Good morning and good afternoon to folks joining us from Europe. I would like to welcome everyone to Bruker's twenty twenty one Virtual Investor Day. My name is Miroslava Minkova, Senior Director of Investor Relations and Corporate Development. I will be the host for today's event. Joining me for today's Virtual Investor Day are Doctor.
Frank Laukien, our President and CEO Gerald Herman, Executive Vice President and Chief Financial Officer as well as the presidents of our three Bruker Scientific Instruments Groups Mr. Jurgen Schrege, President of the Bruker Kallik Group Doctor. Falko Buce, President of Bruker BioSpin and Doctor. Mark Munsch, President of the Bruker Nano Group and Corporate Executive Vice President. Next, I would like to review the agenda for today.
We will begin with the Strategy and Opportunities section presented by Frank Laukien. Frank and our Group Presidents will then cover select Project Accelerate two point zero initiatives in greater detail. Finally, Gerald will discuss our financial outlook and operational excellence program. We will conclude with a Q and A session. For those listening on webcast only, please note you can submit questions for the Q and A portion to our Investor Relations inbox at investor.relationsbruker.com.
We will endeavor to answer as many questions as possible if they're submitted via e mail during the Q and A portion at the end of today's program. Before we begin, please take a moment to review Bruker's Safe Harbor statement, which I show on Slide three. It is now my pleasure to introduce Frank Laukin, our CEO. Frank?
Good morning, ladies and gentlemen. And as Miroslava just introduced me, it will be my pleasure to give you the introduction and an overview of Bruker's strategy and of our all of our opportunities and in particular to talk today about our two emerging breakout opportunities in proteomics and spatial biology. We will detail those. I will not be doing all of that, but our executive leadership team is here to present that to you today. I'll talk to you about the proteomics piece somewhat later, but let me start with a broader overview and introduction to Bruker.
So we really are quite proud to be a differentiated and very innovative high performance scientific instruments company. And of course, we focus in particular on life science research and diagnostic solutions. And we're proud to be a leading scientific instruments company. We do not just do aftermarket and follow the markets. That's a good thing and we do that too.
But we really also like to create new opportunities through new technology. If you recall, the MALDI Biotyper was an excellent example of that, an innovative mass spec, but really became a significant part of our microbiology diagnostics business over the last fifteen years. The GigaHertz NMR magnets technology that you'll hear about from Falco, that was essentially a ten year development. I think at this point, we are probably five years ahead of anybody who could possibly replicate that technology. But we're not only tech we're not technology driven, we're focusing on the applications in cell biology, in molecular biology and of course in the elucidation of disease biology.
And you'll see new examples today. Of course, you're already familiar with our TIMMS technology. TIMMS passive is a key new unique and proprietary technology that we leverage for unbiased proteomics. More on that later. From Marc, you will hear today about Spatial Biology and our chip cytometry technology from Canopy, probably not something you are familiar with and we certainly didn't have it at our twenty nineteen Investor Day two years ago because we acquired Canopy last year.
And you'll hear how we leverage a new technology, super resolution microscopy for a biological workstation, but then also eventually in future derivatives for the new Acuity Spatial three d Genomics. So we love new technology that opens up new fields in Life Science Research, Cell and Disease Biology or applied towards Diagnostics. An important element of Bruker is also our entrepreneurial culture. We are not just doing M and A or being a consolidator. In fact, we think we can create the highest value with our disciplined entrepreneurialism.
You'll be hearing more about that. Examples are we took the MALDI biotechnology but created an entirely new disruptive area of fast, inexpensive and nearly universal identification in microbiology. We were disrupting in a very positive way the field of clinical microbiology. We're going very broadly at the field of proteomics, and you'll see business innovation also in how we're approaching spatial biology with Canopy, a CRO model, novel ways of doing very high throughput targeted single cell proteomics of 10,000 of cells per sample with targeted panels, more I don't want to steal Mark's thunder, but he'll talk to you about that or how we did a very innovative licensing deal with Harvard University to get Acuity Spatial Genomics started. These are all examples of our entrepreneurial culture.
We don't just innovate in technology, we apply to disease biology, to cancer biology, you'll hear a lot about that, and to diagnostic solutions, but we also are innovative and entrepreneurial in the sense or in the business sense. So I will not speak to all of that. These slides fundamentally do not change all that much every two years, but there are some new elements. What hasn't changed is that we really very deeply care about it's not just a mantra or a nice tagline innovation with integrity is what's been driving us for many years. That's an important value that's part of our mission and it really permeates our business.
We are very customer focused. Of course, we're shareholder driven and have always been focused on all of our stakeholders. And most importantly among those stakeholders in many ways are the customers for whom we create value or help them with their research or their productivity. Of course, we're also very focused on our employees. It is a diverse, it is an inclusive, it is a very people oriented culture and has been for a very long time.
And so if I highlight something here, it's really the fundamental value of innovation with integrity that we're doing this in a sustainable way for all of our stakeholders and thereby create value also for our shareholders and our unique culture, people oriented culture, innovation mixed with entrepreneurialism. Again, a slide where I will not focus on that much, but I'll observe a little bit. Sometimes you think you have to look at all the new privately held companies or venture start up companies or maybe recent IPOs or spec IPOs, whatever they may be in proteomics or in spatial biology single cell omics. Well, that's not entirely. Here we are a fairly established company that's accelerating its growth and expanding its margins and has a positive P and L, of course, but we are as entrepreneurial and innovative in these spaces as any start up that's out there even if we have been public now for over twenty years.
The two pillars of our strategy are Project Accelerate, now the more expanded Project Accelerate two point zero. We'll be talking about that a lot today, but it is also operational excellence. The combination of the two pillars and Gerald will talk a little bit more about the operational excellence piece of it. Project Accelerate two point zero, me and my colleagues will lead you through that. I think of that as pulling up our growth rate, pulling up our margins.
The margin potential of all of our six Project Accelerate high growth, high margin initiatives are well into the 20s or perhaps even higher. As these areas become larger and larger part of our mix, they pull up our margin. But operational excellence is also very, very important. We have operational, production, logistics, but also commercial excellence and product R and D excellence. It's something where we really are very, very good.
That helps us, in my mind, the metaphor, push up the margins for expanding margins, for continuing to deliver north of 20%, very high ROIC, how we create real value and sustainable success. So two very important pillars, both are very important pillars of our overall strategy. Now our Project Accelerate has evolved further. We announced it around 2017. We've been working on it longer.
And if you were at the Investor Day in 2019, in June of twenty nineteen, pretty much exactly two years ago, you see the same initiatives, but the initiatives are evolving further. Most notably, now that Project Accelerate two point zero last year for the first time was more than half of our revenue and that continues to grow as a percentage of our revenue, as a percentage of our mix. We've expanded further in scientific software. We will not expand on that very much today. We've gone further in just about every field, but the two most notable changes are in spatial biology.
This has gone well beyond high performance fluorescence microscopy and optogenetics. We do all of these things, but we will be and I think we have the technologies to leverage to leapfrog our way into the spatial biology field and along with that into single cell omics, which is closely related as well as other cellular and neuroscience analysis tools. So that's where you'll see the biggest changes and my colleague Mark will tell you more about that. When I come back in a few minutes, I will talk to you more about the proteomics field or more precisely the unbiased deep four d proteomics and four d epiproteomics field that we address with timsTOF and with many other tools, although the timsTOF platform is the crucial tool. We also pursue functional structural biology by NMR.
And very importantly, you'll hear that in my presentation later, I think in addition to the genomics tools for liquid biopsy diagnostics research and biomarker discovery and validation, I think the entire field will have to go multi omics, which means including proteomics and epiproteomics, which we define broadly as the characterization of the very important post translational modifications that play such a big role in signaling but also in cancer. So this slide, I will not really talk to. It's more for you to compare how does that slide look today versus two years ago. You see it's expanded. I spoke to the various points.
We love our hexagon. It's a good summary, but it's almost perhaps a reference slide for you. So already in January, we revisited our the total TAMs, the TAMs that we think are realistic and conservative for our business and then, of course, most importantly, the served addressable markets, the SAMs. So I am aware that there are some 50,000,000,000 and €100,000,000,000 numbers out there as a proteomics total TAM and I don't disagree with those. We think more narrowly, but still very, very large for us, that the TAM that we can get to over time is sort of in that 5,000,000,000 to €6,000,000,000 range.
More importantly, our served addressable market, salmon proteomics, has grown very significantly. And in a little bit, these slides are perhaps obsolete already today because with a single cell proteomics, I suspect that that green pie in that left pie chart is going to grow very rapidly in general into single cell biology. Similarly, sometimes you hear numbers up to €6 or €12,000,000,000 for the TAM of spatial biology and single cell omics. We characterize it a little bit more conservatively and all the footnotes are given if you want to dig in and I know you do. We think it's a 3,000,000,000 to $5,000,000,000 TAM.
Again, Marc will speak more to it. And already, even though we're relatively new, I think we can already address with our new various organically grown, newly leveraged and adjacent market or acquired Canopy capabilities about $1,000,000,000 served addressable market in Spatial Biology and single cell omics. And then beyond Microbiology, we've expanded dramatically with PCR technologies and our unique liquid array panels, MIPPLEX panels that Jurgen will explain later into a much bigger SAM of about 4,000,000,000 in the very, very large overall TAM of Molecular Diagnostics. So to sum it up for my initial presentation, we are looking at some very large breakout opportunities. Historically, we never had in sixty years of Bruker being in the Life Science Tools and Analytical Instruments business, the very large breakout opportunities that we now see with proteomics being at the inflection point and simultaneously and somewhat overlapping spatial biology and single cell omics becoming very, very important, perhaps the best funded areas for research in the next decade and beyond.
And we intend to play and we are playing already a very, very significant role in these breakout markets that I think are at the inflection point where NGS was perhaps thirteen or fifteen years ago. Our TAMs are growing, our SAMs are growing, our served addressable markets. And maybe my final comment is here that Bruker, you know us as a technology company, good engineers, physics, engineering, chemistry. We do all
of that. We continue to do all
of that. But we really are also becoming very much a biology and molecular biology and cell biology and disease biology company. You saw that beautifully in microbiology where we are today a leading microbiology company, not only a multi biotyper company. You'll see that in proteomics. You'll see that in spatial biology.
And over time, I think you in particular will see that our tools and solutions will play an outsized role in cancer research and cancer biomarker discovery tools. With that, I'd like to thank you and we'll pass things back to Miroslava.
Thank you, Frank. For our next presentation, we will travel to Bremen, Germany, where the headquarters of Bruker's Life Science Mass Spectrometry and Microbiology and Diagnostics businesses are located. Joining us from Bremen today is Mr. Jurgen Schrege, President of the Bruker Kalled Group. Mr.
Schrege will cover Bruker's microbiology and molecular diagnostics initiative. Jurgen?
Welcome everyone to our twenty twenty one Investor Day. I'm welcoming you and presenting to you today here from our Brugadaltonics campus in Bremen, Germany. Today's presentation will focus on our microbiology and diagnostics business and I will explain you how we have been developing and building this business over the past years. On Slide two, I'm showing you now how we have been building rapidly growing business in a large addressable market. You will see that in 2020, we served an addressable market of about CHF4 billion in total in a very large end market with more than €20,000,000,000 of opportunity.
The composition of the total addressable market is driven by molecular diagnostics with more than €10,000,000,000 in size, COVID-nineteen testing, resistance testing and susceptibility testing, my global ID testing with about 1,000,000,000 in size and some hygiene and identification controls techniques serving CHF 200,000,000.0. On slide three, I'm showing you how Bruker served addressable market has expanded significantly as our portfolio has grown over the past years. You see under 2016, the red bar, this is where we started off from ID only with CHF 800,000,000.0 as addressable market. And in 2019, we added significantly to this addressable market by adding Brukerhein microbiology to our portfolio, launched IR Biotyper techniques and also launched new MBT STAR assays, adding CHF1.4 billion to our addressable market opportunity. And for 2021 and 2022, we expect to serve much more and better COVID-nineteen testing as well as Brukerhein liquid arrays syndromic testing markets, adding another CHF 2,000,000,000.
So we expect that by 2022, we will serve about CHF 4,000,000,000 addressable market with our products and services. Bruker is the worldwide market leader in multi based microbial identification and has the largest installed base worldwide. Bruker is driving innovation into the market. Our latest example is the MultiBiotyper series, which adds new capability through its negative ionization mode, which enables more complex future assays to be run on this platform. Market expansion installed base and replacement opportunities are large for us.
We have currently about 4,400 bio tybers installed in the world. This number is growing 400 to 500 units per year and is processing more than 100,000,000 IDs around the world per year. Multibiotyper series has climbed up to serve 50% of our instrument sales after its launch in 2019 and it pulls through strong consumables services and aftermarket revenues for the business. On the next slide, you see our rapid recurring revenue growth driven by new assays, consumables and services and also now with PCR technology. Microbiology and Diagnostics aftermarket revenue has significantly changed its mix over the years.
