| Segment / Quarter                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Biotechnology (in millions)**        | N/A     | $1,864  **[0000313616-23-000125_dhr-20230331.htm:33]**  | $1,885  **[0000313616-23-000214_dhr-20230630.htm:39]**  | $1,664  **[0000313616-23-000256_dhr-20230929.htm:46]**  | N/A     | $1,524  **[0000313616-24-000102_dhr-20240329.htm:32]**  | $1,713  **[0000313616-24-000186_dhr-20240628.htm:39]**  | $1,653  **[0000313616-24-000220_dhr-20240927.htm:14]**  |
| **Life Sciences (in millions)**        | N/A     | $1,709  **[0000313616-23-000125_dhr-20230331.htm:33]**  | $1,796  **[0000313616-23-000214_dhr-20230630.htm:39]**  | $1,706  **[0000313616-23-000256_dhr-20230929.htm:46]**  | N/A     | $1,745  **[0000313616-24-000102_dhr-20240329.htm:32]**  | $1,770  **[0000313616-24-000186_dhr-20240628.htm:39]**  | $1,782  **[0000313616-24-000220_dhr-20240927.htm:14]**  |
| **Diagnostics (in millions)**          | N/A     | $2,376  **[0000313616-23-000125_dhr-20230331.htm:33]**  | $2,231  **[0000313616-23-000214_dhr-20230630.htm:39]**  | $2,254  **[0000313616-23-000256_dhr-20230929.htm:46]**  | N/A     | $2,527  **[0000313616-24-000102_dhr-20240329.htm:32]**  | $2,260  **[0000313616-24-000186_dhr-20240628.htm:39]**  | $2,363  **[0000313616-24-000220_dhr-20240927.htm:14]**  |
| **Environmental & Applied Solutions (in millions)** | N/A     | $1,218  **[0000313616-23-000125_dhr-20230331.htm:33]**  | $1,245  **[0000313616-23-000214_dhr-20230630.htm:39]**  | $1,249  **[0000313616-23-000256_dhr-20230929.htm:46]**  | N/A     | N/A     | N/A     | N/A     |
| **Total Revenue (in millions)**        | N/A     | $7,167  **[0000313616-23-000125_dhr-20230331.htm:33]**  | $7,157  **[0000313616-23-000214_dhr-20230630.htm:39]**  | $6,873  **[0000313616-23-000256_dhr-20230929.htm:46]**  | $6,400  **[0000313616-24-000006_dhr-20240130xex991.htm:0]**  | $5,796  **[0000313616-24-000102_dhr-20240329.htm:32]**  | $5,743  **[0000313616-24-000186_dhr-20240628.htm:39]**  | $5,798  **[0000313616-24-000220_dhr-20240927.htm:14]**  |

79ad6462d9150e53f2d127c70de354b491e6de654cdd57666bcbf47170c1f99f

Danaher Corporation is a global conglomerate that operates in the fields of biotechnology, life sciences, and diagnostics. The company provides a wide range of products and services, including equipment, consumables, and software, primarily sold on a recurring basis **[0000313616-24-000052_dhr-20231231.htm:112]** **[0000313616-24-000220_dhr-20240927.htm:13]**. Danaher emphasizes innovation and strategic acquisitions to enhance its portfolio and maintain competitive advantages in its served markets **[0000313616-24-000052_dhr-20231231.htm:6]**.

1. **Biotechnology** - Focuses on bioprocessing and discovery, offering equipment, consumables, and services used in the development and manufacture of biological medicines, including therapies like insulin, vaccines, and novel cell and gene therapies **[0000313616-24-000052_dhr-20231231.htm:112]**.
2. **Life Sciences** - Provides instruments, consumables, and software for genomics and disease research, as well as products for filtering contaminants from liquids and gases **[0000313616-24-000052_dhr-20231231.htm:112]**.
3. **Diagnostics** - Offers clinical instruments and services used in disease diagnosis and treatment decisions **[0000313616-24-000052_dhr-20231231.htm:112]**.

547021420330e007fd033b9bbd0107b377e29ac2e73d6f127b6e5c8251465187

e095319a81843bd216365fc1b129da9444f5b6983e2a7dba9f61f74b89e4a6c0

92a710666d514823ea5a36e5187cf9b130fac22897e9dd37f5aa0dd38ff0482f

1. Given the persistent challenges in the China market, including volume-based procurement and increasing local competition in bioprocessing and diagnostics, how do you plan to achieve your growth targets and mitigate these headwinds in the coming year?

2. With uncertainties around the China stimulus, ongoing constraints in capital equipment spending, and the gradual recovery in bioprocessing orders, is the expectation of 8% core growth in 2025 realistic, or should investors anticipate a more conservative outlook?

3. Considering that smaller bioprocessing customers, representing 25% of revenues, are still facing funding challenges and slower recovery, how significant is this segment's impact on your overall bioprocessing business, and what strategies are you implementing to support growth here?

4. In light of the low single-digit growth in genomics and continued softness in gene reading among smaller customers, what specific actions are you taking to drive growth and gain market share, especially with the introduction of products like Rapid Genes?

5. Regarding the integration of Abcam, can you provide more detail on its current performance and whether it is meeting your expectations for growth acceleration and cost improvements, given previous concerns about underperformance?

ddaf10354e01a48920b7226448ab87c236d1b566fb5e077c415f294ccd914b6b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

