Waters (WAT) Leerink’s Global Healthcare Conference 2025 summary

Growth outlook and market drivers

• Projected 4.5%-7% top-line growth for the year, with recurring revenues stable at 6%-7% regardless of economic conditions.

• Replacement cycle expected to be prolonged, especially as segments like drug discovery and biotech recover slowly.

• Key growth drivers include biologics, Indian generics, and PFAS testing, each contributing significant basis points to overall growth.

• PFAS testing regulations are expanding globally, supporting long-term secular growth beyond the U.S.

• China expected to deliver low to mid-single-digit growth, with stimulus impact viewed cautiously due to timing and allocation uncertainties.

Competitive positioning and innovation

• Instrument replacement rarely leads to share gains due to customer reticence in regulated environments.

• Innovation in small molecules and informatics, such as the Alliance iS and Empower software, drives differentiation.

• Chemistry portfolio is highly differentiated, enabling premium pricing and strong customer loyalty.

• Vertical integration in chemistry manufacturing ensures quality and performance, supporting premium positioning.

• Service and chemistry contribute 200 basis points to pricing, with a focus on protecting instrument pricing.

Product and technology advancements

• Xevo TQ Absolute mass spectrometer offers industry-leading sensitivity for PFAS testing, winning two out of three tenders.

• Empower software is transitioning from on-prem to subscription and SaaS models, aiming for broader compatibility with new instruments.

• Multi-angle light scattering and mass spectrometry compatibility with Empower expected by mid-year and next year, respectively.

• BioAccord adoption is growing gradually, with increased use in raw material characterization and cell line development.

• Customers value the ability to detect impurities with high resolution, driving preference for vertically integrated chemistry solutions.