Fourth-quarter 2011 IBO Life Science Index sales grew 5.2%, 5.0% excluding currency, to $3,599.71 million. Operating profit expanded 4.4% to $829.93 million, but operating margin slipped 30 basis points to 22.7% of revenues. For 2011, Life Science Index sales grew 7.0%, 5.5% on a currency-neutral basis, to $13,047.60 million. Operating profit rose 5.5% to $2,820.89 million. Operating margin fell 70 basis points to 21.8% of sales. Caliper Life Sciences was removed from the Index following its acquisition by PerkinElmer on November 7, 2011 (see IBO 9/15/11).

Fiscal first-quarter revenues for Becton Dickinson and Company’s BD Biosciences unit grew 0.9%, 0.3% excluding currency, to $316.5 million to represent 17% of company sales. Excluding currency, US sales fell 10.3% to account for 32% of BD Biosciences’ revenues, including a 3% decline from the discontinuation of certain Labware products. US sales were negatively impacted by lower research reagent sales, restrained spending for high-end instruments, and weaker pharma and biotech demand. International sales grew 6.3% to make up 68% of unit sales. Operating income fell 8.3% to $83.0 million due to increased investments in emerging markets and acquisition-related expenses. All figures below exclude currency. Cell Analysis (CA) revenue grew 0.7% to $243.6 million, including 5.1% growth for International revenue and an 8.1% decline in US sales to account for 70% and 30% of CA sales, respectively. Discovery Labware (DL) revenue contracted 1.2% to $72.9 million. DL sales to the US declined 15.5%, while International sales climbed 11.2% to account for 39% and 61% of DL revenue, respectively. BD Biosciences reduced its fiscal 2012 revenue forecast from 4%–6% growth to 2%–4% growth on a currency-neutral basis due to the weaker US market.

Fourth-quarter sales for Biotage were flat but grew 3% on a currency-neutral basis to SEK 116.0 million ($17.2 million = SEK 6.75 = $1) (see page 12). Revenue growth was driven by new peptide synthesis products but was partially offset by lower US demand for purification products. As a percentage of revenues, sales to the US declined 500 basis points to 34%. EU sales accounted for 40% of revenues, and sales to Japan and the Rest of the World each made up 13%. Adjusted operating profit grew 14% to SEK 9.8 million ($1.5 million) as a result of lower expenses and currency. Gross margin fell nine percentage points to 55.1% of sales due to geographic mix.

Full-year Biotage sales slipped 0.1% but grew 8% excluding currency to SEK 428.4 million ($66.0 million = SEK 6.49 = $1). Sales to the EU, Japan and the Rest of the World all increased to account for 37%, 16% and 11% of sales, respectively. Demand in China and Latin America was particularly strong. US sales decreased to make up 37% of sales. Combined consumables and service revenues accounted for 56% of sales. Adjusted operating profit declined 2.5% to SEK 25.1 million ($3.9 million), and gross margin contracted 220 basis points to 57.5%.

Fourth-quarter sales for Merck Millipore advanced 5.2%, 2% organically, to €609.5 million ($823.6 million = €0.74 = $1). Acquisitions contributed 3% to revenue growth, and currency was neutral. BioScience sales grew 6% to make up 18% of sales, but growth was partially offset by lower academic and government spending. Process Solutions and Lab Solutions sales grew 3% and 7% to account for 38% and 44% of sales, respectively. Adjusted operating profit fell 7.2% to €116.0 million ($157 million) due to increased R&D and sales expenses. Gross profit margin jumped 760 basis points to 59.3% of sales due to acquisition inventory charges in 2010.

Full-year sales for Merck Millipore grew 48.4%, 4.3% organically, to €2,392.8 million ($3,323.3 million = €0.72 = $1). Acquisitions added 45.3% to revenue growth, while currency reduced sales by 1.2%. The Lab Solutions, Process Solutions and BioScience businesses accounted for 42%, 40% and 18% of Millipore sales, respectively. Lab Solutions sales were elevated by strong demand for Lab Water and BioMonitoring products in Asia Pacific, Africa and the Americas but were partially offset by weakness in Europe. The Process Solutions business recorded strong sales in emerging markets and increased demand from biotech customers in the second half of the year. BioScience sales were driven by multiplexing and flow cytometry products, particularly in Asia and Latin America, but were partially offset by slower academic spending. Overall, organic sales to North America and Latin America grew 7.2% and 8.2% to account for 27% and 8% of sales, respectively. Organically, sales to Asia, Africa and Australasia increased to make up 27%, while European sales declined to represent 38%. Adjusted operating profit rose 44.2% to €457.0 million ($634.7 million) due to acquisitions. Gross profit margin climbed 560 basis points to 58.0% of sales. Annual sales are projected to grow moderately in 2012.