42b6e3eea21b892b3d5f66d9e3b97d7a3e0358cdb70ee1e32214e61c520702be

North America

Western Europe

Other Developed Markets

High-Growth Markets

- United States

- China

- Germany

- Japan

- All Other Countries

Total Revenue

42ccae56c9c9a4485da1e353b527f7f3d7808f6068bede0e3e53546556d5593f

Biotechnology

Life Sciences

Diagnostics

- Recurring Revenue

- Nonrecurring Revenue

Environmental & Applied Solutions

Dental

Test & Measurement

Environmental

Life Sciences & Diagnostics

Industrial Technologies

2f6ba30c3a57e1584553532b0d6733bf5e87d73ea43d1bf7fed62aa16e2aa35a

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Full Year 2024 (FY 2024)**:
    - **Core Revenue**: Decline in the **low single-digit percent range**.
    - **Adjusted Operating Profit Margin**: Approximately **29%**.
  - **Fourth Quarter 2024 (Q4 2024)**:
    - **Core Revenue**: Decline in the **low single-digit percent range**.
    - **Adjusted Operating Profit Margin**: Approximately **30%**  **[DHR_3403184_0]** **[DHR_3403184_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Third Quarter 2024 (Q3 2024)**:
    - **Core Revenue**: Decline in the **low single-digit percent range**.
    - **Adjusted Operating Profit Margin**: Approximately **26%**.
  - **Full Year 2024 (FY 2024)**:
    - **Core Revenue**: Decline in the **low single-digit percent range**.
    - **Adjusted Operating Profit Margin**: Approximately **29%**.
  - **Bioprocessing Business**: Expected to exit the year with a **high single-digit or better growth rate**.
  - **Respiratory Revenue**: Approximately **$1.6 billion** for the full year 2024  **[DHR_3393942_4]** **[DHR_3393942_1]** **[DHR_3393942_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Core Revenue**:
    - **Q2 2024**: Decline in the **mid-single-digit percent range**.
    - **Full Year 2024 (FY 2024)**: Decline in the **low single-digit percent range**.
  - **Adjusted Operating Profit Margin**:
    - **Q2 2024**: Approximately **26%**.
    - **Full Year 2024 (FY 2024)**: Approximately **29%**.
  - **Bioprocessing Business**: Low single-digit core revenue decline for the full year, improving to high single digits or better by year-end  **[DHR_3380264_1]** **[DHR_3380264_4]** **[DHR_3380264_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **Full Year 2024 (FY 2024)**:
    - **Overall Revenue**: Decline in the **low single-digit percent range**.
    - **Biotechnology Segment**: Down **low to mid-single digits**.
    - **Life Sciences Segment**: Down **low single digits**.
    - **Diagnostics Segment**: Up **low single digits**.
    - **Bioprocessing**: Down **low single digits** for the year, with first half down **mid- to high teens** and second half returning to **mid- to high single-digit growth**.
    - **Life Sciences**: Down **low single digits** for the year, with growth improving in the second half.
    - **Diagnostics**: Non-respiratory business to grow **mid-single digits**; respiratory revenue expected to be **$1.6 billion**, down from **$1.9 billion** in 2023.
    - **Adjusted Operating Profit Margin**: Improvement by approximately **50 basis points** compared to 2023.
  - **First Quarter 2024 (Q1 2024)**:
    - **Core Revenue**: Decline in the **high single-digit percent range**.
    - **Adjusted Operating Margin**: Approximately **28%**  **[DHR_3371132_4]** **[DHR_3371132_5]** .

712b8e0c4523a5eec429f7e3ec0e1bdde58c66904cc50a327d391acaade5ccfb

| Name                        | Position                                           | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------------|----------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Steven M. Rales             | Chairman of the Board                              | 1984             | Steven M. Rales is a co-founder of Danaher Corporation and has served on Danaher's Board of Directors since 1983. He was the CEO from 1984 to 1990. He is the brother of Mitchell P. Rales  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0000313616-23-000087_dhr-20221231.htm:65]** .                                           |
| Mitchell P. Rales           | Chairman of the Executive Committee                | 1984             | Mitchell P. Rales is a co-founder of Danaher Corporation and has served on Danaher's Board of Directors since 1983. He was the President from 1984 to 1990. He is the brother of Steven M. Rales  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0001308179-24-000303_ldhr2024_def14a.htm:10]** **[0001308179-24-000303_ldhr2024_def14a.htm:11]** .                                   |
| Rainer M. Blair             | President and Chief Executive Officer              | September 2020   | Rainer M. Blair has served as Danaher Corporation's President and CEO since September 2020. He joined Danaher in 2010 and became a Danaher officer in 2014  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0001308179-24-000303_ldhr2024_def14a.htm:8]** **[0001308179-23-000414_ldhr2023_def14a.htm:9]** .                                                                           |
| Matthew R. McGrew           | Executive Vice President and Chief Financial Officer| January 2019     | Matthew R. McGrew has served as the Executive Vice President and CFO of Danaher Corporation since January 2019, overseeing the company's financial operations and strategies  **[0000313616-24-000052_dhr-20231231.htm:65]** .                                                              |
| Christopher P. Riley        | Executive Vice President                           | January 2024     | Christopher P. Riley has served as Executive Vice President at Danaher Corporation since January 2024. He was previously Vice President – Group Executive of Danaher’s Life Sciences and Diagnostics subsidiaries  **[0000313616-24-000052_dhr-20231231.htm:65]** .                          |
| Joakim Weidemanis           | Former Executive Vice President                    | December 2017    | Joakim Weidemanis served as Executive Vice President from December 2017 until he stepped down on July 1, 2024. He held various positions within the company, contributing significantly to its operations and strategic initiatives  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0000313616-24-000186_dhr-20240628.htm:58]** .     |
| Georgeann F. Couchara       | Senior Vice President - Human Resources            | April 2022       | Georgeann F. Couchara has served as Senior Vice President - Human Resources since April 2022. She was previously Vice President-Talent and Vice President – Human Resources for Danaher’s Life Sciences subsidiary  **[0000313616-24-000052_dhr-20231231.htm:65]** .                         |
| Brian W. Ellis              | Senior Vice President – General Counsel            | January 2016     | Brian W. Ellis has served as Senior Vice President – General Counsel at Danaher Corporation since January 2016  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0000313616-23-000087_dhr-20221231.htm:65]** .                                                                                                                          |
| Jose-Carlos Gutierrez-Ramos | Senior Vice President – Chief Science Officer      | December 2020    | Jose-Carlos Gutierrez-Ramos has served as Senior Vice President – Chief Science Officer at Danaher since December 2020. He was previously Vice President – Drug Discovery for AbbVie, Inc.  **[0000313616-24-000052_dhr-20231231.htm:65]** .                                                |
| William H. King             | Senior Vice President – Strategic Development      | 2014             | William H. King has served as Senior Vice President – Strategic Development at Danaher Corporation since 2014. He has been with the company since 2005  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0000313616-23-000087_dhr-20221231.htm:65]** .                                                                                  |
| Daniel A. Raskas            | Senior Vice President – Corporate Development      | 2010             | Daniel A. Raskas has served as Senior Vice President – Corporate Development at Danaher Corporation since 2010, overseeing corporate development activities  **[0000313616-24-000052_dhr-20231231.htm:65]** **[0000313616-23-000087_dhr-20221231.htm:65]** .                                                                              |
| James F. O'Reilly           | Senior Vice President, Deputy General Counsel and Secretary | May 16, 2024 | James F. O'Reilly serves as the Senior Vice President, Deputy General Counsel, and Secretary at Danaher Corporation. He has been in this role since at least May 16, 2024  **[0000313616-24-000140_dhr-2024516xsd.htm:1]** .                                                                  |

defab3f0beab13692e9666136a355c4d85358df15a986491f009f319fc071fa5

| Program Details          | Program 1             | Program 2             |
|--------------------------|-----------------------|-----------------------|
| Approval Date            | July 16, 2013  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**   | July 22, 2024  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**   |
| End Date/Duration        | Completed by Sept 27, 2024  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**  | No expiration date  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**  |
| Total additional amount  | 20 million shares  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**  | 20 million shares  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**  |
| Remaining authorization  | 0 shares  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**        | 20 million shares  **[0000313616-24-000220_dhr-20240927.htm:27]** **[0000313616-24-000220_dhr-20240927.htm:61]**  |
| Details                  | Used for equity compensation plans and other corporate purposes  **[0000313616-24-000186_dhr-20240628.htm:56]** **[0000313616-24-000220_dhr-20240927.htm:61]** **[0000313616-24-000186_dhr-20240628.htm:26]** **[0000313616-24-000220_dhr-20240927.htm:27]**  | Used for equity compensation plans and other corporate purposes  **[0000313616-24-000186_dhr-20240628.htm:56]** **[0000313616-24-000220_dhr-20240927.htm:61]** **[0000313616-24-000186_dhr-20240628.htm:26]** **[0000313616-24-000220_dhr-20240927.htm:27]**  |

d263d32a76dd0e0e858915bfc01559d751b4bc62a2e8f6ab5be5aacd36617342

| Name            | Start Date | End Date | Reason for Change |
|-----------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0000313616-24-000052_dhr-20231231.htm:105]**  | Present  | Current auditor   |

