Good day, and thank you for standing by, and welcome to the PerkinElmer's Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. . As a reminder, this conference is being recorded. . I would now like to hand the conference over to your speaker today, Stephen Willoughby, Vice President of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to PerkinElmer's Third Quarter 2021 Earnings Conference Call. On the call with me today are Prahlad Singh, our President and Chief Executive Officer; Jamey Mock, our Senior Vice President and Chief Financial Officer; and Peter Wrighton-Smith, Founder and Chief Executive of Oxford Immunotec. If you have not yet received a copy of our earnings press release or slide presentation, you may find copies of them on the Investors section of our website at perkinelmer.com. Please note that this call is being webcast and will be archived on our website. Before we begin, I'd like to remind everyone of the safe harbor statements that we have outlined in our earnings press release issued earlier this afternoon and also those in our SEC filings. Statements or comments made on this call will be forward-looking statements, which may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors, which are discussed in detail in our SEC filings. Any forward-looking statements made today represent our views as of today. We disclaim any obligation to update these forward-looking statements in the future, even if our estimates change. So you should not rely on any of today's forward-looking statements as representing our views as of any date after today. During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures we plan to use during this call to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent we use non-GAAP financial measures during this call that are not reconciled to GAAP in that attachment, we will do so promptly. With that, I'll now turn it over to our President and Chief Executive Officer, Prahlad Singh. Prahlad?

Thank you, Steve, and good afternoon, everyone. Reflecting on the third quarter of 2021, I can confidently say that our efforts, our investments and our business performance together truly reflected the essence and impact of the new PerkinElmer, a concept we introduced at our analyst meeting back in June. The operational improvements, recent acquisitions in life sciences and diagnostics, R&D investments in the food and applied markets, accelerated innovation across the Board and a ramped up focus on culture, employee engagement and technological innovation have collectively been bearing fruit. While there is still significantly more to come, I think between our very strong financial results and the additional color that Jamey, Peter and I will share with you today, we will further illustrate the immense incremental value we are delivering to all our stakeholders now and are positioned to do so well into the future. To stay on this idea for a moment, our ongoing portfolio transformation into higher-growth end markets continued during the third quarter as we closed on our previously announced acquisitions of SIRION Biotech and Immunodiagnostic Systems. We also announced and were able to fairly quickly close on our largest acquisition to date, BioLegend, 3 months ahead of schedule. I'll touch more on these great recent additions in a bit, but I'm thrilled to see the initial teamwork that is already occurring between these businesses and the rest of PerkinElmer. While collaborations are already underway, I expect there will only be expanded and turbocharged coming out of a company-wide innovation summit we are hosting in a couple of weeks. I'm very proud of how our now 15,000 employees around the world have continued to execute during the third quarter despite facing existing challenges and even starting to come across some new ones. While Jamey will provide more…

Thank you, Prahlad. Our strategy for advancing in the attractive growing latent TB testing market is based on a number of key pillars: firstly, expanding our commercial presence to maximize our penetration of existing and new countries; secondly, dramatically improving our workflow through automating our assay and bringing that new automated workflow to all major jurisdictions worldwide and in a variety of throughputs to suit customers of different sizes; thirdly, improving the economics for our customers and us. This is about reducing our cost of goods to our customers and our advantage, but it's also about capturing more value from the product and service ecosystem created by automation. Being part of the wider PerkinElmer family is helping us to execute better in all 3 of those areas. For example, we're already leveraging EUROIMMUN's presence and field forces to access new countries in South America and leveraging Tulip's presence and relationships in the Indian subcontinent. We are accelerating our automation journey, as Prahlad already mentioned, by adopting PerkinElmer's suite of automation both from core PerkinElmer in the form of JANUS and by utilizing technology from acquired companies such as EUROIMMUN and Nexcelom. We're also able now to capture more of the value from automation as we have a pathway through PerkinElmer's OneSource business and its global supply chain capabilities to sell automation consumables and automation service contracts, both things that we were not equipped to do on our own. We're now also exploring a number of additional COGS reduction opportunities by in-sourcing key raw materials that we currently purchase from third parties. BioLegend in particular, has a number of antibodies and other immunological reagents that we're looking to incorporate into our own immunology-based technology. At the same time, we've been able to streamline our cost structure. Clearly, we're no longer supporting…

