Bio-Rad Laboratories (BIO) Wells Fargo 21st Annual Healthcare Conference summary

Second quarter performance and end market trends

• Organic growth was -2% in Q2, but flat excluding process chromatography, with sequential improvement over Q1 driven by stable diagnostics and a safety stock refresh in the Middle East.

• Digital PCR instruments saw 20% year-over-year growth, with strong placements in APAC (excluding China) and improving consumable pull-through in academic and government (A&G) markets.

• A&G markets showed slight sequential improvement, though regional differences persist, with Europe shifting budgets and China remaining soft.

• Biopharma funding is flowing, with large pharma and process chromatography performing as anticipated.

Forward guidance and growth drivers

• Q3 is expected to be flat sequentially, with a 5% sequential ramp into Q4, driven by anticipated orders in blood typing and quality controls.

• Quality controls and blood typing are key contributors to diagnostics growth, with quality controls seen as a mid-single-digit growth opportunity.

• Digital PCR instrument placements are expected to drive recurring consumable revenue, aiming for a 70-75% consumable mix over time.

• Process chromatography is less than 5% of revenue but offers mid- to high-single-digit growth potential, supported by a growing pipeline of clinical phase programs.

R&D, innovation, and AI integration

• R&D investment has been reprioritized toward high-return areas like quality controls and digital PCR assay migration, accelerating product vitality and top-line growth.

• Acquisition of Stilla and rapid migration of assays to its platform have contributed to instrument growth.

• AI is being deployed across all functions, from software development to finance and commercial operations, and is integral to next-generation product development.