Casey Woodring

Casey Woodring asked about any meaningful contribution from lymphoma or multiple myeloma volumes embedded in the 2026 framework for Signatera and the potential upside from heme MRD volumes. He also inquired about the implications of Signatera's expected Japan approval in 2026 with preliminary coverage for 2027 launch, specifically regarding ASPs, volume opportunity, potential coverage caps, and OpEx impact from sales force/lab capacity build-out.

Answer

Steve Chapman (CEO, Natera) indicated that the contribution from heme MRD is relatively limited in the current model but represents a significant opportunity, especially with the Foresight team's expertise, and could be a major growth driver. For Japan, Steve Chapman noted a reasonable sales team and strong distribution partnership are in place, expecting good ASPs similar to historical precedent and a significant volume/revenue impact in 2027. John Fesko (President and Chief Business Officer, Natera) added that CRC patient numbers in Japan are similar to the U.S., with comparable pricing for molecular genetic products. Steve Chapman clarified that they do not need to wait for the CIRCULATE-Japan readout and are in the final stages with regulatory authorities for a launch later this year.

Casey Woodring asked if there is any meaningful contribution from lymphoma or multiple myeloma volumes embedded in the 2026 framework for Signatera and about the potential upside from heme MRD volumes. He also inquired about the implications of Signatera's expected approval in Japan in 2026 with preliminary coverage for a 2027 launch, specifically regarding ASPs, volume opportunity, potential coverage caps until the CIRCULATE Japan readout, and the impact of sales force/lab capacity build-out on OpEx.

Answer

Steve Chapman (CEO, Natera) indicated that the contribution from heme MRD is relatively limited in the current model but represents a significant opportunity and potential growth driver, especially with the Foresight team's expertise. Regarding Japan, Steve Chapman (CEO, Natera) stated that a reasonable sales team and strong distribution partnership are already in place, expecting good ASPs based on historical precedent and a solid impact on revenue in 2027. John Fesko (President and Chief Business Officer, Natera) added that CRC patient numbers in Japan are similar to the U.S., pricing for similar molecular genetic products is comparable, and they do not need to wait for the CIRCULATE Japan readout to launch.

Casey Woodring asked for a breakdown of Signatera's new patient starts contribution in the quarter compared to the previous quarter, and which tumor types are showing the most strength, including any early traction from new data readouts like Invigor. He also inquired about expectations for 2026 gross margins, particularly with Signatera's growing mix, and if a similar step-up rate as 2025 is anticipated.

Answer

CEO Steve Chapman noted that new patient starts in Q3 were similar to the "all-time record" growth seen in Q2, indicating continued strong interest across broad tumor types, with significant inbound interest in bladder cancer following the Invigor announcement. CFO Michael Brophy advised modeling 2026 gross margins by stripping out true-ups and anchoring to the pre-true-up number, expecting "reasonably meaningful sequential improvement" but cautioned against expecting the exact same rate as 2025's significant year-on-year change, reiterating the long-term target of 70%.

Casey Woodring from JPMorgan Chase & Co. asked about the pacing of LC and LC-MS growth over the year, including Q1 LC-MS growth, and sought elaboration on the financial impact and ramp-up of marquee enterprise service wins in the Agilent CrossLab Group (ACG).

Answer

President and CEO Padraig McDonnell highlighted enterprise services as a future flywheel, driving higher attach rates and early warnings for replacements. Simon May, President of the Life Sciences and Applied Markets Group, noted high single-digit LC growth and exceptional 40% growth in ProIQ LC-MS. Angelica Riemann, President of the Agilent CrossLab Group, emphasized broad lab visibility and compounding growth from enterprise services.

Casey Woodring asked about the pacing of LC and LC-MS growth over the course of the year, specifically inquiring about LC-MS growth in Q1 and the growth phasing for both. He also asked for elaboration on the financial impact of the three marquee enterprise service wins in ACG, how they would impact the model, and how they are expected to ramp over time.

Answer

President and CEO Padraig McDonnell described enterprise services as a crucial "flywheel" for future growth, providing insights into replacement cycles, driving higher consumables and services attach rates, and offering an early warning system for future purchasing decisions. Simon May, President of the Life Sciences and Applied Markets Group, noted high single-digit LC growth in Q1, particularly in China and APAC, driven by Infinity III and Altura columns, with the replacement cycle still early. LC-MS was in line with expectations, with Pro iQ showing exceptional 40% growth and notable share gains. Angelica Riemann, President of the Agilent CrossLab Group, emphasized that enterprise services embed experts, provide broad lab visibility, unlock competitive displacement and wallet share opportunities, and compound growth and insights for innovation.

Casey Woodring asked for a breakdown of large molecule versus small molecule growth within the pharma segment for the quarter, excluding the CDMO business, and what is factored into the 2026 guidance for these two categories.

Answer

President and CEO Padraig McDonnell stated that Agilent saw growth on both the large molecule and small molecule sides, with both growing around 10% in the quarter. He noted that it's roughly a 50% split for Agilent and expects this trend to continue.

Casey Woodring inquired about the breakdown of large molecule versus small molecule growth within the pharma segment (excluding CDMO) in the quarter, noting improved biotech spending. He also asked about the assumptions for large versus small molecule growth in the 2026 guide, excluding CDMO.

Answer

President and CEO Padraig McDonnell stated that Agilent saw growth on both the large molecule and small molecule sides, with both growing around 10% in the quarter. He noted that the split is roughly 50% for Agilent and expects this balance to continue.

Casey Woodring from JPMorgan Securities asked for details on the 2026 guide for data and services revenue, specifically the visibility into in-year bookings given $350 million of current Total Contract Value (TCV) tied to 2026, and the timing of these bookings. He also inquired about the split of the 40% data growth assumed for Q1 across Insights and trials, and any contribution from the foundation model with Pathos and AstraZeneca.

