Danaher Corporation (DHR) Earnings Call Transcript & Summary

All right. Good morning. We're going to kick it off here with Danaher. I'm Tycho Peterson from the life science team. Just a quick reminder before I turn it over to Rainer. If people have questions for the Q&A, please submit those through the website. And with that, let me turn it over to Rainer.

Well, thank you, Tycho, and good morning. Good morning to everybody. Tycho, I've heard nothing but great things about the new format this year. And so congratulations to the organization that you've put together. And I certainly hope that in the future, we can get together again in person soon. So why don't we move on here briefly to the next slide, where you see our forward-looking statements advisory, and that's for your reference. And then we'll go ahead and move to the next slide here, where I can quickly outline what I'll talk about today. So first, I'll kick things off with the current update, with a preliminary look at the fourth quarter. I'm sure many of you have seen our press release from earlier in the day. And then I'll move on. As you know, we've made several portfolio changes. And so I'll cover what Danaher looks like today as well as how we're uniquely positioned across our attractive end markets and how we play to win. And then I'll try and bring it all together here and close out with how we create sustainable long-term shareholder value. Next slide, please. So coming to the current update. As many of you saw, we preannounced better-than-expected results for the fourth quarter, resulting in a strong finish to 2020 and another terrific year for Danaher. And for the fourth quarter of 2020, core growth will come in at approximately 15%, and that includes Cytiva led primarily by our Life Science and Diagnostics platforms with the Environmental & Applied Solutions segment up slightly. Now we expect COVID-related tailwinds to contribute about 1,100 to 1,200 basis points to that core growth for Q4 with our base business up low to mid-single digits despite the fact that we had 3 fewer selling days versus the fourth quarter of the prior year. We're also very pleased with our strong earnings and cash flow performance with fall-through better than expected, and I'll share more when we report earnings on January 28. So great finish to 2020. Next slide, please. So as I mentioned, we've done a great deal of portfolio work over the past 2 years. And so let me briefly update you on how we are positioned today. $22 billion business of total revenues across 3 reporting segments, comprised of over 20 largely independent operating companies. And our operating companies tend to be #1 or #2 players in their respective markets, each executing a global strategy in these attractive end markets supported by strong secular growth drivers. Now our operating companies really exemplify our bias for the razor/razorblade business model. And they have large, well-entrenched installed bases of instrumentation with significant captive recurring revenues. So at Danaher, we create leverage across our operating companies and within our operating companies with the Danaher Business System, talent development as well as how do we go to market in high-growth markets. So on the right here, you can see that our market positioning has evolved meaningfully over the last years towards more attractive secular growth drivers. And I'll speak more to the biopharma and the molecular diagnostics positions in just a couple of minutes. So we purposely shaped the portfolio into an innovative science and technology leader, coupled with a unique leveraged operating model that provides meaningful competitive advantage. Next slide, please. So how does this meaningful portfolio evolution manifests in our performance metrics? Well, let me just quickly talk about some of the portfolio changes. You can see the company logos here on the bottom of the slide. We acquired Pall, Cepheid, IDT and Cytiva, all deals with higher core growth rates and well positioned in attractive end markets while, at the same time, creating a separate public companies out of Fortive and Envista. And those moves really have shifted the dynamics of our portfolio. And if we look at some of the performance metrics here, you can see as a reference point, our 2020 estimated revenue right around $22 billion. But you can also see in core growth this evolution from low single-digit-plus grower to mid-single-digit and high single digits here, including Cytiva on -- in 2020. From a recurring revenue perspective, we've gone from less than half of the portfolio to nearly 3/4 of the portfolio here in 2020, much of it being captive recurring revenues, really reducing our cyclicality and the volatility and allowing us to have more predictable revenue streams. And if we look at gross margins here, you see the impact not only of the Danaher playbook, which I'll speak to in just a couple of minutes, but also the different mix of businesses that we have here that has driven a 500 basis point improvement here in the gross margins. Now all of this then, of course, plays into our operating cash flow, which between 2015 and 2018 was right around the $4 billion mark. But in 2020, we're coming in right around $6 billion of operating cash flow. And that really tracks closely to our free cash flow of estimated around $5 billion. And that would represent the 29th consecutive year where our free cash flow exceeds our net income. So very, very strong cash conversions here. And of course, as you know, we have a bias of deploying our free cash flow into M&A as an important driver of our continued portfolio evolution. So really, over time