生命科学与诊断：管理团队最关心的问题

1、Equity Research Americas | United StatesLife Science Tools & DiagnosticsTop Questions for Management TeamsLife Science Tools and Diagnostics | Sector ReviewAhead of upcoming investor conferences and management meetings, we have compiled a list of relevant questions and topics of discussion for respe

2、ctive management teams across our diverse coverage universe of Life Science Tools & Diagnostics companies, with an emphasis on the following sub-sectors: Animal Health, Contract Research Organizations, Clinical Laboratories, Dental, and Life Sciences, among others. Please reach out to our team for c

3、opies of our latest models or other requests in preparation for your meetings.Figure 1: Life Science Tools & Diagnostics Coverage UniverseDentalContract Research OrganizationsDentsply SironaXRAYIQVIA HoldingsIQVEnvista HoldingsNVSTICON PLCICLRAlign TechnologyALGNPRA Health SciencesPRAHSmileDirectClu

4、bSDCPPD, Inc.PPDHenry ScheinHSICSyneos HealthSYNHPatterson CompaniesPDCOMedpace HoldingsMEDPCharles River LaboratoriesCRLAnimal HealthZoetisZTSLife Sciences & DiagnosticsIDEXX LaboratoriesIDXXAvantorAVTRElanco Animal HealthELANDanaherDHRPhibro Animal HealthPAHCThermo FisherTMOCovetrusCVETLabCorpLHCh

5、ewyCHWYQuest DiagnosticsDGXPetmed ExpressPETSFulgent GeneticsFLGTLantheus HoldingsLNTHSource: Credit SuisseRecent LST&D ResearchDental Update: Assessing the Economic Impact of COVID-19, Part 4 Animal Tracks: July Pet Adoptions and Rx Volumes Continue to Normalize TMO: Model Maintenance; QIAGEN Deal

6、BreakIDXX: The Virtual Maine Event 2020 ELAN: Reinstate with Neutral RatingAnimal Tracks: Survey Says: 2Q Veterinary Fundamentals ImprovingDental Update: Survey Says: Dental Demand Remains Weak on COVID-19 Dynamics Clinical Laboratory Update: Diagnosing the State of COVID-19 Testing, Part 7Research

7、AnalystsErin Wilson Wright212 538 4080 HYPERLINK mailto:erin.wright erin.wrightKatie Tryhane212 325 2713 HYPERLINK mailto:katie.tryhane katie.tryhaneHaley Christofides212 325 3720 HYPERLINK mailto:haley.christofides haley.christofidesMatthew Urbik212 325 2152 HYPERLINK mailto:matthew.urbik matthew.u

8、rbikDISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS,LEGAL ENTITY DISCLOSURE AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors shoul

9、d be aware that the Firm may have a conflict of interest that couldTable of Contents HYPERLINK l _TOC_250028 Dental 4 HYPERLINK l _TOC_250027 Align Technology (ALGN) 4 HYPERLINK l _TOC_250026 DENTSPLY Sirona (XRAY) 6 HYPERLINK l _TOC_250025 Envista Holdings (NVST) 8 HYPERLINK l _TOC_250024 Henry Sch

10、ein (HSIC) 10 HYPERLINK l _TOC_250023 Patterson Companies (PDCO) 12 HYPERLINK l _TOC_250022 SmileDirectClub (SDC) 14Animal Health 16Chewy (CHWY) 16 HYPERLINK l _TOC_250021 Covetrus (CVET) 18 HYPERLINK l _TOC_250020 Elanco (ELAN) 20 HYPERLINK l _TOC_250019 IDEXX Laboratories (IDXX) 22 HYPERLINK l _TO

11、C_250018 Phibro Animal Health (PAHC) 24 HYPERLINK l _TOC_250017 Petmed Express (PETS) 26 HYPERLINK l _TOC_250016 Zoetis (ZTS) 27 HYPERLINK l _TOC_250015 CROs 30 HYPERLINK l _TOC_250014 Charles River Laboratories (CRL) 30 HYPERLINK l _TOC_250013 ICON PLC (ICLR) 32 HYPERLINK l _TOC_250012 Syneos Healt

