Avantor (AVTR) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic initiatives and organizational changes

• Implemented a new operating model focused on customer needs in lab and production, launched at the end of last year.

• Executed a significant cost transformation targeting $300 million in EBITDA synergies by end of 2026, with $75 million expected in 2024.

• Announced and executed the divestiture of the Clinical Services business to accelerate deleveraging and improve balance sheet flexibility.

• New segmentation provides better visibility into business platforms, especially biomaterials and advanced technologies.

• Specialty procurement and lab productivity services remain core after Clinical Services divestiture.

Bioprocessing and growth drivers

• Bioprocessing segment has shown three consecutive quarters of sequential order rate improvement, translating into revenue growth.

• Raised full-year outlook for bioprocessing, expecting mid to high single-digit exit rate in Q4.

• Well positioned across mAbs, cell and gene therapy, GLP-1s, and mRNA, with content relevant to emerging modalities.

• GLP-1 exposure is growing, with greater content expected in future generations.

• Bioprocessing expected to outgrow the market by 300-400 basis points, with long-term double-digit growth potential.

Lab Solutions and end market trends

• Lab Solutions segment guidance was reduced due to a decline in biopharma capital spending on equipment and instruments, which stabilized later in the year.

• Consumables and chemicals returned to year-over-year growth, signaling healthy lab activity.

• Equipment and instrument order cycles are elongated, but pipeline and customer sentiment remain strong.

• Pricing environment has normalized after years of hyperinflation, with stable margins.