Highlights from the RBC Healthcare Conference

Research evidence excerpt

Highlights from the RBC Healthcare Conference

s open to tuck-in acquisitions. On a structural basis, the company continues to see single-use

and process intensification as tailwinds to its market shares.

Equipment phasing: H1 flat, Q2 strong, H2 to build further. Management reiterated its expectation for

flat YoY growth in equipment in H1, and noted that by April they had visibility on Q2 and were "quite

sure" it would be strong, with the trend continuing. In July, the company expects to provide more colour

on the outlook, and what "at least flat growth" means for the full year. For 2027, the CEO continues to

expect normalisation, although he continues to caution that precise timing is not possible yet. He thinks

that if there is any tailwind from onshoring investments, it could be from 2028.

Overall Q2: No specific wariness. The CEO points to revenue delivery times creating some small volatility

in quarter-to-quarter growth rates, but based on underlying market trends and client discussions, there

is nothing showing a fundamental shift in dynamics.

Manufacturing footprint: capacity to ramp progressively. Substantial capacity investments have been

made, but the company aims to fit out manufacturing suites in a stepwise manner in order to meet

growth demands, as opposed to a full opex build upon opening. It sees Asia demand as developing well.

Polyplus: strategic conviction, financial candour. While the CEO acknowledged that Polyplus was an

expensive deal, he expressed no doubt it was a great strategic investment given the life-changing

potential of gene therapy for patients and the strong prospects for the underlying technology.

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