Answer

Eric Lefkofsky, CEO of Tempus AI, stated that strong bookings provide greater visibility into 2026 revenue than ever before, with a high percentage of revenue already committed. He noted that it's normal to generate about $100 million of in-year revenue from bookings. Lefkofsky highlighted systemic growth drivers and "crazy amounts of demand" for data products, with over $1.1 billion in TCV. He clarified that the vast majority of data and apps revenue comes from data licensing (Insights), with clinical trial matching (TIME) and care gap products (Next) making up the rest.

Casey Woodring asked for details on Tempus AI's 2026 guide for data and services revenue, including visibility into in-year bookings and their timing, given $350 million of current Total Contract Value (TCV) tied to 2026. He also requested a split of the 40% Q1 data growth between Insights and trials, and any contribution from the foundation model with PathAI and AstraZeneca.

Answer

CEO Eric Lefkofsky stated that strong bookings provide greater visibility into 2026 revenue than ever before, with a high percentage of revenue already committed. He noted that typically $100 million of revenue is generated from in-year bookings, and current demand for data products is exceptionally high, with over $1.1 billion in TCV. He clarified that the vast majority of data and apps revenue comes from data licensing, with clinical trial matching (TIME) and care gap products (Next) making up the rest.

Casey Woodring inquired about a potential market shift towards liquid biopsy, specifically asking if Tempus AI is observing a similar pickup in xF volumes, and sought an update on the FDA approval process for xF and xR, including the potential for ADLT status and expected Medicare list price upside.

Answer

CEO Eric Lefkofsky noted that Tempus AI, strong across hereditary, therapy selection (solid/liquid), and MRD, hasn't observed a seismic shift from solid to liquid biopsy, with both showing good growth. He acknowledged potential future volume increases for liquid biopsy from serial testing studies. CFO Jim Rogers added that 30% of xT CDX volume has migrated to the FDA-approved version, with plans to move the majority in 2026. He confirmed xF submission to the FDA by year-end, followed by xR, expecting ADLT status to provide upside from the current average reimbursement of $1,600, aiming to close the gap with peers.

Casey Woodring inquired about a potential pickup in xF volumes and a market shift towards liquid biopsy, as well as plans for FDA approval of xF and xR, and the potential upside to Medicare list price from ADLT status.

Answer

Eric Lefkofsky (CEO, Tempus AI) noted good growth in both solid tumor and liquid biopsy assays but no seismic shift from solid to liquid, acknowledging potential future volume increases for liquid from serial testing. Jim Rogers (CFO, Tempus AI) discussed plans to migrate xT CDX volume to FDA-approved versions in 2026, xF submission by year-end, and xR submission later, stating ADLT typically provides upside from the current average reimbursement of $1,600 in Q3.

Casey Woodring asked for an update on the competitive positioning of Sterigenics, particularly in light of NESHAP regulations and opportunities to gain market share from smaller players, and also inquired about the current competitive landscape for Nelson Labs. He followed up by asking for any updates on the timing of ongoing litigation.

Answer

Chairman and CEO Michael Petras noted that the two-year NESHAP extension has slowed down insourcing/outsourcing discussions, reducing urgency. He emphasized Sterigenics' strong competitive position due to its global platform, quality systems, and full-service offerings. For Nelson Labs, Mr. Petras described a fragmented market where service and quality are key, with core lab testing improving and advisory services being choppier. Regarding litigation, Mr. Petras stated there are no material changes in timing, with no trials set for 2026 other than the New Mexico public nuisance case in July.

Casey Woodring asked about any changes in the competitive positioning for Sterigenics, particularly in light of NESHAP regulations and opportunities to gain market share from smaller players. He also requested an update on the competitive landscape for Nelson Labs and inquired about the expected timing for any updates on the company's litigation front.

Answer

Chairman and CEO Michael Petras noted that the NESHAP extension has slowed discussions around insourcing versus outsourcing, but strategic supply chain conversations continue. He affirmed Sterigenics' strong competitive position due to its global platform, consistent quality systems, and full-service offerings. For Nelson Labs, Mr. Petras described a fragmented market where the business excels in service, quality, and scientific reputation, with core lab testing improving and advisory services being more volatile. Regarding litigation, Mr. Petras stated there are no material changes in timing, with no trials set for 2026 other than the public nuisance case in New Mexico in July.

Casey Woodring from J.P. Morgan asked for the expected cadence of Sterigenics' volume and mix growth in the second half of the year and inquired about the normalized growth outlook for Nelson Labs in 2026.

Answer

CFO Jonathan Lyons indicated that Sterigenics' second-half growth would be in the mid-to-high single-digit range, though slightly muted compared to Q2 due to maintenance downtime. CEO Michael Petras deferred 2026 guidance for Nelson Labs but emphasized the near-term focus is on driving core lab volume growth, as the Expert Advisory Services business is not a primary long-term growth driver.

Casey Woodring of JPMorgan inquired about the expected 2025 performance of Sterigenics' different end markets (med device, pharma, bioprocessing). He also asked about the pacing of CapEx and the margin impact of new greenfield facilities.

Answer

CEO Michael Petras anticipates improvement across med device and pharma, with the commercial market being 'choppier.' He noted bioprocessing volume is expected to continue its recovery. CFO Jon Lyons added that one greenfield facility is coming online in 2025 with no significant margin impact, and the company remains on track to lower CapEx to its 2027 target, with the final greenfield now expected in 2027.

Casey Woodring from JPMorgan Chase & Co. requested a breakdown of Nelson Labs' Q3 performance across its service lines and the outlook for Q4. She also asked about risks from pharma R&D spending and details on the reduced full-year CapEx guidance.

Answer

CEO Michael Petras noted that validation testing remained strong in Q3, with routine testing showing progress. CFO Jon Lyons explained the CapEx reduction was primarily due to timing shifts in cobalt development programs and some vendor-related delays on growth projects, not facility enhancements. He added that peak CapEx is now expected in 2025.