You see the business started with 81% of instruments only revenue. And in 2020, we achieved a revenue mix of 39% from instruments only and 61% of consumables. We have achieved more than 20% compounded average growth, taking the business from CHF75 million in 2014 to CHF130 million in 2017 and more than CHF250 million in 2022. In the next upcoming slides, I will talk to you about our growth opportunities for the years to come. And we will start with our MBT Sepsitiber kit for The U.
S, which has received end of twenty twenty its FDA clearance. Let me start with explaining for those of you who are not so close diagnostics, what does sepsis mean? Sepsis is a life threatening response to infections. In The U. S, about two hundred and seventy thousand patients in hospitals die of sepsis every year.
This translates to one out of three deaths in hospitals. We expect the Sepsitiva U. S. IVD kit will adapt rapidly in The U. S.
We expect to have more than 50 sites using Sepsitiba kits in The U. S. By mid of the year and we expect that the adoption of Sepsitiba U. S. IVD will accelerate the adoption of Maldebiotiba instruments in The U.
S. Market. In the graph, you will see that there's a significant difference between the installed base in Europe versus The U. S. So the European installed base is 2x higher than The U.
S. Base and we hope with Sepsitiba we can close this gap. Here on this slide, you see first strong customer endorsement on our Rabbit U. S. IVD kit.
Sepsitiba is taken up quickly in The U. S. Now and customers like the three listed here highlight the cost effectiveness of our solution, the improved and fast turnaround of the diagnosis and improved and change directions. Our second largest growth opportunity for our microbiology and molecular diagnostics business leverage the trend towards rapid antibiotic resistance and susceptibility testing and will expand further our addressable markets. We have some presence already in this market.
As you know, with our MALDIBIOTIBER, we have assays like MBT Star CarbA and MBT Star Zephyr, which served the resistance mechanism testing market already And through an acquisition of Merlin in Germany, we participate in the micro growth dilution testing market already. We are planning to expand our portfolio for this application space significantly in development and work in progress for us is a complete new development of what we call MBT Fast Forward, a SA concept for fast phenotypical AST testing in less than seven hours. These assays will be available for all of our MBT instruments. Some other work in progress is at our Prugerhine molecular diagnostics business. There we are developing new liquid arrays with high and mid multiplexing capability to do more antibiotic resistance testing assays.
Our third large growth opportunity for our microbiology business are anchor applications utilizing our differentiated PCR platform. We will focus on tuberculosis and mycobacteria, respiratory disease, syndromic panels leveraging our liquid array technology and transplantation diagnostics. Why do we think we can deliver high organic growth on our PCR diagnostics business? We think Brukerhein liquid array technology enables cost effective next generation higher multiplexed PCR assays. A good example we show down below the picture, our tuberculosis MTBDR two point zero assay analyzes 60 mutations in TB resistance genes leading to five twenty two resistance patterns.
This is an unmatched PCR performance in the market. On the right hand of the slide, I show you our new product pipeline. We have developed new products and launched some of them already, for example, in sexual transmitted pathogens, in multi track drug acute TB resistance detection and we are planning to launch new liquid array assays in 2021 and 2022 addressing unmet needs in large markets. Here I want to show you our ongoing commitment to combat COVID. We launched a new CE IVD quantitative coronavirus mid plex PCR detection for routine variant differentiation.
This assay called Fluorotype SARS CoV-two variant IDQ is a CE IVD labeled novel liquid array mid plex PCR panel. It detects selected SARS CoV-two mutations and enables differentiation of major viral variances. It can quantify viral load and provide indication of in effectivity or stage of COVID infections. It's validated for highest sensitivity in the market. So let me wrap up my presentation here by repeating our strategic focus.
Bruker keeps changing microbiology with highly differentiated innovation. We keep growing our microbial identification business and our multi biotiba franchise. We will develop into antibiotic resistance and susceptibility testing by new AST assays. We will develop new molecular diagnostics on liquid array panels at Bruker Hain Diagnostics and we will keep taking new technologies such as IR Biotyber into clinical solutions. Thank you very much for joining us today on our presentation about our microbiology and diagnostics business.
I'm looking forward talking to you in our Q and A session. Thanks for listening. Bye bye.
Thank you, Jurgen. Next, we would like to offer some insights into Bruker's market leading gigahertz class nuclear magnetic resonance or NMR technology and its potential impact on the study of protein structure and function. I would now like to turn the floor over to Doctor. Falco Bussi, President of the Bruker Biospin Group, who will discuss gigahertz class NMR.
Hello. My name is Falko Bussi. I'm President of the Bruker BioSpin Group. Bruker BioSpin develops solutions for life science, for preclinical and clinical research as well as for pharma, multiomics, including clinical phenomics and foodomics and more. We are the clear market and technology leader for magnetic resonance analytical instrumentation, and we are practically present in every key life science research institution around the globe.
Our focus today is the Bruker GigaHertz NMR flagship technology in structural functional biology with a deeper look in significant applications like neurodegenerative diseases, cancer and COVID-nineteen. What do these applications have in common? A key principle in biology structure determines function. In other words, the way a molecule is arranged, its so called conformation, determines how it interacts with this environment and therefore, how it functions. However, for these proteins to function, it usually requires a change in conformation.
This is especially true for intrinsically disordered proteins, IDPs, which are a large and functionally highly relevant class of proteins, and they are involved in a large number of disease pathways. With an aging population in many regions on this planet, we also see an increase in age related diseases, especially neurodegenerative diseases like Alzheimer's, Parkinson's, Lewy body and others.
What we now started to look at are actually these insoluble deposits of a protein called tau, which is believed to be the major culprit in Alzheimer's disease. So what we really try to understand is what is the structure of these tau aggregates, amyloid fibers, and again how does the structure differ between different diseases in the same way because this will help us hopefully to target right drug to the right person.
Our gigahertz technology is ideally suited to investigate molecular interactions at an atomic level to obtain structural, functional and binding information at near physiological conditions. This extends the frontiers of accessible research targets for pharmaceutical interventions, and by that, potentially novel therapies.
When we just started now three months ago, we're particularly impressed we've seen by the quality and the resolution of the solid state NMR spectra of amyloid fibers of the Alzheimer related protein tau, which we have started to measure and which really, I mean, gave fantastic resolution. So we hope to build on this in the future.
How does the Bucher gigahertz NMR technology enable and support research in neurodegenerative diseases. First of all, it helps in understanding disease mechanisms and pathways in a much more detailed level. Especially if you look at intrinsically disordered proteins like beta amyloid, but also alpha synuclein. These are extremely relevant proteins in the disease process.
So this is implicit structure and dynamics of molecules, and we apply that to all kind of sorts of molecules in order to relate then structure with function eventually. Function is most of the time chemical function, but also biological function or pharmaceutical function.
So if
we understand that, we can understand how molecules interact with each other and modify their function. And sometimes, and this is one of the research lines, this is important for diseases. So we are looking at how molecules behave in under disease conditions and try from that also then to work on therapies for these diseases.
These proteins tend to aggregate during the disease process, Beta amyloid to form fibrils and plaques and alpha synuclein aggregates on the surface of neuronal cells and impact their function in Parkinson's disease. So to understand the mechanisms of this aggregation and identify molecules that can either inhibit the aggregation or even reverse aggregation after it happened are primary targets for novel therapies for these diseases. Future developments that will continue to support the research in the field and drive the effectiveness of the translation are, for example, software tools that significantly accelerate the analysis of these huge data sets which are generated by the gigahertz class NMR machines using artificial intelligence and deep learning to speed up the whole process. It takes several years to get an outcome. That's scientific work.
And it's like that. If you study such a system, it may take a half a year or two, three years. And what we recently started is to automatize this process. And we make a lot of progress, and it looks like that we need now maybe two weeks of measurements and five hours of computation, and then we are done. Now this is possible for systems which are not as big, not so biologically relevant yet, but with the high field, we will be able to get there.
And with the help of this high resolution because they have a sharper picture, Artificial intelligence is much easier to be applied, and so we will be soon automatized. That's my prediction. And of course, it's my baby of research, and so I'm very excited about it, that we will soon deliver this and everybody can get once a week a structure when the biologist works in the system. I'm not waiting a year to understand the structure and then try to understand what it tells you in terms of biology. And that will accelerate amazingly the process of rational approach in understanding biology.
Furthermore, creating a seamless workflow from the gigahertz class NMR machines onto more standard systems, enabling the flow down of these research results into the drug development process.
Science is driven by developments in instrumentation. So we now have the best NMR spectrometer for biomolecular applications in the world. So it definitely will provide our competitive advantage. Outcome could
well be therapeutics and diagnostics for neurodegenerative diseases like Parkinson's and Alzheimer's. And if that was the case, it would, of course, be super rewarding because it goes then from basic science to actually benefit to society.
In the last eighteen months, all of our lives have been affected by the COVID-nineteen pandemic. With the life science industry taking responsibility for fighting the pandemic, Bruker is very proud of being a partner of all these high profile scientists and other industrial partners, providing software, providing automation, providing data management and application support for the scientific community.
The virus contains an RNA of 30,000 nucleotides that code for something like 30 proteins. And by NMR, we can look at each and every component of the virus. So the goal was, from the beginning, to make accessible for NMR spectroscopy all components of the virus. Everything that the virus is should be studied by NMR.
How does GigaHertz class NMR technology enable COVID-nineteen research? Firstly, by investigating dynamic viral RNA changes and protein binding interactions to really understand replication of the virus secondly, to understand the structure of cell membranes and the molecular mechanisms that enable the virus to enter cells. Both of these should provide future targets for therapeutic interventions, either to disable replication of the virus or to prevent the virus from entering host cells. But the truly gratifying part is the new level of collaboration that emerged between academic research and industry, which also motivated Bruker to really become a true innovation partner developing new solutions on the interface of academic research and pharmaceutical industry. One of the enabling factors is Bruker's extensive global reach, which means that everybody has a chance to work on the same platform, which makes it much easier to exchange results and collaborate.
The work of the consortium can really fit in many drug discovery programs because I'm sure that right now there are different drug discovery programs that are targeting different proteins, which are involved in the infection process.
I think we should, as many of NMR groups as possible, where we have the expertise to work on SARS CoV-two proteins, we should participate in the consortium and share information and collaborate in order to speed up the drug discovery process against this virus.
NMR has helped us easily and quickly to understand the architecture of the virus in terms of its proteins and its RNAs. And this is something that I would not have missed if possible.
Yes. Think where the opportunities lie, especially for these ultrafilmed animal instruments, really, I think, is to go after dynamic complexes. These are just very flexible of course, you know that all proteins and most of the complexes are very flexible. Many of them, they have and they populate conformational states that are maybe, what we call, energetically very high. That means, in simple terms, that they are present only for like a very, very short period of time.
And these changes in conformational states are just very, very hard structurally characterize by any other technique other than NMR. So this is, I think, where the power of NMR really lies, and this is where I believe the future of NMR is and where it needs to be invested.
There's a very clear statement in the road, which is if you want to do the best science, you have to have both the best people and the best infrastructure. So and and that means leading edge and any instrument Obviously, you tension it against what else you're
going to fund.
But the key point from the perspective of NMR is it's been identified as one of the along with, for example, electron microscopy and mass spectrometry, but it's explicitly in the list of things that the government will keep an eye on as to what it needs to invest in.
I'm very confident about the Bruker GigaHertz class NMR technology, demonstrated by several of new type of research enabled by gigahertz class NMR. I would like to invite you to learn more about Bruker BioSpin, and thank you very much.
These are some exciting developments. For our next presentation, I would now like to welcome back Doctor. Frank Laukin, who will discuss Bruker's unbiased proteomics and multiomics initiatives. Frank?
Hello. Welcome back. It's Frank again. This time to talk to you about proteomics and in particular about unbiased deep four d proteomics and epiproteomics as we call it, but also about multiomics and here in particular about our metabolomics and lipidomics tools. My colleague Mark will talk to you about targeted spatial and single cell proteomics.
That's part of our broader proteomics strategy. I'll focus on the unbiased deep proteomics primarily or essentially all with the timsTOF platform. So this is a little bit the science tutorial, although it does show our new single cell proteomics instrument. And I'll make a few points. You are all familiar with DNA transcription to messenger RNA to post transcriptional modifications, alternative splicing, all of that, eventually getting to the proteins, quite a variety of proteins.
Also very important to the post translational modifications or these PTMs, if you're not so familiar with them, or what we sometimes call in analogy to epigenomics, the epiproteomics part. It's actually very, very important because, yes, there are in humans, there's about 20,000 protein groups because that's how many genes we have. That's the maximum. But you have up to 200 different post translational modifications. So it can really when you multiply that and functionally and in disease, it is really quite important.
You're talking about hundreds of thousands or millions or tens of millions of proteoforms. And for that, you will you need to have unbiased and deep proteomics, in our opinion, because that's not never something you're going to do with an array or that you'll see out of a sequence or something like that. So I think the most important proteomics technology will be unbiased deep proteomics just like NGS dominates the genomics world. That is my absolute conviction. And let me elucidate that a little bit.
