Waters Reduces Q3 Revenue Growth to 3 Percent; Cites Declining US Sales
Waters last week said that "slower than expected" sales growth has forced it to expect lower-than-expected third-quarter sales and earnings per diluted share.
In its second-quarter conference call July 26), Waters said it anticipated sales to grow 8 percent in the third quarter year over year. The company now expects growth to be around 3 percent year over year.
Waters generated $264.8 million in revenues during the third quarter 2004. Based on the company's renewed projections, third-quarter 2005 receipts are now expected to be around $272.7 million.
Third-quarter earnings per share, which Waters originally said would be $.47, are now projected at approximately $.43, excluding a $24-million tax provision to be recorded in the third quarter related to a dividend distribution.
Organic sales growth in the quarter was also 3 percent as foreign currency translation "had little incremental effect" on third-quarter revenue, Waters said.
Geographically, sales declined in the United States, where instrument sales to large pharmaceutical accounts were "less than expected" due to delays associated with both the evaluation of new products and the release of capital budgets, Waters said.
However, strong sales growth in Asia were "largely in line" with expectations.
Sales of liquid-chromatography products grew "moderately" in the third quarter 2005 compared with the prior year, while mass spectrometry sales "modestly" declined. Thermal analysis instrument sales grew in the quarter at a rate that was higher than Water's overall growth rate, the company said.
Global sales to life-science companies were "roughly flat" in the quarter, while a "relatively strong" performance of Waters' industrial business was largely offset by a decline in sales to governmental and academic institutions, the company said.
"At this time, the company anticipates a continuation of the challenging business conditions experienced in the third quarter, with comparable sales growth before currency impacts, and is evaluating opportunities to control operating expenses," Waters said in a statement.
Waters will release its full third-quarter earnings on Oct. 25.
Gates Foundation, Amgen Award ISB $13M to Support its Operations
The Institute for Systems Biology said this week that it has been awarded two grants worth $13 million — a $10 million challenge grant from the Bill & Melinda Gates Foundation and another award from Amgen worth $3 million.
The awards "provide critical support for a new Institute that is attempting to change the practice of biology and medicine in the 21st century," said Leroy Hood, ISB president and co-founder, in a statement.
ISB did not provide details on specific projects that the grants will support.
Oxford Genome Sciences Licenses OGAP Database to UCB
Oxford Genome Sciences said this week that it has licensed its OGAP (Oxford Genome Anatomy Project) database to Belgian biopharmaceutical firm UCB.
The OGAP database integrates clinical, proteomic, and genomic information, including more than one million peptide sequences from 50 tissues and 60 disease states, mapped to approximately 16,000 genes and over eight million SNPs.
Financial terms of the agreement were not provided.
Investment Bank Downgrades ABI for 'Modest' Revenue Projections
An investment bank last week cut its outlook for Applied Biosystems for having "modest" revenue projections and other reasons, according to CBSMarketwatch.
J.P. Morgan cut ABI's shares to "underweight" from "neutral," citing valuation and the lack of catalysts, CBSMarketwatch said.
The news service said the J.P. Morgan broker "told clients its concerns include the modest top-line growth projections, a lack of near-term uses of cash and the absence of visible near-term catalysts."
Eidogen-Sertanty To Use Informatics Platform in Collaboration with KAI Pharmaceuticals
Eidogen-Sertanty said this week that it has entered into an informatics-based collaboration with drug-discovery firm KAI Pharmaceuticals.
Under the terms of the collaboration, which will focus on the development of protein kinase C modulators, Eidogen-Sertanty will use its Target Informatics Platform and its EVE comparative visualization software to perform structural characterization and comparative binding site analysis for PKC regulatory domains.
KAI is developing modulators of PKCs for a variety of human diseases, and has a lead product in clinical development for acute cardiovascular diseases. The collaboration is expected to improve the pharmacophore-based design of modulators of PKC activity, Eidogen-Sertanty said.
Inpharmatics Inks Deal for Biopendium, Chematica Technologies with Schering
Inpharmatica said this week that it has formed a collaboration with German drugmaker Schering to study protein structures in order to prioritize proteins as drug targets.
Under the deal, Inpharmatica will make available to Schering its Biopendium and Chematica technologies, which include databases with information on protein sequence, structure, and function, as well as information about the ability of particular proteins to serve as drug targets.
Financial terms of the deal were not disclosed.
Shimadzu to Distribute Phenomenome Discoveries' Software Worldwide
Phenomenome Discoveries, a Canadian company that provides software tools for metabolomics analysis, said this week that Tokyo-based Shimadzu will become the global distributor for its Phenomenome Profiler software.
Under the agreement, Shimadzu will co-market and distribute PDI's software together with its mass spectrometry product lines for GC/MS and LC/MS.
Financial details were not discussed.
Ensemble Discovery to Use Fujitsu's BioMedCache Software Suite
Fujitsu Computer Systems' BioSciences Group has signed a licensing agreement with Ensemble Discovery for its BioMedCache suite of docking and molecular modeling software, Fujitsu said this week.
Ensemble Discovery, a small-molecule discovery startup based in Cambridge, Mass., will also use the BioSciences Group's ActiveSite module for designing small-molecule inhibitors of protein targets.
Financial terms of the agreement were not disclosed.
CORRECTION: For the "k of m" statistical approach described in ProteoMonitor 9/30/05, k is the critical value of a score derived from m markers that is used to determine a diagnosis. K is also commonly used to determine the number of technical replicates required for high measurement reproducibility.