Broyhill Asset Management's Chris Pavese on $AVTR, pick and shovel play for life sciences

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 This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value