Standard BioTools (LAB) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic vision and growth plans

• Building a multi-omics platform company by consolidating subscale life science tools businesses, leveraging high-growth technologies and seasoned operators, with strong financial backing and a projected $170–$175 million top line for the year.

• Targeting profitability or EBITDA breakeven by 2026, with a focus on operational efficiency and cost discipline.

• M&A remains a priority, seeking transformative deals and add-ons in high-growth areas like proteomics and spatial biology.

• Aims to be recognized as a leading portfolio company and acquirer of choice for innovative technologies.

Cost structure and operational efficiency

• Accelerated $80 million cost synergy target to end of 2024, primarily through G&A reductions, go-to-market refinements, and R&D adjustments.

• Cost reductions are net of inflation and merit increases, with continued investment in sales, marketing, and R&D to support growth.

• Ongoing process improvements (SBS, kaizen) drive further efficiency gains.

Market environment and sales dynamics

• Facing industry-wide headwinds in instrument placements due to constrained pharma capital spending, but actively building the sales funnel.

• Instrument sales grew 46% from 2022 to 2023, creating tough comps; sequential improvement of 40% in Q2 after a weak Q1.

• Proteomics and spatial biology markets show strong long-term growth potential, with unique positioning in spatial proteomics.

• Leasing and rental programs are used in some regions to address high instrument costs.