Bruker (BRKR) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Business performance and growth strategy

• Achieved 5%-7% organic revenue growth guidance for 2024, with mid-teens constant exchange rate growth including acquisitions.

• Cumulative growth over four years exceeds 70%, transforming the business.

• Outperformed end markets by 500-600 basis points despite headwinds in China and biopharma.

• Backlog remains high at seven months, providing cushion against downturns; target is five months over two years.

• Operating margin expanded by 1,000 basis points over eight years through management process and group structure.

Market dynamics and geographic trends

• China represents 15% of revenue, with 50% exposure to academic/government research and 10% to biopharma.

• China is a headwind in 2024 but expected to become a tailwind in 2025-2026 due to stimulus and academic focus.

• U.S. and Europe academic funding is shifting toward better-funded medical centers and multiomics research.

• Biopharma market is not expected to return to 2021-2022 boom levels; industry fundamentals are evolving.

• Growth in China is expected to normalize, remaining significant but slower than a decade ago.

Innovation, portfolio, and acquisitions

• Instrument business remains strong, with innovation driving new market creation in areas like spatial biology and proteomics.

• Aftermarket and consumables now comprise 35% of revenue, moving toward a 50/50 balance with instruments.

• Recent acquisitions in single cell, spatial, and molecular diagnostics were opportunistic and strategic, leveraging value dislocation.

• Integration of acquisitions follows a proven management process, with case studies showing margin improvement and market leadership.

• NanoString acquisition expected to return to previous revenue levels over two years, with operational improvements and product development underway.