Thank you, Peter. I look forward to seeing the traction we make over the coming quarters. I also wanted to share with you more about our recent acquisition of Immunodiagnostic Systems, or IDS, which closed in early July and may have been a bit overshadowed by our analyst meeting and the announcement to acquire BioLegend. I want to make sure our shareholders know why we are so excited about IDS becoming part of PerkinElmer and what we believe it brings to the overall company. The addition of IDS is a great example of where we expect 1 plus 1 to equal at least 3 and hopefully more. Let me first tell you a bit more about the company. It's a developer and manufacturer of medium throughput chemiluminescence analyzers and assays that was previously publicly traded in the U.K. and have been going through an evolution of its assay menu over the last several years. By adding IDS, we have significantly enhanced our in-house chemiluminescence assay development expertise. This expertise will provide even more resources to support the development and launch of EUROIMMUN's high-throughput, random access chemiluminescent system, Accentis which we expect to introduce next year. Furthermore, by adding IDS's existing mid-throughput RA10 chemiluminescence analyzer and its current installed base to the business. Upon the launch of the Accentis platform, we will then be able to offer a spectrum of chemiluminescence systems and assays to our customers. Also, in just the first few months since the acquisition closed, we have started to leverage each other's commercial and distribution strengths. For example, at the recent AACC meeting in Atlanta, PerkinElmer diagnostics, EUROIMMUN, IDS and Oxford Immunotec, all jointly exhibited and met with customers in-person for the first time. And of course, the addition of BioLegend, which closed in mid-September and was the…

Thanks, Prahlad, and good evening, everyone. Before turning to the financial results, I want to remind everyone that our third quarter earnings call presentation has been posted on the Investors section of our website under Financial Information. As Prahlad mentioned, it was quite a busy quarter for the company. I believe the team performed extremely well, and we continue to make great traction on executing the transformation of the business from both an organic and operational perspective, but also inorganically as well, which I'll touch on in a bit. Both our COVID and non-COVID revenue performance exceeded our expectations with double-digit growth in both our Discovery & Analytical Solutions and Diagnostics segments. Additionally, the recent additions to the PerkinElmer family remain on track. So we are set up well heading into the end of the year. During the third quarter, adjusted revenue grew 21% compared to last year to almost $1.2 billion and included a 1% foreign exchange tailwind and an 8% contribution from recent acquisitions. Organic revenue grew 12%, 17 percentage points better than our guidance as our non-COVID revenue grew 16% organically, ahead of our 12% assumption, and our COVID revenue did not fall off to the degree that we had anticipated. As it relates to COVID, we generated approximately $300 million of revenue from our related products and services, which was close to double the $165 million we had projected and down only slightly from the $365 million we generated in the second quarter. Approximately $170 million of our COVID-related revenue in Q3 came from core products with the remainder coming from our COVID-related lab services. As also highlighted by others, we saw a noticeable uptick in demand for our PCR tests and RNA extraction kits in the latter half of the quarter, and some contribution from…

. First question comes from Derik De Bruin with Bank of America.

This is Mike Ryskin on for Derik. I want to start with your comments on the COVID lab contract being renewed. That was always an option, but not something that was necessary price paying. So anything you could say in terms of expectation for testing volumes going forward in 4Q and certainly to '22 is something in the $100 million a quarter range, a fair assumption to start? Or are you being even more conservative than that?

Mike, so yes, we are proud to have this renewed. The way I think about it is, while it's renewed for a year, really COVID is such a fluid environment, and we continue to work with the state that it's more like a quarter-by-quarter basis. So as you may know, if you read the contract, the state has the ability to cancel within 45 days. So we really only have line of sight to the next 90 days at this point. We also restructured it to take down the capacity to 40,000 tests per day. We also restructured the variable fees. So for the most part, it's a pretty steady base in terms of revenue irregardless of whether it's 20,000 tests per day or 40,000 tests per day, the revenue remains relatively stagnant and the fourth quarter is probably to the tune of about $90 million baked into our estimate.

Okay. Great. And then on the base business, you had some comments on China in the prepared remarks. I was wondering if you can go into a little bit more detail on what you saw during the quarter and sort of how that's trended. There's been a lot of noise there both from a sort of a supply chain perspective, but also just underlying demand. If you could go into more detail on that, both for DAS and Diagnostics, actually.

Yes. Mike, let me just take sort of what the noise that we are hearing. I mean, it goes both whereas the situation in China, as you know, I mean, some news came out this morning around lockdowns in certain provinces and areas. So it continues to remain fluid. And I think -- but overall, for us, as we look at it, including in China, our end markets continue to remain strong, our backlog is the best that it has ever been and both from a China perspective and across, we continue to execute well. So mid-to-longer term, we continue to feel good about China. I think we just have to keep our eyes open and be vigilant about what happens vis-a-vis with the lockdowns that are taking place.