So for instance, phosphorylation is tremendously important in fundamental cell biology in signaling. It is also very, very important in cancer proteogenomics. Glycosylation, very important in how cancer cells interact with a stroma in the tumor microenvironment, very important in how cancer cells modulate or downregulate the immune system. By the way, that's also viruses do that. HIV is heavily glycosylated.
So these things are not only important for fundamental cell biology, but also very, very much for infectious disease biology and for cancer biology. Moreover, another very important aspect of the proteome, even at the single cell level, is that it is dynamic. It is changing much more than the genome or the epigenome, and it is quantitative. I'm really a big fan, if you think about function or drug discovery or really understanding disease, talking about quantitative biology beyond pretty pictures, beyond barcoding and putting things into an atlas or cell atlas. Quantitative biology is where it's going or where it's at.
And the proteome, even at the single cell level, has sufficient copy numbers for good statistics. Why is that important? Well, mRNA or single cell RNA sequencing is an important gene expression technology, but the mRNA, the messages are actually spares, the proteins. That's where the rubber hits the road. That's where these are the enzymes.
That's the biological functionality and that is quantitative and that's actually a profound, very important point. The variety, the fact that it is quantitative and the fact that in terms of enzymatic function, it is as or perhaps even more important in most diseases than even genomics. It has been held back because we don't have PCR, we don't have industrialization, we didn't have the sensitivity, but that is all changing. And I'm predicting, and I think we're in the midst of that already, the inflection point in proteomics with much work to do over the next ten, fifteen years to where proteomics indeed will become as important, if not more important even than genomics, epigenetics, transcriptomics. That's a bold statement, but I'm very convinced that, that will happen.
As I pointed out earlier, we are also looking at the lipids and metabolites, not only the proteome and epiproteome, but also lipids and metabolites, everything downstream from genomics. And of course, we're eager to collaborate with genomics companies as ultimately you have to put it together. For instance, for biomarker discovery in liquid biopsies, I think the future is multi omic. Proteomics doesn't displace or replace these other technologies, but epigenetics and transcriptomics and proteomics, I think that's where you will make real progress in positive predictive value or higher Stage I and Stage II sensitivities that are clinically very badly needed, for instance, in multi cancer early detection. So after that introduction, let's become let's focus on what Bruker's role is in proteomics.
It's quite sizable already. The various tools that you've seen here, you heard about NMR from Falco. There are some other tools that we did not talk about today. You'll hear about targeted spatial proteomics at very high throughput with excellent quantitation from Marc later in the spatial biology section. And I will talk more about the TIM's TOUGH platform and four d proteomics.
Overall, our revenue in proteomics, in research proteomics is about 200,000,000 to $250,000,000 already. Our SAM, our served addressable market, has probably doubled in the last few years to about $2,000,000,000 and the total TAM, as I said in my introductory remarks this morning, is probably 5,000,000,000 to 6,000,000,000 into which more and more of that TAM we hope to grow with what we can serve in the future. By the way, not included here is the clinical applied proteomics, the MALDI Biotyper, which is another $200,000,000 business that legitimately, since it uses proteomic fingerprinting, could be called applied proteomics and we call it that, but it did not include that here in the 200,000,000 to $250,000,000 So let's dig deeper into the timsTOF platform shown here, our new instruments. We just introduced them on June 1 at our XSEED symposium that was extremely well intended by well over 1,000 participants, absolute record. And let's talk about proteomics and four d epiproteomics, the study of all the post translational modifications that go with the proteome.
It's really been quite a revolution since late twenty seventeen when we introduced the first timsTOF platform. We did set the new standard for sensitivity, for depth, for samples per day. I'll come back to that in a moment. And the fourth dimension being the iron mobility dimension, that's a molecular property. It's not a property of the instrument or of the LC system or as we call it, the CCS Collision Cross Section.
The Collision Cross Section enabled four dimension with a fourth dimension that's unique to Bruker at scale and very amenable to machine learning and deep learning compared to other technologies and unbiased proteomics, giving us a greater depth, has almost made this timsTOF platform with a passive method by Matthias Mann a very big evolutionary step, if not revolutionary, in driving proteomics towards the throughput, the depth, the sensitivity, the robustness that you need to do what sequencing by synthesis did more than a dozen years ago, I. E, to kind of industrialize, then it was genomics, now it is proteomics. And we're doing that, of course, with many, many partners, but we're a crucial part of that. And last but not least, and I'll come back to that as well, there's a big incremental evolutionary step in mass spectrometry with that timsTOF SEP for single cell proteomics. But from a point of view of disease of single cell biology, I think it is a revolutionary instrument because it is really opening a new scientific window on quantitative single cell proteomics.
So if you look on the right, we've been for some years now doing tissue and cell culture proteomics. We've been studying post translational modifications. We have certain biopharma applications as well. That's why the biopharma adoption and CRO adoption of this timsTOF technology has been quite good. Almost a third of the customers come from biopharma, pharma CROs, which is fantastic for a relatively new technology.
Now we are also enabling either high throughput or very deep plasma proteomics, Very important to become complementary in a multi omic sense for liquid biopsy biomarker discovery combining genomics and proteomics. That's the future in my opinion. And last but not least, I've already hinted that we're playing a bigger and bigger role in cancer research. And for instance, now we have the sensitivity to look at cancer biopsies, fine needle aspirates with a multi omic sense or we can do the proteomic and epiproteomic discovery part of a liquid biopsy multi omic strategy, which I think will be the future. And some companies are leading with that already.
Some content companies are adopting that and I think there'll be years ahead of others that are only that are not adopting a multi omic approach. So let me dig deeper into well, let me talk a little bit more about the market for a moment here. Two years ago, I said our SAM for this timsTOF platform was maybe around €500,000,000 We think it has more than doubled in the meantime, so it's probably greater than €1,000,000,000 Think about not only the about 700,000,000 maybe 700,000,000 to 1,000 unbiased proteomics labs in the world. They, of course, tend to have they all have mass spectrometry. There may be 5,000 to 7,000 of these proteomics capable high res mass spectrometers out there.
You may have heard the number 15,000. That's true. There's other high resolution mass specs. They're not all suitable for proteomics or they're no longer current. So we take the more conservative number.
We think we have a lot of growth within just that unbiased proteomics segment, which is growing and we have been growing with it and growing in market share. In addition, I now believe that the time is right where not all, but some of the unbiased genomics labs, which is code for NGS, I know there's some microarrays, but basically it's next generation sequencing, that some and more and more and more and maybe at some point one third or one half of them, not all of them, will eventually go from genomics, which was feasible. If they're following the biology, they're following the diagnostics, I think they will move into a multi omics direction, which includes proteomics. So some quick practical updates. We had commented on these figures before.
Our timsTOF installed base is now greater than 300 units. We have more than €75,000,000 of revenue per year as a run rate. And both last year 2020, obviously academic funding was challenged last year, but even in 2020 and then again in the first quarter of twenty twenty one year over year both our timsTOF bookings and revenue all grew greater than 30%, quite a bit greater than 30%. So the growth rates have been good last year and are again very good this year. So we are getting into what I would call the steeper part of the S curve, although the timsTOF technology, think of it as a fifteen or twenty year technology, we're sort of beyond into year four perhaps now.
That gives you an idea for where we are and how fast we're growing and gaining in market share. So you can read about the new products in our press releases and they'll give you a lot of details and a lot of metrics, but let me highlight the importance for biology and for biological and for disease research. Until about three point five years ago, when we introduced the timsTOF, typically proteomics was accessible at the two microgram level. And was that what scientists want? No, that was available.
We pushed that down by an order of magnitude through the 200 nanogram level. I think proteomics becomes far more applicable to many, many more research and disease research opportunities at 200 nanogram. This new timsTOF Pro two, which is the evolutionary next step to the timsTOF Pro, takes that to the 20 nanogram level. And by the way, it doesn't do it in ninety or one hundred and twenty minute experiments. It does it in thirty minute experiments.
Of course, you also get higher performance if you go for the longer gradients over larger amounts, but this gives you sort of a pretty good indication of what's practically possible. And by stepping up by stepping down in terms of what we can the amounts of materials we can work on and stepping up in sensitivity and depth, I think it just makes proteomics that much more useful and many, many more labs can now adopt it for their problems, for their research where previously they may have hesitated. An important point and it seems trivial but it has been far from trivial because it has been essentially unthinkable a few years ago is made by Doctor. Roman Fischer of Oxford University. He's been one of our team's tough pro users for over a couple of years and he's run on that one instrument more than 25,000 samples.
He says he's had essentially zero downtime so far. That is actually a really big deal even though it doesn't seem like fundamental science, but that's what I mean by industrialization of proteomics just like sequencing biosynthesis industrialized NGS. There had been other sequencing methods before. Very important part of enabling for the field of proteomics. Here is another example courtesy of Professor Stefan Tenser.
When I talked to here is an example of phosphorylation. So actually in this particular example, our four d epiproteomics performance, we could look at close to 30,000 phosphopeptides important in signaling. Very uniquely, because of our fourth dimension, this CCS enabled ion mobility dimension, I know this gets a little technical, but it is important. We could discover and see fundamentally isomers that you cannot see with any other set of technologies. So nearly 500 additional phosphorylation sites were visible and could be identified, and that's really important for functional cell biology and for disease biology, again, particularly in cancer.
So some of these finer technical details are really, really important in what customers do with these instruments. So just to summarize briefly, the new timsTOF Pro is our new workhorse. It has replaced the timsTOF Pro two has replaced the timsTOF Pro. There are some very, very good numbers. There's maybe one subtle point somewhere in the middle of the page and this is this targeted PRM passive.
We sometimes get asked, well, unbiased with mass spec, fine, but there are all these targeted panels and there are these protein array panels. Well, I'm here actually today to tell you that targeted four d proteomics by timsTOF platform is an incredibly high throughput, very affordable and extremely attractive alternative. With our new PRM passive targeted methods that we've co developed with a number of clinical researchers mostly, you can do targeted proteomics on hundreds of peptide targets now without the hundreds or thousands dollars per cost for an array. Try to do 50 or 200 samples per day and multiply that by 100 or maybe close to $1,000 a day. It doesn't work.
We, doing things through labor free quantitation, can do this very, very cost effectively and it is enthusiastically welcomed by those who expect to deploy targeted proteomics towards eventually diagnostics initially perhaps in laboratory developed tests. So an important additional point I wanted to make. And I wanted to give for deep plasma proteomics, I wanted to give a shout out also to SEER with their proteograph, Some of their best results for deep plasma proteomics with a timsTOF Pro detector had been shown by them recently at our EXCEED symposium. And I think that's an important additional element, especially for plasma proteomics. Further shipments are immediate, so this is going to contribute to revenue immediately in the second half of this year at least.
And by the way, we're also making it field upgradable. That has been a sore spot in the field because previously that had generally not been available and our customers wanted us to behave responsibly. So we're going to provide field upgrades at a cost that's moderate starting next year. Now let me come to the major evolutionary step in mass spectrometry, but revolutionary step I contend in unbiased quantitative single cell biology. And that's the timsTOF SEP for single cell proteomics.
This is the unbiased deep version. We have targeted high throughput targeted panel proteomics in spatial biology that my colleague Mark will talk about. This is for unbiased deep single cell proteomics that is quantitative. Matthias Mannen, what he published or put on BioArchive last December showed that the copy numbers for more than 1,500, probably 2,000 and more proteins in each single cell have sufficient copy numbers so you can do meaningful quantitation that enables meaningful drug discovery, functional studies and disease fundamental disease mechanisms. So this is a major evolution in technology and an enabling revolutionary system in single cell biology.
Matthias Mann, well, he will be forgiven.
He said, I won't see it
in my lifetime. But since he then enabled, he'll be forgiven for having been maybe not as optimistic as he now is that this will be a field enabling game changing technology. We also launched that on June 1. We now have not four, but six orders already. And I was in Northern California last week, and I have to say the interest in this new capability is tremendous.
Think of it not so much as from a mass spectrometry point of view. Think about single cell RNA seq, quantitative gene expression. Today, the RNA seq market is supposed to be about €2,000,000,000 probably half of that or close to half of that is for single cell RNA seq. And this is what I call the other eye open for gene expression. You need transcriptomics, you need proteomics.
Arguably proteomics is much more quantitative. But at a minimum, it is highly complementary. And I think many, many non proteomics labs that have just been doing quantitative single cell biology will want this technology soon. So there are improved methods. There is some fantastic numbers that I've mentioned already.
Let me just conclude with how important we think this instrument is, for instance, for looking at heterogeneity in tumor microenvironments or perhaps also in metastases. But let me focus on TMEs, on tumor microenvironment. There you have not only monoclonal cancer cells, but also the stroma and the invading or surrounding immune cells. And they all interact and these interactions are all very, very important in emergence of resistance, in metastasis, in fundamentally understanding cancerous processes because the bulk proteomics or transcriptomics just does not tell you enough to really make progress in understanding cancer. So very important for cancer research.