then, we've evolved into a $22 billion higher-growth and recurring revenue portfolio with tremendous businesses in highly attractive end markets with a meaningfully enhanced growth and earnings trajectory. Next slide, please. So now let's have a look at our most recent large acquisition also known previously as the GE Biopharma business, now the Cytiva operating company within Danaher. So we closed the deal at the end of March last year, and we really couldn't be more pleased with the transition and the Cytiva team. Our initial focus is in standing of the business as a Danaher operating company, rebranding Cytiva and introducing the Danaher Business System. And the team is really adopting the Danaher Business System and culture very quickly and already applying it every day in their businesses. So Cytiva is really an outstanding business with a highly talented and innovative team and a recognized leader in the bioprocessing market. So if we look to the right here, Cytiva really is accretive to Danaher at all levels. By way of example, Cytiva grew over 25% in 2020 and generated revenues right around $4 billion. And like I mentioned, as I mentioned, it's just off to a tremendous start here. And given Cytiva's unique positioning and not just related to vaccines and therapeutics for COVID, we now view this business as a high single-digit-plus core grower long term versus our initial expectations prior to the acquisition of 6% to 7%. In addition to that, we see that Cytiva also has significant runway directly correlated to the fast-growing biologic drug development pipeline, including the rapid proliferation of cell and gene therapies. So Cytiva for the Life Science platform has more than doubled, now representing over 50% of that $10 billion-plus platform. So Cytiva is an established leader in the bioprocessing business with a new name that's -- that we should remember, and it's truly a transformational addition to our portfolio. Next slide, please. So let's have a look at bioprocessing overall and how we play there and how we win with Danaher. And you can see here, Danaher is the leading player with the broadest offering across the entire workflow when you view the combination of Cytiva and the Pall Biotech businesses. We have the broadest presence and offering across the entire workflow. And so the picture shows you how strong the offering is, both upstream as well as downstream. And for example, Cytiva is the undisputed leader in chromatography, incredibly strong in cell culture media and single-use technology bioreactors, while Pall leads in filtration, in bags and mixers and some fill and finish solutions. And together, these entities actually have not only the broadest single-use technology portfolio but the largest single-use technology business in the market. Now as we go to market, our portfolio really offers our customers a differentiated value proposition for the entire workflow, whether that is building a greenfield plant from beginning to end and starting that up or whether that is the most detailed technical requirement to ensure that the titer of a given production is higher. Our scientists and our teams are able to deal with this from A to Z and to accelerate them for our customers the time to market of those drugs at a lower cost. So this value proposition, accelerating time to market and reducing the cost is really resonating with our customers. We see great traction with that, and we continue to believe that we're taking share there. Now in addition to that, our portfolio uniquely aligns with some significant bioprocessing industry trends. First of all, you all are aware that the efficacy of biologic drugs, so drugs that are produced from living organisms, has resulted in an important drug pipeline shift. An amazing amount of investment going into the development of biologic drugs, shifting funds away from small molecules, so molecules based on chemicals. And within this biologics growth, we also see the shift from single-use technology -- I'm sorry, 2 single-use technologies away from expensive and less flexible stainless steel options. So lastly, these processes are really complex. And once our solutions are spec-ed in and validated from a regulatory perspective into the actual workflow, it's neither safe nor cost effective to switch them out for our customers. So this is really sticky revenue. So the overall bioprocessing exposure then for Danaher today is right around $5.5 billion, representing right around 25% of Danaher's 2020 sales. So great positioning here. Next slide, please. So let me briefly switch gears then and speak to molecular diagnostics and where we play and how we win. You very likely know that increasingly, molecular diagnostics are becoming the standard of care. And with Cepheid, we have the gold standard within molecular diagnostics, whether that's at the point of care or in the most critical care environment that are close to patients for critical treatment decisions. So it's this intersection of our value proposition of 3 or 4 different vectors, whether that's the unique positioning at the point of care, whether it's the simplicity of the workflow, the speed of the time to result and perhaps, most importantly, the accuracy of that result that has just been so compelling in the adoption of Cepheid solutions. And you can see that here on the picture. If we just take a look at the cartridge, which has been enlarged here in the picture, that cartridge architecture is the same type of architecture independent of the type of test. So whether it's a COVID test, whether it's a flu test or whether it's a TB test, the cartridge has the same architecture. And so as a