Casey Woodring sought clarification on Repligen's Q1 organic growth, the reconciliation of low double-digit franchise growth with the 9% low end of the overall guidance, and the embedded assumptions for ATF within the low double-digit filtration guide.

Answer

President and CEO Olivier Loeillot stated that Q1 is expected to be strong, only down a couple of percentage points sequentially from Q4 2025, defying typical seasonality. He also noted ATF's strong performance in 2024 and its continued accretive contribution to filtration growth in 2025. CFO Jason Garland clarified that franchise growth figures were reported, not organic, explaining the difference with the overall organic guidance.

Casey Woodring sought clarification on Repligen's Q1 organic growth and how the overall 9%-13% organic growth guidance reconciles with low double-digit reported growth for individual franchises. He also inquired about the embedded assumptions for ATF within the low double-digit filtration guide, given its strong Q4 performance.

Answer

Olivier Loeillot, President and CEO, stated that Q1 is expected to be strong, with only a couple of percent sequential decline from Q4 2025. He noted ATF's incredible growth in 2024 (>50%) and its continued accretive contribution to filtration growth in 2025, expressing strong hopes for its future runway. Jason Garland, CFO, clarified that the franchise growth rates discussed were reported, not organic or FX-adjusted, which accounts for the difference with the overall organic guidance.

Casey Woodring asked about the revenue recognition timing for the second ATF blockbuster hardware delivered in late Q3 (Q4 2025 or Q1 2026). He also sought further color on emerging biotech revenue reaching a three-year high and associated order trends.

Answer

Olivier Loeillot, President and CEO, stated that the exact revenue timing for the ATF blockbuster is uncertain, depending on customer commissioning and consumable purchases, but likely not Q4, possibly mid-2026. He noted that emerging biotech's rebound was a positive surprise, connecting it to increased biotech funding (Q2 €9B to Q3 €13B) and M&A activity, which could provide tailwinds for early-phase projects.

Casey Woodring followed up on the ATF comments, asking if revenue from the second blockbuster hardware delivered at the end of Q3 is expected in Q4 or Q1 2026. He also inquired about trends in orders for emerging biotech revenue, which reached its highest level in three years, seeking further color despite the company's hesitation to call it a definitive trend.

Answer

President and CEO Olivier Loeillot stated that the exact timing for revenue from the ATF blockbuster hardware is uncertain, depending on commissioning and consumable purchases, but is unlikely in Q4 and more probable mid-next year. He highlighted Repligen's diversified ATF customer base, with over 50 late-stage and commercial drugs, indicating a long runway for growth. Regarding small biotech, Loeillot described its rebound in Q3 as a 'great surprise,' connecting it to increased biotech funding (from EUR 9 billion in Q2 to EUR 13 billion in Q3) and M&A activities where pharma companies are acquiring smaller biotechs, which he sees as a tailwind.

Casey Woodring asked for clarification on Shield's back-half weighted guidance, its implications for Q1 performance, and the potential upside to volumes in the latter half of 2026 if ACS guideline inclusion occurs in H1.

Answer

AmirAli Talasaz, Co-CEO, noted typical Q1 seasonality in PCP offices but stated the team is on track to screen more patients in Q1 than any previous post-launch quarter. He highlighted that ACS guideline inclusion, especially for younger patient populations in states with mandates, could be a significant growth driver, but its impact is not yet in the guidance.

Casey Woodring asked about the implications for Shield's Q1 volumes given the back-half weighted guidance and the potential upside from ACS guideline inclusion.

Answer

Co-CEO AmirAli Talasaz acknowledged Q1 seasonality in PCP offices but stated the team is on track to screen more patients in Q1 than any previous post-launch quarter. He noted that ACS guideline inclusion, when it occurs, would be a significant additional growth driver, particularly for younger patient populations.

Casey Woodring from JPMorgan Chase & Co. asked about Charles River Laboratories' capital deployment strategy, specifically how maintaining 'dry powder' for M&A relates to potential opportunities in China and how share repurchases are balanced against M&A, especially given recent share price volatility. He also inquired if the company is considering additional deals similar to K.F. to further alleviate NHP sourcing costs.

Answer

Chair, President, and CEO Jim Foster confirmed that NHP sourcing volume is in excellent shape following the NovaPrim and K.F. acquisitions, making further NHP sourcing deals highly unlikely. He stated that capital deployment is managed to keep leverage below 3x, with a strong balance sheet. A board committee objectively reviews capital uses quarterly, including M&A (with bioanalysis and China as key areas of interest), debt repayment, and share buybacks, which are contextual to market demand and share price. SVP and Interim CFO Michael Knell added that the K.F. acquisition is expected to provide a $0.25 EPS benefit in 2026 and approximately $0.60 accretion in 2027.

Casey Woodring asked about Charles River Laboratories' capital deployment strategy, specifically regarding maintaining dry powder for M&A (including opportunities in China), balancing M&A with share repurchases, and the potential for other NHP sourcing deals like KF to alleviate DSA headwinds. He also inquired about the compounding effect of NHP savings from KF and NovaPrim beyond 2026.

Answer

James Foster, Chair, President, and Chief Executive Officer, stated that NHP sourcing volume is in good shape with NovaPrim and KF, making further sourcing deals unlikely. He emphasized a straightforward capital deployment strategy, aiming to keep leverage below three turns and delever within 12 months post-acquisition. He confirmed M&A (bioanalysis, China) and share buybacks are always on the table, evaluated quarterly based on market conditions and share price. Michael Knell, Senior Vice President, Interim Chief Financial Officer, and Chief Accounting Officer, added that KF is expected to provide a $0.25 EPS benefit in 2026, compounding to approximately $0.60 accretion in 2027.