QIAGEN’s fourth-quarter revenues grew 16.9%, 11% organically, to $334.4 million. Acquisitions contributed 6% to revenue growth. Organic sales were driven by the QIAsymphony system sales, increased companion-diagnostics milestone payments, and timing of HPV test orders. All figures below are at constant exchange rates. Consumables and related revenue grew 18% to account for 85% of sales. Instrument sales increased 11% to make up 15%. Molecular diagnostic revenue jumped 30% to account for 50% of sales, driven by demand for profiling products outside the US. HPV test sales, which accounted for 13% of revenues, increased two percentage points. Pharmaceutical and academia revenues grew 8% and 3% to make up 19% and 24% of revenues, respectively. Applied testing sales grew 18% to account for 7%, led by instrument sales and demand for forensics, veterinary testing and food safety products. Despite lower academic demand, sales to the Americas grew 16% to make up 46% of sales. Sales to Europe/Middle East/Africa (EMEA) advanced 22% to account for 36%, and sales to Asia-Pacific/Japan grew 18% to account for 18%. Demand in China and Japan was particularly strong for molecular diagnostic and applied testing products. Adjusted operating profit climbed 14.7% to $90.4 million. Adjusted gross profit margin declined 330 basis points to 68.5% of sales due to higher milestone payments and reduced inventory.

For the year, QIAGEN’s revenues improved 7.6%, 4% excluding currency, to $1,169.7 million. All figures below are at constant exchange rates. Consumables and related revenue, and Instrument sales grew 5% and 1% to account for 86% and 14% of sales, respectively. The company reached its goal of more than 550 installed QIAsymphony systems for the year. Molecular diagnostic, academia, pharmaceutical and applied testing revenues grew 7%, 2%, 4% and 1% to account for 47%, 26%, 20% and 7% of sales, respectively. Sales to the Americas, EMEA and Asia grew 2%, 7% and 8% to represent 48%, 34% and 17% of total sales, respectively. Demand from the company’s top seven emerging markets increased 21% to represent 12% of sales. Adjusted operating profit rose just 1.9% to $300.1 million due to increased sales and marketing investments. Adjusted gross profit margin declined 60 basis points to 71.0% of sales. The company projected 2011 currency-neutral sales to grow 6%–8% to $1,250 million. QIAsymphony system placements are expected to grow 36% to more than 750 units. Due to pending FDA approvals, companion diagnostics assay sales are also expected to boost revenue growth. First-quarter sales are anticipated to grow 8%–9% to $287 million on a currency-neutral basis.

Sequenom’s fourth-quarter revenues climbed 12.6% to $15.5 million (see page 12). Adjusted operating loss widened 40.6% to $21.9 million, and gross profit margin fell more than 16 percentage points to 45.6% of sales due to increased expenses related to the launch of the MaterniT21 test. Molecular Diagnostics (MD) sales jumped 131.7% to represent 18% of revenues, driven primarily by increased cystic fibrosis testing. Despite roughly 1,000 orders for the MaterniT21 test, which launched in mid-October, T21 revenues were not material. MD operating loss expanded 72.7% to $15.7 million because of higher R&D expenses. Genetic Analysis (GA) sales improved 1.0% to make up 82% of sales, and segment operating profit rose 11.8% to $4.0 million.

Full-year revenues for Sequenom advanced 17.8% to $55.9 million. Sales to the US and Europe grew 23.6% and 5.6% to make up 48% and 25% of sales, respectively. Asia Pacific sales increased 20.6%, including 50% growth in China, to account for 27% of sales. Adjusted operating loss widened by 131% to $74.3 million. Gross margin slipped 170 basis points to 58.3% of sales. GA revenue improved 6.0% to account for 85% of sales due to higher consumables sales, which grew 13.2% to $24.9 million. Systems sales fell 3.9% to $14.8 million. Contract research services revenue rose 4.0% to $2.6 million. GA operating profit grew 19.7% to $14.2 million. MD revenue soared 227.0% to make up 15% of sales, driven by increased testing services for cystic fibrosis and fetal Rhesus D genotyping. Revenues for the new age-related macular degeneration and T21 tests were not material. MD operating loss expanded 20.9% to $43.8 million. The company received 2,500 MaterniT21 test orders in the first two months of 2012 and expects a minimum of 25,000 tests this year.