clinician, you have the flexibility with 1 gene expert instrument to be able to run the entire menu with less than 1 minute of sample prep time. So this is just an extraordinary solution, and it speaks to why Cepheid's business as well as their market share has grown so significantly here in the past years. In addition, it's important to note that these gene expert instruments are random access, meaning you do not have to batch the samples, and you can run different tests in the same instrument at the same time, essentially getting answers to all the questions that you're looking for. So if we look to the right then, Cepheid today is a $2 billion business with the largest installed base of instruments and the broadest test menu on the global market. So we have over 35 tests approved outside of the United States and over 20 tests approved inside the United States. And we've also been a significant contributor in the fight against COVID with our 4-in-1 combination test as well as our COVID rapid test. And we think that has durability through 2021 and beyond because of our unique positioning at the point of care. So we're confident of significant future runway here for Cepheid as we continue to expand the menu. It's already the broadest, but we're continuing to expand it and penetrate for market share gain versus other technologies, even more at the point of care, in physician-owned labs and in IDNs. So just to shout out here to the Cepheid team that's done a masterful job over the past years to build the scale and highly differentiated and leading molecular diagnostic franchise. Next slide, please. So we have these great businesses, and we're well positioned in these attractive end markets, but how do we run them? Well, the Danaher Business System is how we execute. It's how we do what we do, and it's our ultimate competitive advantage across all of Danaher. So on the left side, you see the Danaher Business System oval, and it's really anchored in our 5 core values on the foundation of our shared purpose, helping realize life's potential. And we always start with the best team. Without the best team, there is no beginning. We start with our team on the field. We put the best team on the field every day. And we charge that team with the responsibility to listen to our customers, meaning when customers talk, we listen. And we deploy that voice of the customer back into the businesses with the certainty that it fuels continuous improvement or Kaizen, which is our way of life. And we validate that progress through continuous improvement with metrics that customers actually care about: quality, delivery, cost and innovation. Now at the same time, that voice of our customers informs the innovation that defines our future, which ultimately manifests itself by creating sustainable competitive advantage and market share gain. Finally, we compete for shareholders and for investment dollars on the basis of our ability to drive compounding annual returns on a long-term basis. Now on the right side, you see that DBS is built on 3 main pillars, lean, growth and leadership, having evolved really from the shop floor, the manufacturing floor to everything we do. So DBS is much more than just a set of tools we use to run our businesses. DBS is our culture, and it's our competitive advantage. It's who we are and it's how we do what we do. Next slide, please. So now let me bring this all together to see how we anticipate our long-term performance using a financial framework around how we create value with the businesses through the Danaher Business System. And we use a balanced approach. So if you look at the left here, we call it running the Danaher playbook. And the first entry point here is we increase our gross margins. We do that by eliminating waste, shortening and accelerating process cycle times and leveraging our scale while, at the same time, decreasing our G&A expenses, particularly those that are noncustomer facing. And then we take those savings, and we reinvest those into research and development and sales and marketing to fuel growth while still expanding operating margins. And so you can see that the Danaher playbook is to create the self-reinforcing flywheel here that creates a great deal of value. So if we reflect with the combined power of the Danaher playbook, the Danaher Business System, our disciplined approach to capital allocation and the power of our portfolio, we expect our core revenue growth and earnings to re-rate at a higher post -- in a higher post-COVID world. So you should expect from us mid-single-digit plus core growth longer term with 50 to 75 basis points of operating margin expansion annually, free cash flow to exceed net income and then investing that free cash flow-plus annually on M&A to deliver double-digit-plus EPS growth, so top-quartile EPS growth with those compounding returns that we spoke of. So the Danaher playbook creates value for our businesses and our shareholders, and we think we can continue to do so for the long term. Next slide, please. So let's summarize. We're really pleased with our -- how we closed out the fourth quarter here and had another terrific year in 2020. Also, you saw that purposeful evolution of our portfolio, which uniquely positions us in really attractive end markets as a science and technology innovator, powered by the Danaher Business System and our playbook. And as we see meaning -- and additionally, we, of course, see meaningful opportunities across the portfolio organically and inorganically to continue delivering sustainable long-term shareholder value. So with that, I'll turn it back over to you, Tycho, and for any questions. Thank you.

