Waters Corporation (NYSE:WAT) Q4 2022 Earnings Call Transcript

Page 5 of 10

We intend to increase that number higher. MaxPeak premier columns and the pipeline looks extremely good, especially serving larger mole complex therapies. And now with a deeper understanding after the acquisition closes of the biologics space, we think there’s a significant growth opportunity there as well. And there, too, we are a bit prudent thinking through what the rest of the year holds, especially in China. So, I think that’s how I would look at it, right. So, really positive, but really thinking through how the year will emerge in China. And as the year progresses, we’ll have more information.

Matt Sykes: Great. And then just one quick follow-up on Europe. Obviously, very strong growth there in Q4 and for the full-year. Obviously, a mild winter there, so things seem to be better than expected. Could you just talk about what you’re assuming for Europe this year and kind of thoughts in terms of the end market demand within Europe for 2023?

Udit Batra: Yes. Look, I mean Europe has been a standout across the board, right, through the early parts of the pandemic and then, of course, this year itself. And also, on a stacked basis, it looks extremely good. The full-year numbers for Europe were in the double-digit range as you’ve seen. As we look ahead, I mean, our assumptions are still, sort of going back to markets in Europe, which is mid-to-high single-digits for the balance of 2023. The orders look extremely good across all end markets. And I’ll remind you that Europe is more heavily weighted towards pharma. And then in the mass spec space, Europe came out really, really strong, especially with applications in food testing for the Xevo TQ Absolute and environmental testing, which is where we saw the first and the fastest adoption of mass spec portfolio.

So, mid- to high single digits with all the puts and takes, really excited about what we’re seeing in terms of mass spec, especially in pharma and industrial in Europe.

Operator: The next question is coming from Dan Brennan of Cowen. Your line is open.

Dan Brennan: Great, thanks. Thanks for the questions. And obviously, congrats on the quarter and this deal. Maybe just one on Wyatt to start off. Just kind of a multi-part of your obvious question is the company has been growing 20%, your guidance is 10% to 12%. Is that just prudence or is there any the numbers just kind of why, why that delta? And then could you just clarify like what percent of their business €“ you said 80% is biologics? What percent of that is actually used in manufacturing, whether on a clinical basis or on a commercial basis versus R&D today?

Udit Batra: So look, Dan, firstly, thank you for your question. You can imagine that we’re just getting into the integration, and there is, of course, a little bit of prudence built in, and we want to make sure that we start off on the right foot. As the integration goes, we don’t expect the business to slow down, but that’s €“ the low double-digit guide has that in the assumptions. And in terms of biologics, I mean, a bulk of the applications are in large pharma, in discovery and development and in QA/QC and online and at-line testing. So, I mean, I think that’s where you see most of the applications and increasingly now more weighted towards cell and gene therapy applications where the small particles need to be characterized really well before they are injected into people. So, I hope that gives you more color. And we don’t intend to break down the full biologics piece, but you can imagine it’s mostly late stage and and QA/QC, Amol?

Page 5 of 10