NVST - Danaher: All In On Life Sciences And Market Update

2024-03-27 00:31:41 ET

Summary

• Danaher Corporation is a leading player in the life science industry, with strong financial performance despite many spin-offs.
• The healthcare industry is facing challenges due to weak funding and high vacancy rates in lab spaces, but there are signs of a turnaround.
• While the valuation is rising, I believe investors can still take advantage of the momentarily weak market opportunity.

Introduction

Danaher Corporation ( DHR ) is a Life Science Tool and Service conglomerate that holds a duopoly over the manufacturing services, analytical equipment, and consumables side of the biotech and pharmaceutical research and production space alongside Thermo Fisher Scientific Inc. (TMO). As a duopoly, both have returned similar gains for investors for decades, with DHR totaling a 15.3% CAGR over the past 20 years, compared to TMO’s 17%. As aggressive growth has been fueled by M&A into high growth opportunities in the sector, it is actually quite impressive how similar the company’s financials have been over the years, despite one major difference: spin-offs....

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