For the second half of 2011, Tecan’s revenues improved 1.3%, 11% excluding currency, to CHF 195.1 million ($224.3 million = CHF 0.87 = $1). All figures below are in local currency. Orders improved 6.0% to CHF 187.9 million ($216.0 million). Sales to Europe, North America and Asia grew 3.3%, 18.7% and 28.1% to represent 44%, 40% and 14% of revenues, respectively. Sales to “Others” fell 21.7% to make up 3%. Operating profit declined 7.4% to CHF 30.4 million ($34.9 million) due to currency and increased operating expenses. Gross profit margin gained 120 basis points to 51.7% of sales. Life Sciences (LS) sales improved 11.1% to make up 67% of revenues. LS operating profit dropped 4.9% to CHF 21.5 million ($24.7 million). Sales for the Partnering Business expanded 10.5% to account for 33% of sales. Segment operating profit shrank 8.6% to CHF 12.3 million ($14.1 million).

Full-year Tecan revenues grew 1.7%, 11.5% in local currency, to CHF 377.0 million ($423.6 million = CHF 0.89 = $1) (see page 12). All figures below are in local currency. Orders climbed 9.0% to CHF 383.9 million ($431.3 million). Consumables and services revenues increased 17% and 7% to account for 8% and 22% of sales, respectively. Sales to Europe and North America climbed 7.4% and 19.6% to represent 47% and 38% of sales, respectively. Sales to Asia expanded 12.4%, including strong double-digit growth in China and modest growth in Japan, to account for 12% of revenues. Sales to “Others” fell 13.1%. Operating profit declined 8.4% to CHF 51.3 million ($57.6 million) due to currency and R&D expenditures. Excluding currency, operating profit margin climbed 90 basis points to 15.9% of sales. Gross profit margin mounted 70 basis points to 50.9% of sales due to product mix, price increases and lower raw material costs. LS sales grew 14.0% to make up 62% of sales, driven by demand for liquid handling products from biopharmaceutical markets in Europe, North America and China. LS operating profit fell 9.5% to CHF 23.8 million ($26.7 million) following increased R&D. Revenue for the Partnering Business grew 7.8% to make up 38% of sales. Segment operating profit declined 3.3% to CHF 35.6 million ($40.0 million). For 2012, sales are expected to grow in the low to mid-single digits in local currency.

 Column Chart: Quarterly Organic Sales Change

                    January 2008–December 2011

             2008        2009        2010        2011

 2008        6.8%        9.2%        7.1%        2.7%

 2009        3.6%        0.9%        1.9%        5.8%

 2010        9.4%        8.6%        8.8%        6.3%

 2011        5.8%        6.7%        4.6%        5.0%

 Column Chart: Quarterly Operating Profit Margins

                     January 2008–December 2011

             2008        2009        2010        2011

 2008       18.2%       18.1%       18.8%       21.1%

 2009       19.1%       20.2%       21.4%       22.9%

 2010       22.1%       22.6%       22.3%       23.0%

 2011       22.1%       21.1%       21.4%       22.7%

 Life Science Index, Total              

                                 2008       2009       2010        2011     08/09    09/10    10/11

 Total Annual Revenues ($M)   $11,077    $11,268    $12,189     $13,048      1.7%     8.2%     7.0%

 Annual Oper. Profits ($M)     $2,105     $2,321     $2,673      $2,821     10.2%    15.1%     5.5%

 Annual Oper. Profits (%)       19.1%      21.0%      22.5%       21.8%     -----    -----    -----

 4th Quarter Revenues ($M)     $2,947     $3,243     $3,422      $3,600     10.0%     5.5%     5.2%

 4th Quarter Oper. Profits ($M)  $622       $749       $795        $830     20.3%     6.2%     4.4%

 4th Quarter Oper. Profits (%)  21.1%      22.9%      23.0%       22.7%     -----    -----    -----