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

Yet Another Value Podcast

Christopher Pavese, President & Chief Investment Officer at Broyhill Asset Management, joins the podcast to discuss Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries.

For more information about Broyhill Asset Management, please visit: https://www.broyhillasset.com/

Chapters:

[0:00] Introduction + Episode sponsor: Tegus

[1:35] As a generalist, how Chris and team arrived looking at healthcare + GLP-1 tangent

[9:16] Overview of Avantor, Inc. $AVTR and why it's interesting to Chris

[13:56] Laboratory Solutions (accounts for 2/3's of $AVTR revs) / how embedded is $AVTR with customer base (CDMO business)

[20:19] VWR acquisition

[23:02] Disconnect between reported numbers and large cap comparisons / understanding cyclicality in life sciences/healthcare

[32:36] Variant opinion that generates alpha in $AVTR

[37:14] Why not own $TMO or $DHR over $AVTR?

[42:06] Capital allocation and M&A

[46:22] Build vs. sell

[48:35] Recovery story: bull or base case when $AVTR shared guidance

[54:01] Return on due diligence work with $AVTR, perception as a complicated business

[1:02:04] Tail risks

[1:06:39] Final thoughts

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