What led you to join PerkinElmer last year?
PerkinElmer stood out to me for its innovative portfolio and the commitment to advancing scientific outcomes for its customers developing life-saving drugs and technologies for a more sustainable world. I am deeply passionate about the new PerkinElmer’s compelling mix of assets. It is comprised of a portfolio of scientific instruments, laboratory services, consumables and reagents that serve the biopharma, food, environmental & safety and applied markets. The company's history of 85 years in the sector and its evolution into a market leader in providing scientific solutions resonated with my own personal and professional interests.
My decision was also influenced by the opportunity to lead PerkinElmer through a phase of growth and establishing it as a stand-alone company. It is international presence, reputation for quality, and focus on science were important selling points. Additionally, the support from New Mountain Capital as an owner, highlighted a path towards creating a solid foundation for growth by simplifying the company structure and investing in new product initiatives , making last year a one of transformation forging our own destiny.
What motivated the carve-out of PerkinElmer, and how does this new structure benefit the company?
The new PerkinElmer is based on a fantastic foundation of scientific assets and innovative services across various segments like pharma, food, industrial, and clinical, on a global scale. This breadth of capabilities and the strong brand of PerkinElmer provide a robust platform for future growth, by accelerating scientific outcomes for our customers.
This strategic restructuring has enabled us to focus more effectively on our core competencies and markets, making the company more agile and better positioned to innovate and grow. The decision-making process has become more streamlined, allowing us to make quicker, more impactful decisions that drive the company forward. This cultural and operational shift, coupled with the support from New Mountain Capital, supports our objective to nurture and expand the company’s reach and capabilities, particularly in high-growth areas.
What direction do you envision for the new PerkinElmer? Was the acquisition of Covaris a part of that vision?
The acquisition of Covaris is a strategic move to enhance our diagnostics platform, particularly by deepening our capabilities in life sciences. Although PerkinElmer is also associated with non-life sciences industry verticals, instruments like our LC/MS play crucial roles in areas such as cancer research or reproductive health, indicating our sustained expertise in life sciences. Covaris, with its focus on automating library preparation for next-generation sequencing (NGS), represents a significant step towards supporting increased market demand, further strengthening our life sciences business model.
Our goal is to not just sell instruments, but provide comprehensive solutions that meet the evolving needs of our customers in life sciences and beyond. This includes automation and consulting solutions tailored to specific regulatory environments, and reflects a broader market trend towards integrated solutions. Covaris fits into this strategy by expanding our capabilities in critical growth areas like somatic cancer and omics, ideally positioning PerkinElmer to address the burgeoning demand for personalized medicine and diagnostic solutions. This acquisition not only extends our technological platform but also embodies our commitment to driving innovation and offering superior solutions to our customers in the life sciences and other sectors.
How significant is the role of high-tech and AI in PerkinElmer's movement towards soliton-based approaches?
AI at PerkinElmer is not merely a buzzword but a strategic tool aimed at enhancing our diagnostic and scientific capabilities. While we take a pragmatic and responsible approach towards the development of innovative AI solutions in our highly regulated industries, we recognize the substantial role AI can play in streamlining drug discovery processes and interpreting complex data from our instruments. As instruments become increasingly sophisticated, generating vast amounts of data, AI helps in parsing this information, offering predictive insights to scientists, technicians, and key opinion leaders. This approach not only accelerates the research and development process but also ensures that our solutions are aligned with the evolving needs of the scientific community.
Our OneSource services offering exemplifies how AI can optimize operations within biopharma R&D labs. By relieving scientists from the burdens of instrument complexity and maintenance, we enable them to focus on their primary objective: drug development.
AI aids in predicting lab utilization rates, maintenance requirements, energy consumption, and other operational aspects, thereby enhancing efficiency and productivity. Additionally, we are exploring AI's potential internally, particularly in software development for our instruments, underscoring its growing influence in our company's innovation trajectory.
Could you tell us more about your OneSource platform and how it supports biopharma companies?
Our OneSource services portfolio is particularly well suited for biopharma companies, by aiming to alleviate the non-core activities that distract scientists from their primary research goals. By managing everything from instrument maintenance to calibration, reagent stock management, and regulatory compliance, we allow scientists to dedicate more time to drug development. This comprehensive support extends to navigating the complexities of regulatory affairs, a growing challenge across jurisdictions. Our expertise in understanding and adhering to regulations ensures that the instrumentation we provide meets current standards, thereby facilitating our clients' compliance efforts.
Partnering with regulatory bodies guides enhancements in our instrumentation and services to align with regulatory changes. By focusing on application science, we help our clients adjust their systems for regulatory milestones, offering a collaborative approach to compliance. This comprehensive support system underpins our OneSource services, demonstrating our commitment to delivering value beyond mere instruments, by ensuring operational excellence and regulatory compliance in R&D labs.
How has the post-pandemic investment patterns amongst your biopharma clients evolved?
The biopharma sector's investment patterns have indeed shifted, with a noticeable prudence last year as companies recalibrated their focus towards late-stage pipeline projects to hasten cash flow generation, sometimes at the expense of early-stage R&D. Despite this cautious approach, we have observed that investments in new and innovative technologies have not ceased but rather had been deferred. Our outlook, therefore, remains optimistic, anticipating a resurgence in investments as companies aim to replenish their R&D pipelines with new initiatives. This rebound is expected not just because of the intrinsic need to innovate and bring products to market faster and safer, but also due to the sector's robust nature, suggesting a promising future for investment in biopharma.
Our services, particularly valued for their integral role in operational efficiency, have demonstrated resilience amidst these shifts. Our adaptability and the enduring value we provide have enabled us to maintain a stable relationship with our clients, underscoring the "stickiness" of our services amidst fluctuating investment landscapes. We remain confident in the biopharma sector's capacity for recovery and growth, reinforcing our commitment to supporting its evolving needs.
As you steer PerkinElmer into its next phase, how do you envision its growth and adaptation over the next three to five years?
Last year marked a significant internal transformation, streamlining our processes and enhancing our focus on value creation without altering the core elements that define us: our scientific rigor, dedicated team, and brand reputation. These changes have already translated into tangible growth and improved profitability, supported by the trust and loyalty of our customers.
Looking forward, we are committed to further expanding our portfolio and reinforcing our position in the market. This involves not just technological advancements but also a cultural shift within the company, fostering a mindset geared towards proactive decision-making and entrepreneurial thinking. This strategic direction, emphasizing both internal and external growth, aims to ensure PerkinElmer remains a resilient, innovative force in the scientific community, ready to meet the challenges and opportunities of the future.
