In the second quarter of 2008, revenues for IBO’s Life Science Sales Index grew 11.0% to $2,358 million, while operating profit jumped 26.9% to $382 million and operating margin climbed 200 basis points to 16.2% of sales. Second-quarter sales for Beckman Coulter’s Life Science segment grew 9.3%, or 4.3% in constant currency, to $127.5 million to account for 16.0% of total revenues. The company reported strong sales of life sciences automation, which grew 19.1%, while sales of centrifugation and CE-based products lines grew more moderately. Operating profit climbed 24.5% to $18.8 million due to increased instrument sales. The company anticipates low single-digit revenue growth for the segment for the second half of the year.

Fiscal third-quarter revenue for Becton Dickinson’s BD Biosciences climbed 15.6%, or 8.3% in constant currency, to $297.8 million, to make up 16% of total revenues. Organic growth benefited from strong sales of reagents as well as clinical and research instruments. US sales grew 6.1% to $116.2 million, while international sales increased 22.6%, or 10% in constant currency, to $181.5 million. Adjusted operating revenue jumped 26.4% to $82.8 million due to foreign exchange rates, improved productivity and a shift in product mix. Cell Analysis sales, which include the Immunocytometry Systems and Pharmingen units, grew 18.6%, or 10.9% in constant currency, to $222.1 million. Cell Analysis’ US and International sales grew 11.9% and 22.9%, or 10.4% on a currency-neutral basis, to account for 36% and 64% of segment sales. Discovery Labware revenue rose 15.6%, or 8.3% on a currency-neutral basis, to $75.7 million. Segment sales in the US declined 4.9% to make up 48% of sales, while International sales improved 21.7%, or 8.7% on a currency-neutral basis, to make up 52%. Full-year BD Biosciences revenues are forecasted to grow 13%–14%.

Biotage AB’s second-quarter revenues declined 7.5% to SEK 121.3 million ($20.3 million = SEK 5.99 = $1) from SEK 131.1 million ($19.1 million = SEK 6.87 = $1). At constant exchange rates, sales growth was flat. Operating profit fell 19.6% to SEK 8.9 million ($1.5 million), and gross margins fell 150 basis points to 59.5% of sales due to unfavorable exchange rates, a change in product mix and a lower share of direct sales. Discovery Chemistry’s product sales declined 10.5%, or 3% at constant exchange rates, to SEK 95.1 million ($15.8 million) because of lower pharmaceutical sales, particularly for synthesis products. Discovery Chemistry’s operating profit fell 48.4% to SEK 4.9 million ($0.8 million) and operating margin dropped 370 basis points to 5.2% of segment sales. European sales accounted for 44% of Discovery Chemistry sales, US sales represented 38% and the Rest of the World made up 18%.

Biosystems’ product sales grew 5.6%, or 12.0% at constant exchange rates, to SEK 26.2 million ($4.4 million). System sales climbed nearly 40% to 32 units, while the new PyroMark Q24 instrument recorded sales of nine units. Biosystems’ operating profit climbed 12.7% to SEK 6.2 million ($1.0 million), and operating margin gained 170 basis points to 23.7% of segment sales. Gross margin improved 540 basis points to 69.0% of segment sales due to a higher share of direct sales and product mix. Sales to the US accounted for 47% of segment revenue, European sales made up 41% and Rest of the World sales represented 12%.

Sales for Caliper Life Sciences declined 3.6% to $34.0 million in the second quarter, while adjusted operating loss widened by 7.2% to $3.7 million due to a 49.0% decline in license and contract revenue to $2.7 million. However, excluding a one-time contract and licensing payment in 2007, revenue climbed 7.0%. Product revenue grew 4.8% to $22.0 million due to strong sales of discovery instruments, which climbed 14% despite lower microfluidic product sales. Sales of imaging products fell 8% because of pricing competition, but were partially offset by 9% growth for IVIS instrument sales. Service revenue improved 3.9% to $9.3 million due to IVIS instrument placements, but was negatively affected by a 2% decline in Caliper Discovery Alliances & Services revenue. The company anticipates third-quarter revenues to decline 0%–10% to $33–$36 million, while full-year revenues are expected to grow 1%–5% to $142–$148 million.

