Revvity (RVTY) Morgan Stanley 24th Annual Global Healthcare Conference summary

Business transformation and strategic focus

• Shifted from an instrument-heavy model to an innovation-driven life sciences and diagnostics company, emphasizing differentiation and recurring revenue streams.

• Portfolio simplification and cultural transformation have positioned the business in faster-growing, competitive markets.

• Improved financial metrics, with cash flow conversion consistently above 90% and operating margins rising from low 20s to upper 20s.

Growth outlook and business drivers

• Long-range organic growth forecast is 6%-8%, with diagnostics at the lower end and life sciences at the higher end.

• Diagnostics growth is driven by reproductive health (2%-4% LRP, outperforming recently) and immunodiagnostics (9%-11% LRP).

• Life sciences solutions and software are expected to grow mid to high single digits and 9%-11% respectively, with software exceeding expectations.

Reagents and AI momentum

• Reagents business has outperformed peers due to strong customer service, rapid delivery, innovation, and a comprehensive value chain.

• Growth is supported by improved pre-clinical funding and increasing AI-driven demand, with bulk orders and larger projects indicating budget loosening.

• Research reagents, especially non-flow content, are well-positioned for AI model data generation, benefiting from pharma's need for robust screening.