Casey Woodring of J.P. Morgan asked for details on the drivers behind increased cancellations in longer-term, post-IND work and whether this trend might continue. He also questioned the forward outlook regarding potential headwinds from drug pricing policies and tariffs on large pharma spending.

Answer

CEO James Foster explained that the cancellations were driven by client-specific portfolio prioritization rather than a broader trend and did not have a significant margin differential. Regarding macro headwinds, he stated that while they have seen minimal impact to date, the company's guidance is prudent and assumes some uncertainty, with any major impact more likely to materialize in 2026.

Casey Woodring asked for an updated outlook on the biotech business within DSA given the weak funding environment, and inquired about conversations with large pharma clients regarding potential tariffs.

Answer

CFO Flavia Pease stated that tariff discussions are not currently impacting client R&D spending, and any direct impact to Charles River would be modest and passed on. CEO James Foster acknowledged the challenging funding environment for biotech but emphasized that they remain an important client base that values the company's high-quality science and regulatory expertise.

Casey Woodring asked for commentary on the potential impact of proposed pharmaceutical import tariffs on client spending and whether customers are expressing concern about potential changes to drug approval scrutiny under a new administration.

Answer

Chair, President & CEO James Foster stated that any commentary would be speculation at this point. He noted the company is not hearing much from clients on the RFK situation and that proposed tariffs are intended to support U.S. drug development, which could be beneficial, but it's too early to know the outcome.

Casey Woodring of JPMorgan Chase & Co. asked for more detail on the synergies between the CDMO and Biologics Testing businesses, including the client attach rate. He also inquired about any changes in communication with large pharma clients to improve visibility following last quarter's surprising demand drop.

Answer

Chairman, President and CEO James Foster highlighted that the synergy is a key competitive advantage, with over 50% of CDMO clients also using their Biologics Testing services, a capability some competitors lack. Regarding client communication, he noted that while they deal with the same R&D heads, upcoming Q4 discussions around 2025 budgets should provide a clearer, 'zero-based' view of future demand.

Casey Woodring inquired about the CLIA lab setup plan, target indications, timing for clinical evidence generation and lab certification, required CapEx, ROI, and potential impact on existing diagnostics customers.

Answer

CEO Serge Saxonov emphasized that these early, future-focused investments are driven by customer interest and are highly efficient due to existing assets, with minimal P&L impact. He outlined a hybrid strategy to enable customers and build an internal CLIA lab, targeting tissue-based tumor profiling and blood-based monitoring for autoimmune diseases, with the lab expected to be operational early next year.

Casey Woodring inquired about the indications targeted for the CLIA lab, the timing for generating clinical evidence and standing up the lab, the CapEx required and expected ROI, and the potential impact on diagnostics customers who might see 10x as a competitor.

Answer

CEO Serge Saxonov emphasized the huge potential in clinical applications, driven by customer and physician interest. He described a hybrid strategy: enabling customers to develop tests and undertaking internal efforts to accelerate high-impact diagnostics. He mentioned two specific applications: tissue-based tumor profiling for therapy selection and blood-based monitoring for autoimmune diseases. He stated the CLIA lab is targeted for early next year, will be built efficiently using existing assets, and will have a minor impact on the P&L.

Casey Woodring of JPMorgan Chase & Co. asked about the impact of direct procurement initiatives on the 2026 margin line, the free cash flow progression in Q1 2026 given the $40 million carryover, and the expected progression over the year. He also inquired about the High Sensitivity Troponin approval on VITROS, its potential revenue contribution, the status of a previously targeted 2024 launch for Point of Care High Sensitivity Troponin, and the total addressable market (TAM) for this assay.

Answer

Joe Busky, Chief Financial Officer, confirmed direct procurement savings are in the 2026 guide but are offset by tariffs, product mix, and LEX dilution, leading to a relatively flat gross margin. He expects more robust savings in 2027 and beyond, aiming for gross margins closer to 50%. For free cash flow, he noted that despite the Q1 carryover, the majority of cash flow is expected in the second half of 2026, consistent with previous years. Brian Blaser, President and Chief Executive Officer, clarified that a Point of Care High Sensitivity Troponin launch in the U.S. faces technology challenges, though it's contributing strongly OUS. He stated that the lab-based High Sensitivity Troponin approval on VITROS will not have a huge short-term impact but will help competitiveness in higher-volume segments.

Casey Woodring of JPMorgan Chase & Co. asked about the impact of direct procurement initiatives on the 2026 margin line and the expected free cash flow progression for Q1 2026 and throughout the year, given the carryover from Q4 2025. He also inquired about the high-sensitivity troponin approval on VITROS, its potential revenue contribution, the status of a previously targeted 2024 point-of-care high-sensitivity troponin launch, and the total addressable market (TAM) for high-sensitivity troponin across VITROS and point-of-care.

Answer

CFO Joe Busky stated that direct procurement savings are built into the 2026 guide but are offset by tariff impacts, product mix, and Lex dilution, resulting in a relatively flat gross profit margin. He expects the majority of 2026 cash flow to be generated in the second half, consistent with prior years, despite the Q4 2025 carryover. CEO Brian Blaser clarified that a point-of-care high-sensitivity troponin launch in the US faces technology challenges, though it's contributing strongly OUS. He noted that the lab's high-sensitivity troponin approval on VITROS will not have a huge short-term revenue impact but will improve competitiveness in higher-volume segments.

Casey Woodring of JPMorgan asked for an outlook on free cash flow for the second half of the year and the company's visibility into achieving its full-year cash flow conversion target. She also requested more detail on the timing of the $30-50 million in incremental cost savings.

Answer

CFO Joseph Busky expressed confidence in achieving the 25-30% recurring free cash flow to adjusted EBITDA target, citing the business's seasonality and strong second-half performance in the prior year. He confirmed the $30-50 million in savings from indirect procurement is on track and will be weighted towards the second half of 2025.

