Second-quarter 2009 IBO Life Science Index sales declined 4.3% to $2,336.48 million. Operating profit grew 5.9% to $404.34 million, and operating margin climbed 170 basis points to 17.3% of sales. Sales growth for a majority of companies was adversely affected by currency transactions and budget constraints. Operating profits benefited from restructuring activities.

Second-quarter sales for Beckman Coulter’s Life Science segment tumbled 14.7%, 9.3% on a currency-neutral basis, to $108.8 million to account for 14% of company revenues. Cash instrument (nonrecurring) sales fell 16.1% on a currency-neutral basis. Cash-instrument sales for every product line were down over 25%, except centrifugation, which declined marginally. US Life Science sales contracted 22%, and European sales declined to a lesser extent. Life Science operating profit fell 26.1% to $13.3 million.

Affymetrix’s second-quarter revenues declined 6.2% to $81.6 million, including a loss of 3.5% from currency transactions. Product revenue fell 10.5% to account for 82% of sales. Consumables and Instrument sales declined 9.7% and 16.4% to $62.2 million and $5.0 million, respectively. DNA and RNA sales declined 20.8% and 4.9% to $22.1 million and $38.6 million, respectively. Nearly 70% of GeneTitan sales were processed via the company’s reagent-rental program. Service revenue grew 35.7% to make up 15% of sales, while Royalty and Other revenue declined 24.5% to account for 3% of sales. Overall, sales were primarily focused on the validation and routine test markets, which accounted for 15% of revenues, compared to a low single-digit share a year ago. Affymetrix’s adjusted operating loss was $1.0 million, compared to a loss of $1.3 million a year ago, while gross profit margins declined 105 basis points to 54.1% of sales due to restructuring costs. Excluding these costs, adjusted gross margins improved over 450 basis points to 59.7% of sales due to higher service margins and improved factory utilization. The company anticipates third-quarter revenues to grow 4%–8% to $78–$81 million.

Fiscal third-quarter revenue for Becton Dickinson’s BD Biosciences declined 4.2%, 1.2% in constant currency, to $285.2 million, to make up 16% of company sales. Revenue growth was negatively impacted by capital constraints, primarily in the US. Sales of reagents improved 5%, driven by demand for clinical reagents. US sales contracted 7.0% to $108.1 million, while International sales slipped 2.5%, but grew 2.5% in constant currency to $177.1 million. Adjusted operating revenue fell 8.0% to $76.2 million. Cell Analysis sales fell 5.5%, 2.4% on a currency-neutral basis, to $209.8 million including a 12.1% and 1.9% decline in US and International sales to represent 66% and 34% of segment sales, respectively. On a currency-neutral basis, Cell Analysis International sales grew 3.0%. Discovery Labware revenue contracted 0.3% to $75.4 million, but grew 2.5% excluding currency effects. Discovery Labware US sales climbed 4.3% to represent 50% of segment sales, while International sales slipped 4.6%, but grew 0.8% on a currency-neutral basis. Full-year BD Biosciences revenues are forecasted to grow roughly 2% on a currency-neutral basis.

Excluding the company’s divested Biosystems business, Biotage AB’s second-quarter revenues climbed 9.8% to SEK 104.4 million ($13.2 million = SEK 7.92 = $1), but declined 10% on a currency-neutral basis. Organic revenue growth was offset by lower instruments sales to major pharmaceutical customers. Sales to the US and Japan were positive, while sales to Europe and other Asian regions were weak. US and European sales accounted for 43% and 39% of revenues, respectively, while sales to the Rest of the World made up 18%. Operating profit jumped 36.8% to SEK 3.7 million ($0.5 million). Gross margins improved 384 basis points to 60.7% of sales due to currency transactions and improved productivity. During the quarter, the company continued to restructure, consolidating two of its UK operations.

Second-quarter sales for Caliper Life Sciences declined 5.6% to $32.1 million, but grew 8% organically from 2008 pro forma revenues. Divestitures and currency-exchange transactions reduced revenue growth by 10% and 3%, respectively. The following comparisons are on a pro forma basis. Research revenue improved 1.0%, 5% on a currency-neutral basis, to make up 47% of sales. Demand for microfluidic products jumped 64%, primarily due to double-digit sales growth for both the EZ Reader and LabChip instruments, as well as a 30% jump in consumables revenue. However, automation sales declined 26%. Imaging revenues jumped 17.2%, 21% on a currency-neutral basis, to account for 40% of sales due to sales of IVIS instruments and reagents, which grew 6% and 43%, respectively. Caliper Discovery Alliances & Services revenue fell 13.9%, following the completion of a government service contract. Overall, product and service revenue accounted for 67% and 25% of revenues, respectively, while licensee fees and contract revenue made up 8%. Adjusted operating loss narrowed to $2.3 million from a loss of $3.7 million. The company forecasts full-year pro forma organic revenue growth of 5%–7% to $126–$129 million.

QIAGEN NV’s second-quarter revenues grew 10.2% to $240.2 million, including 6% growth from acquisitions and a decline of 8% from currency. Consumables sales climbed 5%, 12% on a currency-neutral basis, to account for 86% of sales. Instrument sales jumped 66%, 83% at constant exchange rates, to make up 14% of sales. Molecular diagnostic sales grew 21% to account for 48% of revenues. Growth in applied markets increased 15%. Pharmaceutical and biotech sales benefited from demand for clinical development products, partially offset by lower sales for discovery products, which accounted for 10% of total sales. Sales to the Americas and Asia grew 13% and 43% to account for 50% and 12% of sales, respectively, while European sales declined 2% to represent 35%. On a currency-neutral basis, American and European sales each grew 14%. Adjusted operating profits climbed 18.6% to $69.0 million. Adjusted gross profit margins slipped 143 basis points to 72% of sales. Excluding a divested business for molecular transplantation testing products used for HLA typing, third-quarter revenues are expected to grow 15%–19% to $235–$245 million. Full-year revenue outlook was raised 2% to $930–$970 for growth of 11%–16%.

Sequenom’s second-quarter revenues fell 28.6% to $9.2 million. Sales of Consumables rose 5.2% to make up 57% of sales. System-Related Products, and Research and Other sales declined 50.4% and 43.1% to represent 36% and 7% of sales, respectively. The company’s operating loss more than doubled to $19.3 million. Gross margins soared 816 basis points to 65.9% of sales. For 2009, the company anticipates Genetic Analysis revenue of $32–$35 million, and a total cash burn of $52–$57 million.

Chart: Quarterly Sales Performance January 2006–June 2009

Q1 Q2 Q3 Q4

2006 1837 1875 1873 2120

2007 2018 2124 2106 2376

2008 2229 2442 2335 2406

2009 2209 2336

Chart: Quarterly Operating Profit Margins January 2006–June 2009

Q1 Q2 Q3 Q4

2006 14.5% 13.5% 12.8% 16.2%

2007 14.9% 14.2% 14.9% 18.1%

2008 16.1% 15.6% 16.3% 18.1%

2009 16.1% 17.3%