Fourth-quarter 2010 IBO Life Science Index sales rose 5.5%, 6.3% on a currency-neutral basis, to $3,421.75 million. Operating profits climbed 6.2% to $794.90 million, and operating margins improved 60 basis points to 23.4% of revenues. For the year, Life Science Index sales grew 8.2% to $12,187.41 million. Operating profits grew 15.1% to $2,672.29 million, and operating margins improved 170 basis points to 22.7% of sales.

Fourth-quarter revenue for Beckman Coulter’s Life Science (LS) segment fell 13.9%, 13.0% excluding currency, to $135.4 million (see page 12) to account for 14% of company sales. Sales were negatively impacted by lower international stimulus and pharmaceutical R&D funding. LS operating profits slumped 35.8% to $29.2 million. For the year, LS revenue contracted 4.0%, 4.4% on a currency-neutral basis, to $453.3 million to make up 12% of total sales. LS operating income declined 21.5% to $74.7 million.

Fiscal first-quarter revenue for Becton Dickinson and Company’s BD Biosciences unit grew 3.5% excluding currency to $313.7 million (see page 12) to represent 17% of total company sales. Revenue growth was reduced by 2% as a result of US stimulus–related sales in fiscal 2009. The following figures exclude currency. International and US sales improved 3.6% and 3.2% to account for 64% and 36% of segment revenue, respectively. Discovery Labware revenue rose 1.2% to account for 23% of BD Biosciences’ revenue, driven by strong demand for Advanced Bioprocessing products. Cell Analysis sales grew 4.2% to make up 77% of segment revenue. BD Biosciences’ operating income climbed 5.8% to $90.5 million due to product mix and improved manufacturing efficiencies but was partially offset by higher raw materials costs. Fiscal 2011 BD Biosciences revenue is forecast to grow 4% on a currency-neutral basis, or 7% excluding flu, stimulus and supplemental spending.

Fourth-quarter sales for Biotage grew 16.7%, 2% organically, to SEK 116.1 million ($17.1 million = SEK 6.79 = $1) (see page 12). Acquisitions added 21% to revenue growth, and currency reduced sales by 6%. EU, US and Rest of the World sales accounted for 40%, 39% and 21% of revenues, respectively. Adjusted operating profits jumped from a modest profit to a gain of SEK 8.6 million ($1.3 million) due to acquisitions. Gross profit jumped 760 basis points to 61.7% of sales due to product mix and currency. Full-year Biotage sales improved 8.8%, 3% organically, to SEK 428.9 million ($59.5 million = SEK 7.21 = $1). Acquisitions added 12% to revenue growth, and currency lowered sales by 7%. Sales to the EU, US and Rest of the World accounted for 37%, 39% and 24% of revenues, respectively. Adjusted operating profits more than tripled to SEK 25.7 million ($1.0 million), and gross margins jumped 260 basis points to 59.7%.

Based on continuing operations, fourth-quarter revenues for Caliper Life Sciences improved 8.9% (see page 12), 10.7% on a currency-neutral basis, to $36.2 million. Excluding a one-time microfluidics license fee from Becton Dickinson (BD) in 2009, sales jumped 18% organically. The following figures represent organic growth and exclude the BD license fee. Imaging revenue climbed 14% to make up 49% of sales. Cumulative IVIS Optical Imaging System shipments reached over 1,000 units. Research revenue grew 9% to make up of 41% of sales, including 9% growth each for LabChip and Automation product lines. Caliper Discovery Alliances and Services (CDAS) revenue soared 144.4% to account for 10% of sales due to EPA ToxCast revenue. Adjusted operating income fell 64.2% to $0.9 million as a result of divestitures. Gross margins rose 140 basis points to 50.9% of sales, including an 800-basis-point jump in product and service gross margins.

Full-year Caliper revenues grew 8.9%, 10% on a currency-neutral basis, to $120.1 million. Excluding the BD license fee, sales climbed 12% organically. Imaging, Research and Service revenue grew 19%, 2% and 38% to account for 50%, 43% and 7% of sales, respectively. Within the Research business, organic microfluidics sales grew 15%, excluding the BD license fee, to represent 25% of company sales, while Automation revenue declined 12% to make up 18%. Adjusted operating profits for the year were $0.9 million, compared with a loss of $4.9 million. Gross margins jumped 750 basis points to 51.9% of sales. For 2011, the company projected organic revenue to grow 12%–20% to $135–$145 million, including 27% and 6% average growth for the Imaging and Research businesses, respectively, and flat growth for CDAS. First-quarter revenues are anticipated to grow 27% on an organic basis to $33 million, including 10% growth from acquisitions.