By the way, also related to cancer, namely the field of immuno oncology, this ultra high sensitivity instrument will not only be used for single cell proteomics, but very important is also the neoantigen peptide discovery that is expressed uniquely by cancer cells and which is not templated in the DNA, many, many of these peptides that are playing a role and that we need to understand to train the immune system or develop cancer vaccinations for immuno oncology need to come out of this unbiased neoantigen discovery workflow that requires extreme sensitivity. A bit of a niche field, you might think, but no immuno oncology is a really big deal and this will enable new levels of insight and research in immuno oncology, very, very important. I will conclude with a quick outlook and just a quick summary slide from Ron Heron, who is at the Maastricht University Center, who gave a fantastic talk on the applications of four d metabolomics and four d lipidomics with MALDI mass spec imaging, also on the timsTOF platform, on our timsTOF Flex, and how that can also inform investigations, for instance, in the tumor microenvironment that we just discussed that are highly complementary and are needed side by side with the epiproteomics and proteomic
the epiproteomics So I'll conclude here with the message that the TIMSS passive collision cross section enabled 40 proteomics and multiomics revolution continues. We introduced the Flex with a new MALDI-two source, very important for metabolomics, probably game changing for metabolomics, although not the focus today. We introduced that last year. And just last week, the very important next generation timsTOF Pro2 and then the revolutionary, at least within the biology field within cancer and cell biology, the revolutionary timsTOF single cell proteomics for unbiased quantitative single cell biology. Thank you very much for your attention and interest.
Thank you, Frank, and thanks to the audience for your attention. We hope you're enjoying the presentations. We will now pause the program for a five minute break. We expect to resume in exactly five minutes. Welcome back to Bruker's twenty twenty one Virtual Investor Day.
For our next presentation, I would like to welcome Doctor. Mark Munch, President of the Bruker Nano Group and Corporate Executive Vice President. Mark will discuss Bruker's opportunities in spatial biology, single cell omics and cellular analysis. It is my pleasure to introduce Doctor. Mark
Hi, I'm Mark Munch, President of the Bruker Nano Group. I'd like to give you an overview of our platforms in spatial biology. This slide shows the evolution that's occurred in cellular based omics as we move from bulk average or mean field information gathering to then about a decade ago, single cell ex situ transformation to now is very exciting time of in situ spatial information, both at single cell resolution as well as subcellular resolution. As this happens, as we move to spatial, the amount of information increases dramatically and so does the mechanistic insights. So it's a very exciting time for cellular omics.
Bruker has three platforms that plays across the segments in spatial in situ. The first is the Canopy Biosciences chip cytometry platform for a very high plex targeted spatial proteomics. We have our Vitara product platform, which is a very versatile platform that is applicable across spatial proteomics, transcriptomics and genomics. And then lastly, we have our very exciting new venture with Acuity Spatial Genomics, opening up new frontiers, looking at the three d genome spatially in situ. We're leveraging our fluorescence microscopy instrumentation expertise across all three platforms.
We understand fluorescence microscopy really well. This gives us an advantage on the hardware instrumentation side as we apply novel chemistries and biology across these fields. We see the overall TAM for this area of 3,000,000,000 to 5,000,000,000 and the Bruker initial SAM of $1,000,000,000 Okay. Let's go to this first segment where we address spatial proteomics. In this segment, there are many important attributes that the industry needs and where Canopy addresses today.
In this Canopy chip cytometry platform, we have high plex, targeted proteomics all done at single cell resolution. Best way to start is just by looking at pictures, seeing an idea of what we do. So on the right, you see tissues with single cell resolution. On the left, you see cell suspension examination, in particular here PBMCs. Canopy offers through its chip cytometry platform instruments and hardware, consumables in the form of sample chips and carriers, analytical software, standard certified panels as well as custom panels you can build around that and project analytical services.
Now customers are really after quantitative data, quantitative results. The pictures are very nice, but it's really about how quantitative the data you can achieve. The types of questions customers are asking are what types of cells do I have and where? What is the cell count of different cell types and different spatial areas? What are the key proteins there being expressed and to what level, what concentration level?
And what are the quantitative spatial neighborhoods look like? And what are the correlations amongst those neighborhoods? So for example, in a tumor microenvironment, you'd like to know what the immune cells are doing spatially relative to the healthy cells and the cancerous cells. What differentiates the Canopy Chip Cytometry Platform is it's highly differentiated in quantitative results it can deliver. First, this starts with true single cell resolution.
We've been single cell resolution for some time, the very beginning. Here you see on the left how good we are in resolution. To be quantitative, you have to see every cell. And so you have to see each singular cell and be able to differentiate it. This is quite different than other platforms that just give regions of interest and with big gaps of information between those regions of interest.
So single cell is very important. The other aspect is very important is high dynamic range. We have eight log dynamic range. What this means is amongst the cells that are there in very high abundance or moderate abundance, we can see the very low abundance cells. You can't have just the high abundance signals or moderate abundance signals swapping out the low abundance signals.
So eight log dynamic range gives us this. And with that, we have quantitative artificial intelligence algorithms. Knowing how to use that eight log smartly gives us this advantage. So these three things, two single cell resolution, high dynamic range, and then using that dynamic range with quantitative artificial intelligence algorithms is what really gives us on the performance axis some quantitative competitive advantage. Now it's not just about looking at the pictures.
The pictures have a lot of important information. But if you're really quantitative, you can extract very quantitative information from it. So for example, in the middle, I show the dot plot where you can look at concentration correlations among cells. Or on the right, you can see absolute cell counts. These aren't relative cell counts.
These are absolute cell counts. So many technologies, because they're not truly quantitative, you can just see relative information. But amongst the tens of thousands or hundreds of thousands of cells that we see, we see every cell and you can count every cell and every cell type. And so this absolute cell count abilities makes us very unique. So these three combinations here of true single cell resolution, high dynamic range and using that high dynamic range with quantitative artificial intelligence algorithms is what makes the ChIP cytometry platform of Canopy very unique.
In addition to the performance advantages, we have advantages in our biomarker flexibility and how we can customize around that. We have over two fourteen validated biomarkers. And what's important about that is it's open source. So if you need a two hundred and fifteenth or two hundred and sixteenth, we can do that. You can customize around our standard panels to your applications.
Those applications are in immunology, immuno oncology and neuroscience. Just recently, we launched five new panels, three in immunology, immunology PBMC panel, a COVID-nineteen PBMC panel and a immunology panel for tissues, FFPE. We launched an immuno oncology panel for tissues and a neuroscience tissue panel. Just to give you an idea, let's zoom in on one of them. This is a breast carcinoma.
You can see we can do whole slide imaging very easily on this platform. If you zoom in on a very specific field of view, you can see here the single cell resolution, very high detail, and you can see the high dynamic range. We can see the very high abundance elements, but also very importantly, low abundance elements. And again, you need the single cell resolution with that high dynamic range and all the algorithms we have to know how to use that dynamic range to make the results very quantitative. The KNP platform is very uniquely quantitative.
So let's talk about the Vatara Voxel platform. This is a very flexible platform that has wide field and superposition imaging capabilities and a number of omics methods programmed in on the workflow and the analysis. The VTAR Voxel is an imaging platforming, again, in wide field and super resolution down to 20 nanometers in resolution. But this powerful SRX software integrates that imaging with fluidics. So we have a whole solution here across imaging and fluidics all pulled together by the SRX software.
The multiomics platforms or methods that supports our oligo paint, single molecule fish, oligo physique, oligo storm, chromatin tracing methods such as Orca and DNA paint. And there's more to come on this because the platform is so versatile. This helps us really support in a Swiss Army knife like fashion science in the genome, in the transcriptome and the proteome and allows researcher to really explore along those dimensions with a lot of flexibility. What differentiates this Vatara Voxel platform is our proprietary bipartite detection. This allows super resolution not only in X and Y, but also in Z.
So in addition to this three d super resolution capability and we can image fixed samples, we can image up to 50 or 60 microns. Here I show a mouse retinal tissue across a 10 micron tissue section, all in super resolution. This is very unique to the VITARA voxel platform. And this is very optically stable platform. Okay, let's go to our new venture, QD Spatial Genomics.
This new venture spawned out of our collaboration with Harvard Medical School. In this new venture, for the first time, we're allowing scientists to examine the three d genome in situ as single cell and subcellular resolution. Let's take a look, first of all, at the problem with amount of DNA we have in nucleus. So each of us in every cell, we have 1.8 meters of DNA. This is in every cell.
It's quite a length. For a six foot tall human, that's about the height of an average human. You have to take that 1.8 meters of DNA and somehow get that into a five micron nucleus. So this DNA has to fold and crumple in to this very small space. And to do that, that means there's a lot of order to the structure.
In fact, the type of order we're looking at is highly varied. It's highly organized. So you look here on the lower left, you see a cell with a single nucleus. In that cell, you have the chromosomes. Those chromosomes occupy preferred radial positions in that cell, whether it's centrally or towards the radial edge.
And then at a lower length scale you have chromosome territories where the chromosomes occupy their own territories and within that you have both A and B compartments with the A compartments generally having the gene rich areas of the chromosome and the B compartments having the lesser gene rich populations of the chromosome. If you go to a finer scale, you have topologically associated domains or otherwise known as TADS. These are very important in regulation. And if you go into a very even finer scale, have loops or otherwise known as sub TADS. So all this structure is in the five micron nucleus.
And it's very important to understand that because it's not just about the base pairs and the coding, it's about how that structure interacts with each other and how it's regulated. And furthermore, it's not static. The genome is not static. It's a fluid structure. It's highly compact, but it's moving.
So just some facts about the three d genome and why those facts are important is because the three d genome, this is where it all starts. It says three d genome is the genetic blueprint, which then turns into mRNA, which are the transcript co carriers, which then get expressed into proteins. But the genome is where this starts. So in each nucleus, you have 3,200,000,000 base pairs. So think about it, 3,200,000,000 base pairs.
And it is now known there's just over 20,000 number of genes. So that's only 2% of that genome involved in coding. Okay? The genes are what codes for the proteins. That means there is 98% of that three d genome in non coding function.
So what's that other 98% doing? In that other 98% are the regions that regulate and modulate expression and replication. This is where you find enhancer promoter sequences for enhancer promoter interactions. It's where you find those TADs and sub TADs. We have hundreds of thousands of possible enhancer promoter interactions and only certain ones are selected for a certain cell type.
You have tens of thousands of TADS and sub type domains. It's that 98% is very important in regulation and modulation. It is very important how that works in controlling healthy cell states and diseased cell states. So the QD spatial genomics is formed to examine both the two percent and the ninety eight percent. What QD spatial genomics can measure is shown here.
On the lower left, these oblong shapes are individually nuclei of cells. We can measure entire cell populations and look at each cell nuclei. In that cell nuclei, we can understand the radial positioning of the chromosomes. And then you can zoom in and here in the ball and stick, it shows it. You can look at the chromosomes, how they're packed in the chromosome confirmation through that entire nucleus.
You zoom in a little bit more, you can look at the chromosome three d confirmations in super resolution. You can look at gene positions on the chromosome. You can look how those gene positions interact with each other, and you can look across chromosomes. You can look at copy number variations within chromosomes or across chromosomes. You can look at specific areas like telomeres, and you can look at those tags and sub tags, which are very important in terms of their boundaries of their zones and how that controls gene regulation.
Here's an example. This is an X chromosome of a male fibroblast cell. So because it's a male, there's only one X chromosome. You can see this X chromosome in a normal cell occupies towards the radial edge. So that's an important piece of information.
But furthermore, you can see the chromosome and what the chromosome confirmation is. So you can understand the chromosome confirmation and its folding of that individual chromosome. Within that chromosome, you can understand the spatial distribution of the gene targets and where those coding regions are, that 2%, and where that non coding regions are, that 98%. And understanding this, all this full picture in the conformational state is very important as that is importantly linked to activity and regulation in both healthy cells and unhealthy cells. And in particular, when you have misregulation, that can lead to diseased cells.
On the right, you see a movie. This is just looking at four zones of the X chromosome. And you can see how those four zones are tightly intertwined with each other. And you can see then how you can have possible interactions amongst different sections of chromosome and why that might be important in understanding cell function and expression. Just like Canopy, Acuity will offer kits and reagents, integrated imaging platform with fluidics, data analysis and analytical project services.
We're very excited about this new venture with Acuity Spatial Genomics. For the first time, we'll allow researchers in translational research to understand the three d genome in situ, understanding chromosome confirmation, chromatin architecture for both healthy cells and distinguishing that from disease cells. So in summary, we have three very important and powerful platforms in spatial biology at Bruker. We have the Canopy chip cytometry platform for targeted high plex spatial proteomics. We have this Vatara Voxel platform, which is a very versatile platform that is more of a Swiss Army knife to allow researchers to explore a number of dimensions.