And just a quick message for the operator. If we could get Matt McGrew back in the Zoom, we'd like him here for the Q&A. So Rainer, maybe I'll start with the 8-K. Certainly, better performance across the board in all 3 divisions that we've been modeling. Maybe just talk a little bit about where you were most surprised to the upside. And then question, if you can comment at all on order trends, in particular around Pall and Cytiva. They were up 60% in the third quarter. Has that kind of level of robustness continued into the fourth quarter?

Sure. So you mentioned that -- just speaking a little bit to the reporting segments and how they performed. We were really pleased with what we saw in Life Sciences, Diagnostics and EAS, Life Sciences being in the high teens in terms of core growth, with Diagnostics over 20% and EAS performing positively as well. So we saw nice performance out of that. And we continue to think that the momentum that we've had is really impressive. You talk about surprises and so forth. I'm not sure I'd characterize it as a surprise, but just great performance. If you look at Cepheid, we had originally thought we would ship about 8 million tests in the fourth quarter, and we were able to ship 9 million tests in the fourth quarter. That certainly is helpful. And then, of course, Cytiva and Pall Biotech were also able to ship additional product out the door here, helping to overcome this COVID pandemic. So really appreciated that. From an orders perspective, we saw in Pall Biotech and Cytiva order rates over 50%. So those continue to be robust and quite similar to what we saw in Q2 and Q3 as well. So we feel very good about that.

And a couple of follow-up questions on the vaccine and therapy opportunity. [indiscernible] that order level, it seems like you're taking some share here around COVID-19 vaccine manufacturing. So can you confirm that? And then how do you think about the durability of these trends? Obviously, we don't know what the treatment paradigm is going to be. Is it one and done? Is it an annual vaccine? Is it every 2 or 3 years? So I'm just curious on what you're hearing from your customers on how they think about the durability of the current demand trends, in particular around the vaccine side?

Sure. So as we think about the therapeutic and vaccine tailwind, we're really viewing that today as a, through the end of 2021, $2 billion opportunity. So the way to think about that would be we probably shipped around $650 million here in 2020 and probably another $1.3 billion ahead of us through 2021 for vaccines and therapeutics. And there are many unknowns, as you suggest here. It just really is not clear what the durability of the vaccine and the recipient of the vaccine is. And we expect there also to be differences of that durability between the different types of vaccines as we continue to see those approved here in the future. But we feel very good about where we sit here in terms of this -- what we call a $2 billion opportunity through the end of 2021.

Got it. And do you think that will be north of $1 billion this year, so kind of $1.3-ish billion. Is that the right way to think about it?

That's right. So we're thinking about -- we shipped about $650 million in 2020. And so we're thinking $1.3-ish billion here for a total of $2 billion through the end of 2021, vaccines and therapeutics.

And how are you guys from a capacity standpoint? And a follow-up to that is a lot of the scale-up has been around single-use. As we get to kind of bulk manufacturing, does that continue on single use? Or do you think that shifts over to stainless steel?

So in terms of capacity, we have been investing for some time. I've mentioned in the past, even prior to us actually closing the acquisition with GE, we had authorized them to continue an investment program, to continue ramping capacity at what is now Cytiva, and we're really benefiting from that and in the past months, have, of course, been pulling forward investments that we had planned for a couple of years out. So we feel very good about how we're positioned from a capacity perspective. And we think we're probably taking some share because our lead time situation is perhaps more attractive than with some others. So that's how we're thinking about that particular point, Tycho.

And I know you're pretty diversified on the vaccine front in terms of the types of projects and modalities. But as we think about mRNA versus other vaccine modalities, and any color you can provide on how you're positioned on one versus the other?

So we are really working still the over 400 projects, whether that's vaccines and therapeutics that are around the world. And we are positioned on all of the Operation Warp Speed vaccines, including the ones that have been recently improved mRNA and so forth. So we feel really good about being positioned here across the board with both the approved vaccines as well as those that are near-term contenders for approval.

Separate question on Pall and Cytiva around cell and gene therapy, obviously newer market. Can you quantify your exposure there? Is that 5% of revenues? And then how do you see that opportunity evolving post-COVID?

So we feel like we're really well positioned here, both with gene as well as cell therapy. The gene therapy business, you may be aware, we have our proprietary bioreactor solutions with the iCELLis bioreactors as well as the entire downstream. And those are really still the standard for so many viral vector manufacturing sites around the world, and we feel very good about that. Then Cytiva also has a cell therapy business, which is the leading business currently around the world. And they are the suppliers to the currently approved cell therapies in the marketplace. And it's an important part of our growth story here today. And of course, we're very focused on that.

