Invitrogen Reporting No Hitches to ABI Purchase
Invitrogen said this week its proposed acquisition of Applied Biosystems is on schedule to close in the fall.
The $6.7 billion deal, joining the leading mass spectrometer manufacturer with a leading reagents firm, was announced last month [See PM 06/19/08]. In a conference call accompanying the release of its second-quarter earnings results this week, 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 Invitrogen 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 the company, said during the conference call. “We have a very clear model for our integration effort.”
For the three months ended June 30, Invitrogen posted receipts 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.
Net income rose to $53.2 million, up 30.2 percent from $40.8 million a year ago.
Research and development costs rose 16 percent to $33.1 million for the quarter, up from $28.6 million a year ago. The company reported $646.1 million in cash and short-term investments as of June 30.
ABI Stems MS Sales Slide, Total Q4 Revs Up 9.3 Percent
Applied Biosystems grew its mass spectrometry business 4 percent during its fiscal fourth quarter, ending a prolonged decline in that business, the company said this week.
For the three months ended June 30, mass spec revenues totaled $152 million, compared to $146.2 million a year ago, ending six consecutive quarters in which the company’s sales growth for the instruments declined.
Overall, ABI posted receipts of $609 million, a 9.3 percent increase compared to $557.3 million from a year ago. Net income dropped to $86.4 million, down 1.6 percent from a profit of $87.8 million a year ago.
During the fourth quarter of fiscal 2008, ABI took a pre-tax charge of $7.8 million for costs associated with the proposed merger with Invitrogen and $8.6 million for restructuring. It also recorded a pre-tax gain of $25 million related to the sale of Millennium shares upon its acquisition by Takeda Pharmaceuticals.
Research and development spending slid to $52.5 million, down 1.9 percent from $53.5 million during the fourth quarter of fiscal 2007. The decrease was primarily due to lower employee costs and the termination in June 2007 of a contract with the US Department of Defense, ABI said in a statement.
Cash and cash equivalents were $543.2 million as of June 30, ABI said.
Thermo Fisher Raises Revs 14 Percent in Q2
Thermo Fisher Scientific said this week its second-quarter receipts rose 14 percent year-over-year to a record $2.71 billion.
The figure compares to $2.39 billion a year ago. Currency translation contributed 4 percentage points to the increase, the company said.
Revenues in the Analytical Technologies Segment, which contains its proteomics instruments, grew 14 percent to $1.16 billion for the three months ended June 28, compared to $1.02 billion a year ago, while its Laboratory Products and Services Segment grew 14 percent to $1.66 billion from $1.45 billion in the year-ago period.
Thermo Fisher grew its profits to $249.5 million, up 52.2 percent from $163.9 million a year ago.
Research and development spending rose 9.7 percent to $64.4 million. The company said it had slightly more than $1 billion in cash and cash equivalents as of June 28.
Sigma-Aldrich Posts Record Revs in Q2
Sigma-Aldrich said this week sales in its second quarter reached a new record as it posted a 14.4-percent increase in revenues for the three months ended June 30.
For the quarter, the company posted receipts of $580.7 million, compared to $507.5 million a year ago, with currency exchange contributing 7.3 percentage points to the growth for the recent quarter.
Net income was $90.8 million, up 13.9 percent from $79.7 million a year ago.
Sigma’s research and development expenses rose 10.3 percent to $16 million. The company said it had $240.3 million in cash and cash equivalents as of June 30.
MDS Axing 210 Jobs
MDS said last week it will be cutting 210 jobs in its Analytical Technologies and Pharma Services divisions as part of a restructuring to drive profitability.
The move is expected to yield annual pre-tax savings of about $20 million and cumulative pre-tax restructuring charges associated with the restructuring is anticipated to be about $18 million with most of the charges to be recorded in its fiscal third quarter, which ends July 31. It also expects to record a $10 million asset impairment charge related to its Montreal Pharma Services site.
Last month the company reported a 24 percent increase in revenues for its fiscal second quarter to $350 million, which included $55 million in revenue generated by its $615 million purchase of Molecular Devices last year.
MDS has a joint-venture agreement with Applied Biosystems on the manufacture, marketing, and sale of mass spectrometers. In the wake of ABI’s proposed acquisition by Invitrogen, there has been speculation that MDS could buy out the mass spec business from ABI.
Kinaxo Receives $901K to Expand Proteomics Platform Applications
German firm Kinaxo Biotechnologies said this week the Bavarian Ministry of Economic Affairs, Infrastructure, Transport and Technology has awarded it €575,000 ($901,000) to expand applications of the company’s chemical proteomics platform.
Kinaxo will use the funding to demonstrate that the platform can be used to identify native protein targets of compounds found in phenotypic drug discovery screens, the company said in a statement.
BioTrove Goes Bi-coastal
BioTrove this week opened an office in San Carlos, Calif., to expand customer and technical support to the west coast.
The new office will allow the company to facilitate research collaborations with clients nearby and to demonstrate its RapidFire high-throughput mass spectrometry system and OpenArray genomic analysis system.
“We already have marketing collaborations underway with Applied Biosystems and Agilent, so being close to our partners’ facilities in the Bay Area enables further support and development of these important relationships,” said Bob Ellis, director, executive chairman and president of international sales at BioTrove.
The company is headquartered in Woburn, Mass.
Hölle & Hüttner Acquires Intavis
German firm Intavis Bioanalytical Instruments said this week it was acquired by Hölle & Hüttner last month.
Financial terms of the purchase were not disclosed.
Intavis will be a division of by Hölle & Hüttner. Its existing product line will be continued. Hölle & Hüttner’s life science instruments will adopt the Intavis name, Intavis said in a statement.
Intavis develops, manufactures, and distributes systems to automate complex protocols in biochemistry and molecular biology, according to its web site. It develops techniques and instruments for biomolecular research and the synthesis and analysis of biomolecules.
Hölle & Hüttner, also based in Germany, is a technology firm that specializes in the “realization of scientific and innovative projects,” according to its web site.
Sense Hires Sage for New Potential Partners
Sense Proteomics said this week it has hired the Sage Group to help it find additional biomarker discovery partners.
In a statement, Sense, based in the UK, said it has two external collaborations and hopes to partner with new companies “to fully exploit the power of its biomarker discovery platform.” Sense is a biomarker discovery company that has developed a novel protein array technology that allows for high-content analysis.
Financial terms were not disclosed.
PerkinElmer Board Approves Dividend
PerkinElmer’s board approved a regular quarterly dividend of $.07 per share this week. The dividend is payable on Nov. 7 to shareholders of record at the close of the business on Oct. 17.