Casey Woodring requested more detail on why only a small percentage of shipments into China are currently subject to tariffs, the company's visibility into this situation continuing, and the potential risk of a larger portion being tariffed in the future.

Answer

CEO Brian Blaser and CFO Joe Busky reiterated that their commentary is based on direct experience with shipments over the past several weeks. In practice, the bulk of their products are not being tariffed. They stated there is currently no indication that this situation will change, though they acknowledged it is a fluid environment.

Casey Woodring from JPMorgan Chase & Co. requested a forecast for Q1 performance across business lines, with a specific focus on the respiratory and flu outlook given the recent spike in influenza-like illness (ILI) rates.

Answer

Chief Executive Officer Brian Blaser acknowledged the recent spike in flu activity but noted the full-year guidance already assumes an average flu season of 50-55 million tests. He stated that while the season's peak was high, the key variable is the duration of the season's tail, which the company is monitoring closely. The company is maintaining its full-year guidance based on an average season assumption.

Casey Woodring sought clarification on a "second tranche" of cost savings for 2025-2026 and asked for an updated view on the competitive landscape and market share for the respiratory testing business.

Answer

CFO Joe Busky confirmed a second tranche of savings will impact 2025 and 2026, driven by a continuous improvement culture and the exit of the dilutive donor screening business. He also stated QuidelOrtho remains the leader in respiratory testing and assumes a similar market share to 2023 in its guidance, while internally aiming to grow it.

Casey Woodring asked about Avantor's segment growth expectations for 2026, specifically how VWR Distribution and Services growth will compare to Bioscience and Medtech Products, and the anticipated quarterly phasing, particularly for Q1. He also inquired about the balance between new investments, such as $10-$15 million for e-commerce, and ongoing cost-saving initiatives, seeking an update on the 'Revival' program's cost savings and its impact in 2026.

Answer

Brent Jones, EVP and CFO, explained that Bioscience and Medtech Products (BMP) is expected to grow slower than VWR due to difficult comps in serum, electronic materials, and NuSil, creating a multi-hundred basis point drag. He noted Q1 would be the low point for most financial metrics, with organic revenues declining by 5% or more, partially offset by FX tailwinds. Emmanuel Ligner, President and CEO, clarified that cost discipline is not abandoned, but integrated into the 'Revival' program's simplification and optimization pillars. He emphasized a 'self-funding' approach where waste reduction finances growth investments, aiming for sustainable, profitable top-line growth.

Casey Woodring asked about Avantor's segment growth expectations for VWR and Bioscience and Medtech in 2026, including quarterly phasing, and how the company is balancing new investments with existing cost-saving initiatives, specifically regarding the $10M-$15M for e-commerce and $20M for operations.

Answer

Brent Jones, EVP and CFO, explained that Bioscience and Medtech Products (BMP) is expected to grow slower than VWR due to difficult comparables in serum, electronic materials, and NuSil, with Q1 2026 projected as the low point for financial metrics, showing an organic revenue decline of 5% or more. Emmanuel Ligner, President and CEO, clarified that cost discipline is integrated into the 'Revival' program, focusing on self-funding investments through waste elimination to drive sustainable, profitable top-line growth. Brent Jones added that the $20M for operations and some digital investments are primarily capital expenditures.

Casey Woodring asked for a breakdown of Waters' strong chemistry performance, specifically how much was attributable to price, new product contribution, and bioseparations. He also requested elaboration on how pricing is evolving in chemistry within the 6% 2026 guidance framework, given previous discussions of 100-200 basis points pricing improvement with a high stick rate.

Answer

President and CEO Udit Batra expressed satisfaction with 12% chemistry growth for the year and strong Q1 momentum, attributing it to a mix of factors including highly innovative products commanding a price premium. He highlighted pipeline and product innovations like MaxPeak Premier technology, SEC columns, oligonucleotides, slalom chromatography, and new affinity chromatography, expressing excitement about future collaboration with BD's biology and antibody capabilities. SVP and CFO Amol Chaubal detailed that for like-for-like chemistry SKUs and geographies, Waters is generating 400-450 basis points of pricing, and on an overall portfolio basis, about 200 basis points (excluding upsell), which is ahead of Investor Day targets. He noted this represents a significant opportunity for BD, which historically achieved only 40-50 basis points of year-over-year price, to reapply Waters' successful blueprint.

Casey Woodring asked for a breakdown of Waters' strong chemistry performance, inquiring about the contribution from price, new products, and bioseparations. He also requested elaboration on the pricing strategy, specifically how pricing is evolving within the 6% 2026 chemistry guidance framework, given past improvements.

Answer

President and CEO Udit Batra attributed the 12% chemistry growth to a mix of highly innovative products commanding a price premium, including new MaxPeak Premier technology, SEC columns, oligonucleotides, slalom chromatography, and affinity chromatography. SVP and CFO Amol Chaubal detailed that chemistry alone achieves 400-450 basis points on like-for-like SKUs/geography, with the overall portfolio generating over 200 basis points, exceeding Investor Day targets. He highlighted this as a significant opportunity to reapply Waters' successful pricing blueprint to BD, which historically saw 40-50 basis points.

Casey Woodring inquired about the latest expectations for the TA business, which returned to growth faster than anticipated, and the instrument order funnel, including the runway for the instrument replacement cycle given current strength, new product launches, and regulatory updates.

Answer

CFO Amol Chaubal attributed TA's recovery to stabilizing tariff volatility and an improving interest rate outlook, unblocking stalled projects. He described the instrument order funnel as rich and strong, driven by large pharma and CDMO replacement cycles, innovation in LC/MS, and advancements in bioanalytical characterization and bioseparations. He noted that CROs, biotechs, and branded generics in China are still on the sidelines but CROs are starting to re-engage. CEO Udit Batra added that the instrument replacement cycle is still in its 'mid-innings' with a low single-digit CAGR versus 2019, and clarity on MFN negotiations provides a more stable planning environment, boosting confidence in CapEx release for new products.