Sequenom’s fourth-quarter revenues climbed 27.5% to $13.8 million (see page 12). Adjusted operating loss narrowed by 10.7% to $15.6 million. Gross profit margins jumped nearly 12 percentage points to 62.3% due to a shift in product mix and higher diagnostic revenues. MassARRAY and other product-related revenues grew 23.3% to account for 44% of sales. The company placed 15 instruments during the quarter, 13 of which were MassARRAY Analyzer IVs. Consumables revenue grew 12.2% to account for 42% of sales. Contract Research Services revenue rose 15.4% to represent 5%. Genetic Analysis (GA) sales grew 17.2% to make up 91% of revenues, and operating profit more than doubled to $3.6 million. Sales for the Molecular Diagnostics (MD) segment represented 9% of revenues, driven primarily by cystic fibrosis carrier–screening tests. Segment operating loss widened by 21.0% to $9.1 million.

Full-year revenues for Sequenom climbed 25.3% to $47.5 million. MassARRAY and other product-related revenues grew 36.0% to make up 43% of sales. The company placed 51 systems for the year, 27 of which were MassARRAY Analyzer IVs. Consumables sales increased 7.2% to account for 46% of sales, and Contract Research Services revenue grew 12.4% to make up 5%. GA sales grew 18.9% to $44.9 million. Diagnostic revenue accounted for 5% of sales. Adjusted operating loss widened by 5.1% to $65.6 million. Gross margins slipped 150 basis points to 60.0% of sales due development expenses for diagnostics. The company ended the year with $135.5 million in cash and short-term securities, which is expected to fund operations through the commercialization of the AMD and T21 tests or through the beginning of 2013.

For continuing operations for the second half of the year, Tecan’s revenues slipped 0.3% but grew 5.0% on a currency-neutral basis to CHF 192.5 million (CHF 1.00 = $1) (see page 12). Orders improved 3.4%, 8.7% in local currency, to CHF $193.6 million. Operating profits declined 15.1% to CHF 32.9 million due to higher R&D. Gross profit margins declined 210 basis points to 50.5% of sales as a result of negative currency effects. By product line, Liquid Handling & Robotics revenue grew 0.8%, 5.7% in local currency, to make up 71% of sales, while segment operating income fell 20.9% to CHF 23.5 million. Components & Detection revenue declined 2.7% but grew 3.3% in local currency to account for 29% of sales, and segment operating income improved 1.3% to CHF 12.6 million. On a currency-neutral basis, sales to Europe, Asia and Others grew 4.8%, 8.2% and 98.7% to account for 46%, 12% and 4% of sales, respectively. North American sales declined 1.0% to make up 38%.

The following figures are based on continuing operations. Full-year Tecan revenues improved 4.0%, 8.4% on a currency-neutral basis, to CHF 370.6 million ($356.3 million = CHF 1.04 = $1). Orders climbed 9.9% in local currency to CHF 387.0 million ($372.1 million). Operating profits slipped 6.0% to CHF 56.0 million ($54.7 million). Gross profit margins declined 160 basis points to 50.2% of sales. The OEM business grew 27.7% to make up 38% of sales, led by European demand from diagnostics firms. End-customer sales fell 1.9% in local currency to account for 31% of sales. In local currency, Consumables and Service sales grew 15.7% and 3.4% to make up 8% and 23% of revenues, respectively. By product line, Liquid Handling & Robotics revenue grew 4.7%, 8.9% on a currency-neutral basis, to account for 71% of sales. Components & Detection revenue grew 2.4%, 7.2% in local currency, to make up 29% of sales. On a currency-neutral basis, sales to Europe, Asia and Others climbed 15.5%, 4.1% and 44.6% to represent 47%, 12% and 4% of sales, respectively. North American sales slipped 0.6%. For 2011, revenues are projected to grow in the mid-single digits in local currency.

 Column Chart: Quarterly Sales Performance

 January 2007—December 2010

 Year Q1 Q2 Q3 Q4

 2007 2297 2458 2481 2924

 2008 2576 2821 2733 2947

 2009 2565 2713 2748 3243

 2010 2875 2939 2952 3422

 Column Chart: Quarterly Operating Profit Margins 

 January 2007—December 2010

 Year Q1 Q2 Q3 Q4

 2007 16.1% 15.9% 16.9% 21.4%

 2008 18.2% 18.1% 18.8% 21.1%

 2009 19.2% 20.2% 21.4% 22.8%

 2010 22.1% 22.8% 22.4% 23.4%

 Life Science Index, Total                                            % Change  

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

 Total Annual Revenues ($M)          $10,162 $11,077 $11,268 $12,187    9.0%   1.7%   8.2%

 Annual Oper. Profits ($M)            $1,805  $2,105  $2,321  $2,672   16.6%  10.2%  15.1%

 Annual Oper. Profits (%)              17.8%   19.1%   21.0%   22.7%   -----  -----  -----

 1st Quarter Revenues ($M)            $2,297  $2,576  $2,565  $2,875   12.1%  -0.4%  12.1%

 1st Quarter Oper. Profits ($M)         $369    $466    $478    $609   26.3%   2.4%  27.4%

 1st Quarter Oper. Profits (%)         16.1%   18.2%   19.2%   22.1%   -----  -----  -----