Impact Stories
Danaher

About this company

Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health.

Their mission

To innovate products that improve lives and our planet. Danaher deploys leading-edge science and technology innovation to create life changing products that consider the needs of our planet and its communities. For instance, they are making groundbreaking discoveries in genomics, ultimately resulting in every patient benefiting from individualised treatment. And they have developed medicine that can help healthcare providers diagnose and treat diseases with unprecedented speed and precision – like laser treatment for cancer cells without needing to operate.

What makes this business ethical?

Danaher is committed to conducting life changing research in an ethical and responsible manner. Alongside their commitment to sustainability, including innovation to enhance the quality of life around the world, Danaher stood out to us for their commitment, through one of their companies – Molecular Devices, into Organoid research.

Organoids or “organs in a dish” are used to model diseases like cystic fibrosis, cancer and Alzheimer's, to create customised cell therapies and to screen for drug toxicity. Unlike other model systems, organoids can mimic the complexity of a full human biological system.

The advantages of using organoids when it comes to researching lifesaving diseases is best described by Susan Murphy, Life Sciences Executive at Danaher when she was the president of Molecular Devices. They include:

Countless animal lives have been saved because organoids can be used more effectively instead.

More rare diseases could be actively researched.

More physiologically relevant or translatable data output that is aligned with what would happen in a human.

The US Food and Drug Administration (FDA) is saying that animal models will no longer have to be used to get a drug to market.

Danaher customers, such as pharma giants Roche and Merck have said they will stop using animal models. Danaher also have other customers who are looking to do this as well.

Why Pathfinder invested

Along with their ethical innovation, Danaher is known for its track record of buying, building businesses and recycling capital in a way that has created significant shareholder value over many years. The company is a significant player in the biotechnology, diagnostics, and life sciences sectors and has a history of successful acquisitions and mergers that enhance shareholder value. Their strategy involves acquiring high-quality businesses and integrating them effectively to drive growth and profitability.

How will your investment in this company make a difference?

Every day, scientists around the world research the causes of diseases, find treatments, and test new drugs and vaccines. Danaher’s Life Sciences companies are crucial in advancing this cutting-edge scientific research. For example, they are developing 3D 'organoid discovery' technology, which will enhance the study of rare diseases by providing data that more accurately reflects human physiology. According to Susan Murphy there are currently about 7,000 rare diseases, but only around 400 are actively researched due to the lack of suitable animal models. This innovation is an exciting development that will improve future treatment for humans and reduce animal testing.

Testing on animals – an ‘exception’ to the rule

Pathfinder seeks to avoid exposure to all animal testing; however, we hold a small number of companies who test on animals for regulated medical purposes, these companies have been granted special exceptions under our Ethical Investment Policy.

Danaher was granted an exception by our Ethics and Investment Committee and entered onto our Exceptions Register in May 2024 because they are making a transformative leap to change the industry for the better. They endeavour to eliminate the need for animal testing in drug development through human cells and technological solutions – with a high success rate.

Our animal testing exceptions are not an indication of our lack of commitment to respecting animals but rather the reality of investing in line with our Ethical Investment Policy: one that aims to balance both wealth and well-being.

Read more on Pathfinder’s approach to investing with respect to animals here.

Sources and further reading:

Organoids Are Small. Their Future is Big. | Danaher

What the transition away from animal testing could mean | Danaher Life Sciences

What the transition away from animal testing could mean (drugdiscoverytrends.com)

Danaher Corporation Homepage | Danaher

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