PerkinElmer, Inc. (PKI) Presents at Baird's 2022 Global Healthcare Conference (Transcript)

PerkinElmer, Inc. (PKI) Baird’s 2022 Global Healthcare Conference September 13, 2022 10:50 AM ET

Company Participants

Prahlad Singh - CEO

Conference Call Participants

Tom Peterson - Baird

Tom Peterson

Thanks, everyone. Welcome. Thank you for joining. I'm Tom Peterson, I'm an associate here on our Life Sciences and Tools list here at Baird. We're excited to have PerkinElmer presenting today. And representing the company, we have CEO, Prahlad Singh. Prahlad, welcome.

So as far as the agenda, I think Prahlad, you're going to give an overview here with a couple of slides, and then we'll hop into Q&A.

Prahlad Singh

Yes. I mean rather than those slides, I'll -- I'm much more comfortable just talking. So here it goes. We are really at an exciting stage in the life cycle of our company. Our recent announcement of the divestment of the Applied and Enterprise Solutions business sort of creates a platform for a high-growth, high-margin, pure-play Life Sciences and Diagnostics company.

And sort of just to walk you through the journey, about 5 years ago when we began this, Life Sciences and Diagnostics was about 58%, 60% of our total revenue and about 40% was on the instruments side of the business. Post this divestment, we've laid a strong foundation for a pure-play Life Sciences and Diagnostics Company with more than 80%, 85% of our revenue being recurring in nature coming from reagents, software, assays and services. More importantly, they are in 2 very strong growth end markets of Life Sciences and Diagnostics, which tend to be at least in the portfolio that -- with the portfolio that we have, a bit more resilient to economic vagaries.

For example, on the diagnostics side, we've got immunodiagnostics, which primarily consumes autoimmune diseases, allergies, and a big chunk of our COVID revenue right now is just coming