Any sense you could give us the growth number that you saw in the quarter?

Yes, it's a little over 20%, Mike. And I would say Diagnostics led the way. DAS was still double digits, but DAS didn't go down as much last year, if you remember, it's a little bit of an easier comp from a Diagnostics perspective because much of the reproductive health and autoimmune testing shut down really in the second quarter last year, a little bit in the first quarter. By the third quarter, it started to come back, but I'd say it's a little bit of an easier comp on the Diagnostics side, but both businesses grew nicely and have for the last 3 quarters here.

Our next question comes from Tycho Peterson with JPMorgan.

Sorry to press a little more on the China dynamic. But I think one of the questions that's coming up is just on the tender front, right? We've seen Anhui and probably other regions, Sichuan, Yunnan, and et cetera, following similar policies. So is your view that the tender headwinds around the IVD market could expand nationally over the next year or 2? And what type of pricing impact do you expect? And are there offsets from your perspective with volume?

Yes. I mean just building off what Prahlad said, Tycho, I mean, I think we're prepared for that. I think it's inevitable at some point. I don't think localization has been a new thing. It might get a little bit more discussion recently. Now it's kind of impacted some of the Diagnostics products. But we've got 5 sites there. We're localizing EUROIMMUN there. They should be ready to produce locally in 2022. We've got over 2,000 people there. We have terrific local brands. We've got a long-standing relationship. And I think it still comes down to every challenge is a bit of an opportunity. So yes, there might be pricing discussions on tenders, but if you have the best value prop, you can also gain a lot of share. So inevitably, that will come someday, and we'll manage through it, but we have 2 terrific businesses in autoimmune testing as well as reproductive health. And it hasn't hit us yet, but I don't think -- I think it will hit us at some point here.

And Tycho, I think as we've shared in the past, we've already transitioned most of our reproductive health reagents, manufacturing in Taicang. So that transition has already taken place over several years, as Jamey pointed out, this is not something new. This has been -- and immunodiagnostics is a very small component of our overall revenue, so.

And I think maybe you saw, Tycho, that the government has come out and tried to say there's no disadvantage for multinational companies that are local in China. So to Prahlad's point, we have the reproductive health side that's local there and the EUROIMMUN side will be local by the start of '22.

Okay. That's helpful. And then a follow-up on just guidance here for the fourth quarter, are you implying that instruments might be down sequentially? And then as we think about 2022, you obviously laid out the 2023 bridge at the Analyst Day. Have any of the underlying assumptions for 2022 change in terms of kind of non-COVID revenue growth in the 5% to 7% range?

Yes. So on the instrument side, yes, they will come down really in 2 areas, Tycho. So our applied genomics business from a core perspective or non-COVID, I should say, has been growing like gangbusters. I think over 50% I had in my prepared remarks. So I don't -- I think it's still strong, but I don't think it's going to continue at the 50% level. So we kind of took that down a little bit looking forward here. And then really, we've just put a little bit of cushion on all of our instruments in terms of some of the supply chain disruption that's out there. So we feel pretty confident about the guide and instruments will come down a little bit, but we've been able to manage to it to date then and hopefully, you'll see us beat the guide again here.

Okay. And then on 2022?

Yes, 2022. Yes, not too much. I think the way we think about the business in terms of the core growing 5% to 7% and then the numerous acquisitions have all been mid-teens to high double-digit growers, and I don't think anything has changed there. So as we head into 2022, the end market still seems strong, and we feel pretty confident about the 5% to 7%.

Our next question comes from Matt Sykes with Goldman Sachs.

I just wanted to -- maybe a big picture question. I was curious, the comments you made about Oxford Immunotec in-sourcing some of BioLegend's products. So I'm just wondering, from a big picture standpoint, as you integrate these companies, where you potentially see in-sourcing opportunities? Do you think they're much greater than what you think today? And like anything that you can provide context around maybe quantification of potential in-sourcing opportunities and benefits going forward as you further integrate these companies?

