Fourth quarter 2013 IBO Life Science Index sales grew 6.2%, 8.7% organically, to $4,025 million. Operating profit jumped 14.9% to $970 million due to strong performances from Illumina and Merck Millipore. Operating margin expanded 150 basis points to 20.5% of sales. Full-year 2013 Life Science Index sales improved 3.1%, 5.2% organically, to $13,956 million. Operating profit expanded 2.8% to $2,953 million but slipped 30 basis points to 20.8% as a percentage of sales.

For the fiscal first quarter ending December 31, 2013, sales for Becton, Dickinson and Company’s BD Biosciences unit grew 5.4%, 5.7% excluding currency, to $279 million to represent 14% of company revenues. Sales were driven by double-digit revenue growth in emerging markets and strong demand for clinical reagents. Timing of instrument sales to pharmaceutical customers in the US and Western Europe also contributed to growth. Overall, US sales grew 3.3% to account for 31% of BD Biosciences revenue. International sales advanced 6.3%, 6.8% excluding currency, to make up 69%. BD Biosciences operating profit improved 1.5% to $66 million. Fiscal 2014 BD Biosciences organic sales are projected to grow at the upper range of its previous guidance of 3%–4%.

Biotage fourth quarter 2013 sales grew 6.8%, 11% excluding currency, to SEK 121.6 million ($18.7 million = SEK 6.51 = $1) (see page 12). Sales were driven by new purification and peptide synthesis products, as well as strong demand in Europe. Excluding currency, sales grew in all geographic regions. Sales to the EU, the US, Japan and China accounted for 40%, 36%, 13% and 4% of revenues, respectively. Chinese sales slowed as spending shifted from CROs to academic and government markets. Gross margin fell 480 basis points to 55.0% of sales due to currency. Adjusted operating profit slipped 3.8% to SEK 13.2 million ($2.0 million).

Full-year 2013 Biotage sales contracted 4.0% to SEK 444.6 million ($68.2 million = SEK 6.52 = $1). Excluding currency, revenues grew 2%, driven by a 24% increase in sales of peptide synthesis products. Sales of purification products grew roughly 10%. Organic chemistry sales accounted for 55% of revenues. Analytical chemistry sales were mixed, including higher demand for consumables but weak instrument sales, to account for 39%. Industrial Resins sales declined to make up 6% due to an absence of orders from major customers. Sales to the US, the EU, Japan, China and Rest of the World accounted for 38%, 36%, 14%, 4% and 6% of revenues, respectively. Gross margin fell 250 basis points to 56.1% of sales due to currency and product mix. Adjusted operating profit contracted 14.6% to SEK 38.7 million ($5.9 million). Sales growth is projected to improve in 2014.

Fluidigm reported stronger-than-expected fourth quarter 2013 sales growth of 33.3% to $20.9 million (see page 12). Instrument sales climbed 25.8% to account for 58% of revenues. Placements of roughly 70% of BioMark HD systems and 25% of C1 Single-Cell Auto Prep systems were driven by single-cell research. Consumables sales climbed 48.4% to make up 41% of revenues. Integrated Fluidic Circuits (IFC) sales jumped 60% due to demand from production genomics to account for roughly 60% of Consumables revenue. Grant and License revenue declined 16.2% to account for 1% of sales. Product sales to the US, Europe and Asia Pacific climbed 24.6%, 31.5% and 19.2% to account for 44%, 32% and 11% of revenues, respectively. Japanese and Other sales soared 98.2% and 329.5% to make up 10% and 3%, respectively. Product gross margin was flat at 71.8% of sales. Total adjusted operating loss widened 10.9% to $3.9 million due to increased headcount.

For 2013, Fluidigm sales grew 6.0% to $71.2 million. Single-cell genomics revenue nearly doubled to account for half of sales. Instruments revenue soared 40.8% to account for 58%. The cumulative installed instrument base grew 37% to roughly 920 units, including 530 analytical systems and 390 preparatory systems. Instrumentation used for single-cell research applications accounted for 33% of systems sold. Consumables sales grew 30.5% to account for 41% of revenues due to strong demand for IFC. Product sales to the US, Europe and Asia Pacific climbed 32.9%, 41.2% and 3.8% to make up 52%, 26% and 9% of sales, respectively. Japanese and Other sales jumped 72.9% and 141.8% to account for 10% and 3%, respectively. Product gross margin expanded 116 basis points to 71.4% of sales. Adjusted operating loss narrowed 6.6% to $16.9 million. For 2014, sales are projected to grow 23%–28% to $87–$91 million. The acquisition of DVS Sciences (see IBO 1/31/14) will add $33–$35 million. Cumulative shipments of single-cell instruments are projected to grow 133% to roughly 700 units by the end of 2015.

