President and Chief Executive Officer at Revvity
Thank you, Steve, and good afternoon, everyone. The first quarter of 2022 continued to both challenge and inspire us as we faced varying dynamics across the globe. I want to start my remarks today by taking a moment to once again acknowledge all the PerkinElmer employees in Poland who have opened their hearts and even their homes to support Ukrainian refugees. It's been uplifting to see the different ways our teams around the world have been helping during this extremely difficult situation, and we hope for peace to come soon.
I also want to highlight and thank my colleagues in China, who have gone to great lengths to continue to deliver for our customers, during these extraordinary times. Finally, as I reflect on all the events that have shaped this past quarter, I want to also express my gratitude to the team behind the COVID testing lab in Valencia, California, which as we announced a month ago, will be closing later in May as a result of declining COVID cases and the subsequent need for testing.
The team stood up the Valencia lab during the height of the pandemic in a matter of 60 days, and ultimately helped dozens of underserved communities obtain wider COVID testing, processing over nine million samples from this lab. I also appreciate the efforts of our colleagues in the UK, who were a part of our COVID testing lab in [Indecipherable], which was closed at the end of March.
While we are thankful that the pandemic is now more under control in parts of the world, it does not seem to be fully going away, as shown by the recent rise in cases in parts of Asia and some parts of Europe as the new Omicron subvariant takes hold. In the midst of our response to the pandemic, PerkinElmer has also been going through an immense transformation.
As we have entered the new year into what appears to be an evolving and somewhat turbulent operating environment, our teams are continuing to perform at a high level. From the successful integration of our recent portfolio additions to our focus on commercial excellence to our achievements with new product innovation, all the while against the backdrop of a very dynamic macroenvironment.
I think our ability to execute so well under these conditions speaks to what the company has become. Today, more than 80% of our revenue comes from Life Science and Diagnostics, up from two-thirds just five years ago. With more than 75% of our revenue now being recurring in nature compared to only 60% five years ago. And today, more than one-third of our non-COVID revenue is derived from pharma and biotech customers, a figure we expect to continue to grow in the future.
This shift to less cyclical, faster-growing markets is a proof point of the changes that have already taken place. While the transformation of our portfolio has undergone over the last 24 months, the integration and ultimate synergy of these new businesses is paramount. Let me provide you a few examples of how our recent additions are already collaborating with each other and within the broader company overall. Our commercial teams are now partnering with each other across our BioLegend, PerkinElmer, and Horizon product portfolios, including unique opportunities at key pharma incubators in North America.
Within our lab services organization, we are introducing a new service offering focused on flow cytometry. In our Diagnostics segment, over the past few months, our Oxford Immunotec business began selling PerkinElmer JANUS liquid handling instruments, along with cell counting instruments from Nexcelom, as part of its new optimized and automated workflow that is now becoming available to customers.
Finally, our Oxford business is collaborating with EUROIMMUN by starting to offer its TB test kits in regions where EUROIMMUN has strong existing customer relationships. While our portfolio transformation has been significant, we continue to build on our momentum and earlier this year, we welcomed SonoVol to the PerkinElmer family.
Although a small overall business today, we've already integrated SonoVol's Vega technology into our in-vivo imaging portfolio to offer our customers a first-of-its-kind ultrasound platform. The vendor system will enable us to meet growing demand for noninvasive imaging technologies for use in preclinical research and drug development studies of cancer, liver and kidney disease, cardiology and more.
SonoVol's unique ultrasound offering continues to increase the breadth and differentiation of our in vivo imaging offerings and helps ensure we maintain our leading position in this key market. From a commercial excellence perspective, Life began to show some signs of normalizing during the quarter as we were excited to return in person to this year's SLAS Conference in Boston.
With several of our newly acquired companies co-exhibiting and meeting with customers. Together, we showcased how our end-to-end life sciences solutions and automated workflows can accelerate scientists R&D productivity, so customers can get the right therapeutic candidates to market faster.
Another example is our PowerUp 2022 Battery Summit we held last month in Berlin, with key customers and contributors in this fast-evolving market. This two-day summit was in advance of our upcoming Battery Center of Excellence opening in Germany, located in the heart of its electric vehicle manufacturing area outside of Frankfurt.
From an innovation perspective, we remain very active as all aspects of improving human health didn't stop with COVID, especially efforts to get smarter about how we approach research and diagnostics. For instance, just in the past quarter, EUROIMMUN's test to confirm previous dengue infection has been included in the CDC's recently released pre-vaccination screening algorithm for the Dengvaxia vaccine.
According to the CDC, about 400 million people are infected by dengue viruses each year, transmitted primarily through the bites of infected mosquitoes. While there is no specific treatment for dengue, in some cases, it can be prevented in children and adolescents with Dengvaxia. Because eligibility for the vaccine requires proof of prior dengue infection, an assay that can measure wide specific antibodies for dengue like EUROIMMUN's is needed.
During the quarter, we were also proud to have PerkinElmer Genomics join other leading genomics companies and laboratories to establish the Cardio Genomic Testing Alliance. The group is aimed at raising awareness and utilization of genomic testing in cardiology, which can be a powerful tool to identify those at risk for specific cardiac conditions.
From a geographic perspective, we continue to actively collaborate with governments around the world to provide critical solutions to advance their healthcare agendas. I was honored to meet with the Minister of Health and Prevention of the United Arab Emirates in March to discuss the future of PerkinElmer in the region.
During my trip, we inaugurated PerkinElmer's first office in Dubai, which has been evolving into an R&D hub for the Middle East and a growing market for diagnostics. With our new site, PerkinElmer will be able to better serve our customers with an in-country, for-country approach. Additionally, when I was at the Dubai Airport, I have a chance to view our G3 explorer workstation, which will be use to screen arriving passengers for COVID.
As we look to the second quarter, the entire organization remains motivated to keep up the momentum from the first few months of the year. Despite ongoing global unrest, higher inflation and an evolving supply chain, we continue to have both significant incoming demand from customers and resulting backlogs, which we are executing upon as quickly as possible.
Overall, I remain quite optimistic as PerkinElmer has proven we can navigate through pandemics, cyclical headwinds and now world crises, while continuing to execute on our plans, delivering for our customers and emerging as a stronger company. Our performance during the first quarter was a testament to this, as we grew our non-COVID revenues organically by 11% year-over-year and generated $2.41 in adjusted EPS, both of which are solidly ahead of our expectations.
As Jamey will touch on in more detail, due to the strong performance here in Q1, our continued optimism over the remainder of the year despite some incremental challenges and the net impact on our reported results from our COVID contract in California coming to an end, we are now projecting our 2022 adjusted EPS to be in the range $7.15 to $7.45.
I will now turn the call over to Jamey to walk through our financial performance in more detail and provide specifics as it relates to our outlook and updated guidance. Jamey?