Matt, this is Prahlad. So I'll let Peter talk specifically around Oxford and BioLegend and how that's panning out. But I think, overall, in most cases, what we have seen is around Horizon or Nexcelom, I think initially, when we started putting the story together, to where we are now. The more and more we get to know these companies and the more and more we get to know the technologies, it's easy for us to foresee that 1 plus 1 is definitely more equal -- more than 2. And probably in more cases, more than 3. Just take a look at Horizon and how SIRION fits into the bill, right? The licensing technology that allows us to bring the cell and gene therapy markets together. Going to our customers, being able to look at small molecule and biologics now at the same time, synergies from a commercial perspective, technology perspective, it continues to help bolster the story that we have seen. On the diagnostic side, with the addition of IDS while EUROIMMUN was working on Accentis as a big automated platform, the ability to leverage their RA10 platform, and at the same time, the several assays which they have already qualified now being able to do that both on a smaller platform and a fully automated platform. It gives you a much more expansive menu than what we thought we could leverage. So these are just a couple of examples, and I'll sort of ask Peter to talk specifically around Oxford and BioLegend. Peter?

Yes. Thanks, Prahlad. So from my perspective, as we have learn more and more about the different aspects of the PerkinElmer family, the opportunity set for us just continues to grow. And PerkinElmer is very unusual in having a huge amount of life science reagents, which a lot of Diagnostics companies, obviously, consumes raw materials in production of their kits. But it goes far beyond that, we are starting to benefit from PerkinElmer's purchasing power as a combined entity. We also have the fact that PerkinElmer makes instruments and a lot of different kind of instruments, which is very helpful for us in our automation journey. And we also have the fact that PerkinElmer has a great service infrastructure. And all of those things mean that companies like us who joined the family then have to replicate and duplicate those capabilities. So from my perspective, I'm seeing ever-increasing opportunities to in-source either products, raw materials or services from the wider PerkinElmer family, and I'm seeing my synergy opportunities that grow as a consequence.

Great. That's very helpful. And then just a specific question. Just DAS margins. You guys have made a lot of progress over the past 1.5 years. And you cited a couple of things with the improvement in operating margins for DAS, mix volume leverage productivity. Of those elements, which can we kind of perceive to be fairly durable? And where do you think the limit might be for increased margin expansion within DAS?

I think they're all durable, Matt, I would say mix is probably the biggest beneficiary, particularly in the discovery and life sciences side as that becomes a bigger portion of DAS, it typically comes with higher margins. Now with the addition of BioLegend and now having a $700 million reagent business sitting in DAS, in terms of life sciences, those normally come with pretty high profit margins. So I'd say mix going forward will be durable and probably the biggest driver. Certainly, there are programs that we've been putting in place that we've been talking about in terms of better procurement as we roll out NPIs, refreshing all the configurations and the number of configurations we have and the simplicity of them. We've been doing a little bit around sites, and we've been doing a lot with our service team to be more efficient from a royalty service perspective. So I think all are durable, but I think the quickest biggest impact you get is from mix. And I think that's what you're seeing in DAS this quarter with life sciences growing double-digits here.

Next question comes from Vijay Kumar with Evercore ISI.

Jamey, one on the guidance, and I had one for Prahlad, big picture. On Q4 here, so the base non-COVID business, organic of 8%, considering that you guys just did 16% in 3Q, your comps don't get materially harder. So I'm curious what that 8% is contemplating in Q4? Is there some China noise? Or is this just a conservatism on your part?

Yes, it's a good question, Vijay. I think it's probably more towards the conservatism side. So I'd start by saying the end markets are terrific right now. All of them have been growing at least mid-single digit for us, many well north of double-digit. Our backlog has grown substantially this year and even over the last quarter. I think the little bit that we put into the fourth quarter here, you can call it conservatism, is 2 things basically, any impact from any potential supply chain disruption, which we can talk about more, but we haven't seen too much of today, and that includes transportation as well. And then anything that's going on around COVID lockdowns, particularly in APAC. So -- and we have seen pockets of it, particularly in our newborn screening business in places like the Philippines and Vietnam, where our screening has just been reduced. So those are the 2 factors that we put in. Otherwise, the end markets have been strong. We're not too concerned about it. The backlog is up. So hopefully, it proves to be conservative, but I think it's a prudent thing to do at this time.

That's helpful, Jamey. Prahlad, one for you. I think most of your peers, we've had a number of Analyst Days heading into the earnings season. And the message from your peers is we're emerging stronger from the pandemic. And if I look at your business, all the acquisitions, you guys have done these are growth accretive, and some of them perhaps even transformational. And I think I just heard you guys talk about fiscal '22 as being in line with LRP, 5% to 7%. Is there something different about Perkin, why you guys shouldn't be in this emerging stronger from pandemic bandwagon or I'm curious on the 5% to 7% versus how your peers are messaging?