And we have this new venture, Acuity Spatial Dynamics, which is a whole new frontier in looking at the genome, but looking in particular at the three d genome in situ. Thank you for your time today. We appreciate you spending the time to learn more about our spatial biology platforms. I hope this helps you understand more deeply the powerful platforms that we have here at Bruker. Thank you very much.
Thank you, Mark. We now head into the last presentation of today's Virtual Investor Day. Last but not least, Mr. Gerald Herman, Executive Vice President and Chief Financial Officer, will cover the company's updated fiscal year '20 '20 '1 guidance, our operational excellence program and our new medium term financial outlook. It is my pleasure to introduce Mr.
Gerald Herrmann.
Thank you, Miroslava, and thanks for joining us today. I'm pleased to share an overview of our twenty twenty one guidance, medium term outlook as well as some elements of our operational excellence program with you. So let's jump right in. You likely saw early this morning that we issued a press release on our full year 2021 guidance, which added more detail on our expectations for revenue growth, operating margin expansion and EPS growth in 2021. Our updated guidance model now reflects organic revenue growth of 13% to 15% supported by a 3% foreign exchange tailwind leading to a 16% to 18% year over year reported revenue growth in 2021.
Non GAAP operating margin is expected to expand two thirty to two seventy basis points for the year to about 18.5% at the midpoint with non GAAP EPS in a range of $1.84 to 1.89 which represents year over year EPS growth of 36% to 40%. This also represents EPS growth of approximately 17% to 20% over the $1.57 pre pandemic EPS level in 2019. Some of the other key assumptions in our guidance model are shown on the slide, but I did want to highlight that we continue to see strength in demand in many of our market segments, including academic government research, biopharma, applied industrial and semi microelectronics. We've also baked in the very real uncertainties associated with supply chain risks we currently see in the system. And I'd be happy to provide some further color on this guidance in the Q and A session coming up.
For those of you not familiar with Bruker, as you heard, we are guiding for 2021 to generate approximately $2,300,000,000 in revenue, high teens operating margin performance and 1.8 dollars in EPS at the midpoint of our guidance for the year. Our revenue profile using 2020 as a reference point reflects a fairly balanced mix across Europe, The Americas and APAC. This is due largely to faster growth in the APAC markets and a rebalancing away from our historical strength in Europe over the past decade. Bruker has established a leading presence in academic government research markets as well as strengthening market positions in biopharma, microbiology and diagnostics and the microelectronics semiconductor metrology end market segments. We at Bruker carry deep scientific roots which help us strengthen our already solid positions in core research market segments across the globe.
Under the twenty twenty pandemic conditions, our leading NMR franchise continued to support structural biology research and helped improve our position in the rapidly growing biopharma market. We delivered leading mass spectrometry tools for life science research as well as infectious disease diagnostic instruments, test kits and reagents. We also responded to growing demand for advanced metrology and packaging tools for the semiconductor and microelectronics markets. We deliver leading ROIC performance exceeding 20% and have done so consistently over the past five years including difficult market conditions in 2020. We invest heavily in R and D approaching 10% of our revenue as we consider it a key to organic revenue growth and sustainable profitability.
More on our capital deployment strategy and how we consistently deliver ROIC in a moment. To add some context to our historical financial performance, Bruker went through two significant financial phases over the past decade. First, a transformation phase over the twenty fourteen to twenty sixteen period where we consolidated and divested operations, reworked the portfolio and built infrastructure to support future growth. Second was the Project Accelerate phase during the twenty seventeen to twenty nineteen period where we targeted six high revenue and high margin growth initiatives designed to accelerate our rate of organic revenue growth and expand margins. This phase was the genesis of the three Project Accelerate two point zero initiatives presented by my colleagues earlier.
I know this slide contains a lot of data, but you see the financial results of the transformation phase on the far left chart, reflecting weaker revenue growth during twenty fourteen to '20 '16, leading to a 2% to three percent five year organic revenue CAGR. But that also came with significant operating margin expansion during that period about four eighty basis points seen in the middle chart. On the left, can also see our strengthening organic revenue growth in 2017 through 2019 as the Project Accelerate phase kicked in with growth rates stepping up each year ultimately to 5.7% in 2019. You also see that we were able to consistently deliver operating margin expansion of 80 basis points or more during the start of the Project Accelerate period. We invested heavily in strengthening our portfolio and positioning in key market segments such as microbiology and diagnostics, biopharma and proteomics.
Actions associated with both phases translated into significant profitability performance, resulting in EPS levels more than doubling from 2014 to 2019. As you're aware, financial results in 2020 were distorted by the COVID-nineteen pandemic. Overall, these foundational phases positioned us well to continue to deliver on the organic revenue and EPS growth we anticipate in 2021 and beyond. Turning to our revenue growth outlook for the next few years, we expect several key drivers to continue to sustain our growth rates from the 2022 to 2024 period. You heard about three of them today from our leadership, including strong momentum in proteomics multiomics and microbiology and molecular diagnostics and the promise of spatial biology single cell omics.
But we expect to also see growth off a sizable base of about a billion dollars in revenue driven by our other Project Accelerate two point zero initiatives and our core business. A few comments on our core business. This part of the business doesn't get much attention in the investor community, but we have a solid stable core business with moderate growth in healthy strengthening markets, including advanced x-ray diffraction tools, FTIR and near IR molecular spectroscopy, nano surface and analytical tools and superconducting products, which contribute stable but more modest revenue growth over this period. In addition, other Project Accelerate two point zero initiatives like our biopharma initiative and our semi and microelectronics metrology tools and our aftermarket revenue streams are well positioned to contribute very solid growth over this period. Adding it all together, we see a clear pathway for Bruker to approach $3,000,000,000 in revenue as we near the middle of this decade.
Just to scale this for you, if we break out our 2021 guidance into three categories: Core, Project Accelerate two point zero, including microbiology and molecular diagnostics, and the breakout opportunities that Frank and Mark discussed, you can see the relative contribution of each pillar on our expected twenty twenty one revenues. In 2021, when you add together the two pillars of other Project Accelerate two point zero and the breakout opportunities, this makes up greater than 50% of our total expected 2021 revenue of $2,300,000,000 You also see these areas carry higher organic revenue growth rates to fuel faster organic growth in the outlook years. For the outlook model covering 2022 to 2024, we project our core business to grow organically at low single digit to mid single digits. Our other Project Accelerate two point zero initiatives to grow at high single digits to double digits and breakout opportunities in proteomics and spatial biology to grow at double digits plus, meaning they have upside to grow in excess of 20% annually over the outlook period. Furthermore, the elements of our core business covered earlier provide solid, stable, low single digit to mid single digit organic growth and profitability.
We further support those businesses through operational excellence programs designed to help them continue to grow, improve margins and gain share. I'd like to give you some details on our operational excellence program now. Operational excellence is the second important pillar of Bruker's strategic plan. We use the term operational excellence to more generally describe a toolbox of internal programs designed to drive growth and expand and sustain gross and operating margins. These programs include continuous improvement, lean initiatives, productivity enhancement programs, commercial excellence initiatives covering sales and marketing or business development enhancement actions and product R and D best practices.
Operational excellence principles are also vigorously applied to our G and A and infrastructure functions to improve efficiency and productivity. All of these programs are firmly rooted in the Bruker management process that provides discipline and structure to these excellence programs. I'd like to highlight a few specific programs. Regarding operational efficiency and productivity improvement, our BioSpin Project 2020 is the ongoing consolidation of certain sites in Germany and the modernization of one of our key R and D facilities. The Etlingen, Germany site manages R and D for one of our core NMR platforms, recently delivering two major advances with gigahertz class systems and the Fourier 80 benchtop.
The Khaled footprint expansion is intended to meet the strong demand of our mass spec systems, including the TimsTOF platform. Our factory expansion in Penang, Malaysia meets the demands of more competitive markets by moving production for several product lines to Malaysia, a best cost production geography. In all of our new facilities, we're squarely focused on sustainable energy solutions that drive energy efficiency, long term cost savings and support environmental sustainability. On the commercial excellence front, we continue to invest in commercial technologies such as Salesforce.com and SAP to improve the customer experience and our visibility of customer opportunities to our commercial teams. At the same time, we're making significant commercial investments to support growth across our Project Accelerate platform.
For example, we recently made sales and service investments to scale up our commercial and technical teams globally to market our mass spec proteomics solutions. On product R and D excellence, with the pace of change in our broad portfolio, one of the critical activities at Bruker is product life cycle management. We manage PLC carefully and efficiently through a variety of programs designed to drive agility and responsiveness to capture rapidly evolving market opportunities. Finally, we routinely design in cost and production efficiencies to meet our product margin targets. If I may, I'd like to share with you a brief clip on one of our recent investments in our production and R and D facility in Etlingen, Germany.
From our improving profitability performance over the past years, we're now generating significant growth in free cash flow. This slide demonstrates that our free cash flow generation is actually more than doubled between 2016 and 2020. Remember that this is free cash flow generation after investing heavily in innovation with R and D spending at about 9% of our revenue annually over this period. As we move forward, we expect higher investments in R and D in those breakout opportunities as we build scale and work to gain share in these rapidly developing and emerging opportunities. At the same time, we intend to carefully manage operating expenses and working capital during faster growth conditions.
We also expect to see some higher capital expenditures over the next couple of years as we expand production capacity to meet strengthening demand. I should note that we do experience some lumpiness in free cash flow quarter to quarter based on working capital changes associated with cash advances and the like. But overall, we expect to continue to build on our track record of solid free cash flow generation as we look out over the next few years. Turning to innovation for a moment, Bruker is consistently invested at a relatively high rate of R and D as a percentage of revenue compared to our peers. Year after year, we invest about 9% to 10% of our revenue annually into R and D.
And in 2021, our R and D budget is expected to exceed $200,000,000 We believe this to be a competitive key advantage for us as it drives solutions leadership and deep applications expertise. You can see on the slide some of the fields in which we lead as a result of our innovation investments. We have a disciplined, highly evolved R and D process across each of our business groups that drives commercial introductions of new products as well as breakthrough We continue to build a deep pipeline of new products, which helps us to confirm our confidence in our growth prospects over the next few years. Turning now to our medium term outlook, looking out to 2022 to 2024. In 2019, we communicated our expectation that we would deliver 5% to 7% organic revenue growth CAGR over the medium term.
And I'm pleased to report that despite the twenty twenty pandemic, we expect to be very much on track against that target. For our updated medium term outlook, we project that we will be generating 2,700,000,000 to $3,000,000,000 of revenue in 2024, which using the pre pandemic period of 2019 as the base translates to a five year organic revenue CAGR of 5% to 7% as reflected on the chart on the left. Using 2020 as the base, which was unfavorably impacted by the pandemic, the four year organic revenue CAGR increases sharply. Given our full year 2021 guidance takes us to a projected revenue base of between 2,310,000,000.00 and $2,350,000,000 this implies a three year organic revenue CAGR of 5% to 8% over the twenty twenty two to twenty twenty four outlook period. As you've just heard, excellent breakout opportunities in proteomics and spatial biology, combined with healthy end markets, supporting meaningful growth in our Project Accelerate two point zero initiatives and core business, give us a clear line of sight towards $3,000,000,000 in revenue as we near the middle of the decade.
Moreover, with improved operating leverage, increasing Project Accelerate two point zero mix and our operational initiatives, we also expect to continue to deliver solid operating margin expansion over the outlook period. Measuring the midpoint of our projection for 2024 against the actual 2019 operating margin of 17.6%, our model implies three fifty basis points of expansion or approximately 70 basis points per year on average over the five year period. Our goal for 2024 is an operating margin in the range of 20.7% to 21.5%. And this leads us to forecast double digit EPS CAGR in the range of 11% to 14% as reflected on the right of this chart to a level of $2.6 to $3 per share in 2024. And I need to be clear, our outlook model for revenue growth is before any capital deployment for M and A.
There is upside here for 50,000,000 to $100,000,000 in further revenue during our outlook period if we identify opportunities that fit into our strategy and our capital deployment timing. Any such opportunities would be incremental to the outlook we are forecasting over the outlook years. So just to recap then, our medium term outlook is summarized as follows: revenue in a range of 2,700,000,000.0 to $3,000,000,000 operating margins in a range of 20.7% to 21.5% and EPS in a range of $2.6 to $3 per share. Our outlook assumes a tax rate of 29% or lower and share repurchases of $500,000,000 over a two year period. Further assumptions around the three year financial outlook model are covered in more detail in the appendix section of my presentation, which will be posted to our Investor Relations website at the conclusion of today's event.
So finally, a few comments on our capital deployment strategy. Essentially, our number one priority is to continue to invest in opportunities that support the core business and fit into our Project Accelerate two point zero initiatives. That means funding significant R and D and sales and marketing investments that support innovation and market gain, capital expenditures that drive expansion and productivity in our plants as well as thoughtful strategic or bolt on M and A. Coupled with our investments in growth initiatives, we consistently maintain a strong balance sheet and excellent liquidity and conservative leverage. I must also add that we have capacity and flexibility in our capital structure to address interesting portfolio additions that may come along.