9fdfe55a32e07afe16abf2d657b2236e65c895a0fb8c6431d9d8bde23e2f9e85

2f39ddef185fdb48f297c710a582dd34971007e51ce94deb6b62348e35b17ef7

- **Strong recovery and positive momentum in the bioprocessing business**, with orders growth over **30%** in the fourth quarter and recovery underway in nearly every category. This sets the company up well for sustained growth.  **[DHR_3413526_17]** ,  **[DHR_3413526_6]**
- **Significant capital deployment towards share repurchases**, with approximately **$7 billion** used to repurchase **28 million shares** of Danaher common stock, demonstrating confidence in future performance and commitment to shareholder value.  **[DHR_3413526_11]** ,  **[DHR_3413526_14]**
- **Tailwinds from anticipated increase in biosimilar development and production** due to upcoming patent expirations, driving higher volumes in the bioprocessing business. Danaher is well-positioned to capitalize on these trends.  **[DHR_3413526_13]**

31b2a8cac3698038dcea564fd89798078c40ac0d9e9b1a33fffeedf6f8956a69

- **Danaher has revised its earnings guidance downward for 2025**, with EPS expectations decreasing from earlier estimates. This continuous lowering of guidance may indicate ongoing headwinds in their business segments, potentially impacting future profitability.  **[DHR_3413526_13]**
- **The Diagnostics segment is facing increased headwinds due to accelerated volume-based procurement (VBP) in China and a slower start to the respiratory season**. This has led to a reduction in expected revenue from Cepheid's respiratory testing and increased pressure from VBP in China.  **[DHR_3413526_7]** ,  **[DHR_3413526_13]**
- **The Life Sciences segment is expected to have low single-digit growth in 2025, with the first quarter starting down mid-single digits**. This suggests potential weakness in demand and uncertainty in the market, particularly in the life science tools sector.  **[DHR_3413526_5]**

dcb12a75b85d9fd92e04b9914b7a139b632f823c65a1576d57415bca8bda82dd

1. **Bioprocessing Recovery**  
   **Q:** How is the recovery in bioprocessing progressing, and what growth do you expect?  
   **A:** The recovery in bioprocessing is well underway, with strong orders growth of over **30%** in the recent quarter.  **[DHR_3413526_8]**  We expect core growth of **6–7%** in 2025, consistent with our fourth-quarter exit rate.  **[DHR_3413526_8]** **[DHR_3413526_17]**  Consumables are back to normal levels with large customers, while smaller customers and equipment are improving but not yet fully recovered.  **[DHR_3413526_8]**  We believe this positions us well for the year ahead.  **[DHR_3413526_11]** **[DHR_3413526_17]** 

2. **Life Sciences Guidance**  
   **Q:** What's behind the cautious guidance for the Life Sciences segment in 2025?  
   **A:** We see some external noise affecting the Life Sciences segment, so we've taken a prudent approach and expect life science tools to be up low single digits, while Pall and genomics will be down.  **[DHR_3413526_5]**  We anticipate each quarter to improve, with Q1 down mid-single digits due to prior large projects at Pall and a step-down from Q4.  **[DHR_3413526_5]** **[DHR_3413526_14]**  Core tools remain strong at the high end of low single digits.  **[DHR_3413526_5]** 

3. **China VBP Impact**  
   **Q:** How is Volume-Based Procurement (VBP) in China affecting your Diagnostics business?  
   **A:** The acceleration of VBP in China is impacting our Diagnostics segment more than expected. We now anticipate a headwind of **$150 million** for the year, up from the **$50 million** previously expected.  **[DHR_3413526_7]**  This is due to aggressive moves by the Chinese government, including tenders and reimbursement cuts that accelerated in late Q4.  **[DHR_3413526_7]** **[DHR_3413526_13]**  We see this as an isolated issue, with our diagnostics markets elsewhere growing mid- to high-single digits.  **[DHR_3413526_14]** 

4. **Aldevron Performance**  
   **Q:** How is Aldevron performing relative to your acquisition model?  
   **A:** Aldevron is currently behind our deal model, largely because the genomics end markets are taking longer to develop than anticipated.  **[DHR_3413526_10]**  While disappointing, we believe it's still the right business to own for the long term, as we need a presence in genomics and Aldevron is well-positioned to benefit when the market ramps up.  **[DHR_3413526_10]** 

5. **Guidance Philosophy**  
   **Q:** Can you explain your approach to guidance and recent earnings estimates?  
   **A:** We build our guidance from the bottom up, incorporating what our businesses are telling us and including internal factors.  **[DHR_3413526_13]**  Given recent noise around segments like Life Sciences, we've taken a prudent approach to set expectations we can exceed.  **[DHR_3413526_6]** **[DHR_3413526_13]**  We aim to set our cost structure appropriately and remain focused on outperforming despite external challenges.  **[DHR_3413526_6]** **[DHR_3413526_13]** 

6. **Capital Deployment and M&A**  
   **Q:** What are your plans for capital deployment and acquisitions?  
   **A:** We repurchased approximately **8 million shares** for about **$1.9 billion** in Q4 and Q1 combined.  **[DHR_3413526_15]**  We're seeing more activity in our M&A pipeline across all three segments, with valuations becoming more attractive in some areas.  **[DHR_3413526_15]**  We remain disciplined in our deal philosophy, focusing on the right end markets with secular growth drivers, quality assets, and a valuation framework that works.  **[DHR_3413526_15]** 

7. **Artificial Intelligence Applications**  
   **Q:** How are you leveraging AI across your business?  
   **A:** We are applying artificial intelligence throughout the corporation, particularly in R&D, to accelerate assay development and reduce time to market.  **[DHR_3413526_9]**  For example, our partnership with Indica Biolabs at Leica Biosystems is moving toward digital diagnostics in pathology supported by AI, helping pathologists make faster and more accurate diagnoses.  **[DHR_3413526_9]** 

8. **Biosimilars and Patent Expirations**  
   **Q:** How do pharma patent expirations and biosimilars impact your growth?  
   **A:** Patent expirations leading to biosimilars represent a tailwind for us, as our bioprocessing business benefits from increased volume.  **[DHR_3413526_12]**  Biosimilars allow us to penetrate new patient groups, and manufacturers often use our approved inputs to ensure speed to market.  **[DHR_3413526_12]** 

9. **Export Controls Impact**  
   **Q:** Are recent export controls affecting your business?  
   **A:** The current export controls are not meaningful for us, as our portfolio is positioned differently.  **[DHR_3413526_16]**  While categories have expanded slightly, these controls require export licenses that have been in place for years, and we don't expect a significant impact on our operations.  **[DHR_3413526_16]** 

fdb646cc6b577835f4e3534ee80639c898d080d7e8cc9e2a182e91f273c44d66

Danaher posts 30%+ Q4 bioprocessing order growth and invests $7B to buy back 28M shares, signaling confidence in future gains. Yet 2025 EPS expectations fell, with Diagnostics facing China VBP pressure and Life Sciences starting 2025 down mid-single digits.

