NEW YORK – Bruker continues to make proteomics a core area of focus, as Frank Laukien, the company's president, chairman, and CEO, said it plans to make substantial investments in this segment.
During a conference call Thursday following the release of Bruker's Q4 financial results, Laukien said that going forward the company aims to spend 10 percent of revenues on R&D with much of that investment targeting proteomics and spatial biology.
He highlighted a number of recent acquisitions in this space, noting that in the last year Bruker has added proteomics consumables, software, and automation as well as new chromatography products while continuing to develop its timsTOF mass spectrometry portfolio.
Laukien specifically cited the company's acquisition at the beginning of the year of a majority stake in Swiss proteomics firm Biognosys. The transaction will bring together Biognosys' portfolio of mass spectrometry-based proteomics services, software, and kits and Bruker's timsTOF technology. It will also allow Biognosys to open a proteomics contract research lab in Massachusetts — its first in the US — offering proteomics biomarker and drug discovery and development services, as well as pharmacoproteomics clinical trial support.
Bruker's efforts in proteomics and spatial biology "will all require multi-year, continued strong R&D investments," Laukien said. "We do not want to be penny wise and pound foolish and underinvest in this very large proteomics opportunity."
The 10 percent R&D target "is here to stay, not forever, but for quite a few years to come," he said.
In 2022, Bruker saw "notable strength" in its proteomics business and its timsTOF mass spec line, Laukien said, noting that the company has now placed more than 600 timsTOF instruments.
The platform "saw very robust demand in applications for 4D proteomics, PTMs [post-translational modifications] … as well as single-cell proteomics and mass spec imaging," he said.
Prior to the call, Bruker reported that its fourth quarter revenues were up 4 percent year over year.
For the three months ended Dec. 31, 2022, the company reported revenues of $708.4 million, up from $683.5 million in Q4 2021 and beating the consensus Wall Street estimate of $680.1 million.
Organic revenues grew 9 percent during the quarter as acquisitions added nearly 2 percent while foreign currency translation had a negative effect of 7 percent.
The company's CALID segment, which houses its life science mass spec business, reported revenues of $221.2 million during the quarter, down 8 percent from $239.7 million in Q4 2021. Its Nano group posted revenues of $227.2 million, up 18 percent from $192.9 million in the year-ago period. Revenues from its BioSpin group were $203.4 million, up 3 percent from $196.6 million in Q4 2021. Revenues from its BEST group were $58.9, up 2 percent from $57.8 million in Q4 2021.
Bruker's Q4 net income was $97.4 million, or $.66 per share, up from $75.7 million, or $.50 per share, in Q4 2021. On an adjusted basis, Q4 EPS was $.74, above the average Wall Street estimate of $.72.
Bruker's Q4 R&D costs rose 9 percent to $63.5 million from $58.1 million the year before, while its SG&A expenses were $164.7 million, up 7 percent from $153.3 million a year ago.
For full-year 2022, Bruker reported revenues of $2.53 billion, up 5 percent from $2.42 billion in 2021 and above the Wall Street consensus estimate of $2.50 billion.
Organic revenue was up 10 percent year over year, with acquisitions adding around1 percent and currency translation having a negative effect of 7 percent.
The CALID segment reported full-year 2022 revenues of $822.2 million during the quarter, up less than 1 percent from $819.6 million in 2021. The Nano group posted revenues of $787 million, up 13 percent from $697.5 million in 2021. Revenues from the BioSpin group were $696.7 million, up 1 percent from $691.0 million the year before. Revenues from the BEST group were $237.1 million, up 6 percent from $223.8 million in 2021.
For full-year 2022, Bruker reported a profit of $296.6 million, or $1.99 per share, versus $277.1 million, or $1.81 per share, in 2021. On an adjusted basis, full-year 2022 EPS was $2.34, beating the average Wall Street estimate of $2.32.
Full-year 2022 R&D costs were up 8 percent to $235.9 million from $220.8 million in 2021, and SG&A expenses were up 8 percent to $607.4 million from $561.2 million the year before.
The company ended the year with cash, cash equivalents, and restricted cash of $648.7 million.
Bruker said it expects 2023 revenue of between $2.81 billion to $2.86 billion, or 11 percent to 13 percent year-over-year growth. That includes between 8 percent and 10 percent organic revenue growth with a positive contribution from foreign currency translation of around 2 percent and a contribution of around 2 percent from acquisitions. It said it expects adjusted full-year 2023 EPS of between $2.52 and $2.57.
In Thursday morning trading on the Nasdaq, Bruker's stock was up 5 percent to $75.14.