Danaher Reports Q3 2024 Revenue of $5.8 Billion, Led by Strong Diagnostic Segment Performance

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Revenue of $5.8 Billion in Q3 2024

Diagnosis Business Leader

Recently, Danaher announced its financial results for the quarter ended September 27, 2024.

Danaher's Q3 2024 Revenue Hits $5.8 Billion, Up 3.0% Year-over-Year; Net Income at $818 MillionAmong the three major segments, biotechnology business sales decreased by 0.5% year-over-year; life science business sales increased by 4.5% year-over-year; diagnostics business sales increased by 5% year-over-year.

Revenue in the first three quarters of 2024 was $17.3 billion, with a net profit of $2.813 billion. Both revenue and net profit showed a slight decrease compared to the same period last year.Among them, biotechnology business sales decreased by 9.5% year-on-year; life science business sales increased by 1.5% year-on-year; diagnostics business sales increased by 4% year-on-year.

By segment, the diagnostic business is in the leading position in terms of both volume and growth rate.

Danaher Biotechnology Revenue in Q3 2024 was $1.653 billion, Life Science revenue was $1.782 billion, and Diagnostic revenue was $2.363 billion. For the first three quarters of 2024, Biotechnology, Life Science, and Diagnostic revenues were $4.890 billion, $5.297 billion, and $7.150 billion respectively.

From early 2024 to date, Danaher's global free cash flow reached $3.8 billion, with a free cash flow to net income conversion rate of 135%.

Danaher Corporation President and Chief Executive Officer Rainer M. Blair stated: "Our team delivered strong results in the third quarter, includingBetter-than-expected revenue growthWe are particularly pleased with the continued positive momentum in our bioprocessing business and believe that Cepheid has again gained market share in the molecular diagnostics field this quarter. Looking ahead, we believe that combining Danaher's leading portfolio with DBS-driven execution will lay a solid foundation for creating long-term, sustainable value while helping to improve human health."

For the fourth quarter of 2024, Danaher Corporation's non-GAAP core revenue is expected to decrease by a low single-digit percentage year-over-year. For the full year of 2024, the company continues to project a low single-digit percentage decrease in non-GAAP core revenue year-over-year.

This year, Danaher, known as the "King of M&A," continues to expand its portfolio. In the second quarter of 2024, Danaher completed the acquisition of Genedata, a provider of software solutions for biopharmaceutical R&D. Genedata will operate as a company under Danaher's Life Sciences platform, helping to accelerate the discovery and development of critical therapies.

Multi-dimensional Layout in the Chinese Market

Promote Local Production and Innovation

In recent years, multinational device giants have been deepening their presence in China, and Danaher is no exception.

Currently, Danaher is advancing its local production, innovation, and R&D efforts in China, with the group's operating companies accelerating the construction of localized manufacturing lines and enhancing local R&D capabilities.

In the first half of 2024, DanaherMultiple products under its umbrella achieve local manufacturing and R&D in China.These include the domestically produced standardized ÄKTA ready extended single-use chromatography system, Beckman Coulter's NT-proBNP, AQT90 FLEX fully automatic fluorescence immunoassay analyzer, Mammotome Flex™ Mulan® breast lesion vacuum-assisted biopsy system, and Mateo FL digital inverted fluorescence microscope, among others.

New investment projects are also being gradually implemented.

July 10,Danaher China Western Innovation Center Phase I Project Officially Put into Use in Chongqing, Danaher China Life Science Research Institute Western Application Research Center was simultaneously launched. This is the third research institute established by Danaher's life science platform in China following Shanghai and Guangzhou, supporting spatial omics, genomics, multi-omics innovative research, and clinical efficacy evaluation, covering many cutting-edge fields such as organoids, cell therapy, and synthetic biology.

It is reported that, next, Cytiva (思拓凡), a subsidiary of Danaher, will establish Cytiva's Western Science and Innovation Center here to carry out biopharmaceutical process technology development, talent training, project incubation and transformation, etc.Expected to commence operations in 2025。

In addition,Danaher will also establish a new Northern Innovation Center in Changping, Beijing.. This is Danaher's first entity in Beijing, which will focus on emerging fields such as synthetic biomanufacturing, establishing a synthetic biomanufacturing technology innovation platform and a high-end mass spectrometry testing platform. It aims to serve the upstream and downstream industries of life sciences and further build an internationally leading process development and transformation incubation platform.

Danaher's Medical Diagnostics Platform R&D and Manufacturing Base project, invested in Suzhou Industrial Park, has completed its first phase of construction and commenced operations in 2023. This base represents Danaher's largest single investment in China to date, with a total investment exceeding 100 million US dollars, and is shared by Danaher’s operating companies, including Beckman Coulter Diagnostics and Radiometer.

According to Danaher's recent disclosure, the Suzhou base has introduced in vitro diagnostic equipment and reagent production lines from Japan, Germany, the United States, Denmark, and other countries, while continuously accelerating the local procurement of components in China.

Currently,This base supports Beckman Coulter in achieving local production of all its main models in China.Making it one of the earliest foreign brands to achieve local production of chemiluminescence immunoassay equipment and automated assembly lines in China. SCIEX's first locally produced mass spectrometry product has been delivered, and Radiometer's first local production line was also established here. Main equipment such as blood gas analyzers and fully automatic fluorescence immunoassay analyzers have successively achieved local production.More conversion plans are being deployed.。

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Author: Crescent

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Editor: Qin Jiu

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