12、h (SYNH) 34 HYPERLINK l _TOC_250011 Medpace (MEDP) 36 HYPERLINK l _TOC_250010 PPD, Inc. (PPD) 38 HYPERLINK l _TOC_250009 PRA Health Sciences (PRAH) 40 HYPERLINK l _TOC_250008 IQVIA Holdings (IQV) 42 HYPERLINK l _TOC_250007 Life Science Tools & Diagnostics / Other 44 HYPERLINK l _TOC_250006 Avantor (

13、AVTR) 44 HYPERLINK l _TOC_250005 Danaher (DHR) 46 HYPERLINK l _TOC_250004 Thermo Fisher (TMO) 48 HYPERLINK l _TOC_250003 LabCorp of America (LH) 50 HYPERLINK l _TOC_250002 Quest Diagnostics (DGX) 52 HYPERLINK l _TOC_250001 Fulgent Genetics (FLGT) 54 HYPERLINK l _TOC_250000 Lantheus (LNTH) 569 Septem

14、ber 2020Life Science Tools & Diagnostics3Figure 2: Life Science Tools & Diagnostics Coverage UniverseTickerRatingPriceTargetUpside /Downside9/8/20PriceMarketCap 52 Week HighLowAvg DailyVol (000s) Revenue (CY) 20202021Avg (5yr)Rev Gr. EPS (CY)20202021Avg (5yr)EPS Gr. EV/Sales (CY) 20202021 P/E (CY)20

15、202021 EV/EBITDA (CY) 20202021DividendYieldDentalDentsply SironaXRAYOutperform$5321%$43.67$9,633$61$321,731$3,667$3,8828%$2.06$2.701%3.0 x2.8x21.2x16.2x14.4x11.5x0.9%EnvistaNVSTNeutral$257%$23.40$3,812$33$101,206$2,483$2,669-$0.96$1.58-2.0 x1.8x24.3x14.8x18.8x12.4x-Align TechnologyALGNOutperform$340

16、10%$309.22$24,576$326$128621$2,281$2,88926%$4.45$7.2429%10.4x8.2x69.5x42.7x42.5x28.1x-SmileDirectClubSDCOutperform$114%$10.57$4,064$21$46,184$1,215$1,696-$0.15$0.17-3.1x2.2x-62.0 x76.1x20.9x-Patterson CompaniesPDCOOutperform$3441%$24.17$2,301$30$131,067$4,968$5,6024%$1.35$1.653%0.6x0.5x17.9x14.6x11.

17、0 x9.9x4.3%Henry ScheinHSICNeutral$7315%$63.74$9,113$74$421,337$9,698$10,128-$2.95$3.60-1.0 x1.0 x21.6x17.7x12.8x11.1x-Average13%11%3.3x2.8x30.9x21.2x19.9x15.6xAnimal HealthZoetisZTSOutperform$18219%$153.51$73,159$166$901,529$6,188$6,8226%$3.35$4.0019%12.6x11.4x45.8x38.3x31.4x27.0 x0.5%Elanco Animal

18、 HealthELANNeutral$27-4%$28.10$13,124$33$154,971$4,557$4,629-$0.93$1.02-3.9x3.9x30.2x27.5x17.6x16.5x-IDEXX LaboratoriesIDXXOutperform$42216%$364.19$31,418$408$169457$2,573$2,84110%$5.33$6.0122%12.6x11.4x68.3x60.6x47.7x43.2x-Chewy, Inc.CHWYRestricted$60.80$24,400$75$213,836$6,126$7,46990%-$0.50-$0.19

19、-3.9x3.2x-285.7x-CovetrusCVETNeutral$14-33%$20.98$2,391$25$41,252$4,175$4,4556%$0.76$0.80-0.7x0.7x27.7x26.3x15.1x14.2x-Phibro Animal HealthPAHCNeutral$2322%$18.87$765$29$17149$801$8504%$1.03$1.1821%1.4x1.3x18.4x16.0 x10.9x10.6x2.5%Petmed ExpressPETSUnderperform$20-31%$29.00$581$43$16683$229$2424%$1.

