By the numbers
Q2 Revenue: $7.2 billion
7.5% decrease year-over-year
Q2 Net earnings: $1.1 billion
34% decrease year-over-year
Q2 Diagnostics sales decrease: 13%
Q2 Net Earnings per share: $1.49
34% decrease year-over-year
Q2 insights
Reported diagnostics revenue fell 13% at the conglomerate Danaher in the second quarter as lower COVID-related respiratory testing volumes more than offset high-single-digit growth in the base business.
Respiratory testing sales at Cepheid, Danaher’s molecular diagnostics unit, totaled $300 million in the second quarter, exceeding the forecast $175 million but down from the $750 million generated in the comparable period of last year.
Speaking on Danaher’s second quarter results conference call, CEO Rainer Blair, who continues to expect full-year respiratory testing revenues of $1.2 billion, cited “higher volumes and a preference for our 4-in-1 test for COVID-19, flu A, flu B and RSV” as drivers of the most recent set of results.
Molecular diagnostics up 30%
Multiple Danaher businesses contributed to the high-single-digit growth in the base business. The company reported high-single-digit core growth at Leica Biosystems, driven by histology and advanced staining. Beckman Coulter Diagnostics achieved mid-single-digit growth as a result of “notable strength in immunoassay,” Blair said.
Cepheid was the standout, though. Excluding respiratory testing, sales increased by more than 30%. Users of Cepheid’s GeneXpert PCR system are expanding their test menus, according to Blair, with group A Streptococcus tests and hospital-acquired infection assays leading the way. Blair expects the unit to win market share.
“With COVID now in endemic state, we believe Cepheid is continuing to take share as many customers look to consolidate their point-of-care PCR testing platforms on to the gene expert for both respiratory and non-respiratory testing,” Blair said.