A final comment on returning capital to our shareholders. Our strategy supports a modest dividend and in May, our board authorized $500,000,000 in share repurchases over the next two years. We intend to return capital to shareholders over time and like the flexibility to start, pause or restart buybacks depending on the opportunities we see in front of us to support the growth of the business. And that concludes my remarks. Thank you very much for your interest in Bruker.
And now I'll throw it back to Miroslava.
Thank you to Bruker's executive leadership team for these engaging presentations. I would like to turn the floor briefly to Doctor. Frank Laukien for some closing remarks.
Thank you, Miroslava, and thank you all for joining us today, and thank you to my colleagues for their excellent presentations. We don't only have the three of us here in the studio, but also Mark, Falco and for the Q and A. I hope we've been able to give you a pretty good overview of the evolving and emerging opportunities, our evolution of strategy and progress with our company. And just allow me one additional unscripted comment. There was actually some very good news from The United States, U.
S. National Science Foundation yesterday, who made an announcement yesterday that they have put in about CHF 40,000,000 of an award for a network for advanced NMR, the University of Connecticut, University of Wisconsin Madison and the University of Georgia Complex Carbohydrate Research Center. And we expect that funding to include funding for two one point one gigahertz NMR spectrometers for biological and nonbiological research. So that was a nice update. There are press releases at all three universities as well as at the NSF, and we have reflected that in our social media.
So a hot off the press, their press update before we get into Q and A.
I think I'll take this back now. We would now like to begin the Q and A session. With us for Q and A are Frank Laukin, Gerald as well as the three group presidents who spoke earlier today, Marc, Jurgen and Falco. In order to accommodate all of our analysts, please limit your questions to one and a follow-up. We will then do a second round for any remaining questions.
We would like to pause momentarily to assemble the Q and A roster. As a reminder, for those on webcast, you can also submit a question via e mail to investor. Relations bruker dot com. Now we'll dive into Q and A. Our first question is from Puneet Souda with SVB Leerink.
Go ahead,
Great. Thanks, Frank. Hopefully, you can hear me well.
Yes,
we you. So excellent overview today. Really appreciated all the deep dives into proteomics, especially in a number of other areas and microbiology as well. So first question on a bit on the top line growth, 5% to 7% CAGR in the medium term. As we look at that over the sort of the longer term sort of five year time frame, how should we think about that sustainability of that number sort of longer term?
Because based on what Gerald presented, the smaller part of the portfolio, the double digit growing part of the portfolio in proteomics and higher growth accelerate areas, That's a smaller part, but it's going to be a larger part by 2024. So just want to sort of get a view of what you see sort of over the next of the next five years or so. Appreciate that. And then I have a follow-up on proteomics.
Well, we'll stick to the 2024 time line today, but I'll turn this over to Gerald.
Yes. Generally, I mean, we're pretty positive. I think you heard from the presentation that I delivered earlier that we have some good growth drivers, particularly in the breakout opportunities area. Our core business is also quite healthy at the moment. And in terms of the medium term view, that seems to be quite encouraging for us as well.
So overall, I think the view is quite positive at the moment on the medium term and even in the longer term.
But any Investor Day is a snapshot. It's a view at the next few years till 2024. That's not the end of our runway. Indeed, as you have pointed out in your question, Puneet, many areas are accelerating and becoming larger. So we will probably have an Investor Day perhaps again in a couple of years.
I think that's sort of a rhythm that also is appreciated by our investors and the sell side analysts. And we will give further updates. But I think at this point, beyond our annual guidance, which we've updated, we, of course, did want to give a medium term outlook. In the long term, we're perhaps even more optimistic.
Got it. Okay. And then on proteomics, obviously, excellent updates here. Undoubtedly, and key instruments are driving the growth here. Overall, timsTOF platform has sort of done phenomenally, as you pointed out, $250,000,000 in proteomics, dollars three hundred timsTOF number out there.
And you pointed out that you're hitting the S curve. So how should we think about that acceleration? Because proteomics market today is significantly mature today versus when Orbitrap was introduced maybe in mid-2000s. So given the appreciation of these technologies, how do you see that pickup? And then an acceleration over the next few years.
And secondly, if I could also ask, we're seeing a number of new technologies emerge in the market. As you pointed out, Sierra is one of them and other pre revenue companies such as Nautilus, Quantum SI and others. But we're also seeing HyPlex proteomics, SomaLogic, OLINK. So within that context of growing proteomics significance, how should we view timsTOF's position longer term as a capital intensive equipment an increasingly democratized world of proteomics? Sorry for the long winded question.
I think you had about five questions, but I'll try to answer several of them. So of course, I disagree, but you probably didn't quite mean it that way, that the proteomics market is maturing in any way. In fact, it's getting into just a new very fast growth phase with new technologies, new companies entering and yes, many approaches, targeted, untargeted and so on. The timsTOF will we expect it to continue to grow rather rapidly. Of course, it's now also growing off a larger base.
So hopefully, we can maintain some very good double digit growth rates year over year in the years to come. We also think we will continue to gain market share. As I said, I think the timsTOF, yes, it is for unbiased D, but with the PRM passive methods, I think it will also play an increasing role in people doing targeted panels of hundreds of peptides with that PRM passive method and without all the consumables cost that you just can't always afford when you're running. Do the math. If you're running at 50 to 200 samples a day, you're not always going to look at a panel of 1,500 antibodies or aptamers.
So anyway, there are some new technologies out there. Many of them have not been published yet, so it's very hard to assess that. And as you know, the performance that we are showing from chip cytometry targeted proteomics to mass spectrometry four d proteomics, we have evidence, we have data, we have publications by top notch groups. So I think we can only base it on that. I believe that the next ten years will it will be a broad tent, if you like, in proteomics.
I think we'll play a very significant role in that with timsTOF technology, but also with NMR and also with chip cytometry targeted proteomics for high throughput translational research. But there are other technologies. Some of these detector technologies, once they get published, we can assess what they can do. And are they it's very, very difficult to say. I can certainly see where SEER fits in because we work well with them.
And there, that's a great addition to what you can do in plasma proteomics, which, in my mind, is particularly important for multi omic strategies in liquid biopsy, biomarker discovery, but also validation. So hopefully, I addressed a few of your questions, probably not all of them.
Okay. Thank you, Puneet. Our next question will be from Tycho Peterson with JPMorgan.
Hey, thanks. Frank, it's obviously a very robust funding environment. You alluded to that in your NSF comments at the end. So I'm curious, as we think about the outlook, we're looking at potentially the biggest NIH increase ever. So do you have a sense of how much of that could go into translational work?
Is there anything in the outlook embedded for the Innovation and Competition Act? Because I know there's some dollars flowing into research there. And then as we think about SEER, I'm just curious if you can give us a sense as to how material that you think that could be in terms of driving system placements for you guys, given how high throughput they are on the sample prep side.
So I'm very optimistic that NIH and NSF funding and probably also for DOE and other research will likely be somewhere between very good and very, very good in the next few years. Keep in mind, this may not affect us this year anymore. This tends to be until that gets into grand cycles and to principal investigators until they order. It may be more for future years, but that's fine with us. I believe our tools in Spatial Biology and proteomics will be among the best funded.
Recall some of the 02/2008, '2 thousand and '9 stimulus funding really, really helped NGS at the time. And of course, that was the one of the technologies to invest in, I think, will be a high priority within these high amounts of funding that are likely to happen in The United States. But by the way, it's not that different in the priorities in Germany or in China, from what I can see. Proteomics and Spatial Biology are at or near the top. As to the ICA program in The U.
S, of course, that hasn't been fully negotiated and becoming law, but it apparently appears to have a high probability. It will, outside the Life Sciences, also fund semiconductor metrology and microelectronics competitiveness in The United States. There seems to be a very clear political aim in that. And I believe for Mark's nano business in semiconductor metrology. Mark, why don't you maybe take the give us your view on how ICA could impact that?
Yes. Thanks, Tycho, for the question. ICA is definitely very positive for Pure Semi in our semiconductor metrology, for sure, as you've read, right, that kind of making sure we have kind of U. S. Homegrown semiconductor manufacturing.
So that drives the equipment spend and that, in turn, drives the metrology equipment spend. If you read the ICA more closely, also you notice there's a significant investment in material science also in terms of two d materials, ferroelectrics and things like that. And so that's so it's positive around the pure semi and metrology, but it's also very positive around kind of material science research as well.
So that's quite terrible.
And as Frank said, it's not past yet, but there's a lot of quite positive things that are in that sense.
Jurgen, maybe you could give some flavor on proteomics in Germany was quite a funding theme, and I think you also see strong trends in China.
Yes, of course. As we explained at the end of Q1 already, we have seen strong holding up of the markets here in Europe and, in particular, Germany invested heavily into the proteomics environment. So understanding already a year ago, this has been kicked off as a large initiative, which got executed last year and this year. So there is a lot of momentum and very healthy environment from my perspective. And I believe it's also true that we are at the beginning.
So we are not limited by the size of the market. For us, it's the winning the competition, and that's where we are very successful. So we win share. We grow by winning share, and the environment is healthy and growing, as Frank explained in his presentation very nicely.
Thanks. And then Frank, follow-up on the spatial initiatives. I'm curious if you could touch on the clinical pathway, how you think about potentially regulatory FFPE capabilities, single molecule resolution. How do you think about the clinical side for your spatial portfolio?
Mark, I'll pass that on to you.
Yes. So in the spatial, we participate in academic translational research and we also participate in clinical development, right, clinical research with pharma. That's where the type of the business is today. And that's important because that's really where it starts, before you get into other aspects of clinical like clinical diagnostics. So where our business is today is academic translation research, clinical trials, clinical development.
We'll see what happens. Obviously, you've heard it. There's talk about these type of technologies moving further towards the other aspect of clinical, but certainly that's not where our business is today, Tycho.
Okay. Thank you.
Okay. We will go to Derek D'Brown next with Bank of America Securities. Derek, go ahead.
Good morning and thank you for a really good presentation. Hey, Gerald, can we talk a little bit about the tax rate? Sure. And I'm just sort of wondering what's implied in the number just relative to your twenty nineteen Analyst Day. Is the tax rate more of a reflection of the fact that you're seeing a geographic shift in your business?
Or are you assuming tax law changes more broadly that are going on?
No. More generally, Derek, it's about the mix from a jurisdictional perspective. We've got very healthy business going on at the moment in our European markets. Operations generally are in jurisdictions that carry higher tax rates. I think our medium term outlook picture is really more focused on this 29% or lower tax rate.
There are some opportunities, as I mentioned more broadly in my presentation earlier, but there are some opportunities for us in a number of areas including in Switzerland and Malaysia. Have a tax holiday. We are hopeful that there will be some R and D tax credits presented as part of the new administration here in The United States. There are still some opportunities that we're looking at in other geographies as well. I do think in the long term, rates, whether it's 29 or below, I do think you're going to see those to be moving down over time.
This is more of a longer term perspective. I think we've got some meaningful activities underway that will make a difference there.
Great. And so just an NMR question. Just besides sort of the high end, high gigahertz NMRs,
where are we in sort
of customers upgrading their consoles? The last big upgrade cycle was in the wake of the financial crisis. There was a lot of funding. I mean, that's been a while. It's like what's the potential for just upgrading the installed base with NMR and increasing that?
And sort of like what is how does that sort of factor into your core growth guidance
for the quarter? So
we are continuously working on these upgrade campaigns. There's always opportunities there, upgrading our own older consoles but also upgrading old variant Agilent consoles. We are pretty successful over time, so that business is growing. We currently don't see a large cycle there. But in principle, that business actually is growing very nicely.
And our overall LMR business is expected to grow in this mid single digit, some areas even higher than mid single digits. And of course, these upgrades are a very important part of it.
I might add that in The U. S, I see the perspective that some of these new funding initiatives for NSF, for instance, but probably also NIH are, of course, for new capabilities in spatial biology or proteomics or other technologies. But there is also a recognition that infrastructure is important and that also requires sometimes upgrading ten- or fifteen year old research infrastructure at universities and giving that a higher greater importance because you need good people and you need also the best and leading edge equipment. So there may be a recognition in The U. S.
Funding cycle, both in Life Science and Materials Science, that we need to give the best infrastructure to our researchers in The U. S. As China and Germany are showing. They're doing it. And The U.
S, I think, coming around to that point of view in addition to funding the latest and greatest and something like single cell proteomics.
Great. Thank you, Frank.
For our next question, we'll go to Dan Arias with Stifel. Go ahead, Dan.
Hi, guys. Thanks for the question. Maybe just going back to spatial biology. Mark, what's the timing around the Acuity platform launch? You mentioned customers having three d and C2 capabilities for the first time with this instrument.
Obviously, there are other in C2 platforms from competitors that are on the way. So how should we think about commercialization timing there? Could this be a 2022 launch? And then relatedly, just maybe just a clarification, is RNA Seq something that will be supported initially as an application? And then finally, if I could just sort of tack on one more idea, what's your sense for the potential for some sharp elbows when it comes to the patent estates amongst the various players here as everyone kind of dials in on this in situ market.
