NEW YORK (GenomeWeb News) - While reiterating its plan to wrap up its proposed acquisition of Applied Biosystems in mid-fall, Invitrogen today emphasized the importance of next-generation sequencing to its future.
Last month, the two companies announced the $6.7 billion deal combining Invitrogen’s vast portfolio of life science consumables and reagents with ABI’s instruments. In a conference call accompanying the release of its second-quarter results today, company officials said the deal is anticipated to close in late October or early November.
The company’s bank debt has received investment-grade ratings from both Standard & Poor’s and Moody’s, and is in the process of meeting with banks to discuss loan arrangements, said David Hoffmeister, CFO of Invitrogen.
Anticipating no issues with financing, the company has begun the integration process. An integration team was announced in late June and Invitrogen has now formed “all the cross-organizational teams that will lead the integration efforts,” Greg Lucier, CEO and chairman of Invitrogen, said during the conference call. “We have a very clear model for our integration effort.”
One of the key complementary technologies between the two companies will be ABI’s SOLiD next-generation DNA sequencing instrument with Invitrogen’s chemistries. Today, company officials continued to speak about the importance of the genomic sequencing market to its business, including third-generation sequencing.
“Beyond this current generation, we have the intention of being a leader in commercializing a third-generation sequencing product that will sequence a genome at the lowest possible cost in the shortest amount of time,” Lucier said, adding that the platform has been developed in-house.
Invitrogen will continue to sell consumables to next-gen vendors outside of ABI, he said. “We’ll sell to anybody who wants to buy from us,” Lucier said. In late May, the firm entered the next-gen market by launching the SequalPrep Long PCR kits for sample preparation.
For the three months ended June 30, Invitrogen posted revenues of $367.8 million, up 14.3 percent from $321.7 million during the year-ago period. Organic growth accounted for 6.2 percentage points of the growth.
BioDiscovery revenues grew to $253 million, up 13.6 percent from a year ago, and Cell Systems climbed 16 percent to $115 million.
Invitrogen’s net income rose to $53.2 million, up 30.2 percent from $40.9 million from a year ago. On a per-share basis, earnings from continuing operations rose to $.55 during the quarter from $.31 a year ago.
Its research and development costs rose 16 percent to $33.2 million for the quarter, up from $28.6 million a year ago, while its SG&A costs increased 7.7 percent to $115.5 million from 107.2 million.
The company reported that it had $646.1 million in cash and short-term investments as of June 30.