IDEXX Laboratories (IDXX) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Innovation and product development

• Major focus on innovation across point-of-care, reference lab, and software businesses, including new platforms and test extensions.

• Recent launches include Catalyst Pancreatic Lipase, SmartQC, and InVue Dx, with FNA testing planned for 2025.

• Reference lab innovations target disease franchises, expanding test menus and global lab network to over 80 labs.

• Vello, a cloud-based application suite, enhances client engagement and workflow optimization.

• Cancer DX platform to launch in 2025, targeting a $2.5B oncology opportunity with breed- and age-specific screening.

Growth strategy and financial outlook

• Long-term goals reaffirmed: 10%+ organic revenue growth, 15-20% EPS growth.

• CAG diagnostic recurring revenues, about 80% of total, targeted for 11-14% growth.

• Innovation and increased diagnostic utilization expected to add 2%+ to growth.

• Premium instrument install base has a long runway, with 240,000 global opportunities, supporting 10%+ annual growth.

• Execution drivers include net price realization (2.5-4% annually) and positive clinical visit growth supported by pet population expansion.

Market trends and operational performance

• Vet office visits remain a headwind, with -2% growth in the first half and similar trends expected for the second half.

• Diagnostic utilization per visit is increasing, with price mix more prominent recently.

• Pet owners continue to prioritize pet healthcare spending, with demand expected to recover over time.

• Vello has shown early success in reducing no-shows and increasing clinical visits by 2%.

• Investment in clinic instrumentation and software remains strong, with record quarters reported.