0f973690d093350e79dcd613b6be9bf0622cfcc9b1aa1c084fe2f93cb72838e5

Core sales growth (decline) for entire company (percentage)

Core sales growth (decline) for Biotechnology segment (percentage)

Core sales growth (decline) for Life Sciences segment (percentage)

Core sales growth for Diagnostics segment (percentage)

Price increases for the Biotechnology segment (percentage)

Price increases for the Life Sciences segment (percentage)

f120bbd6a34caad8ba6a899a5366b9d89edd6e224e6f5ec5dc83531cddb41ebe

- Total Revenue: $6.538 billion (Q4 2024) vs. $2.693 billion (Q4 2023), up **+143%** YoY  **[0000313616-24-000052_dhr-20231231.htm:134]** **[0000313616-25-000004_dhr-20250129xex991.htm:15]**   
- Biotechnology: $1.869 billion (Q4 2024) vs. $1.759 billion (Q4 2023), up 6% YoY  **[0000313616-24-000052_dhr-20231231.htm:134]** **[0000313616-25-000004_dhr-20250129xex991.htm:15]**   
- Life Sciences: $2.032 billion (Q4 2024) vs. $1.930 billion (Q4 2023), up 5% YoY  **[0000313616-24-000052_dhr-20231231.htm:134]** **[0000313616-25-000004_dhr-20250129xex991.htm:15]**   

5a3ed319c43e41aee202c4ade4f5a064149275d393691d7441d68f4bf54efc92

4d8d6aa7486442dc0d321f3f18413b76b1088fe6bab66396617defe453c66601

| Year | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-----------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | $1,038 **[0000313616-24-000220_dhr-20240927.htm:21]**               | Euro-denominated commercial paper      | 3.7 **[0000313616-24-000220_dhr-20240927.htm:22]**           | 5.9% = (1,038 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]** **[0000313616-24-000220_dhr-20240927.htm:22]**                                     |
| 2024     | $700 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.2% senior unsecured notes            | 2.2 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 4.0% = (700 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2025     | $500 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 3.35% senior unsecured notes           | 3.35 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 2.9% = (500 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2026     | $1,393 **[0000313616-24-000220_dhr-20240927.htm:21]**               | 0.2% senior unsecured notes            | 0.2 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 7.9% = (1,393 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                             |
| 2026     | $892 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.1% senior unsecured notes            | 2.1 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 5.1% = (892 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2027     | $216 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 0.3% senior unsecured notes            | 0.3 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 1.2% = (216 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2027     | $668 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 1.2% senior unsecured notes            | 1.2 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 3.8% = (668 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2028     | $1,390 **[0000313616-24-000220_dhr-20240927.htm:21]**               | 0.45% senior unsecured notes           | 0.45 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 7.9% = (1,390 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                             |
| 2028     | $252 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 1.125% senior unsecured bonds          | 1.125 **[0000313616-24-000220_dhr-20240927.htm:21]**         | 1.4% = (252 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2029     | $797 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.6% senior unsecured notes            | 2.6 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 4.5% = (797 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2030     | $893 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.5% senior unsecured notes            | 2.5 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 5.1% = (893 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2031     | $1,945 **[0000313616-24-000220_dhr-20240927.htm:21]**               | 0.75% senior unsecured notes           | 0.75 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 11.1% = (1,945 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                            |
| 2032     | $373 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 0.65% senior unsecured notes           | 0.65 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 2.1% = (373 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2039     | $1,382 **[0000313616-24-000220_dhr-20240927.htm:21]**               | 1.35% senior unsecured notes           | 1.35 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 7.9% = (1,382 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                             |
| 2039     | $891 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 3.25% senior unsecured notes           | 3.25 **[0000313616-24-000220_dhr-20240927.htm:21]**          | 5.1% = (891 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2045     | $499 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 4.375% senior unsecured notes          | 4.375 **[0000313616-24-000220_dhr-20240927.htm:21]**         | 2.8% = (499 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2049     | $829 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 1.8% senior unsecured notes            | 1.8 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 4.7% = (829 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2049     | $890 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 3.4% senior unsecured notes            | 3.4 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 5.1% = (890 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2050     | $982 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.6% senior unsecured notes            | 2.6 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 5.6% = (982 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |
| 2051     | $985 **[0000313616-24-000220_dhr-20240927.htm:21]**                 | 2.8% senior unsecured notes            | 2.8 **[0000313616-24-000220_dhr-20240927.htm:21]**           | 5.6% = (985 / 17,524) * 100 **[0000313616-24-000220_dhr-20240927.htm:21]**                                               |

e0ff1ab2137803c9ce4eb66fad992e85b7be399374ceb0b04f553c909fa32501

3ce2e6562b29e5d4b63ba1190a3faa1b9e9b55d2dca961420e77f0ace426629a

- **Danaher is not raising its bioprocessing guidance** despite better-than-expected orders in Q1, indicating continued uncertainties in market recovery. The company states that it's "still early" and more order momentum is needed before adjusting expectations.  **[DHR_3380264_18]**
- **Margins are expected to decline in Q2** due to significantly lower respiratory revenues at Cepheid. The adjusted operating margin is projected to drop from approximately 30% in Q1 to about **26%** in Q2, primarily because of a decrease in respiratory revenue from **$675 million to around $200 million**.  **[DHR_3380264_8]**
- **The Abcam acquisition may impact short-term profitability**. The integration involves cost reductions that "will cost some money to do," and initial margins are affected by transition costs. There's acknowledgment that "we're going to need a little time to get after some of the growth and cost opportunities".  **[DHR_3380264_10]**

70a72b9b12b5485977a0f5bfd543091410e7de0da40160cd6b6418a21d3c7d19

- **Danaher has strengthened its portfolio with the acquisition of Abcam, expanding its presence in the highly attractive proteomics market and furthering its strategy to accelerate drug discovery.**  **[DHR_3371132_3]**
- **Management expects destocking in bioprocessing to be largely completed in the first half of 2024**, anticipating a return to mid- to high single-digit growth in the second half, exiting the year with high single-digit or better core growth.  **[DHR_3371132_13]**
- **Danaher projects an adjusted operating profit margin improvement of approximately 50 basis points in 2024**, driven by proactive cost structure improvements, including headcount reductions.  **[DHR_3371132_9]**

3e567af2a530845de9c7e6258c21b571d56a9976902398629c34851e989a6ff3

1. **2025 Growth Outlook**  
   **Q:** Should the street's 2025 growth estimates be adjusted?  
   **A:** Management indicated that current street estimates for 2025, which include **8% core growth** with bioprocessing growing double digits and Life Sciences growing 7%, may be optimistic. They emphasized the need to see how the fourth quarter plays out, particularly regarding the **China stimulus** and **bioprocessing order momentum**, before providing definitive guidance.  **[DHR_3403184_10]** ,  **[DHR_3403184_11]** 