I mean, a lot of these products are seemingly based on work done at Harvard on these physique techniques. So how confident are you in the freedom to operate for Acuity? Thank you.
Okay. Yeah, a lot of questions in there. So I think you're talking about Acuity, in general, specifically, but the, so I'll start with Acuity. The, so it's new, it's frontier there. So we're earlier in Acuity than we are with Canopy.
With Canopy, we have revenue. It's up and going. Certainly seeing, you know, pharma in supporting their clinical trials, predominantly in pharma and their development and then translational research. And Acuity is brand new. You know, there's a lot of companies out there that say genomics.
What they mean when they say that are transcriptomics, just to be very clear. A lot of those companies referred to are not,
in fact,
all of them are not in the genome DNA. So we're first there. So that's one really important clarification. And so again, we're looking at, end of twenty twenty two as far as seeing first revenue with Acuity, to answer one of your questions. Regarding the sharp elbows question, we've done very careful analysis.
We're very clear on our pathway there how that is it's a very clear path for us to navigate, right? These other IP that you're referring to maybe out of Harvard, again, that is different technology, very different technology. And also to emphasize, it's actually in the transcript. Answer all your questions in there. Let me know.
You kind of hit on the key ones. But is RNA Seq something that down the line, I guess, we're just doing these platform comparisons. I'm trying to understand when the applications do line up, how we should think about going about that exercise?
Yeah. RNA Seq, of course, is a transcriptome based technology. We do RNA Seq through Canopy as a service. We do RareSeq and RNA Seq, just so we're quite familiar with the space. So those are technologies we certainly can use in a complementary way to what we're doing both in the Canopy work as well as the Acuity work.
But just just clear, the Acuity technology itself is not is not based on RAC, not all.
Got it. Thank you, Mark.
Thank you, Dan and Mark. Next question will go to Jack Meehan with Nephron Research. Jack, go ahead.
Thank you. Good afternoon. I wanted to start with a high level question for either Frank or Gerald. Just all the initiatives that you have underway with Project Accelerate two point zero, as we look out to 2024 and what you've laid out, could you just give us a framework for what you think the mix of capital versus recurring looks like? And are there ways to shift the portfolio more dramatically in the direction of recurring?
How do you do that?
Well, in some of the newer areas, each area is different. MALDIBIOTIVER, as you've heard by now, is 60% or more consumables and assays. Of course, our liquid array PCR business is essentially 90% assays. When you get into some brand new areas or relatively new areas like Structural Biology by GigaHertz NMR or timsTOF initially going into Life Science Research, not so much into Diagnostics in the early years, then you inherently have more of a do not have as much aftermarket. It may be more typical ending up at the corporate average of 25% to 30%.
But then there are other areas. You look at chip cytometry with their immuno oncology or neuroscience or immunology panels on top of the instrument, the chip cytometer, And there, you'd expect a much higher assay and consumables and aftermarket component. So as I said earlier, we don't always endeavor to try to be like everyone else. So innovating with incredible technology that in some cases drives consumables and aftermarket like chip cytometry or multi biotype or PCR. And in some cases, it may replace consumables and expensive aftermarket streams.
We and you as investors, we love a razor, razor blade model, but the customers don't necessarily like it. They know that if they're supposed to pay thousands or 10 thousands, mathematically, it's not possible budget wise, of consumables for doing 100 samples a day, that's not going to add up. So they're looking for label free technologies like the timsTOF label free targeted technologies. So just to point out that there is really many, many, many elements to that answer. And our strategy is also includes being a very proud instrument and instrument based solutions innovator and creating new space and having very good margin potential there as well.
Great. And as a follow-up, I wanted to dig in a little bit more on the liquid array syndromic panels. Appreciate the color you gave around the menu expansion there. Can you just talk about versus some of the other players in the syndromic space, how you feel like you're differentiated? And then in terms of financial contribution, looking out to twenty twenty four, How much revenue are you building in the model from this platform?
And what does the S curve look like?
Jurgen, I'm sure you'll take that one.
Yes. Yes, I take that. But we think we have a quite differentiated PCR technology at hand. Classic PCR, as you know, detects around five fluorescence channels. And in each channel, you detect about five PCR targets.
On top of that, as a third dimension, so to say, our PCR technique, the liquid array technique, detects molding coffs, and we can put probes, light on, light off probes on. So we can easily scale up the multiplexing capability of our devices and our workflows. So that's the key differentiation. We look for higher multiplex ing capabilities with higher targets at the end of a day. That's our approach.
And we think we can build sophisticated assays around these things and so which have big clinical value at the end of the day. So we are very optimistic to be able to find a space in this very large market. And we expect, as we point out, double digit growth for that business for the years to come, and we are positive with the SA concepts we have at hand and the feedbacks we get from customers. And the road map we have explained today a little bit more in detail that we will find a healthy space in the large PCR market for us.
And very important here is the democratizing syndromic panels. It's great that there are these $100 or $150 panels out there. And you mostly get reimbursement from them in one country, that's The United States, and it's almost impossible to get funding for that in European or other health care systems. And even in The U. S, the adoption would be much greater if they became more affordable.
So we're that second generation of syndromic panels with the liquid array with content that is somewhat similar and I think smart content development, Jurgen gave you the idea there, that these also have to become affordable to really go mainstream. If you think about the Sepsityper test, that's less than $20 that's going to go mainstream. If you think about the MALDI Biotyper, in our total fleet of 4,400 systems worldwide, we're doing north of 100,000,000 identifications, most of them in the clinical space. That's really taking something to the mainstream. And along that philosophy, that's the launch of the syndromic the second generation syndromic panels that we intend to drive with our mid plex liquid array platform.
You saw the content, but I think that democratizing argument is and making it affordable and more mainstream also towards equality and or less inequality in access in financial access to health care. It's also going to be important in The U. S.
Great. Thank you, guys.
For the next question, let's go to Josh Waldman with Cleveland Research. Go ahead, Josh.
Hey, guys. Appreciate the overview today. I just had two questions. Gerald, maybe starting with a near term topic. Wondered if you could walk us through kind of the framework for the FY 'twenty one guide.
I mean it seems like the raise in organic growth back in early June really only captured the second quarter performance despite today you commenting on what appears to be continued strength across most end markets. Just I guess I wonder if you can kind of talk us through maybe what's leaving you a bit more cautious on growth in the second half. I mean, it just seems like you're accounting for more than just the comps.
Sure. Happy to do that, Josh. So first of all, as you know, the comparisons as we move into the second half are more challenging. The dip largely for Bruker in 2020 occurred in the first and the second quarter. We started to rebound nicely sequentially in the third and the fourth quarter.
I think the other piece here is that we do want to be cautious. Of course, the pandemic is not completely erased around us at this stage. Secondly, there are some supply chain risks in the mix. Many of you have read about these. It's a very clear signal.
We see it in our own businesses and many elements of our business. So we think we put together a reasonable level of conservatism, but also achievable levels for the 2021 numbers. I would also add that if you look at the first our first half performance we expect and compare that against our second half performance, we have seen some fairly solid order bookings performance so far in the second quarter and we think that bodes well for improvements in the second half. I would also say, relatively speaking, we are still expecting better healthy sequential improvement from a revenue perspective in 2021. So I know there's a lot of focus on sort of the growth rates in the latter half of the year, but the reality is that we are still expecting sequential improvement on the revenue line as we move into the second half.
So and then that can lead into further conversations about how that plays through for the three year outlook period starting in 2022 and beyond. That's the way I think about it. And if you're referring also just generally to we put up fairly solid growth numbers from an organic perspective in today's guide. We also dropped some numbers down into the operating margin line and into the EPS line. I'm pretty positive that that's also a good solid indication that we are still bringing some profitability into the mix here as we move through the twenty twenty one half.
And let me just add to that. I mean we're we don't want to repeat last year's 2020, somewhat pathological pattern, quarterly pattern. That should not be the baseline for 'twenty one and then 'twenty two and so on. Hopefully, this year, we can deliver a sensible and sustainable, from a pattern point of view, quarterly cadence. And we're really managing through the year.
And so don't blame us from derisking the year by performing even better in the first half, but that's how we think about it. And then we hope that 2021 is a sensible baseline when, again, a year from now, we compare to 'twenty two and eventually to other years. So we want to get away from that unusual and not healthy 2020 cadence quite. That's very clear. So I think we'll have excellent growth this year, excellent margin and excellent EPS improvement.
And yes, we're also derisking the year. That's good.
Sure. And then Frank, maybe piggybacking off of your comment at the end regarding new NSF funding for ultra high field NMR. Can you talk through your current one gig class manufacturing capacity or, I guess, how many of these systems you're actually able to ship in a year?
Falco, I'll turn that over to you, of course, yes.
Just wondering, at this point, is this a product line that consistently contributes to growth over the next couple of years? Or are you kind of paid from a shipment volume perspective kind of irregardless of how the backlog grows?
There's good growth ahead. But again, I'll turn it over to Falco for more details.
Yes. So we currently have a capacity, a manufacturing capacity of four to six of these systems per year, But we have actually just invested also in acquiring new manufacturing space in Switzerland so we can actually ramp that up in case we need it. The total market right now or what we actually install per year is €50,000,000 plus. And I actually do see even some upside in that as also new projects come along. And we talked about the NSF project, but there's also projects in Europe and in APAC.
So overall, I think my view is a little bit more encouraged, optimistic on the overall size of that market, also with new applications that I described in the video coming up. So I see that as at least a sustained or even growing market that also delivers us very healthy margins.
Thanks, guys.
All right. For the next question, we'll go to Patrick Donnelly with Citi. Go ahead, Patrick.
Great. Thanks for taking the questions, guys. Frank, I just wanted to follow-up on one of the earlier questions on timsTOF, the recurring revenue profile there. I think you said it might there's potential for that to ramp as the business matures a bit. Can you talk about what that looks like currently for timsTOF, consumable service by instrument?
I know
you talked about customers liking the label free approach. So just trying to get
a handle on what the opportunity could look like there.
It's pretty de minimis. Most of these systems are still brand new or they're coming out of warranty. Jurgen, would you do you have some additional comments there? I mean early on, it's almost all instrument revenue. Yes.
Maybe I can add a little bit. Of course, we do have service business. Many of the instruments go into large pharma accounts these days into their probiotics research labs. So they go with healthy service contracts and support contracts. There's not much of consumables.
I think the workflows are still in development and in flux. But of course, as we go to more routine, move closer to clinical use and study work and those type of things, the standardization of the front end of the sample prep of the columns and everything will take place. So we expect down the road, but that's maybe out another two or three years, a much healthier instruments to consumables revenue stream than we see today. So today, it's about placing instrument, ramping up our market share, finding new laboratories. So it's a capital business at this point in time.
Keep in mind, this is also happening. It's not all just Bruker revenue. We're playing well within the proteomics ecosystem. So there will be other partners that are benefiting from that ecosystem, and we'll have some of the consumables or some of the software revenues. Some of it, we're doing ourselves, and some of it, it's really those are solutions by multiple partners to enable customers.
And that's fine because I think it grows the overall pie and the usefulness, and we prefer to have that more open approach in working with partners.
For the next question, we'll go to Matthew Sykes with Goldman Sachs. Go ahead, Matthew.
Hey, thank you very much for taking the questions and thanks for taking the time today. This is really helpful. I guess just my first question, for you, Gerald, was just on the CapEx comments. I realize it's 3% to 4%, so not enormous, but it sounds like it's all being met to be spent to be met the increasing demand. And so do you think that just given the strength of the end markets, the strength of demand profile that you're seeing that we're entering a slightly higher CapEx environment going forward?
I understand your forecast are to 24. I'm just wondering for you and the industry, given the demand we're seeing in the end markets, our CapEx spend likely to go higher over time?
Well, from our side, we're really just trying to meet capacity demand at this stage with most of the demand that we see in the market at point. We've got pretty significant expansion activities planned across most of the businesses actually, whether it's Project twenty twenty for consolidation in our BioSpin operation, whether it's expanding our Penang, Malaysia facility to accommodate product movement into that facility or whether it's a larger expansion related to our mass spec facilities in the CALID organization. So I think we've been tracking around $100,000,000 in 2021. Our expectation for 2021 is that I think you'll see some of these spillover into 2022. For us, more broadly, as long as we can continue to this growth level, we're building capacity now for the next few years.
If this takes off at a whole different scale, perhaps that we might be relooking at our CapEx levels going forward. I mean, what we've assumed in the medium term outlook is essentially this 3% to 4% of revenue. It'd be nice for us to be able to get back to something in that 3% level. That's my expectation, and hopefully, we'll be able to get there.
Also keep in mind, we're not such a CapEx heavy business because we do so much outsourcing in our production. There is other companies, other outsourcing partners' CapEx that supports our growth. We're, of course, not only looking for capacity for next year but for the next several years. So the investments we're making, in some cases, should be good for the next five to ten years. And the fact that we're investing shows you that we're putting our money where our mouth is, I.