20、38$1.4312%2.1x2.0 x21.0 x20.3x13.2x12.8x3.9%Average20%18%5.3x4.8x35.2x31.5x22.7x20.7xContract Research OrganizationsIQVIA HoldingsIQVOutperform$17310%$157.79$30,679$171$82871$9,317$10,833-$6.20$7.8315%4.5x3.8x25.4x20.1x18.0 x15.2x-ICON PLCICLR Outperform$20516%$176.39$9,376$200$104175$2,700$3,10114%

21、$6.25$7.9319%3.4x2.9x28.2x22.2x20.0 x16.3x-PRA Health SciencesPRAH Outperform$11619%$97.84$6,202$113$59290$3,100$3,50120%$4.45$5.7633%2.4x2.1x22.0 x17.0 x15.6x12.6x-PPD, Inc.PPD Outperform$354%$33.55$11,628$35$11638$4,303$4,801-$1.16$1.54-3.5x3.2x28.8x21.9x18.2x15.6x-Syneos HealthSYNH Outperform$702

22、0%$58.41$6,186$74$30465$3,290$3,63356%$3.27$3.9332%2.5x2.3x17.9x14.9x13.5x11.6x-MedpaceMEDP Outperform$114-2%$116.49$4,365$144$59357$900$1,10627%$3.73$4.7723%4.7x3.8x31.2x24.4x22.7x18.2x-Charles River Laboratories CRLNeutral$197-3%$202.95$10,038$222$96313$2,839$3,04415%$7.20$8.3014%4.2x3.9x28.2x24.4

23、x17.9x15.9x-Average21%23%3.6x3.2x26.0 x20.7x18.0 x15.1xLife Sciences & DiagnosticsThermo FisherTMONeutral$4255%$405.30$163,336$442$2501,242$25,461$27,2989%$12.31$13.9912%7.1x6.6x32.9x29.0 x27.9x25.1x0.2%DanaherDHR Outperform$2097%$196.15$141,728$211$1201,879$20,492$22,4047%$5.06$5.9111%8.0 x7.3x38.7

24、x33.2x30.0 x25.8x0.4%AvantorAVTR Outperform$2519%$21.08$13,548$23$75,066$5,951$6,339-$0.60$0.79-3.1x2.9x35.2x26.7x19.0 x16.5x-LabCorp of AmericaLHOutperform$22027%$173.73$16,879$207$98825$10,645$12,24915%$7.08$13.0211%2.1x1.9x24.5x13.3x15.4x10.2x-Quest DiagnosticsDGXNeutral$13021%$107.40$14,402$132$

25、731,468$6,624$7,7941%$2.89$6.638%2.7x2.3x37.1x16.2x19.4x11.3x2.1%Fulgent GeneticsFLGTNeutral$13-52%$27.29$523$52$71,112$38$55131%$0.14$0.40-130%12.0 x8.3x201.9x68.3x88.2x37.8x-Lantheus HoldingsLNTHNeutral$1626%$12.70$682$27$9572$339$4743%$0.54$1.20-92%2.3x1.6x23.7x10.6x9.1x5.5x-Average31%10%5.3x4.4x

26、32.0 x21.5x20.1x18.9xIndicesS&P 500 IndexSP503,3323,5882,192$130.48($ in millions except/share)Source: Company data, Credit Suisse, FactSet. Note: $ in Millions, except per share dataDentalAlign Technology (ALGN)General Can you provide an update on trends you are seeing in North America to-date? To

27、what extent are practices reopened at this point? To what extent is demand returning? You noted in April that China was recovering, with the market at 80% relative to January levels. Update on how that has been progressing? Are you seeing pent up demand? Can you help us think about other geographies

28、 in the recovery stage? How does the pace of recovery in those geographies compare to China? You maintained your +20-30% long term outlook (ex. Coronavirus). Can you help us get comfortable with the LT model in light of underlying growth retreating to the lower end of the guide over the past year? H