2. **Bioprocessing Recovery**  
   **Q:** Is the bioprocessing market showing signs of recovery?  
   **A:** Management noted that bioprocessing orders have improved with **five consecutive quarters of order growth**, including over **20% growth** in the latest quarter. While revenue is down low single digits in 2024, they expect a gradual recovery to continue into 2025, potentially turning positive next year. They remain encouraged by the trajectory but emphasize that the recovery is gradual.  **[DHR_3403184_8]** ,  **[DHR_3403184_11]** 

3. **China Stimulus Impact**  
   **Q:** How is the China stimulus affecting business outlook?  
   **A:** While a stimulus has been announced in China, it hasn't translated into meaningful orders as customers await details. The impact of the China stimulus is a significant variable for 2025, especially for Life Sciences and bioprocessing. Management expects China to remain stable but is monitoring for any material changes in the stimulus execution during the fourth quarter.  **[DHR_3403184_5]** ,  **[DHR_3403184_6]** ,  **[DHR_3403184_10]** ,  **[DHR_3403184_16]** 

4. **Margin Outlook**  
   **Q:** Why did Q4 operating margin assumptions change?  
   **A:** Operating margin projections for Q4 decreased slightly to approximately **30%**, while the full-year margin remains at about **29%**. This adjustment is due to expected lower revenue in respiratory products in Q4, timing differences in bioprocessing revenues, and strategic investments being made in the business. Margins in a normal environment are expected to be in the **low 30s**, with further updates for fiscal 2025 to come in January.  **[DHR_3403184_13]** 

5. **Cepheid Respiratory Sales**  
   **Q:** Was there a pull-forward in Cepheid kit purchases?  
   **A:** Management acknowledged that the **$425 million** in respiratory sales exceeded the **$200 million** guidance, partly due to customers purchasing ahead to ensure supply for Q4. A significant portion of the beat was likely related to this pull-forward. They also noted that Cepheid is gaining market share, particularly in the U.S., by expanding into hospitals and near point-of-care settings.  **[DHR_3403184_9]** 

6. **M&A and Share Buyback**  
   **Q:** What's the update on M&A activity and share buybacks?  
   **A:** The share buyback announced earlier was completed between Q2 and Q3. On M&A, management is actively cultivating opportunities across all segments but noted that while the environment is improving, valuations remain elevated. They are maintaining discipline to ensure deals meet their criteria of attractive end markets, companies, and valuation frameworks.  **[DHR_3403184_15]** 

7. **Impact of Local Competition in China**  
   **Q:** Is local competition in China affecting long-term growth?  
   **A:** Management acknowledged local competitors in China but indicated that many biotech companies are opting for cheaper solutions due to financial struggles. However, companies targeting international markets prefer multinational suppliers like Danaher to meet global regulatory standards. Local competition impacts more on the margin and doesn't change their long-term growth outlook for the bioprocessing segment.  **[DHR_3403184_16]** 

8. **Genomics and New Product Launch**  
   **Q:** How is the new Rapid Genes product expected to perform?  
   **A:** The **Rapid Genes** product offers whole genes with high quality and fast turnaround times, highly differentiating it in the market. Management expects this to provide tailwinds over time. While the gene reading market is softer due to reduced activity among smaller biotech customers, gene editing solutions like CRISPR and guide RNA are performing well, and they are pleased with IDT's performance.  **[DHR_3403184_12]** 

9. **Diagnostics Performance in China**  
   **Q:** How did diagnostics perform in China this quarter?  
   **A:** Diagnostics revenue in China was down in the **low double digits**, impacted by volume-based procurement initiatives and tough comparisons due to high hardware sales in the prior year. Globally, diagnostics showed strong performance, with high single-digit recurring revenue growth in North America and Europe.  **[DHR_3403184_19]** 

10. **Life Science Equipment Trends**  
    **Q:** What were the trends in Life Science equipment sales?  
    **A:** Capital equipment spending remained constrained, particularly in China, consistent with the first half of 2024. However, consumables and services grew as lab activities stabilized. Equipment sales face headwinds, but there's positive momentum in consumables.  **[DHR_3403184_17]** 

11. **Smaller Bioprocessing Customers**  
    **Q:** Are smaller bioprocessing customers impacting revenue?  
    **A:** Smaller customers, representing about **25%** of bioprocessing revenues, are recovering more slowly due to funding challenges and earlier-stage projects. While the larger customers (about **75%**) have begun to recover from destocking, the slow recovery among smaller customers provides insight into market dynamics but isn't significantly impacting overall revenues.  **[DHR_3403184_14]** 

12. **Abcam Integration**  
    **Q:** How is the integration of Abcam progressing?  
    **A:** Management is focused on transitioning Abcam into Danaher, with great progress being made. They are leveraging Danaher's capabilities to drive growth and improve cost positioning. They feel confident that Abcam will meet expectations for growth and profitability in the long term.  **[DHR_3403184_18]** 

f4557da12f978684b31e236ccce57a47a1044c89fe65291b4136b79b29f92832

- **Orders in the bioprocessing business grew mid-single digits sequentially despite typically seeing a seasonal decline**, and the book-to-bill ratio increased to approximately 0.95, indicating stronger demand.  **[DHR_3380264_5]**
- **Larger customers in North America and Western Europe are increasingly returning to pre-pandemic ordering patterns**, and **destocking is expected to be largely behind as they enter the second half of the year**, signaling a positive outlook for future sales growth.  **[DHR_3380264_5]**
- Through the acquisition of GE Biopharma and combining it with Pall Life Sciences into Cytiva, Danaher has built a **very strong and highly competitive bioprocessing franchise**, which is expected to continue improving in the near future.  **[DHR_3380264_6]**

7078d8f49159f4ee497183ea7f3dfd411e6950fa42f0489c163bdc044829ce7e

1. **Bioprocessing Outlook and Destocking Impact**  
   **Q:** What is the outlook for bioprocessing, and when will destocking end?  
   **A:** Management expects the bioprocessing business to be down **low single digits** in 2024, with the first half resembling the second half of 2023—down mid- to high teens—and returning to mid- to high single-digit growth in the second half as destocking in North America and Europe largely completes. They anticipate exiting the year with **high single-digit or better core growth** in bioprocessing.  **[DHR_3371132_5]** **[DHR_3371132_6]** **[DHR_3371132_7]** **[DHR_3371132_13]** **[DHR_3371132_14]** 

2. **Margin Expansion and Cost Structure**  
   **Q:** How will cost-saving measures impact margins in 2024 and beyond?  
   **A:** Despite lower volumes, management projects an adjusted operating margin increase of **50 basis points** for 2024, reaching approximately **29%**. They achieved **$350 million** in cost savings last year through headcount reductions and facility consolidations, which offsets volume declines and contributes to durable margin expansion going forward.  **[DHR_3371132_9]** 

3. **China Market Outlook**  
   **Q:** How is the China market performing, and what are the expectations?  
   **A:** China is expected to be down **high single digits** in 2024 due to a challenging macro environment and weaker activity levels, particularly in biotechnology and life sciences. However, management remains confident in China's long-term attractiveness, citing government prioritization of healthcare and the development of its pharmaceutical industry. They anticipate that current headwinds will resolve in the midterm.  **[DHR_3371132_10]** 

