Third-quarter 2010 IBO Life Science Index sales grew 7.2%, 8.5% excluding currency, to $2,944.55 million. Operating profit improved 11.5% to $636.50 million, and operating margin gained 110 basis points to 22.5% of sales.

Third-quarter revenue for Beckman Coulter’s Life Sciences segment declined 5.1%, 4.1% at constant currency, to $106.1 million to account for 12% of total sales. Revenue growth was adversely affected by weak instrument sales in Europe and lower capital spending within the pharmaceutical industry. Despite lower US sales and minimal contribution from stimulus funding, demand from China was strong. Operating profits slumped 35.4% to $13.3 million.

Fiscal fourth-quarter revenue for Becton Dickinson’s BD Biosciences segment grew 3.5%, 5.3% excluding currency, to $323.1 million to make up 17% of company sales. International sales improved 5.4%, 8.4% excluding currency, to $199.1 million, led by strong demand from emerging markets. US sales grew only 0.6% to $124.0 million due to order delays by several large customs for Advanced Bioprocessing products. Segment operating revenue slipped 10.5% to $84.4 million due to increased R&D and marketing expenses. Cell Analysis sales climbed 5.4%, 7.8% on a currency-neutral basis, to $306.4 million, including US and International revenue growth of 3.1% and 6.8% to make up 35% and 65% of segment sales, respectively. In local currency, International sales grew 10.4%. Discovery Labware revenue slipped 2.4%, down 1.9% in local currency, to $76.1 million. Discovery Labware’s US sales fell 4.6% to account for 49% of segment sales, and International sales declined 0.2%, but grew 0.8% in local currency, to represent 51%.

Full-year revenue for BD Biosciences improved 4.4%, 6.8% on a currency-neutral basis, to $1,257.0 million to account for 17% of total company sales. US sales grew 6.0% to $475.9 million, and international sales improved 3.5%, 7.2% in local currency, to $781.1 million. Full-year operating profit declined 2.2% to $354.2 million. Cell Analysis revenue expanded 5.2%, 7.8% on a currency-neutral basis, to account for 76% of segment revenue. Cell Analysis sales were boosted by higher instrument and reagents revenue due to stimulus and supplemental spending in the US and Japan, respectively. US sales rose 7.6% to make up 34% of Cell Analysis sales, while international revenue rose 3.9%, 7.9% in local currency, to account for 66%. Discovery Labware sales improved 2.2%, 3.6% on a currency-neutral basis, to make up 24% of segment sales, led by increased demand from biopharmaceutical customers. US sales grew 2.6% to represent 49% of Discovery Labware sales, and international sales grew 1.8%, 4.5% in local currency, to account for 51%. For fiscal year 2011, BD Biosciences’ revenues are expected to increase 4% on a currency-neutral basis to $1,307 billion, or 7% excluding stimulus and pandemic flu revenue. The company anticipates strong instrument and reagent revenue growth.

Biotage AB’s third-quarter revenues jumped 20.8%, 2.6% organically, to SEK 109.5 million ($15.1 million = SEK 7.27 = $1). Acquisitions contributed 21.2% to revenue growth, while currency reduced sales by 3.0%. MIP Technologies (see IBO 4/30/10) contributed SEK 1.8 million ($0.2 million) in sales and an operating loss of SEK 2.2 million ($0.3 million). The acquired Caliper Life Sciences product lines (see IBO 5/31/10) contributed SEK 17.4 million ($2.4 million) in sales and an operating profit of SEK 9.0 million ($1.2 million). Integration of the acquisitions was essentially completed at the end of the third quarter. Organic revenue was negatively impacted by lower sales of medicinal chemistry products, which experienced strong price competition. Sales to the US, Europe, Japan and the rest of the world accounted for 42%, 37%, 14% and 7% of revenues, respectively. Operating profit soared 139.5% to SEK 4.8 million ($0.7 million) due to a weak year-over-year comparison. Gross margins expanded 280 basis points to 59.3% of sales due to a shift in product mix and higher gross-margin products from acquisitions.

Based on continuing operations, third-quarter sales for Caliper Life Sciences climbed 10.0%, 11% excluding currency, to $29.8 million. Combined revenue for the LabChip and IVIS instrument product lines grew 16.2%, 17% organically, to account for 75% of sales. Imaging revenue climbed 18.9% to account for 49% of total sales due to a 21% increase in instrument placements. Caliper Discovery Alliances & Services revenue jumped 56.6% to make up 8% of sales, as the result of recognized revenue from the Environmental Protection Agency’s ToxCast screening program. Research revenue slipped 3.1% to represent 44% of sales, including LabChip revenue growth of 11.6% to $7.8 million, and a decline of 19.1%, 18% excluding currency, in Automation sales to $5.2 million. The company shipped 17 LabChip XTs with plastic chips and recorded a strong backlog order. Overall, pharmaceutical/biotechnology and academic/government revenues accounted for 65% and 35% of sales, respectively. Sales to the Americas and the rest of world made up 55% and 45% of sales, respectively. Adjusted operating profit was $0.4 million, compared to a loss of $0.5 million a year ago. Gross profit margins soared 818 basis points to 53.2% of sales due to favorable product mix. The company raised its full-year revenue outlook by 4% to $119–$121 million for organic growth of 7%–9%.

Sequenom’s third-quarter revenues climbed 26.7% to $11.7 million, and adjusted operating loss narrowed by 7.6% to $15.7 million excluding $7.0 million in litigation expenses. MassARRAY and other product-related revenues jumped 17.6% to account for 37% of company sales. During the quarter, the company placed 11 instruments, 10 of which were MassARRAY Analyzer IVs. Consumables revenue grew 5.0% to represent 49% of sales due to increased demand from medical and research markets. Contract research services revenue increased over nine fold to $1.0 million. Overall, Genetic Analysis segment sales grew 19.3% to make up 94% of company sales, and operating profit rose 47.2% to $3.8 million. Diagnostic sales amounted to $0.7 million to represent 6% of sales, and operating loss widened by 43.4% to $9.6 million. Diagnostic sales were primarily driven by increased cystic fibrosis carrier-screening tests as demand for the fetal RhD genotyping test was disappointing. As a result, the company reduced its diagnostics sales force. During the quarter, the company resolved any FDA concerns regarding the marketing of its diagnostics tests. Sequenom ended the quarter with total cash, cash equivalents and short-term marketable securities of $55.8 million, but has raised additional funds since the end of the third quarter.

Column Chart: Quarterly Sales Performance

January 2007—September 2010

Year Q1 Q2 Q3 Q4

2007 2297 2458 2481 2924

2008 2576 2821 2733 2947

2009 2565 2707 2748 3255

2010 2874 2932 2945

Column Chart: Quarterly Operating Profit Margins

January 2007—September2010

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% 20.3% 21.4% 22.9%

2010 22.1% 22.8% 22.5%

IBO Life Science Sales Index companies: Affymetrix; Beckman Coulter (Life Sciences); Becton, Dickinson & Company (BD Biosciences); Bio-Rad Laboratories (Life Science); Biotage AB; Bruker; Caliper Life Sciences; Illumina; Life Technologies; Luminex; QIAGEN NV; Sequenom; Tecan; and Waters.