvesting back to what pretty much normal should look like.

I think we have seen that continuously over the past several quarters, where the investment in pharma biotech is gradually coming back to what normal should look like.

I think it is going to continue to play out, especially now with the sort of resurgence or the engagement that you are seeing with new modalities and technologies such as AI playing a role. So that is adding an added resurgence to the end market.

From our perspective, I think the pharma biotech end market coming back to normal was more of a consequence of the calming down of the chaos and uncertainty, and the reinvestment back. Because you've got to have investment in preclinical, and you've got to have the innovation because of all the patent cliff issues that the pharma biotech companies are facing. From our point of view, we see that as more of a normal course of investment coming back. I think the AI component is not taking money out from left pocket and putting it in right pocket. I think it's incremental investment that is going to go on and is the beginning of it to accelerate drug discovery and development.

I think this is, as we've talked about, if you go back and listen to what Max, Steve, and I have been talking about from the beginning of this year at investor conferences in our 1Q call, in our 2Q call as to how this is playing out, and it pretty much is playing out as we had hoped and forecasted.

Yeah. Obviously, high-content screening is a significant part of our platform business. It used to be around 25% or a quarter of the business, and I think now it's about one-third of it. It's increased to about a third of the business. High-content screening obviously is critical as you look at drug candidates as to what the impact or what the effect it's having at the cellular level. Then I think with the sensitivity that we bring to it, there is a significant amount of data, terabytes of data that are generated from it. And why it plays an important role now, more specifically is with the advent of new technology, our high-content screening platforms would generate a lot of data.

But basically, from a scientist's perspective, they were only focused on looking at the kill non-kill ratio, essentially, where the impact is having at the cellular level or not. But there's also a lot of incremental data which they were not being able to leverage. Now with AI, they are able to leverage. Then I think this is where we have started seeing a big funnel and pipeline coming simultaneously. At the same time, a lot of companies are starting to build LLM models around these, right? Trying to see as to how could we build models that would allow for faster screening of drug candidates. And this is where we are starting to see more of a funnel and pipeline coming from non-traditional companies, right? Companies that are in the public domain generating data for LLM models, CROs, and of course the traditional pharma biotech customers.