E, we are really very optimistic about our outlook and growth outlook. Let me add from the operational excellence, there is also a lean and productivity and margin improvement element by consolidating some, a couple of German facilities, for instance, or improving the sites that we have in Switzerland or going to a lower cost country, as in Malaysia, with high quality. We're also working on our margins and our productivity. So it is capacity, and of course, growth is very exciting. But keep that other element, the operational our business process supporting also a commitment, strong commitment to steady ongoing margin expansion, and that means productivity to support gross margins.
Got it. Very helpful. And that was probably just answered my second question, but I just wanted to talk about operating margins after '24 and what are some of the key levers that you would highlight to get to that. You've already seen some really strong operating margin expansion. But just as we think about 2024, could you maybe call out a couple of key levers that you would highlight?
Well, it's the push from operational excellence and productivity and, of course, leverage with volume that you get. And of course, it's the pull, as I had tried to push pull, from the Project Accelerate initiatives that tend to grow more grow faster, although this year, it may be more evenly balanced as the core business also grows very nicely, hopefully this year and hopefully next year. So yes, it's the pull by all the as I said earlier, all the Project Accelerate initiatives. Even if initially, some of them are investments because we have considerable OpEx investments, we're very happy to make those investments in spatial biology, in proteomics, but we're trying to come out with products with very good gross margins. And over time, of course, as these investments pay off, we think we'll have considerable pull up of our overall margins to that 21%, not exactly the midpoint range that we around that level that we anticipate for 2020, '20 '20 But also, obviously, we want to go beyond that, right?
Keep in mind, in this year's Investor Day, we're talking about 2024, but that's not the end of the story. We don't see an end of a runway there somehow. So that's a continued commitment to margin expansion, but our equal or perhaps our equal focus is, of course, on the growth acceleration, including what we have as historical breakout opportunities into related very important areas of science and medical research, proteomics and spatial biology.
Okay.
I would like to now invite our analysts to get back in queue. Raise your hand if you want to ask any additional follow ups. In the meantime, we'll go take some questions from our Investor Relations inbox. The first question is from Sung Ji Nam with BTIG, and I will be reading those questions live that's coming via e mail. Could you clarify what applications Sears technology enables Timstaff Pro to do that TeamStaff Pro cannot do on its own?
So what does Sears technology enable for TeamStaff Pro that TeamStaff does not do on its own?
I generally prefer to answer Bruker questions, but Seres is a good collaboration partner and their proteograph technology with the nanoparticles for preparing the proteome. You know their technology. You can learn more from them. But we think they're doing something valuable, particularly for plasma proteomics and particularly for deep plasma proteomics. There are some very high throughput approaches that maybe, god, they don't even deplete.
They may not use the nanoparticles. Like Roman Fisher was the example where they're going to 200 samples a day and doing hundreds of proteins. And that's a valuable way of doing plasma proteomics when you have very, very large cohorts, thousands 10,000 of samples perhaps. For instance, they did that in COVID research in The U. K.
But then to your question, SEER's technology for unbiased deep plasma or body liquid, body fluids proteomics really seems very valuable and very much we have, I think, a very good detector or maybe the optimal detector for taking advantage of that unbiased, deep approach with our timsTOF40 proteomics and, of course, also, again, looking at the post translational modifications. So to my knowledge, some of the best data that SEER has shown in at our U. S. Together with us at U. S.
UPO in March and then again in early June at our XSEED symposium of showing 1,500, 17 towards 2,000 protein groups for plasma proteomics was using and leveraging their proteograph technology. So very, very complementary.
Thank you, Frank. We'll go to the next question from the inbox. In deep, unbiased proteomics research, is it still a two horse race between Thermo Fisher's Orbitrap platform and Bruker's TimsTOF platform? Or do you see others catching up? And if not, can you describe the key technological differences between the two platforms?
Would a proteomics lab require both instruments, or would they only need one?
Very good. Multiple differentiated questions, Soo Ioannis. I mean there are some other targeted technologies that now actually claim to be unbiased or a little bit unbiased. All right. So that's an argument that I'm not going to go for.
For unbiased, deep mass spec based discovery, yes, there are also some other detector technologies, and some of them have just become public companies. And we'll just need to see. I think there are no publications on these things. It's very, very difficult to assess them. And so comparing to what we see in the field, what we see among our customers, there is no confusion.
For the investment community, it is a confusing field with so many competing claims and aspirations out there. But among our customers, essentially, of our customers have mass specs and for proteomics from more than one vendor. And quite honestly, they always have many mass specs from the incumbent in proteomics that still has a clearly leading market share and a large installed base. So we are pretty clearly the number two now in proteomics mass spectrometry. We're growing nicely.
We think we're also gaining some market share in a growing market. And there are some other interesting announcements even in the middle of our Investor Day today, which is curious. And in the last few days, we'll need to see whether these are more for lipidomics and other technologies, again, early days. But from what we see with good publications of what you call the two horse race, both companies making good progress in a growing market. We have some very unique attributes with the four d, four dimensions and now this true single cell proteomics approach.
But the field is moving, and that's healthy, right? It's good to have at least two vendors driving the field forward. I think that's very healthy for the field.
Okay. Thank you, Frank. One more from the e mail inbox, and then we'll switch back to the phone questions. Okay. So from the inbox, can you discuss the value added tax changes in China and how that might impact your business?
Is that a tailwind to your China business?
Well, sure.
We might always want to take that with our next quarterly earnings call, right?
Yes, maybe. There are some changes underway, of course, in China in a number of different areas. And maybe that's a larger question that perhaps we would be best just to discuss during our next earnings call is
I think it's too early to tell. It's pretty much the short answer for today. It could be, but let's see what we learn from our teams for the next in the next few quarters. Has not been embedded in anything we're discussing here today, but it's an intriguing just like ICA in The U. S.
That potential legislation, there are intriguing things on the horizon that have not gone into today's guidance certainly and also not into our medium term outlook to be specific.
Okay. So for our next question, we'll go back to Josh Waldman with Cleveland Research. Go ahead, Josh.
Hey guys. I wondered if you could provide an update on the landscape business. It seems like it was a little less of a focus this round maybe versus the last Investor Day. Just interested in your thoughts on where you see Bruker's kind of role in the aftermarket service business and maybe where that could go as a percent of revenue. And then kind of a follow-up on that.
We've seen several other competitors talking about offering a subscription or rental model within their Analytical Instruments business. Is this something we could see Bruker start to offer in an effort to get their tools into more hands?
Maybe starting with the Labscape and Falco, you can maybe talk about the aftermarket business that and it's also, of course, not only strictly in the BioSpin business, it also goes more broadly under the LabScape brand. Maybe you could take that one, Falco.
Yes, I can kick that off. So as I said earlier, the aftermarket business continues to be healthy, so growing in the mid single to high single digit rate. And it's not just the classical services. So as we are evolving, especially also last year with COVID-nineteen into more and more remote and digital based services, we're also trying to add more services. And I'll just give you an example.
Something we launched recently is kind of a marketplace where we bring together users or, let's say, scientists that have a scientific question to answer and then system operators that actually have capacity on their system. So we are evolving constantly, the type of services we apply. And what you asked, also looking into ways to lower the threshold for people to buy systems. So we are actually sometimes starting now to bake in new purchases of smaller items into service contracts. And so by that, getting more and more into a regular sustained payment scheme.
But overall, aftermarket continues to be a growth driver for us and, of course, is also because of the growth rate, is also gaining more importance in terms of percentage of overall revenue.
Mark, you, Canopy and Chip Cytometry, offering a CRO service before you perhaps buy is one of these business innovations, and you'll also do that for Acuity. So maybe you'd like to expand a little bit more.
Yes. That kind of service model is highly leveraged with Canopy. We do sell instruments there for spatial proteomics. But often, those that clinical trial development work that we support, a lot of that's done also as a service in addition to the instrument cells. So we do get projects that come to us quite a bit.
And that will actually, as Frank alluded to, will also be applicable to acuity as well. I would add, kind of the breadth of what Falco's business started with LabScape, we leveraged that also in the now.
And I might add, very important, although very recent, of course, we had some visibility in the evolution of the thinking there of the U. S. National Science Foundation. If you look at their press releases or those of the three participating universities carefully, it's a new business model for how to do ultra high field NMR in The United States and how to make it accessible not only to three universities, but to all universities who wish to submit proposals. It's a little bit like other communities have worked on synchrotrons, of which, of course, not every university has one, but there are a few in the nation, in making NMR much more ultra high field NMR, much more accessible and also easier to use for non NMR biologists who just have an important dynamics or structural and functional, maybe drug binding problem.
That's really a novel way of thinking about ultra high the ultra high field NMR business and building a U. S. Infrastructure. This NAN investment by National Science Foundation is excellent, but we regard it also a bit as an icebreaker because The United States and overall research infrastructure there is quite far behind compared to Europe. We think that Asia, many of the countries there will get going.
Korea has already others undoubtedly are watching this very carefully. But there are new models among our customers and National Science Foundations, NIH, and equivalents outside The United States that are thinking differently. And I think that's actually very good because I think it will make the entire field more relevant and more accessible to biologists who don't want to become physics or experts in NMR technology. They just have a problem. They want to be able to access that.
So hats off for this pretty important evolution in thinking and how the National Science Foundation there is leading the way along with these three nan institutions. That's worth keeping an eye on and I think is very relevant to your question, Josh.
Got it. And then maybe one quick one on COVID. Obviously, no, it's not as big of a driver for you as it is others, but I saw you were including it, COVID testing that is, within your new SAM numbers. Just wondered if you can kind of talk through how you're thinking about the sustainability of COVID testing revenue, I guess, into 2022 and beyond?
Well, it has been smallish for us at CHF30 million last year. That was good because Jurgen and his team built that up. It's come down pretty steeply initially. But now as people are interested in getting mutation information, not only from NGS, where you wait for a couple of weeks before you get the information, but really right in the CEIVD cost effective PCR, single tube test, pretty much overnight, like you get your yesno test, someone is COVID positive or not. I think getting that variant information, customers being able from the mutations we provide to read out the variant, I think, is really quite interesting for them and is differentiated.
This is not just research use only. Importantly, this is under CEIVD. And then I think the quantitation is important. I mean so many people test positive for PCR, and they're probably three weeks after the acute infection, and some people keep testing positive. They're probably not infectious.
Well, we're not going to decide that, but at least by getting quantitative information to their doctors, they can probably make reasonable assessments. Is this early on? Are they likely highly infectious? Or might they be well past the active infection but are still PCR positive? So for our limited approach, what I'm really trying to say is I think it may be sustainable and recover a little bit as we provide some pretty useful information for the COVID testing that remains even in the aggregate.
Of course, it's coming down very steeply because of the lowercase numbers, at least in The U. S, for sure, U. K, for sure, but now also more and more in Germany, Switzerland and many other European countries.
Or please drop us a note at investor. Relationsbruker dot com. We'll pause momentarily to check for additional questions. Okay. We're showing a question coming in from the line of Matthew Sykes with Goldman Sachs.
Go ahead, Matthew.
Yes, thanks. Thanks for letting me jump back in. I just had a quick question just on your views on the academic lab market. Obviously, they're reopening, but I think there's still some debate as to what the level of activity looks like within the labs, just given sort of maybe some new protocols and adjustments they have to make. But what's your view on kind of where we are in terms of not just reopening, but also what the capacity utilization of the academic labs that you work with looks like and what your view is maybe over the course of this year?
Quite high by now. I mean certainly, U. S. Or most of Europe, I'm sure in India and then just some other countries that are now dealing with a new wave or the brunt of the pandemic, the answer may be different. Marc, what do you say?
Or maybe other colleagues, I think it's I think they've reorganized, but I think they're pretty productive now.
Yes. No, I totally agree. And it's been that way for, you know, two or three quarters. So, you know, there's some restricted access. Right?
So you don't know our people to go into a facility, you have to rearrange it, but you
can go. But in terms
of the activity in those labs themselves, they've been you know, they adjusted some time ago, practicing social distancing, splitting shifts. And they're very active for a while, actually. It's exactly what Frank said. It's really, I'd say, back to full capacity in the labs in U. S, Europe, China, Japan.
Japan, again, kind of some uptick in events there, but they're still working in the labs.
They're working in the new normal like we are working in the new normal, and we're as productive as we've ever been, but it's the new normal. So I think it's not really an issue anymore that labs are closed, except for certain geographies that we read about in the newspaper. Generally, academia is now at productivity and becoming in The U. S. Pretty bullish because they see all the discussions are different flavors of positive trends.
So it seems like good to very good developments are coming. The optimism in The U. S. For sure has picked up. Europe, that happened earlier.
China, that happened earlier. Japan, still a little bit focused on the Olympics perhaps, we'll see. Right.
Okay. We're showing no further questions at this time. Thank you for joining us for today's Virtual Investor Day. We hope you have found the material informative. We look forward to meeting you at future investor events.
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