Excluding royalty payments, fourth quarter 2013 Merck Millipore sales were flat at €653.5 million ($895.2 million = €0.73 = $1) to make up 25% of company sales (see page 12). Excluding currency, sales grew 6.7%. All sales figures below are organic. Process Solutions (PS) sales grew 9.5% to make up 40% of Millipore revenue. Lab Solutions (LS) and Bioscience sales grew 6.3% and 1.5% to make up 43% and 17%, respectively. Overall, European sales grew 7.7% to make up 39% of Millipore revenue. Sales to Emerging Markets, which include Latin America and Asia (excluding Japan), rose 10.7% to account for 25%. US sales declined 0.3% to represent 25%. Sales to Rest of World grew 10.6% to make up 10%. Royalty income from the PS and Bioscience businesses fell 31.8% to €3.1 million ($4.2 million). Gross profit margin expanded 50 basis points to 58.2% as a result of currency. Adjusted operating profit jumped 22.2% to €139.6 million ($191.2 million) because of lower SG&A and R&D expenses.

Merck Millipore’s 2013 sales grew 1.1% excluding royalty payments to €2.63 billion ($3.50 billion = €0.75 = $1). Excluding currency headwinds of 4.8% and 0.5% sales growth from the acquisition of Biochrom (see IBO 8/31/12), organic sales grew 5.5%. All sales figures below are organic. PS sales grew 7.7% to account for 42% of revenue due to demand from biopharmaceutical manufacturers, especially in Asia and the US. LS revenue climbed 5.4% to make up 42% of sales, thanks to higher pricing and demand for biomonitoring solutions from pharmaceutical markets. Bioscience sales rose 0.3% to represent 17%, as revenue growth was hampered by government and academic spending in the US. Sales to Europe and the US grew 4.2% and 4.1% to account for 39% and 27% of sales, respectively. Sales to Emerging Markets and Rest of World grew 10.5% and 2.4% to make up 24% and 10%, respectively. Royalty income fell 4.7% to €17.8 million ($23.7 million). Gross profit margin slipped 20 basis points to 58.6% of segment sales due to currency. Adjusted operating profit grew 4.3% to €532.2 million ($709.6 million). For 2014, organic sales are projected to grow moderately.

For the second half of 2013, Tecan sales declined 1.1% to CHF 206.5 million ($224.4 million = CHF 0.92 = $1) (see page 12), but grew 0.8% excluding currency. Orders slipped 1.0% in local currency to CHF 196.9 million ($216.2 million). Organic sales were led by a 37% jump in consumables sales, partially offset by discontinued products and lower instrument demand in the Life Sciences Business (LS). All sales figures below are in local currency. European and North American sales grew 5.2% and 0.7% to account for 43% and 39% of revenues, respectively. Sales in Asia and Others fell 3.4% and 26.8% to represent 14% and 3%, respectively. Gross profit margin declined 280 basis points to 8.9% of sales. Operating profit grew 4.5% to CHF 31.7 million ($34.4 million) due to lower R&D, and sales and marketing expenses. LS sales declined 3.8% to account for 61% of revenues, but orders were higher. LS operating profit slumped 29.5% to CHF 17.3 million ($25.7 million). Sales for the Partnering Business grew 8.9% to account for 39% of sales, which benefited from the initial delivery of instruments to Dako. Segment operating profit jumped 88.9% to CHF 17.7 million ($19.3 million).

Full-year 2013 Tecan sales slipped 0.7% to CHF 388.3 million ($416.1 million = CHF 0.93 = $1), but grew 0.1% excluding currency. Orders improved 1.9% in local currency to CHF 86.1 million ($415.1 million). All sales figures below are expressed in local currency. Consumables revenue grew 26.3% to account for 12% of sales. Services revenue grew 5.3% to make up 23%. Instruments and components revenues fell 4.9% to make up 66%. Sales in Switzerland and Other Europe grew 10.7% and 0.1% to account for 3% and 40% of revenues, respectively. North American and Asian sales improved 0.8% and 0.5% to make up 41% and 13%, respectively. Within Asia, Chinese sales climbed roughly 25% to make up 6% of company sales. Sales to Others fell 17.3% to represent 3%. Gross profit margin declined 190 basis points to 48.8% of sales due to product mix and the medical device tax, but was partially offset by pricing and lower development costs. Despite investments in China and currency headwinds, operating profit expanded 4.0% to CHF 54.8 million ($58.9 million) due to lower R&D and marketing expenses. Excluding currency, operating profit margin expanded 100 basis points to 14.5% of sales.

Tecan’s 2013 LS sales fell 3.7% to make up 58% of sales due to lower instrumentation sales in the US, Europe and Japan. However, this growth was partially offset by double-digit growth each for consumables and Chinese sales. LS operating profit dropped 37.2% to CHF 18.4 million ($19.8 million) because of product mix, lower sales volume, currency and the medical device tax. Revenue for the Partnering Business grew 5.8% to make up 42% of sales, led by new partnerships, strong growth for services and consumables, and good demand for components. Segment growth was partially offset by slightly lower instrument sales and a decline of CHF 15 million ($16 million) from phased out products. Segment operating profit climbed 38.8% to CHF 42.7 million ($46.0 million) due to lower development costs. For 2014, currency-neutral sales are projected to grow at least in the mid-single digits. The company lowered its revenue goal for 2015 by 5% to roughly CHF 475 million ($515 million).