I mean look, Vijay, I think we extensively talked about this at the Analyst Day and then even at the end of the last earnings call. I could not be more confident about the future of PerkinElmer than I am today. The end markets that we are playing in, the portfolio alignment that we have done around growth markets of life sciences and diagnostics, and the team and the talent that we have put in place, and that's executing on all cylinders. So there is no hesitancy on our part in saying that the future is very bright. And if you're asking specifically around 2022, I don't think we are doing guidance right now, but Jamey is there.

Let me just clarify one thing, Vijay, just about the 5% to 7%. The 5% to 7% is on the core business before all the acquisitions. So just to make sure everybody is clear about that, the 5% to 7% ultimately will not be 5% to 7% when we roll on the acquisitions. So Oxford will roll in there in 2022 into our organic base, Horizon, Nexcelom all these -- that will raise the 5% to 7%. We were just going back to our long-range plan to say, look, we broke it up into 2 things at the time. One was before the acquisitions, that goes 5% to 7%, then here's the 9 acquisitions we've done. That grows obviously more than 5% to 7%. And then BioLegend by itself is obviously very impactful as well. So the 5% to 7% was prior to the acquisitions. The acquisitions will ultimately make that higher.

Next question comes from Patrick Donnelly with Citi.

Prahlad, maybe picking up on that last one on the acquisition growth rate side. I know BioLegend is only closed for about 1.5 months. But can you just talk about the revenue synergy opportunity there, particularly with some of the more recent acquisitions. It seems like a pretty significant one. And now that you've had some people in the same room, can you just talk about how you're feeling about those opportunities and what we can expect there?

Yes. I mean you heard from Peter around Oxford, Patrick. I mean he elucidated pretty well. The technology synergies, the opportunities around service, commercial. And then I think the theme is the same across the Board, whether you look at Nexcelom or Horizon. The ability to be able to leverage our commercial presence, which is direct in more than 180-plus countries, which most of these companies do not have access to that are distributor manage. Then the second one is around technologies. The portfolio that we bring together around instruments, around service is much -- is very helpful for the acquired companies. And the third one, obviously, is around technology. As these discussions and interactions happen, I think Peter gave an example around a couple of them and even with BioLegend, we've become one of our primary source of raw material supply that we want from antibodies. So I think those are the 3 elements that I would point out to. And just to give you an example, and I think Jamey or I mentioned during our prepared remarks, we are having an Innovation Summit at the BioLegend campus in a couple of weeks, where our approach is around 3 verticals or 3 pillars: cell and gene therapy, diagnostics and everything else around genomics, and what the opportunity is for us to leverage the synergies that we can see, primarily from a technology perspective. So I think we'll continue. And then hopefully, over the next couple of months, we will be able to provide more detail around that. But Patrick, hopefully, that gives you a sense of how we are looking at this.

No, that's definitely helpful. I appreciate it. And Jamey, in one of the responses you kind of offered to touch a little bit on the supply chain, I'll take you up on that offer. Yes, if you could just talk about what you're seeing there, any potential pressures? And then secondarily, just on the classic inflation labor question in terms of how that's impacting margins, you're passing that along to customers, would be helpful.

Yes. Sure. I mean, we certainly see it both on the disruption side. And I would say it's a little bit easier for us for mostly air versus any kind of water travels from a shipping standpoint. From a supply chain perspective, we've been all over. The team has done an amazing job. I think there was a very minor impact to the third quarter and our backlog obviously grew substantially as well. Inflation, we started to see it. We're looking at what we're doing around price and putting some things into effect right now. But we also had some good things to do. As you might remember, we've been talking about a refreshed procurement process. So we've been able to mitigate some of this. So it's certainly there, Patrick, and we're dealing with it. But we've got a happy medium here where we've got a good size from a scale perspective company, but also we operate very -- in a very agile fashion. So team has been doing a great job managing through it. We put a little bit of buffer into the fourth quarter here, as I mentioned, it will be a non-impact for us.

Yes. I mean, I would sort of reemphasize that. I really feel strongly that our size and scale gives us more speed and agility than one would imagine to be able to rapidly marshal resources around some of these challenges. And then I think the COVID has -- the COVID pandemic has taught us how to become much more agile and much more reactive to such challenges.

Our next question comes from Brandon Couillard with Jefferies.

