Tycho Peterson
Jefferies LLC, Research Division
Maybe we could — I think, if we were sitting here a year ago, we’d be talking about the replacement cycle starting to kick off. We’re a year into it. Maybe just talk a little bit about some of the trends you saw in 3Q, orders obviously outpacing revenues. So, talk about the momentum, the durability and how the pharma discussions are going now.
Udit Batra
President, CEO & Director
Yes. Firstly, thank you for having me here, Tycho, and it’s great to be here. I’m not surprised the first question was on the replacement cycle. Look, it started about a year ago, as you said. Our instrument growth rate, this is LC-MS, remains in the high single-digit arena. And it’s got three drivers.
The first one is the instrument replacement cycle. We’re still, I would say, probably not even midway through it, given that it’s only been a year, and several of the customer segments have not even started to replace, right?
So if you — and another way to look at it is, to look at a 5-, 6-year CAGR. When you look at a 6-year CAGR, we’re still in the low single digits for LC-MS growth, right? So that’s quite an important indicator. So, we’re far away from finishing the instrument replacement cycle. The funnels are good. So, the trends are very good there.