4. **Book-to-Bill Expectations and Backlog**  
   **Q:** What are the book-to-bill expectations and implications for backlog?  
   **A:** Management does not anticipate the book-to-bill ratio to exceed **1** in any quarter of 2024, though it may get close in the second half. They are starting the year with a backlog consistent with historical levels and expect gradual improvements as destocking subsides. The second half of 2024 assumes a **$250 million** year-over-year increase in bioprocessing revenue on a **$6 billion** business, which they consider modest.  **[DHR_3371132_6]** **[DHR_3371132_11]** **[DHR_3371132_14]** 

5. **Life Sciences Instrumentation Outlook**  
   **Q:** What is the outlook for Life Sciences Instrumentation in 2024?  
   **A:** The Life Sciences Instrumentation business is expected to be down **low single digits** in 2024, with a softer first half due to significant prior-year comps, particularly from the China loan program, and continued normalization of demand in pharma and biotech. Improvement is anticipated in the second half as comparisons ease, but overall activity levels are stabilizing at lower levels.  **[DHR_3371132_5]** **[DHR_3371132_12]** **[DHR_3371132_15]** 

6. **Customer Inventory Levels and Recovery Pace**  
   **Q:** Are customers signaling they've reduced inventory too much, and could there be a faster recovery?  
   **A:** Anecdotal evidence suggests some customers may have gotten too lean on inventory, and management is seeing early signs of improvement in order patterns. However, they are not modeling a V-shaped recovery, lacking sufficient confidence in a significant inflection. They expect destocking to be largely behind by the first half's end, leading to better performance in the second half.  **[DHR_3371132_13]** **[DHR_3371132_14]** 

7. **Diagnostics Business and Respiratory Revenue**  
   **Q:** Why is Diagnostics growth slowing despite strong base business performance?  
   **A:** The Diagnostics segment is projected to grow up **low single digits** in 2024. The base Diagnostics business, excluding respiratory products, continues to perform well, expected to grow **mid-single digits**. The slower overall growth is due to declining respiratory revenues, decreasing from **$1.9 billion** in 2023 to **$1.6 billion** in 2024, representing a tough comparison to the prior year.  **[DHR_3371132_5]** **[DHR_3371132_8]** 

8. **Abcam Acquisition and Capital Deployment**  
   **Q:** What is the update on Abcam and plans for capital deployment post-Veralto spin?  
   **A:** Management is pleased with the early progress of the Abcam integration, noting a strong finish to the year and focused implementation of the Danaher Business System. Post-Veralto spin, they emphasize a strong balance sheet and intend to continue actively deploying capital to strengthen their portfolio through strategic acquisitions.  **[DHR_3371132_16]** 

1eacba69887b4c4307a6f03d2580ea1bb66e6dae40dab7faa69b9541e282cb71

- **Capital equipment spending in Life Sciences remains constrained, particularly in China, impacting growth in equipment sales.**  **[DHR_3403184_17]**
- **Uncertainty in 2025 projections due to variables such as bioprocessing orders momentum, respiratory sales, and lack of meaningful China stimulus, raising concerns about meeting growth expectations.**  **[DHR_3403184_10]**
- **Diagnostics in China are facing headwinds due to volume-based procurement policies, leading to low double-digit declines in that region.**  **[DHR_3403184_19]**

7c9f840b894be5811a98cab1d0a96e27aedd1492169d6d570f1a09802c935732

- Danaher's **bioprocessing business is showing positive momentum**, with larger customers moving past inventory destocking, giving confidence in the **long-term high single-digit growth outlook** for this business.  **[DHR_3403184_14]**
- The **Abcam acquisition is progressing well**, with the team making great progress integrating into Danaher, and expectations that it will meet both **growth and bottom-line** targets.  **[DHR_3403184_18]**
- Danaher is launching innovative products like **Rapid Genes**, offering whole genes to customers with **high quality and turnaround time**, expected to provide **tailwinds** in their gene editing business.  **[DHR_3403184_12]**

79214b5367bf9f2efe80e96b5ee985982a667f019d1456d36c0601746a1897b6

1. **Bioprocessing Recovery and Guidance**  
   **Q:** How confident are you in bioprocessing recovery and exiting at high single-digit growth?  
   **A:** We are confident because destocking is largely behind us, with order patterns returning to pre-pandemic levels.  **[DHR_3393942_5]**  In Q2, our core revenue improved nearly **1,000 basis points** from down high teens to down high single digits.  **[DHR_3393942_16]**  Orders grew high single digits sequentially, showing strength in both consumables and equipment.  **[DHR_3393942_5]**  Large customers with on-market drugs continue to grow, and development pipelines, especially Phase III, remain strong.  **[DHR_3393942_16]**  We expect to exit **2024** with high single-digit or better growth.  **[DHR_3393942_10]** 

2. **China Stimulus Impact**  
   **Q:** When will China stimulus funding impact orders and revenue?  
   **A:** Increased activity levels in our China funnel are due to customers preparing for stimulus funding with shovel-ready projects.  **[DHR_3393942_11]**  However, customers are delaying purchasing decisions as they await financing terms, decreasing funnel velocity.  **[DHR_3393942_11]**  We don't expect this to convert into orders in any meaningful way in **2024**; we view that more as a **2025** event.  **[DHR_3393942_11]**  The slowdown is broad-based, particularly affecting our Life Sciences equipment with research and academic focus.  **[DHR_3393942_16]** 

3. **Capital Allocation and Share Buyback**  
   **Q:** What's the rationale behind the share buyback, and how does it relate to M&A activity?  
   **A:** While we maintain a strong bias towards M&A, in today's environment, the relative value of a buyback generates attractive financial returns.  **[DHR_3393942_9]**  We're buying a great business we know well, confident about its future, while maintaining a meaningful M&A envelope.  **[DHR_3393942_9]**  Our free cash flow is nearly **$6 billion**, and net leverage is about **2 turns**, positioning us well with various alternatives.  **[DHR_3393942_9]**  From a return perspective, we're getting as good of a return, if not better, on the buyback than some current M&A multiples.  **[DHR_3393942_15]** 

4. **Pricing Environment in Bioprocessing**  
   **Q:** Are you seeing any changes in the competitive pricing environment?  
   **A:** Overall pricing was up **100 basis points** in Q2, and for **2024** as a whole, we expect to be a little above our historical average of 75 to 100 basis points.  **[DHR_3393942_11]**  In bioprocessing, we achieved about **2.5%** price increase in the quarter, which is a good marker for the full year.  **[DHR_3393942_11]**  We are not seeing significant price pressures from a competitive perspective.  **[DHR_3393942_11]** 

5. **Sequential Guidance and Seasonality**  
   **Q:** What's driving the sequential step-down in bioprocessing revenue guidance for Q3?  
   **A:** We are returning to normal seasonality patterns, with an expected mid-single-digit sequential decline from Q2 to Q3 in bioprocessing revenue.  **[DHR_3393942_7]**  Prior to the pandemic, we typically saw a mid-single-digit step-down between Q2 and Q3.  **[DHR_3393942_7]**  With destocking largely behind us and order patterns normalizing, we are planning for that seasonal decline in our guide.  **[DHR_3393942_7]** 