Casey Woodring asked about the TA business's faster-than-expected recovery and the latest expectations for its performance. He also inquired about the instrument order funnel and the potential runway for the replacement cycle, considering new product launches, the FDA update, and reshoring benefits.

Answer

CFO Amol Chaubal attributed TA's recovery to stabilizing tariff volatility and an improving interest rate outlook. He described a rich and strong instrument funnel driven by large pharma and CDMO replacement cycles, innovation in LC & MS, and advancements in bioanalytical characterization and bioseparations. President and CEO Udit Batra added that the instrument replacement cycle is still in its 'mid-innings' with a low single-digit CAGR versus 2019, and clarified MFN negotiations provide planning relief, boosting confidence in CapEx release for new products.

Casey Woodring asked for an update on Illumina's conversations with the Chinese government regarding instrument imports and the potential range of outcomes for the China business. He also requested further elaboration on the BioInsight business, its monetization strategy, pharma customer enthusiasm, and the quantifiable revenue opportunity over the next few years.

Answer

CEO Jacob Thaysen noted that China is less than 5% of the business, and the team has managed well. He reported good conversations with Chinese regulators despite being on the UAL, with potential upside if removed from the list, and a good line of sight for 2026. For BioInsight, he highlighted strong pharma interest in the Billion Cell Atlas and expects it to contribute 1-2% growth in 2027 with multi-omics. CFO Ankur Dhingra added that BioInsight aims to work directly with pharma, offering specialized data/AI tools and subscription models, representing a meaningful multi-year opportunity.

Casey Woodring from JPMorgan Chase & Co. inquired about the ongoing conversations with the Chinese government regarding import restrictions, seeking an update on the progress and potential range of outcomes. He also asked for further details on the BioInsight business, including its monetization strategy, the level of enthusiasm from pharma customers, and any quantifiable revenue opportunity over the next few years.

Answer

CEO Jacob Thaysen noted that China represents less than 5% of the business and expressed satisfaction with the team's ability to serve customers despite being on the UAL. He mentioned good conversations with Chinese regulators and potential upside if the company is removed from the list, though rebuilding the instrument funnel will take time. For BioInsight, he highlighted strong interest from pharma partners for the Billion Cell Atlas, expecting it to contribute 1-2% growth in 2027, accelerating thereafter. CFO Ankur Dhingra added that BioInsight aims to work directly with pharma customers, adding a third customer base, with monetization through specialized data/AI tools and significant subscription-based models over a multi-year horizon.

Casey Woodring asked for clarification on the 2026 margin expansion, specifically how organic operating leverage and new product volume are expected to contribute to the bottom line, given currency and tariff headwinds.

Answer

Roland Sackers (CFO) clarified that QIAGEN anticipates significant margin improvement in 2026, despite 160 basis points of headwinds from the Parse acquisition (100 bps dilution) and combined tariffs/FX. He detailed that over 75 basis points of this improvement will come from gross margin expansion, driven by accelerated Sample Technologies growth and better QIAstat production utilization. Additionally, ongoing efficiency programs are expected to contribute, reinforcing confidence in exceeding the 31% adjusted operating income margin target by 2028.

Casey Woodring questioned the 2026 margin expansion, noting that the bridge seemed to imply no organic operating margin improvement beyond efficiency programs, which would be offset by currency and tariff headwinds. He asked for clarification on organic operating leverage and the contribution of new product volume to the bottom line.

Answer

Roland Sackers (CFO, QIAGEN) clarified that 2026 is expected to be another significant margin improvement year, despite 160 basis points of headwinds from the Parse acquisition (due to R&D investments), tariffs, and FX. He detailed that over 75 basis points of improvement would come from gross margin expansion, driven by accelerated growth in high-margin Sample Preparation products and better utilization for QIAstat production. He also noted ongoing contributions from 40 QIAGEN efficiency programs on the operational expense side, reinforcing confidence in exceeding the 31% margin target for 2028.

Casey Woodring asked about the business dynamics in Europe, where overall growth was strong but Sample Tech was down, and also inquired about the back-half cadence for the QDI business given its SaaS transition and customer mix.

Answer

CEO Thierry Bernard clarified that the strategic focus on automated solutions within Sample Technologies is showing growth in the EMEA region. For the QIAGEN Digital Insights (QDI) business, he noted the customer split is moving toward a 50/50 balance between clinical and research, and the transition to SaaS-based subscriptions is expected to continue through the second half of the year.

Casey Woodring asked for a more specific timeline for achieving the 31% midterm margin goal and for details on the expected revenue and growth from companion diagnostics (CDx) partnerships.

Answer

CFO Roland Sackers confirmed the 31% margin goal would be reached 'well ahead of 2028' but deferred giving a specific year, stating an update would come with 2026 planning. CEO Thierry Bernard projected continued double-digit growth for the CDx business, driven by a portfolio of over 35 pharma partnerships and an expanding technology offering that now includes PCR, NGS, digital PCR, and syndromic testing solutions.

Casey Woodring inquired about the expected number of QIAstat placements for 2025 and the impact of new panel approvals. He also asked for the rationale behind the recent corporate reorganization into two functional teams.

Answer

CEO Thierry Bernard stated that placing over 600 QIAstat systems per year, including the Rise equivalent, would be a satisfactory growth trajectory. Regarding the reorganization, he explained it moves away from siloed business units to better serve hybrid research/clinical customers and build sustainable ecosystems around platforms like Sample Tech, Digital PCR, and QIAstat, which span multiple end markets.

Casey Woodring inquired about the outlook for instrument revenue in Q4 and asked how QIAGEN's capabilities in liquid biopsy are expected to drive future consumables growth.

