Waters (WAT) Wells Fargo 20th Annual Healthcare Conference 2025 summary

Business performance and growth drivers

• Achieved high single-digit instrumentation growth, with strong commercial initiatives and e-commerce penetration above 40-45%.

• New products like Alliance iS and MaxPeak Premier columns contributed significantly, with Alliance iS sales tripling year-over-year.

• PFAS testing grew nearly 50% year-to-date, and GLP-1 testing saw 70% growth in the first half.

• China returned to double-digit growth, driven by CDMO activity and strong performance in consumables and industrial segments.

• Instrument replacement cycle remains robust, with several market segments yet to participate, suggesting extended growth potential.

Competitive landscape and market dynamics

• Replacement business, comprising 70% of LC, is difficult to penetrate unless competitors underperform; innovation drives share gains in new user segments.

• Alliance iS and TQ Absolute XR are leading to strong win rates in new product domains.

• Pricing environment and CapEx approval processes remain stable, with no significant acceleration post-pandemic.

BD acquisition rationale and integration

• Strategic fit centers on expanding biologics QC, adding bioanalytical instruments, and acquiring a leading antibody portfolio.

• Mass spectrometry and flow cytometry synergies expected, with $200 million in cost synergies and $290 million in revenue synergies targeted.

• Highly collaborative diligence process with BD, including reverse diligence and operational protocol sharing.

• Cost synergies focus on procurement and G&A optimization, with potential for additional savings beyond initial targets.