This issue, IBO has made a of couple changes to its Life Science Sales Index. Gene Logic, Tripos and Molecular Devices were removed from the Index. Tripos sold its Discovery Informatics division in March (see IBO 11/30/06), while Gene Logic increased the service orientation of its business. Molecular Devices was acquired by MDS on March 28 (see IBO 1/31/07). First quarter 2007 Life Science Index sales gained 8.0% to $1,990.2 million, a healthy improvement over the 6.6% growth in the same period last year. However, revenue growth for a majority of the US companies was favorably affected by currency translation. Operating profit for the Index improved 10.7% to $295.5 million and operating margin gained 30 basis points to 14.8% of sales. Index growth was led by a 13.0% gain in first quarter sales for BD Biosciences and 7.9% revenue growth for Applied Biosystems (see IBO 5/31/07). Bio-Rad was the only company to report a significant decline in first quarter sales, down 2.2% (see IBO 5/31/07). Of the 15 Index companies, Genetix and Tecan are the only two companies for which first quarter estimates have been used. BD Biosciences reported a 13.0% increase in fiscal second quarter sales to $258.5 million (see page 12) to make up 16.4% of Becton Dickinson sales. Excluding currency effects, BD Biosciences’ fiscal second quarter sales improved 10.1%. Organic revenue growth was primarily attributed to strong sales of flow cytometry instruments, reagents and advanced bioprocessing products. Operating income for the segment jumped 21.5% to $67.9 million, and operating margin climbed 170 basis points to 26.3% of sales. Sales of Immunocytometry Systems grew 17.0%, Discovery Labware sales improved 10.5% and Pharmingen sales gained 4.8% to account for 56%, 27% and 17% of division sales, respectively. BD Biosciences’ US sales gained 9.8% to account for 42% of total sales, while international sales grew 15.5% to represent 58% of sales. Excluding one-time charges, the company anticipates fiscal year 2007 diluted earning per share to grow 13%–14% to $3.76–$3.80. First quarter sales for Biotage AB slipped 1.4% to SEK 118.9 million ($16.9 million = SEK 7.02 = $1) from SEK 120.6 million ($15.5 million = SEK 6.92 = $1). At constant exchange rates, first quarter sales grew 5%. During the quarter, operating expenses were drastically reduced, allowing operating income to post a gain of SEK 7.2 million ($1.0 million) compared to a loss of SEK 12.2 million ($1.8 million) in the prior quarter. Discovery Chemistry sales declined 5.5% to SEK 94.8 million ($13.5 million), but on a currency-neutral basis grew 1%. European and US revenues improved 200 basis points and 400 basis points to account for 44% and 43% of total sales, respectively, while sales to the remaining countries declined 500 basis points to make up 13% of total sales. Operating profits for the segment improved to SEK 2.9 million ($0.4 million) from a loss of SEK 1.8 million ($0.3 million), benefiting from increased sales of consumables and higher productivity. Gross margins improved 160 basis points to 62.2%. Biosystems sales grew 18.7 %, or 25% at constant exchange rates, to SEK 24.1 million ($3.4 million). Operating profit recorded a gain of SEK 6.6 million ($0.9 million) from a loss of SEK 1.1 million ($0.2 million) a year ago. Biosystems sales in all three major geographical markets traded flat, with the US accounting for 50% of total sales, Europe making up 40% and all other countries totaling 10%. Caliper Life Sciences’ first quarter sales grew 27.5% to $28.4 million, while adjusted operating loss more than doubled to $7.0 million. The acquisition of Xenogen (see IBO 2/15/06) added $10.2 million to first quarter revenues, but also contributed to higher operating expenses. Despite a 3.8% increase in Product revenue to account for 54% of total sales, organic sales growth declined. Product revenue from the in vitro automation and microfluidic product families fell 25%, due to purchase order delays, slow Staccato and LabChip 3000 system sales, and lower OEM sales. Helping offset the significant decline in Product revenue, Xenogen contributed $5.2 million in sales. Service revenue jumped 77%, and License and Contract revenue improved 66%, to account for 31% and 15% of total revenues, respectively. These two segments benefited primarily from assets acquired through the acquisition as well as new contracts with both Pfizer and the EPA. Second quarter revenues are estimated to grow 23%–40% to $30–$35 million and full-year revenues are forecasted to improve 27%–33% to $137–$143 million. QIAGEN NV reported impressive first quarter results with sales of $127.9 million, up 17.6%, or 8% on a currency-neutral basis, and 11% organic growth. Acquisitions contributed 2% to revenue growth. Adjusted operating income climbed 17.3% to $32.5 million. Consumables revenue grew 15%, or 11% at constant exchange rates, to $113.8 million, Instrument sales jumped 46%, or 40% at constant exchange rates, to $12.8 million, while Other sales, primarily services, decreased 11% to $1.3 million. Biomedical and basic research account for 38% of QIAGEN’s customers, followed by molecular diagnostics, pharmaceutical industry and applied testing customers, making up 27%, 24% and 11% of sales, respectively. Shipments of the new QIAcube began in late April and were not included in sales. Sales for North America grew 5% and accounted for 39% of total revenues, while European sales jumped 14% to represent 46% of revenues at constant exchange rates. Sales to Asia increased 49% to approximately 15% of sales, led primarily by markets in China, Singapore and Korea. During the quarter, the company launched 13 new products. Second quarter revenues are anticipated to increase 10% organically to $127–$130 million. SEQUENOM’s first quarter revenues grew 43.1% to $9.9 million, while adjusted operating loss widened by 13.3% to $4.1 million. Consumables revenue jumped 47.1% to account for 42% of total sales, due to an increased installed base of MassARRAY Compact systems and adoption of the iPLEX Gold assay. Other product-related revenue increased 34.0% to represent 50% of revenues, led primarily by sales of MassARRAY systems. Growth in the clinical analysis market pushed Services revenue from 0.2% of total sales to 8%. Research and other revenue were nonmaterial for the quarter. In April, to help secure additional financing, SEQUENOM sold 6.6 million shares of common stock at $3.00 per share to several new and existing unaffiliated institutional investors. Full-year revenues are forecasted to be $37–$39 million. Stratagene’s first quarter revenues edged 0.8% higher to $24.4 million, while adjusted operating profits climbed 71.7% to $3.1 million. Favorable exchange rates added 2.5% to total revenue growth. Research Supplies revenue dropped 1.3% to $18.1 million, while Clinical Diagnostics revenue gained 7.1% to $6.3 million, due to increased allergy and autoimmune product sales. The merger with Agilent’s Life Sciences Solution Unit closed June 7 (see IBO 4/15/07).