Jamey, just a 2-part question for you. Given all the moving parts and all the acquisitions, could you just help us sort of frame how to look at gross margins and OpEx in the fourth quarter? And then secondarily, is 22% tax rate a good assumption to pencil in for next year?

Yes. Thanks, Brandon. So gross margin specific to the fourth quarter, I would assume it comes down a little bit here, Brandon. So with COVID being $300 million in the third quarter, going down to $200 million in the fourth quarter, you'll see that come down a little bit. And then the core comes up, so we always have a bigger volume quarter in the fourth quarter. So I would expect gross margins to tick down a little bit. Tax rate for 2022, I think, is anybody's guess based on tax reform out there. So certainly, I think we guided to 21% this year versus a couple of years ago, I think we were 16% or something like that. And obviously, COVID has played a big role in that with greater income and higher tax jurisdictions. So I think our tax rate in 2022 is dependent upon 2 things: one, your view on COVID and how much revenue will be there from that because it comes typically with a higher tax rate; and two, what happens with tax reform. So today that has not been changed, but none of our assumptions have taken into account any kind of particular tax reform changes. So hopefully that helps, Brandon.

Our next question comes from Josh Waldman with Cleveland Research.

Just 2 for you. First, a follow-up on the non-COVID business. You obviously came in well ahead of your guide. Just wondered if you could provide more context on where all you experienced outside versus plan. Was this solely tied to kind of better-than-expected growth in non-COVID DX or did DAS also outperformed?

No, DAS definitely outperformed as well. I would say life sciences continues to remain strong. applied markets or our analytical technology products was strong for us again. And on the DX side, I mean, really, EUROIMMUN has done extremely well and has continued to do well. But I'd just say our applied genomics business ex-COVID has continued to be quite strong. So I think that probably surpassed our expectation to have the third quarter in a row that I think we've been over 30%, 40%. So that's probably continues to hang in there. And I mentioned in my prepared remarks that, that business, our brand recognition there is probably one of the biggest benefits that we have coming out of COVID here.

Got it. And then as we think about the longer-term guide you laid out at the analyst meeting in June, I guess, given the improved FY '21 outlook since that time, and it sounds like a higher level of expected cost synergies going forward, I mean, should we view this as positively impacting how you're thinking about the long-term targets? Or is it more just kind of a derisking of those targets?

I think it could be both, it could be both, Josh. I mean we've continued to invest through this. And certainly, I mentioned in my prepared remarks, we're investing in our talent and culture. We're investing in extra R&D, particularly on the core business as a percent of sales that is far up. We're investing in digital. And all these things will be -- and we believe benefit us moving forward here. And should there be extra sales and extra income, we still feel confident in the margin expansion targets, but it also provides for an opportunity to continue to reinvest back in the business. So I think it's a bit of both its either derisk and/or we can make additional investments or you'll see some upside come through versus our long-range plan.

Our next question comes from Paul Knight with KeyBanc.

On the Discovery & Analytical very strong growth, could you talk about what were the technologies, I would assume that applied due to petrochemical must be strong, but color there would be great.

Sure. Yes. I mean, Paul, well, now life sciences makes up over 60% of DAS. So I'll start there. And in particular, our discovery business, both on a lot of the NPIs we've had in terms of our high content screening business, some of our in vivo products have been operating terrifically. On the reagent side, it's been strong across all regions. We've had a nice cadence of NPIs, different application areas in terms of oncology, and cell and gene therapy have been strong for us. So life sciences, those are a few of the areas. In the analytical and applied markets, Paul. So it's been more on the semiconductor side, I would say, chemicals and energy was pretty strong for us. And so we launched our Triple Quad. And so our ICP and ICP mass business has been extremely strong for us. But I think in general, the whole analytical technologies portfolio, we've had a better cadence of NPIs, which has been proving to benefit the DAS business. And so that's why I see continued strength there.

Do you think you're gaining share on the DAS side of the business?

I believe so in the life sciences side, on the analytical technology side, I think particularly in spectroscopy, we've always had good share. Hard to say whether we're gaining a lot of share at this point.

And I'm currently showing no further questions at this time. I'd like to hand the conference back over to Mr. Prahlad Singh for closing comments.

Thank you, Norma, and thank you all for dialing in today. We are very excited and remain very excited with the trajectory on which the new PerkinElmer is embarked on and are very proud of the accomplishments that the team has achieved in the third quarter. And I'm very thankful to my 15,000 colleagues around the world for their continued hard work and contributions. I look forward to speaking to you all soon. Please stay safe and healthy. Thank you.

And this concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.