First-quarter 2009 Life Science Index sales grew 12.3%, 9.3% on a currency-neutral basis, to $2,788.36 million. Operating profit soared 27.4% to $615.14 million, while operating margin gained 270 basis points to 22.1% of sales due to product introductions and continued cost-saving initiatives. Of the 14 Index companies, Tecan was the only company for which first-quarter estimates have been used. Please note that the Index has been reset to 1, which may have increased the Index’s total sales figures.

First-quarter revenue for Beckman Coulter’s Life Sciences segment grew 11.8%, 7.9% at constant currency, to $105.3 million to account for 12% of total sales. Cash instrument sales climbed 12.4% at constant currency due to strong demand for automation systems in Asia and Europe. Life Science sales to the US improved moderately. Life Sciences operating profits soared 90.3% to $17.7 million due to product introductions with higher margins.

Fiscal second-quarter revenue for Becton Dickinson’s BD Biosciences improved 6.0%, 9.8% at constant currency, to $322.1 million to make up 17% of company revenues (see page 12). US sales climbed 12.6% to account for 36% of segment revenue, driven by strong demand for research instruments and reagents, including Advanced Bioprocessing products. International revenue grew 2.6%, 8.4% on a currency-neutral basis, led by Japan. Biosciences operating income rose 5.5% to $97.2 million, while operating margins slipped 10 basis points to 30.2% of sales. Cell Analysis revenue grew 5.0%, 9.0% on currency-neutral basis, to $242.5 million. Cell Analysis sales to the US grew 8.9% to represent 32% of segment sales, while International revenue improved 3.2%, 9.1% at constant currency. Demand for cell-analysis instruments benefited from Japanese government funding for stem cell research. Discovery Labware revenue increased 9.3%, 12.4% on a currency-neutral basis, to $79.6 million. Discovery Labware sales to the US jumped 20.8% to make up 49% of segment revenue, while International sales improved 0.2%, 5.8% on a currency-neutral basis. Fiscal year Biosciences sales are projected to grow 4%, 6% at constant currency, to $1,252 million. The company expects stimulus funding to contribute $20 million in sales for the fiscal year.

First-quarter sales for Biotage AB grew 0.3%, 13.8% on a currency-neutral basis, to SEK 99.9 million ($13.9 million = SEK 7.19 = $1). In US dollars, sales jumped 17.3%. Consumables revenue, which accounted for 49% of company sales, strengthened due to increased demand for SNAP and SPE product lines. Overall, sample preparation revenue grew more than 19%. European and US sales represented 36% and 35% of revenues, respectively, while sales to rest of the world accounted for 29% of sales, including a 66% jump in Japanese sales. Adjusted operating profit was SEK 4.6 million ($0.6 million), compared to a loss of SEK 0.5 million ($0.1 million) a year ago. Gross profit margins improved 210 basis points to 59.0% of sales, despite a 3.3% decline due to currency. During the quarter, the company repurchased 392,121 shares for a total value of SEK 2.7 million ($0.4 million).

Based on continuing operations, Caliper Life Sciences’ first-quarter sales grew 13.1%, 11% excluding currency, to $28.7 million. LabChip and IVIS instrument product line sales climbed 31% and 26%, respectively, to combine for 71% of company sales. Research revenue improved 6.4% to make up 49% of sales due higher microfluidic contract and license revenue, and strong demand for LabChip GX instruments and microfluidic consumables, which grew 25% each. However, Research revenue was partially offset by lower Zephyr liquid-handling instrument sales. Imaging revenue jumped 25.9% to represent 47% of sales, led by strong global demand for IVIS instruments and the higher-priced IVIS Spectrum and new IVIS X-ray systems. The company placed 37 IVIS instruments during the quarter, compared to 32 a year ago. Caliper’s Discovery Alliances and Services sales dropped 19.6% to make up 4% of sales due to a large oncology project that was completed in 2009. Adjusted operating loss narrowed to $0.4 million from a loss of $4.6 million a year ago. Gross profit margins soared 12 percentage points to 51.5% of sales due favorable product mix and the divested lower-margin business. Full-year organic revenue is anticipated to grow 4%–6% to $126 million.

First-quarter sales for QIAGEN NV grew 19.7%, 11% organically, to $264.4 million. Currency and acquisitions contributed 6% and 5% to revenue growth, respectively, while divestitures reduced revenue growth by 2%. Consumables sales improved 15%, 10% on a currency-neutral basis, to make up 86% of revenues. Instrument revenue climbed 46%, 37% on a currency-neutral basis, to account for 14% due to strong demand for automation platforms. During the quarter, the company released 14 new products in the area of Sample and Assay Technologies. Meanwhile, products released within the last 12 months contributed 4% to first-quarter revenue growth. Overall, sales to the molecular diagnostics market jumped 15% to make up 45% of company sales due to strong growth of profiling assays. Sales to the pharmaceutical market climbed 13% to make up 21% of sales, including strong demand for development-related products, but lower discovery-related sales. Applied testing and academia revenues grew 28% and 12% to account for 7% and 27% of sales, respectively. The academia business recorded only modest growth from stimulus funding. Asian sales were particularly strong, growing 35%–40% organically. Sales to the Americas while positive were negatively impacted by severe weather conditions along the East Coast. The company reiterated its full-year revenue outlook of $1,120–$1,170 million for growth of 11%–16% and projected second-quarter revenue growth of 10%–17% to $265–$280 million.

Sequenom’s first-quarter revenues climbed 22.1% to $10.6 million due to strong MassARRAY system hardware and related maintenance-contract revenue, which grew 45.8% and 85.7% to account for 33% and 12% to company sales, respectively. Consumables sales improved 8.9% to make up 49% of revenues, driven by higher shipments of MassARRAY systems, as well as increased demand from clinical research and bio-agriculture customers. Service revenue fell 42.5% to make up 5% of sales, while Research and Other revenue were negligible. The Diagnostic segment, which includes recently launched molecular diagnostic tests, recorded revenue of $0.2 million. Operating loss narrowed to $16.9 million, compared to $17.8 million a year ago. Gross profit margins fell over 10 percentage points to 50.5% of sales due to increased start-up expenses for the diagnostics business and product mix.

Life Science Index, Total % Change

2007 2008 2009 2010 07/08 08/09 09/10

Total Annual Revenues ($M)

9691 10632 10809 —- 9.7% 1.7% —-

1st Quarter Revenues ($M)

2275 2505 2484 2788 10.1% -0.8% 12.3%

Annual Oper. Profits ($M)

1766 2067 2295 —- 17.1% 11.0% —-

Annual Oper. Profits (%)

18.2% 19.4% 21.2% —- —- —- —-

1st Quarter Oper. Profits ($M)

395 468 483 615 18.5% 3.2% 27.4%

1st Quarter Oper. Profits (%)

17.4% 18.7% 19.4% 22.1% —- —- —-

Chart: Quarterly Sales Performance January 2007–March 2010

Q1 Q2 Q3 Q4

2007 2275 2375 2393 2662

2008 2505 2722 2645 2771

2009 2484 2612 2655 3059

2010 2788

Chart: Quarterly Operating Profit Margins January 2007–March 2010

Q1 Q2 Q3 Q4

2007 17.4% 16.8% 17.7% 20.4%

2008 18.7% 18.5% 19.4% 20.8%

2009 19.4% 20.6% 21.5% 23.0%

2010 22.1%