6. **Life Sciences Instruments Outlook**  
   **Q:** What is the outlook for Life Sciences instruments and the replacement cycle?  
   **A:** In Life Sciences, capital equipment remains more constrained, particularly in China, while consumables and services hold up comparatively better.  **[DHR_3393942_12]**  The additional funding and market subsidies during the pandemic pulled forward demand, replacing a lot of equipment.  **[DHR_3393942_17]**  We are now experiencing a normalization period, and the replacement cycle is expected to return to normal by **2025**.  **[DHR_3393942_17]** 

7. **Diagnostics Business Performance**  
   **Q:** How is the Diagnostics segment performing outside of respiratory testing?  
   **A:** We saw mid-single-digit growth in our non-respiratory businesses, with good customer activity globally.  **[DHR_3393942_13]**  At Cepheid, non-respiratory reagents were up mid-teens, with virology assays up **20%** in Q2.  **[DHR_3393942_13]**  Beckman Diagnostics grew low single digits, with recurring revenue growing at mid-single digits.  **[DHR_3393942_13]**  The moderation is related to challenging equipment comps, but overall, our Diagnostics businesses are poised well with a full innovation pipeline.  **[DHR_3393942_13]** 

8. **New Modalities Impact**  
   **Q:** How are new modalities affecting your bioprocessing business?  
   **A:** New modalities are exciting but represent a small part of our business and the overall market.  **[DHR_3393942_16]**  Our business is driven by protein therapies in their various forms.  **[DHR_3393942_16]**  Smaller biotech customers working on advanced modalities have been disproportionately impacted by funding contractions, but that's improving.  **[DHR_3393942_16]**  With our broader portfolio skewed towards commercialized drugs and late-phase therapies, we feel good about our growth expectations.  **[DHR_3393942_16]** 

9. **Yield Improvements and Capacity in Bioprocessing**  
   **Q:** How do yield improvements and industry capacity affect your bioprocessing business?  
   **A:** Improving customer yields is a focus for us, helping lower manufacturing costs and improve drug accessibility.  **[DHR_3393942_17]**  We don't view yield improvements as an inhibitor to growth; rather, they create opportunity for differentiation.  **[DHR_3393942_17]**  We believe capacity, especially for commercial production and Phase III, needs to increase, and we expect capacity to continue to expand, supporting equipment order growth.  **[DHR_3393942_17]** 

10. **Book-to-Bill Ratio in Bioprocessing**  
    **Q:** Has the bioprocessing book-to-bill crossed 1 in Q3?  
    **A:** Our book-to-bill is **0.9**, and to meet our full-year guidance of bioprocessing being down low single digits, we need to maintain that ratio.  **[DHR_3393942_10]**  This has been consistent in the first half, and we are confident it will continue.  **[DHR_3393942_10]**  The guide assumes that with a **0.9** book-to-bill for the year, we'll exit with high single-digit or better growth.  **[DHR_3393942_10]** 

11. **Respiratory Testing Trends**  
    **Q:** What are the expectations for respiratory testing revenue in Q3?  
    **A:** We are assuming **$200 million** of respiratory revenue in Q3 versus **$300 million** in Q2.  **[DHR_3393942_7]**  This contributes to the step-down in revenue and impacts operating margins, as respiratory has a higher margin profile.  **[DHR_3393942_7]** 

12. **Capital Equipment Constraints**  
    **Q:** How are capital equipment sales performing in Life Sciences?  
    **A:** Capital equipment is more constrained, particularly in China.  **[DHR_3393942_12]**  Consumables and services are holding up better, but capital equipment remains soft due to customers delaying purchases awaiting stimulus funding.  **[DHR_3393942_12]**  We don't expect significant improvement until **2025**.  **[DHR_3393942_12]** 

13. **M&A Environment**  
    **Q:** What is holding back M&A activity, and what's your confidence in deploying capital?  
    **A:** We like our portfolio and how we're positioned for the future.  **[DHR_3393942_15]**  In today's environment, we observe a disconnect between our trading multiples and current M&A multiples.  **[DHR_3393942_15]**  From a return perspective, the buyback made sense now, but our bias still is towards M&A, and we are confident in deploying capital when conditions are favorable.  **[DHR_3393942_15]** 

14. **Competitive Positioning in Bioprocessing**  
    **Q:** How does your bioprocessing business compare to peers who reported declines?  
    **A:** Each competitor has different positioning by product category, geography, and customer type.  **[DHR_3393942_6]**  We have one of the broadest and deepest portfolios, both upstream and downstream.  **[DHR_3393942_6]**  While it's hard to have a perfect read across, our business is recovering as expected, and we're confident about the future.  **[DHR_3393942_6]** 

15. **Operating Margin Expectations**  
    **Q:** What are your expectations for operating margins moving forward?  
    **A:** Over time, we expect **35% to 40%** incremental fall-through, and in normal times, our adjusted operating margin should be in the low **30s**.  **[DHR_3393942_7]**  We have optimized our cost structure to sustain these margins as we return to growth in bioprocessing.  **[DHR_3393942_7]** 

43d89ebe9f7efe561f945c4fc6af3d0e71b00321c4a3ba71278a8e970a6f31d9

- **Weakness in the China market:** Danaher expects the China market to be down high single digits in 2024 due to challenging macroeconomic conditions, which may be more severe than in the healthcare market. This ongoing weakness could negatively impact revenue growth.  **[DHR_3371132_10]**
- **Decline in the Bioprocessing segment:** The Bioprocessing business is anticipated to decline in the first half of 2024, with no significant inflection modeled for the year. Ongoing inventory destocking and lower customer demand suggest continued challenges in this key business segment.  **[DHR_3371132_13]** **[DHR_3371132_14]** **[DHR_3371132_7]**
- **Softness in Life Sciences Instrumentation:** The Life Sciences Instrumentation business is projected to be down low single digits for 2024. Lower levels of demand from pharma and biotech customers, coupled with continued normalization after anomalous buying during the pandemic, indicate sustained softness in this segment.  **[DHR_3371132_15]** **[DHR_3371132_12]**

