Patrick Sullivan

Patrick Sullivan inquired about updates to customer plans in the life sciences sector beyond GLP-1, the influence of oral therapies on CapEx, and ATS's long-term approach to cultivating acquisition targets, asking if it aligns with CEO Doug Wright's prior experience.

Answer

CEO Doug Wright discussed the GLP-1 auto-injector market's long-term opportunities despite evolving therapies, emphasizing diversification into radiopharma and other med tech. Interim CFO Anne Cybulski highlighted recent non-GLP-1 orders. Doug Wright confirmed his commitment to cultivating relationships with innovators and founders for M&A, leveraging his extensive experience.

Patrick Sullivan asked for updates on customer plans within the GLP-1 market, including capacity construction and the influence of oral therapies on capital expenditure plans. He also questioned if ATS's long-term approach to cultivating acquisition targets aligns with CEO Doug Wright's prior experience and mandate.

Answer

CEO Doug Wright discussed the GLP-1 ecosystem's dynamics, including capacity ramp-up, new therapies, and evolving delivery form factors, noting a strong pipeline for auto-injectors while emphasizing diversification into radiopharma, oncology, and other med device applications. Interim CFO Anne Cybulski added that the quarter showed diversification outside GLP-1. Doug confirmed his commitment to cultivating relationships with innovators and founders for M&A, viewing it as a tactical focus to integrate acquired companies effectively.

Patrick Sullivan, on for Cherilyn Radbourne, asked for clarification on the lab space business in light of U.S. funding pressures and automation initiatives, and requested more details on the Multiflex system's applications in the nuclear sector.

Answer

CEO Andrew Hider detailed the roles of various business units in the lab space, noting the overall impact from funding changes is small but that ATS is well-aligned with automation trends. He explained that the Multiflex system is a patented technology used for the safe and efficient decommissioning of large nuclear reactor components, for which the company has won awards and has a growing funnel.

Asked for clarification on the impact in the lab space (consumables vs. automation) and for more details on the new Multiflex system for the nuclear business.

Answer

The company has exposure to both lab automation and consumables through various business units, but the overall impact from research funding changes is small. The Multiflex system is a patented technology for the nuclear decommissioning market, designed to make the process safer and more efficient, and it has a growing sales funnel.

Patrick Sullivan asked about the level of market interest observed for the stabilized data center portfolio monetized during the quarter and how Brookfield Infrastructure makes decisions regarding the size of portfolios brought to market.

Answer

CFO David Krant explained that the Data4 program in Europe, comprising over 200 MW of operating sites, was the first of several planned capital recycling initiatives. He noted that a $1.4 billion equity check was deemed the right size for financial investors in the European market, with significant demand for this return profile. CEO Sam Pollock added that capital is returned through ABS securities and programmatic equity sell-downs as facilities are completed.