Christopher Pavese, President & Chief Investment Officer at Broyhill Asset Management, joins the podcast to discuss Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries.
For more information about Broyhill Asset Management, please visit: https://www.broyhillasset.com/
Chapters:
[0:00] Introduction + Episode sponsor: Tegus
[1:35] As a generalist, how Chris and team arrived looking at healthcare + GLP-1 tangent
[9:16] Overview of Avantor, Inc. $AVTR and why it's interesting to Chris
[13:56] Laboratory Solutions (accounts for 2/3's of $AVTR revs) / how embedded is $AVTR with customer base (CDMO business)
[20:19] VWR acquisition
[23:02] Disconnect between reported numbers and large cap comparisons / understanding cyclicality in life sciences/healthcare
[32:36] Variant opinion that generates alpha in $AVTR
[37:14] Why not own $TMO or $DHR over $AVTR?
[42:06] Capital allocation and M&A
[46:22] Build vs. sell
[48:35] Recovery story: bull or base case when $AVTR shared guidance
[54:01] Return on due diligence work with $AVTR, perception as a complicated business
[1:02:04] Tail risks
[1:06:39] Final thoughts
Today's episode is sponsored by: Tegus
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