BCCOY - Lab Instrument Industry Update - New Commercial Entrants

2024-05-23 09:17:40 ET

Summary

• Lab Instrument and Services providers in the healthcare industry can generate high recurring revenues.
• Many loss-making instrument makers in the industry may not provide meaningful returns and carry high risks.
• Cytek stands out as the best opportunity in the sector due to strong growth and manageable losses.

Introduction

I believe one of the best sectors of the healthcare industry is the Lab Instrument and Services providers who can generate high recurring revenues from small amounts of instrument sales. Examples include research focused Thermo Fisher ( TMO ) and Danaher ( DHR ), along with diagnostics providers such as Qiagen ( QGEN ) and Revvity ( RVTY ). I have discussed the opportunity in these names recently as the healthcare industry is facing immense headwinds not seen since major recessions....

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