Last one on Cytiva and Pall. This one came in over e-mail. But does it make sense to consolidate these into one business unit and more actively drive integrated R&D and product offering?

So we've been really focused on standing up this complicated carve-out first. And today, it stands here as Cytiva, and we can talk about it being a powerhouse in the marketplace. So that's really been our focus here on making sure that we get that set up properly. And that's going exceedingly well. We couldn't be more pleased with both the team, their execution and how they're adopting the Danaher Business System. Already today, customers are asking Cytiva and Pall to work together on important projects where they see this opportunity to build out entire production lines or get that incredibly important integrated scientific perspective and process developments. So we work together today, independent of organizational structures, with the customers.

Great. Let's shift over to Diagnostics, and obviously up over 20%. So great to see the strength there. I guess a couple of questions. It sounds like the Cepheid tailwinds will be a little bit more durable than some of the other COVID testing tailwinds. How are you thinking about kind of the shift to syndromic panels moving to 10-color chemistry, multiplexing some of these kind of underlying trends in terms of the durability of the business overall?

Well, so let me start with this. The Cepheid has been an extraordinary performer for us, as you have heard. And in the fourth quarter, we exceeded our initial expectations of 8 million tests to 9 million tests. Now as it relates to the durability of this testing, I think it's really important to come back to that concentric circle that I'd like to talk about, which is point-of-care molecular diagnostic testing that's easy to use and has short turnaround time and that allows clinicians to make a treatment decision, is really at the center of the durability. And as you then add on other technologies to the outside of that concentric circle, those would be less durable the further you get out of that circle. Cepheid is right in the bull's eye, in the middle of that. And we consider that to be really a unique and differentiated position. And it continues to show, both in terms of our instrument placements as well as clinicians wanting to continue the -- with the Cepheid testing. So we see it durable, just in view of where the pandemic is today, certainly through 2021. And then, of course, longer term, we have the widest menu outside and inside the U.S. And we've been very careful in terms of how we have been placing those gene expert instruments to ensure that those will be fully utilized in the future as well.

I know when we did our CEO call back in November, you talked about as we think about 2021, to maybe expect a similar level of testing as we saw in 2020. Obviously, 2020, you only had 9 months to scale up manufacturing. But if we were to compare the $1.3 billion in vaccine tailwinds, what would be the comparable for Cepheid this year for revenues?

So the way we're thinking about that is really taking sort of the Q4 performance here and really seeing that as -- some 9 million tests, really seeing that as durable through 2021, right? And applying to that, as we thought about it in Q4, which turned out to be pretty accurate, 40% the 4-in-1 test and then about 60% the COVID rapid test. So that test's just for COVID.

Got it. And I had one follow-up that actually -- sorry to hop around but came in on bioprocessing, which was, if we think about the order growth, you had 60% orders in the third quarter. I guess the question is why isn't that translating into maybe higher revenues here in the near term? Maybe talk about kind of the burn rate of that business.

Sure. So I've mentioned in some other calls as well, the bioprocess orders often come in earlier than their shipments. Some customers will give us 18 months' worth of orders, and we'll only count the first 12 months of those orders and then ship out per the request dates, individual lots in relation to that order. So these orders can be really lumpy, and it's hard to be accurate there in terms of defining how that exactly plays out as revenue. But suffice it to say that the order growth rate of well over 50% here in Q4 is similar to the prior 2 quarters, very robust. And we continue to increase shipments in bioprocessing going out the door as well.

And then a follow-up on Cepheid. I think you've previously talked about a 35% growth in the installed base during the pandemic. You talked about placing those strategically with hospitals. We're seeing the testing paradigm kind of increasingly get disseminated, including physician office and at-home testing. How do you think about kind of the tail of the business for Cepheid, moving into physician office market and kind of into smaller practices?

So that Cepheid value proposition is really attractive, right, at that point of care, as we spoke of. And so we really do focus at continuing to penetrate the point of care where clinicians are making treatment decisions. And then the next point there is physician-owned labs, obviously, larger labs that have throughput requirements that could meet those kinds of needs and then, of course, IDNs as well. All of this is happening then in terms of penetrating those customer segments as you suggest, while at the same time, we continue to expand the menu, giving us more and more optionality there in terms of growth.

Be able to talk about kind of the base Cepheid business beyond COVID? I mean it's going to be a light flu season. How is kind of the rest of the Cepheid business trending?

