Hi, your posts on AVTR and the whole bioprocessing space are great!
Do you have further evidence of AVTR's share losses in bioprocessing other than the comparison with market growth? Is it possible that the products sold by AVTR are, on average, less critical (and face more competition) than the more complex stuff that the big boys are selling (Merck, Cytiva, Sartorius, TMO...) and therefore might face price deflation where the others are benefitting from 1-2% annual price increases?
In either case that's not good news for AVTR, but if AVTR is losing share of volumes it's in my opinion worse than suffering from natural deflation due to the nature of the niche they are paying in.
I doubt companies flex their pricing power too much when they know they are losing share, so I'd assume there's a bit of both. That said, if you're truly spec'd in to a bioproduction process, you're never lowering prices either. Most of the parts of the process they play are competitive - think I have a chart showing where they are in the bioprocessing primer.
Hi, your posts on AVTR and the whole bioprocessing space are great!
Do you have further evidence of AVTR's share losses in bioprocessing other than the comparison with market growth? Is it possible that the products sold by AVTR are, on average, less critical (and face more competition) than the more complex stuff that the big boys are selling (Merck, Cytiva, Sartorius, TMO...) and therefore might face price deflation where the others are benefitting from 1-2% annual price increases?
In either case that's not good news for AVTR, but if AVTR is losing share of volumes it's in my opinion worse than suffering from natural deflation due to the nature of the niche they are paying in.
Cheers,
I doubt companies flex their pricing power too much when they know they are losing share, so I'd assume there's a bit of both. That said, if you're truly spec'd in to a bioproduction process, you're never lowering prices either. Most of the parts of the process they play are competitive - think I have a chart showing where they are in the bioprocessing primer.