Answer

CFO Roland Sackers stated that Q4 instrument revenue is expected to improve sequentially but remain negative year-over-year. CEO Thierry Bernard positioned QIAGEN as a key 'enabler' in liquid biopsy, providing essential technologies to major labs. He emphasized this strategy allows QIAGEN to benefit from market growth while limiting exposure to risks like reimbursement changes, and confirmed continued investment in high-value liquid biopsy consumables.

Casey Woodring asked for insights into the Q4 performance of the analytical instruments segment, including regional and end-market trends, and whether there was a budget flush or China stimulus. He also sought assumptions for U.S. academic and government growth in 2026 and the expected timeline for spending pickup after the NIH budget finalization.

Answer

Marc Casper, Chairman, President, and CEO, stated that the analytical instruments team performed well in Q4, achieving flat growth despite challenging comparisons and headwinds in academic/government funding and China. He attributed success to high-impact innovation, particularly in mass spectrometry and cryo-electron microscopy. For 2026, the guidance assumes similar cautious conditions for global academic and government markets, with U.S. caution likely abating as the year progresses, anticipating a flat to slightly up NIH budget to create tailwinds later.

Casey Woodring asked about the Analytical Instruments segment's performance in Q4 2025 relative to expectations, including trends across regions and end markets, and any impact from budget flushes or China stimulus. He also sought clarification on the assumptions for U.S. academic and government growth in 2026 and the expected pace of spending pickup after a finalized NIH budget.

Answer

Marc Casper, Chairman, President, and Chief Executive Officer, stated that the Analytical Instruments team performed well, achieving flat growth in Q4 despite challenging comparisons and headwinds in academic/government and China. He emphasized strong performance with pharma/biotech customers and the critical role of high-impact innovation. For U.S. academic and government, Mr. Casper assumed similar cautious conditions to last year, expecting a flat to slightly up NIH budget to create tailwinds later in the year, potentially driving higher growth in future years, but maintaining a relatively cautious outlook for 2026.

Casey Woodring asked about the company's sales force expansion plans, specifically the expected number of reps to hire in Q4 and the strategy for 2026 in both prenatal and oncology. He also inquired about the contribution of better Medicaid traction for the Unity Carrier panel code to ASP growth in the quarter and its future impact.

Answer

Oguzhan Atay, Co-founder, CEO, and Board Chair, outlined consistent sales team growth with 8-10 net rep additions per quarter for prenatal and 4-7 for oncology, a methodical approach ensuring service quality and top talent acquisition. Regarding Medicaid, he explained that while difficult to quantify precisely, the Unity Carrier panel PLA code offers almost a 2X difference in ASPs compared to standard codes, making each new Medicaid incorporation significant for long-term ASP goals.

Casey Woodring asked about BillionToOne's sales force expansion plans for Q4 2025 and 2026 in both prenatal and oncology, and the contribution of improved Medicaid traction for the Unity Carrier panel PLA code to Q3 ASP growth, with an outlook for Q4 and beyond.

Answer

Oguzhan Atay, Co-founder and CEO, outlined consistent sales team growth: 8-10 net reps per quarter for prenatal and 4-7 for oncology, emphasizing a methodical approach to maintain service levels and hire top talent. He explained that while difficult to quantify precisely, the Unity Carrier panel PLA code's higher ASP (almost 2x standard carrier panels) means even a single Medicaid incorporation can significantly impact long-term ASPs by enabling managed Medicaid contracts.

Casey Rene Woodring asked about the latest on the ground in China regarding potential stimulus and its implications for 2026. He also requested an unpacking of the 7% growth in product inspection for the quarter, inquiring if the strategy shift towards focusing on the mid-range market is a tailwind assumed to extend into 2026, and its sustainability.

Answer

Shawn Vadala, CFO, described China as a dynamic environment with agile teams, but noted that current stimulus programs are not a major topic for Mettler-Toledo due to their portfolio and customer base not aligning as much with the current program's focus. He added that broader physical stimulus packages have benefited them in the past. For product inspection, Mr. Vadala expressed confidence in the performance and portfolio, with continued product introductions and potential synergy opportunities from acquisitions, which he believes will sustain momentum into 2026 despite a challenging backdrop.

Casey Woodring asked for the latest insights on the ground in China regarding potential stimulus and its implications for 2026. He also requested an unpacking of the 7% growth in Product Inspection, specifically whether the strategy shift towards the mid-range market is a sustainable tailwind extending into 2026.

Answer

Shawn Vadala, Chief Financial Officer, described China as a dynamic environment where Mettler-Toledo's teams are agile in identifying opportunities. He noted that current stimulus programs are not a significant factor for the company due to its portfolio and customer base, with broader physical stimulus packages being more impactful. For Product Inspection, Mr. Vadala expressed confidence in the performance and portfolio, driven by new product introductions and a strategy focused on the mid-range market. He believes this is a sustainable tailwind, with continued product introductions and potential synergy from recent acquisitions, including new service offerings.

Casey Woodring of JPMorgan, on for Rachelle Battensall, asked for details on Europe's performance relative to expectations and its outlook. She also inquired about the expected timing for onshoring and reshoring trends to translate into revenue.

Answer

CFO Shawn Vadala reported that Europe's flat growth was slightly below expectations, with the lab business impacted by market uncertainty. The Q3 outlook for Europe is low-single-digit growth. CEO Patrick Kaltenbach described onshoring as being in its 'early innings,' stating that while the company is in active discussions with customers, he expects the trend to begin materially impacting results in 2026 with further momentum in subsequent years.

Casey Woodring requested more granularity on the trial mix driving higher pass-throughs, specifically asking if it was solely cardiometabolic. He also inquired about progress on automation and AI for cost management and its potential to offset pricing pressure.

