Key Takeaways BDX will merge its diagnostics unit with Waters to form a high-throughput testing company. BDX's new venture aims for $6.5B in 2025 revenues, reaching $9B and $3.3B EBITDA by 2030. BDX to receive $4B cash and hold 39.2% stake in the combined entity via Reverse Morris Trust.Becton, Dickinson and Company (BDX) , popularly known as BD, and Waters Corporation (WAT) recently announced a strategic collaboration to combine BD’s Biosciences Diagnostic Solutions business with Waters’ expertise in ana ...

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Summary of Thermo Fisher Scientific (TMO) 2025 Conference Call Company Overview - **Company**: Thermo Fisher Scientific (TMO) - **Event**: Healthcare Conference 2025 - **Date**: May 13, 2025 Key Points Industry and Market Conditions - The company is experiencing a recovery in end markets, with an increased ambition for earnings growth despite not being fully normalized yet [5][6] - The macroeconomic environment has changed, prompting the company to mobilize quickly to navigate potential policy changes and tariffs [7][8] Financial Performance - The first quarter of 2025 showed strong execution, with revenue and earnings exceeding expectations [5][6] - The company anticipates a 2% adjusted EPS growth for the year, with a revenue impact of approximately $400 million due to policy changes, translating to about a 3% impact on EPS growth [12][13] Tariff and Policy Impacts - The company has implemented measures to offset the impact of tariffs, particularly a 10% inbound tariff on the U.S. and a 125% tariff on imports into China [12] - Recent temporary reductions in tariffs from China are expected to lessen revenue headwinds significantly, with a potential reduction in the previously estimated $400 million impact [15][16] China Market Insights - The outlook for China remains muted, with a mid-single-digit decline in the first quarter, but the company expects potential government stimulus to positively impact the industry [20][21] - Orders in China have been strong, driven by customers anticipating tariff implications [22][23] Academic and Government Sector - The academic and government business represents about 15% of global revenue, with 7% from the U.S. [24] - The company expects a 10% reduction in growth for this segment due to budget uncertainties, estimating a $300 million headwind [26][27] Analytical Instruments Segment - The analytical instruments segment has shown resilience, with a 3% growth in the first quarter, driven by strong innovation and demand in the semiconductor industry [34] - The reduction in tariffs is particularly beneficial for this segment, which has a higher exposure to China [34] Pharma and Biotech Market - The pharmaceutical and biotech sectors account for over half of the company's revenue, with solid growth in bioproduction and pharma services [37][38] - The company is well-positioned to serve both sectors, despite challenges in biotech funding and muted growth in clinical research [41][50] Capital Deployment and M&A Strategy - The company has been active in capital deployment, including a $2 billion share buyback and the acquisition of Solventum's purification and filtration business [53][54] - The current environment presents opportunities for acquisitions due to lower valuations [54] Long-term Outlook - The long-term outlook for the biotech and pharmaceutical industry remains strong, with expectations of GDP-plus growth [57][58] - The company is committed to delivering excellent performance and navigating the evolving policy landscape [59] Additional Insights - The management emphasizes transparency regarding the business environment and its implications for investors [9][13] - There is a strong focus on innovation and maintaining a competitive edge in the analytical instruments market [34][36] This summary encapsulates the key insights and financial outlook for Thermo Fisher Scientific as discussed during the conference call, highlighting the company's strategic positioning and market dynamics.

Q1 2025 Financial Performance - Q1 2025 revenue reached $662 million, reflecting a 7% growth in constant currency[6] - Recurring revenue experienced an 11% growth in constant currency[6] - Instrument sales increased by 4% as reported and 11% in constant currency[6] - Non-GAAP EPS for Q1 2025 was $2.25, a 2% increase, with a 7% growth in constant currency[6] Growth Drivers and Market Segmentation - Instrument sales showed strong growth, with Pharma up 14%, Industrial up 10%, and Academic & Government up 7% in constant currency[9] - Asia showed the strongest geographic growth at 13%, followed by the Americas at 6%, and Europe at 1% in constant currency[19] - Waters segment grew 8% while TA segment grew 1%[19] Innovation and Idiosyncratic Growth - Next-Gen Flagship HPLC sales grew over 3 times year-over-year, representing approximately 20% of HPLC sales[14] - Waters Xevo TQ Absolute sales grew 56% year-over-year[14] - QA/QC testing of GLP-1 drugs is expected to contribute an average 30bps growth annually from 2024 to 2030[15] - PFAS testing is a $400 million global market, estimated to grow approximately 20%[15] FY & Q2 2025 Guidance - The company projects constant currency revenue growth of +5% to +7% for FY 2025 and Q2 2025[21] - The company projects Non-GAAP EPS of $12.75 to $13.05 for FY 2025 and $2.88 to $2.98 for Q2 2025[21]