29、ow conservative/achievable is this LT target? What are the key underlying drivers? How should we think about ASPs for the balance of 2020 following a 2% decline in 2019? Can you discuss factors contributing to ongoing ASP pressure? FX vs. mix shifts? Update as to how to think about ASP trends longer

30、 term? During this pandemic, to what extent have you cut marketing spend, and what drove your decision/strategy? Can you provide an update on newer consumer oriented marketing activities? Where have you found the most success (e.g. TV vs. online vs. print; teen vs. adult)? This past quarter you intr

31、oduced a Switch program, whereby doctors can convert brackets & wires patients to Invisalign. Why did you decide to rollout this program in North America in 2Q? Is it a strategy you expect to continue going forward? How is the initial traction? In terms of doctor-oriented efforts, are there other pr

32、omotions (ex. the Switch program) you can leverage that are not directly price concessions? Bundling, co-marketing? Can you speak to newer efforts to help doctors adopt a more digitized workflow and ultimately Invisalign (e.g. ADAPT)? How have these efforts been received? From a broader macro perspe

33、ctive, can you speak to sensitivity across your business in a potentially more volatile macro environment? In a normalized environment, how should we think about the margin benefit as you ramp the new China manufacturing facility and various treatment planning facilities? Longer term margin targets?

34、 Can you speak to your relationships with Aspen Dental and Heartland Dental and your DSO strategy? How would you characterize discussions with the DSOs? Profit dynamics? Can you give us an update on your third-party financing initiatives and economics behind this offering? Will this be a key growth

35、driver longer term? Traction? Capital deployment priorities? M&A philosophy? What type of assets might make sense, and how large of a deal would the company consider?Competitive Landscape Can you speak to the evolution of the doctor-directed competitive landscape (e.g. 3M, Henry Schein, DENTSPLY Sir

36、ona, and Envista Holdings)? What sort of feedback are you hearing in the marketplace? Competition across the Ortho vs. GP market? How does the Straummans ClearCorrect product compare to Invisalign? How should we think about the potential impact as they launch in more markets internationally? Pricing

37、? How important are patents in limiting competitors participation in the market vs. to what extent are barriers to entry driven by your deep market penetration and marketing capabilities? How do you think about the threat of competition from direct to consumer clear aligner businesses? Can you quant

38、ify the overlap? 10%? After your non-compete ends with SDC, do you expect to open ALGN owned Invisalign Stores again, similar to your previous strategy? Why or why not? SDC recently announced its intention to sell clear aligners through the doctor-directed channel. Initial thoughts around the feasib

39、ility of this strategy? Potential impact for ALGN?Clear Aligners What percent of teen cases can Mandibular Advancement represent over time/market opportunity? To what extent does further penetration of this product contribute to growth in 2020? Economics? We also estimate 6% of teen case shipments i

40、n 2019 were Invisalign First. How should we think about Invisalign First growth going forward? Brazil/LatAm: Can you speak to traction you are seeing in Brazil, and how you are thinking about the market opportunity in 2020? Can you speak to opportunities in other retail concepts, such as CVS or Walg

41、reens? Given COVID-19 dynamics, which have limited in-person trainings, how do you expect the number of new doctors to grow in 3Q? To what extent can you actually do these trainings virtually, if at all? Estimate is your current penetration of potential doctors in the US vs. other regions? After add

42、ing a new doctor, how long does it typically take to see meaningful case volumes ramp similar to your average levels of productivity? Does the 80/20 rule apply here (e.g., 20% of doctors prescribing 80% of cases)? Can you speak to your doctor-led Invisalign Experience locations? How many locations a

43、re there currently? How do the economics work? Traction? Update on the development pipeline? What are some holes you are still looking to fill (e.g., palate expander)? Are you more focused on developing products for Orthos or GPs? How should we think about R&D spend in the coming quarters? Longer te

44、rm?Scanners & CAD/CAM Services Can you provide an update on the iTero business? To what extent are you seeing practitioners deferring capital expenditures to-date in light of COVID-19? How do you expect growth to trend in 2020? Longer term? You recently received 510-K approval for the iTero Element