Answer

CFO Nigel Clerkin noted that while cardiometabolic strength is a factor, a particularly active vaccine study in Q3 also contributed to pass-throughs. He reiterated automation as a key lever for efficiency. CEO Barry Balfe emphasized the deployment of AI-enabled technologies, including an end-to-end project management system and a proprietary multi-agent digital assistant called Orbus, to drive efficiency, recruit patients, and manage trials more effectively, creating and capturing value.

Casey Woodring requested more granularity on the trial mix driving higher pass-throughs, specifically if it was all cardiometabolic, and inquired about progress on automation and AI as a margin driver and its ability to offset pricing pressure.

Answer

CFO Nigel Clerkin confirmed cardiometabolic as a factor and noted a particularly active vaccine study in Q3 2025, but reiterated that the general increase in pass-throughs is due to therapeutic mix. CEO Barry Balfe highlighted ongoing investments in AI-enabled technologies, process automation, and external partnerships to enhance efficiency. He specifically mentioned a multi-agent digital assistant called Orbus, which is in early stages but aims to create and capture value by delegating workflows and improving decision-making.

Casey Woodring of JPMorgan Chase & Co. asked about month-over-month demand trends in April and the outlook for the Q2 book-to-bill ratio, given the large upcoming cancellation.

Answer

COO Barry Balfe responded that it was too early to call the Q2 book-to-bill and advised against extrapolating from monthly trends. He reiterated that the company's full-year guidance assumes market conditions will remain roughly consistent for the balance of the year.

Casey Woodring asked for elaboration on customers changing their development models, whether this is leading to a shift in outsourcing versus insourcing spend, and if the long-term assumption of 100-200 basis points of annual outsourcing penetration still holds.

Answer

COO Barry Bell explained that 'changing models' refers to ICON's ability to customize blended solutions that match a client's evolving mix of in-house, insourced, and outsourced work. CEO Dr. Steve Cutler affirmed a constructive long-term view, stating that outsourcing penetration continues to increase by approximately 100 basis points per year on average, driven by the value the CRO industry provides.

Casey Woodring asked about the progression of the preclinical and discovery pipeline and whether the current slowdown is a short-term dynamic or the beginning of a longer-term trend.

Answer

CEO Dr. Steve Cutler unequivocally stated the current issues are not related to preclinical pipeline progression, calling the link to late-stage work tenuous in the short term. He reiterated his belief that the challenges are isolated and short-term. SVP Kate Haven added that activity in the early-phase (Phase I) business has actually been a bright spot, with strong performance on the awards front.

Casey Woodring asked for a breakdown of the Q3 breast imaging revenue, questioning why it declined sequentially if gantry placements grew, and also inquired about the diagnostics growth setup for fiscal 2026.

Answer

CFO Karleen Oberton clarified that while 3D gantry revenue grew sequentially, other components within the broader imaging line were down, causing the total to decline. For FY26, she expects diagnostics to grow in the mid-single-digit range due to first-half headwinds. CEO Stephen MacMillan added that the long-term outlook for diagnostics remains strong.

Casey Woodring asked about the drivers of the strong 12% non-product revenue growth, its sustainability, and the specific growth contribution from the Biotheranostics business.

Answer

CFO Karleen Oberton credited the growth to 'great execution' by the service team, including optimizing pricing and increasing attach rates on a growing installed base. Executive Michael Watts clarified that the growing Biotheranostics oncology business is also included in this line item. Karleen Oberton added that Biotheranostics growth was accretive to the overall molecular business but benefited from an easy comparison to the prior year's Q2.

Casey Woodring asked for a geographic breakdown of the Breast Health business performance and inquired about the timing and potential margin impact of the planned manufacturing facility consolidation.

Answer

CFO Karleen Oberton reported that Breast Health declined in the mid-single digits in both the U.S. and internationally, with the international decline being slightly higher. Regarding manufacturing, she confirmed the consolidation is on track for 2026 but does not expect a significant change to the overall margin profile, as benefits from consolidation and higher ASP on the new gantry will likely be offset by higher component costs.

Casey Woodring requested a breakdown of the Q1 guidance by business segment to understand the expected growth acceleration. He also asked about the outlook for international versus domestic growth in 2025 and whether the 19.5% tax rate guidance includes benefits from supply chain moves.

Answer

Chief Financial Officer Karleen Oberton indicated that Diagnostics would see the least impact from headwinds with mid-single-digit growth in Q1, while other businesses would be lower. Chief Operating Officer Essex Mitchell confirmed international is expected to grow faster than domestic. On taxes, CFO Karleen Oberton noted the 19.5% rate is already a reduction from fiscal 2024 and the company is not committing to a lower rate at this time.

Casey Woodring inquired about the BARDA contract, asking about the burn rate of the initial $7.5 million and the timeline to unlock the additional funds. He also asked for details on the one-off scrap expense that impacted gross margin and the drivers for margin expansion towards 50% in 2025.

Answer

President and CEO Carrie Eglinton Manner noted the $7.5 million BARDA funding is back-end loaded and tied to milestones. CFO Ken McGrath explained the scrap expense was a one-time event related to expired materials. He detailed that gross margin expansion will be driven by new HIV test packaging, automation from reel-to-reel manufacturing, and in-sourcing of contract manufacturing and critical reagents.

Casey Woodring from JPMorgan asked for a breakdown of the 13% diagnostics growth, an updated view on the consumer genomics market amid recent turmoil, and details on the go-to-market strategy and addressable market for the new blood proteomics solution.

Answer

CFO Ken McGrath attributed the diagnostics growth primarily to strength in the international HIV business. CEO Carrie Eglinton Manner acknowledged softness in consumer genomics but expressed confidence in the market's durability and highlighted growth from new customers in other segments. For proteomics, she outlined a go-to-market strategy starting with a research-use-only (RUO) product targeting existing academic and pharma customers, with the market expected to ramp up over time as applications in oncology and neurology emerge.