Luminex’s second-quarter revenues grew 38.7% to $24.3 million driven by robust sales of consumables. The company reported an adjusted operating loss of $0.5 million, compared to a loss of $3.4 million a year ago. Technology segment revenue jumped 49.3% to $22.3 million, led by consumables and royalty revenues, which grew 156.9% and 57.1% to make up 41.9% and 17.1% of segment sales, respectively. System and Service contract revenue rose 8.6% and 16.5% to $5.9 million and $1.3 million to account for 28.9% and 6.2% of segment sales, respectively, while Other revenue declined 25.4% to represent 5.8%. Operating profits for the Technology segment climbed to $2.5 million, compared to a loss of $1.6 million a year ago. Sales for the Assay segment, which predominantly sells kits, grew 2.5% to $4.1 million. The Assay segment recorded an operating loss of $3.0 million compared to a loss of $10.6 million a year ago.

QIAGEN NV’s second-quarter revenues climbed 61.4% to $217.9 million, including 41% growth from acquisitions and 9% growth from currency transactions. Consumables and Instrument sales grew 64% and 39%, or 55% and 30% at constant exchange rates, to make up 90% and 9% of total sales, respectively. Other revenue jumped 41%, or 26% at constant exchange rates. Instrument sales benefited from new products, particularly the QIAsymphonySP and QIAxcel, which began shipping in July. Sales to the Americas more than doubled to account for 50% of sales, while sales to Europe, Asia and the Rest of World improved 31%, 35% and 37% to make up 18%, 9% and 23% of company sales, respectively. Adjusted operating profits soared 65.7% to $58.2 million, while adjusted gross margins improved 4.2 percentage points to 73.4% of sales. The company increased its full-year revenue guidance to $889–$919 million for a growth rate of 35%–41% and anticipates third-quarter revenues to grow approximately 29% to $225–$230 million.

Sequenom’s second-quarter revenues grew 26.5% to $12.8 million (see page 12). Sales of Consumable and System-related products climbed 31.3% and 21.9% to represent 38.5% and 51.7% of sales, respectively. Service revenue rose 26.5% to make up 9.3% of sales, while Research and Other revenue accounted for 0.6%. The company’s operating loss widened by 84.5% to $9.6 million due to increased R&D and sales and marketing expenses, which rose more than 50% and 62% to account for 50% and 49% of sales, respectively. Gross margins declined 160 basis points to 57.5% of sales due to lower margins for genetic analysis research services.

Life Science Index, Total % Change

2005 2006 2007 2008 05/06 06/07 07/08

Total Annual Revenues ($M) 7203 7705 8624 —- 7.0% 11.9% —-

2nd Quarter Revenues ($M) 1798 1875 2124 2358 4.3% 13.3% 11.0%

Annual Oper. Profits ($M) 1102 1102 1345 —- 0.0% 22.0% —-

Annual Oper. Profits (%) 15.3% 14.3% 15.6% —- —- —- —-

2nd Quarter Oper. Profits ($M) 263 254 301 382 -3.5% 18.8% 26.9%

2nd Quarter Oper. Profits (%) 14.6% 13.5% 14.2% 16.2% —- —- —-

Quarterly Sales Performance

Q1 Q2 Q3 Q4

2005 1730 1798 1721 1953

2006 1837 1875 1873 2120

2007 2018 2124 2108 2374

2008 2203 2358

Quarterly Operating Profit Margins January 2005–June 2008

Q1 Q2 Q3 Q4

2005 14.8% 14.6% 14.3% 17.2%

2006 14.5% 13.5% 12.8% 16.2%

2007 14.9% 14.2% 14.8% 18.1%

2008 16.3% 16.2%