45、5D in the US. While acknowledging COVID-19 may disrupt demand, can you speak to some feedback you have gotten to-date on the product? Timing/magnitude/feedback associated with launch of new iTero 5D with caries screening internationally?Current intraoral scanner market share positioning?DENTSPLY Sir

46、ona (XRAY)Fundamentals/Demand Trends You noted that revenue gradually improved throughout 2Q, finishing down 40% in June (vs.-60-80% in April), with momentum continuing into July and revenue surpassing 2019 levels during the month. Can you provide an update on what you are seeing QTD? More specifica

47、lly, dental practice traffic trends / end-user demand in the US based on your observations and conversations with distributors? How has this been trending more recently? To what extent do you think you saw pent-up demand in July driving flat/slightly better revenues yoy? Can you outline the dynamics

48、 across Europe and the broader international market? Are there particular markets where you have been experiencing a better than expected recovery? How should we think about APAC vs. Europe? Can you remind us of how various product groups (e.g. consumables, implants, ortho, equipment) performed in t

49、he 08 / 09 recession? Are you still confident in your underlying LT targets, implying 700 bps of margin expansion from 2018 to 2022, with +3-4% topline growth. Can you walk us through your strategy? In light of the pandemic, how would you characterize the appetite for Equipment? To what extent are y

50、ou seeing deferrals of capital equipment purchasing vs. outright cancellations? How should we think about demand for digital dentistry vs. implants vs. equipment & instruments QTD? Can you provide more color on your One DS promotional program (launched in October) and program update (2.0)? How exact

51、ly does this work? Traction/Impact? Are you still continuing this promotional program or do you have something new coming up? Demand trends and LT growth rates for general vs. specialty consumables? Relationships and penetration into DSO accounts? Targeted sales initiatives? Is there an opportunity

52、for XRAY to be a third-party manufacturing partner to DTC clear aligner companies? Could this impact your relationships with the dental community? Plans for DS World in a COVID-19 world? How are you thinking about the event this year? You recently announced your intended exit from the traditional or

53、thodontic market in favor of the faster growing clear aligner market. Thoughts on your Suresmile Clear Aligner product and how its differentiated from other offerings on the market (by ALGN, HSIC, MMM, NVST)? Is this offering used as more of a hybrid solution (brackets & wires + clear aligners) or s

54、tandalone? Strategic positioning (GP vs. Ortho)? Pricing? Traction thus far?Distribution Dynamics Following $100 million in destocking in 2018, what steps have you taken to gain better visibility into distribution channels? How are your supplier relationships progressing? Update on the HSIC relation

55、ship? With your salesforce efficiency initiative ramping in the US, do you expect to increase direct distribution efforts? Can you speak about the potential or attractiveness of directly distributing to DSOs?Innovation How does Primescan differ from your Omnicam offering? How was the product been re

56、ceived thus far? Any pushback on price? Open architecture traction vs. full chairside? Do you view your new open-architecture approach will help to address previous key barriers to Omnicam and broader CAD/CAM adoption? Where does CAD/CAM penetration stand today and where can it go longer term? For P

57、rimescan, do you anticipate greater adoption from new users or upgrades? Upgrade program performance to-date? How does this upgrade program compare to previous programs (e.g. Omnicam, Blue), in terms of timing, attractiveness, success to-date? You launched Primemill at the Chicago Midwinter Meeting

58、in Feb 2020. How does Primemill compare to your legacy CEREC offering? Compare to competitive mill launches? Initial feedback on Primemill? How are orders tracking relative to initial internal expectations? Any pushback on pricing? In mid-2019, you spoke to developing a most comprehensive imaging po

59、rtfolio. Can you speak to holes you are looking to fill? Key areas of investment? Can you speak to your recently launched Implant System from Astra Tech? How does this product fit within your broader implant portfolio? What is differentiated about the product? Thoughts on your implant strategy more

60、broadly? Market share? Update on your discussions with Align Technology to obtain interoperability of Primescan with Invisalign? How would you characterize the upside from interoperability? What do you view your market opportunity is in the Clear Aligner space given other competitors have also recen