So the flu season is lighter, as you suggested. But we do see that if you think about the post-vaccine world, a world in which the vaccine has actually been inoculated in the patients and we have some degree of herd immunity, we continue to see Cepheid just because of what we spoke of earlier, the amount of penetration we still have ahead of us in terms of the point of care, physician-owned labs, IDNs, menu expansion, continuing to be a low double-digit grower here for the long term, independent of the COVID spikes that we've seen.

And are you using the cash from COVID to kind of pull forward any of the menu build-out? Is that part of the strategy here to kind of accelerate some of that so you have more cushion on the back end?

That's true for Cepheid and Danaher overall. We continue to take this opportunity to invest overproportionately not just in capacity expansions, but, as you suggest, also in research and development in order to bring our solutions to market more quickly for differentiated value propositions and share gain.

The base business has been coming back up low single, mid-single in the fourth quarter as you preannounced. I'm curious, as we think about some of the parts of the portfolio that have lagged, SCIEX maybe as an example, are you starting to see some recovery in those end markets?

We are. And as we think about, for instance, lab openings and so forth, we would say that we're well into the 90% there in terms of these lab openings and the usage. And those particular businesses have performed very well for us. If we stick with SCIEX for a minute, SCIEX has come in, in the mid-single-digit-plus range here at the end of the year and has performed very well through the pandemic, particularly because they've been able to launch new products, such as the Echo MS and the 7500 Triple Quad, which you may be aware, that's the most sensitive Triple Quad in the world.

One that came in on the e-mail was around the antigen test for Beckman. Just curious how you think about rolling that out, how do you think that will coexist with Cepheid. Just talk a little bit about the launch plans.

Sure. So the antigen test is -- we just launched another one here in December that goes on to our fully automated platforms. And we really don't see much of a conflict there at all. On the contrary, as I said, the point-of-care solution right there where the patient is making a treatment decision quite different than the work in the centralized lab, where you're talking about very high volumes of tests being streamed in order to make different kinds of decisions. So we feel very comfortable with offering both of those solutions to the marketplace.

One on IDT that came in, which is really around how is that related to enzyme production for mRNA? And then outside of COVID for IDT, how do you think about the opportunity for enzymatic DNA synthesis? I know you've invested in a few private companies there that...

Well, IDT supplies the mRNA vaccine manufacturers, right? So the components, of course, are used in the template manufacturing. So IDT is well represented there. From -- IDT also, of course, supplies gene editing, functional genomics, so CRISPR-CAS9 type of solution. So that's very important, too. And then when we look at enzymatic solutions in the marketplace, those enzymatic solutions have been a technical challenge for decades, and it's clear that progress is being made there. But we also see the application and use cases for those kinds of solutions to be quite different than the type of business model that IDT is in. So one, we are in the enzymatic business in terms of functional genomics. But two, we also see the use cases for those kinds of solutions to be quite different from what IDT supplied today.

A question on Leica that came in. And how are you thinking about kind of the recovery in the pathology market? And could that be flat? Or would it be potentially high growth? How do you think about the trajectory of Leica from here in the pathology?

Anatomical pathology has been making a recovery here and is nearly back to full capacity. We'll see how that plays out here now in the throes of the third spike, particularly in the United States. But that business has continued to expand, and we've been able to provide important solutions here, including some of our digital solutions which are allowing clinicians to, in decentralized settings, view slides and so forth. That's been really important for us. And we see that, that business will continue in its positive trajectory here, both in the short and long term.

Maybe in the last minute here, you're a few months into your tenure as CEO. Just curious so far if the -- how the experience has been. Have there been any unexpected challenges? And what's kind of top of mind for you as we think about the year ahead in terms of priorities?

Sure. Well, first of all, it's been a great transition, right? My predecessor, Tom Joyce, has done a fantastic job in helping me here get into the chair, as has the Board of Directors. We've been incredibly aligned here in terms of our priorities, and we've done a great deal of work as you can see. So really, the priorities remain the same, which is, one, we take care of our customers. And we always do that, and it's more important than ever to do so in this pandemic. So that Danaher oval really makes a difference. And then from a shareholder perspective, we concentrate on executing well in our business, making sure that we deliver that growth, that we apply that Danaher playbook and that we continue to compound those annual returns for long-term shareholder value. Those are the priorities.

Great. Well, I want to thank you for taking the time today. It's a great overview. Enjoy the rest of the conference.

Thanks, Tycho. Thank you. Appreciate it. Thanks, everybody.