26d48c9864d954c978fcb8d3328675ef3de368cb7413470175ffaace22a85f92

- **Destocking in bioprocessing is largely complete**, with order patterns **returning to pre-pandemic levels** and orders **growing high single digits sequentially**.  **[DHR_3393942_17]**  The company expects to **exit 2024 with high single-digit or better growth** in bioprocessing.  **[DHR_3393942_17]**
- **Non-respiratory reagents grew mid-teens**, with virology assays **up 20% in Q2**.  **[DHR_3393942_14]**  The company continues to expand its installed base and menu at **Cepheid**, indicating strong growth potential in its Diagnostics segment.  **[DHR_3393942_14]**
- The company is confident in its portfolio and future growth, choosing to execute **share buybacks** that generate attractive financial returns, while maintaining a strong bias towards M&A.  **[DHR_3393942_15]** **[DHR_3393942_9]**  They believe their **adjusted operating margin should be in the low 30% range** in a normal environment.  **[DHR_3393942_8]**

eda4d13fd1f3291a92a147611485d89a87375ddac3ffcab77d19d6f704628a67

1. **Bioprocessing Guidance**  
   **Q:** Bioprocessing orders up; why not raise guidance?  
   **A:** Despite an encouraging start to the year, with orders growing **mid-single digits sequentially** and a book-to-bill ratio of **approximately 0.95**  **[DHR_3380264_5]** **[DHR_3380264_7]** , we are keeping our full-year core revenue growth guidance at **down low single digits**. It's still early, and we want to see continued order momentum through Q2 and stability in consumables. Equipment demand, though a smaller part of the business at **15%**, is important for the long term. Emerging biotech funding is stabilizing but hasn't translated into orders yet, so we believe our current guidance is appropriate.  **[DHR_3380264_7]** 

2. **China Outlook**  
   **Q:** Does China stimulus change your view on China?  
   **A:** We haven't changed our full-year outlook for China, expecting it to be **down high single digits**. We're closely following stimulus discussions, but it's early days, and implementation details are unclear. We don't expect a significant impact in **2024**. IDT has minimal exposure to China and continues to perform well, growing **mid-teens** since acquisition with operating margins over **30%**.  **[DHR_3380264_12]** 

3. **Margin Outlook**  
   **Q:** How will lower Cepheid volumes affect margins?  
   **A:** Q2 adjusted operating margins are expected to be approximately **26%**, down from **~30%** in Q1, primarily due to lower respiratory volumes at Cepheid.  **[DHR_3380264_8]**  Q1 respiratory revenue was **$675 million**; we're expecting around **$200 million** in Q2. This significant drop impacts margins due to operating leverage. Going forward, margins will show different seasonality, with higher volumes and margins in Q1 and Q4 due to the respiratory season, a change from pre-pandemic patterns.  **[DHR_3380264_8]** 

4. **Biotech Funding**  
   **Q:** When will improved biotech funding benefit you?  
   **A:** We've seen stabilization or slight improvement in biotech funding, but it will take several quarters to impact our business.  **[DHR_3380264_15]**  It's too early to adjust our guidance based on this, as the increase hasn't materialized in orders yet. We haven't factored any significant order impact until next year.  **[DHR_3380264_15]** 

5. **Abcam Integration**  
   **Q:** Early positives and negatives from Abcam acquisition?  
   **A:** We closed on Abcam in December and have completed the first full quarter.  **[DHR_3380264_10]**  A new Danaher President and CFO are integrating Abcam and implementing the Danaher Business System. It will take some time to realize growth and cost opportunities. Long term, we believe Abcam is a high single-digit grower in a fantastic market.  **[DHR_3380264_10]** 

6. **M&A Environment**  
   **Q:** Thoughts on M&A given your capacity and rates?  
   **A:** Our preference is for M&A, but higher interest rates raise the bar.  **[DHR_3380264_14]**  We're not compromising on earnings expectations or return on invested capital targets. We need to work harder to meet higher hurdle rates, but we remain active and disciplined in our M&A efforts.  **[DHR_3380264_14]** 

7. **BIOSECURE Act Impact**  
   **Q:** Potential impact of BIOSECURE Act on bioprocessing?  
   **A:** The BIOSECURE Act's outcome is uncertain with many unknowns.  **[DHR_3380264_17]**  Customers view it as a risk and are taking steps to de-risk by possibly shifting manufacturing and trials away from Chinese CDMOs. Our global capabilities allow us to support these changes smoothly. Timing and potential disruptions remain to be seen as companies adjust their supply chains.  **[DHR_3380264_17]** 

8. **Life Sciences Trends**  
   **Q:** Were instruments weaker and reagents stronger?  
   **A:** In Q1, Life Science tools, about **10%** of our business, had core growth **down mid-single digits**, consistent with H2 2023.  **[DHR_3380264_13]**  Pharma and biotech customers are stable at lower demand levels; academic and applied markets held up better. We're seeing improved funnel activity for later in the year, but it's not yet translating into orders. In China, tough comps and weaker macros affected the market; we expect normalization to continue in Q2 and improvement in the second half.  **[DHR_3380264_13]** 

9. **Bioprocessing Mix**  
   **Q:** Expectations for equipment and consumables trends?  
   **A:** We don't break down guidance between consumables and equipment.  **[DHR_3380264_18]**  Recurring revenue (consumables) represents about **85%** of bioprocessing and was the main driver of order improvement. For the full year, bioprocessing is expected to be **down low single digits**; we're focused on the recurring business, where destocking occurred previously.  **[DHR_3380264_18]** 

10. **Competitive Dynamics**  
    **Q:** Any shifts in bioprocessing competitive landscape?  
    **A:** We believe we have a strong bioprocessing franchise after acquiring GE Biopharma and integrating it with Pall Life Sciences into Cytiva.  **[DHR_3380264_6]**  We continue to improve through our Kaizen philosophy and are confident in our competitiveness, expecting our position to strengthen throughout the year.  **[DHR_3380264_6]** 

11. **Life Sciences Margins**  
    **Q:** Why were Life Sciences margins down more than expected?  
    **A:** Margins in Q2 were approximately **23%**, slightly above our expectations.  **[DHR_3380264_9]**  Volume was down, and the inclusion of Abcam brought transition costs, causing some dilution. Despite this, margins were in line with our forecasts.  **[DHR_3380264_9]** 

12. **Order Progression**  
    **Q:** Should exit rates change given order trends?  
    **A:** We saw a better start in January that continued through the quarter.  **[DHR_3380264_11]**  We still expect to exit the year with **high single-digit** growth and haven't changed our guidance. Consistent book-to-bill ratios in the **0.9s** each quarter support our full-year outlook.  **[DHR_3380264_11]** 

13. **China Biotech Funding**  
    **Q:** Do improving funnels apply to China?  
    **A:** In China, our biotechnology segment was down nearly **40%** in Q1; Life Sciences down **high teens**, Diagnostics down **low single digits**.  **[DHR_3380264_16]**  We expect biotech funding improvements to be skewed towards developed markets; in China, any stabilization is at a much lower level compared to developed markets.  **[DHR_3380264_16]** 

578601af9a42933fc3294878b7e3cf27021551e3944b51f4791b832d574e82e8

- **Broad-based slowdown in China with decreased funnel velocity**, leading the company to not expect conversion to orders until 2025, which may impact growth in that market.  **[DHR_3393942_17]** ,  **[DHR_3393942_12]**
- **Book-to-bill ratio in bioprocessing remains below 1 at 0.9**, indicating orders are not keeping pace with sales, and the company needs to maintain this ratio to meet full-year guidance.  **[DHR_3393942_10]**
- **Competitive pricing pressures in bioprocessing are leading to lower price increases**, with expectations of about **2.5% price increase** for the full year compared to **4-5% in prior years**, potentially impacting margins.  **[DHR_3393942_11]**

4edbe488d1701bfa4e0ae4b1750a9d3e4bc08b7126a6578ddac14185a6e130f4

Danaher Corp (DHR)

Financials