“And frankly, we don't see that getting better here in the second half.”

In context

“sort of market inflection that we're seeing. Michael Ryskin: Great. Thanks. Appreciate that. And if I could squeeze in a follow-up on China specifically. You talked a lot about China and 2Q deteriorated, particularly as it touched on biopharma market correction. Could you expand on that just how significant and how protracted do you believe that will be? And it seems like it's really mostly contains the bioprocess, you called out instrumentation in China actually holding in pretty well. What's the difference there? Why is it so specific to just that one part of your business? Rainer Blair: So we saw that continued deterioration in the second half of the second quarter. To give you a sense, China orders were down 20% in the first quarter, 40% in the second quarter, but really 50% in June. And frankly, we don't see that getting better here in the second half. And that's really related to two or three factors. One, the funding environment continued to deteriorate. The foreign investment in projects and capacity has dissipated, it has not returned. There are fewer projects there that are being funded. Also, over the last two, three years, a great deal of capacity has been built, particularly CDMO capacity, but also some with the smaller biopharmas there. And so there's not a lot of additional hardware required here in the short term in the second half, nor are there that many molecules that are being worked on by the CDMOs, meaning that the consumables requirements of that capacity are also lower than we saw here in the first half of the year. And then lastly, and part of this is related to our aggressively managing with our customers to get the”