LABORATORY BUSINESS WORLD ISSUE 34 July 2013 A QUARTERLY REVIEW OF THE GLOBAL SCIENTIFIC PRODUCTS MARKETPLACE First quarter disappoints CONTENTS 1 Headline Industry Review as US lab exports plunge 2-3 Industry News The first quarter was a dismal one for the spending from the pharmaceutical and 4-5 End-User Markets laboratory sector, with US manufacturers educational sectors. seeing exports decline on an annual basis Mettler-Toledo found its sales beginning to Lab markets suffer from sluggish for the first time in more than three years, slide in the first quarter, as the firm continued economy and spending cuts in Q1 in the face of on-going cutbacks in US to battle against weakness in the European research funding and a worse-than-expected and Asian markets for its products, while lab 6 International Market Review performance for many key markets. glass giant Corning continued to grow sales Figures from the US International Trade after completing its recent acquisition of BD’s 7-8 Financial Results Table Commission (USITC) for the first quarter of Discovery Labware business. For instrument 2013 showed that exports from producers of market leader Thermo Fisher Scientific, 9 Company Reports laboratory equipment and instrumentation although top-line growth was rather flat, based in the US were 2% lower than a year particularly for analytical instruments, Affymetrix - Danaher ago, slipping to $3.89 billion, with falling the recent closure of its purchase of Life demand from all three of the country’s leading Technologies meant that the firm ended 10 Company Reports trade partners for scientific equipment. the first quarter as the number two next- Eurofins - Kewaunee Scientific The Laboratory Business World LPA Index generation sequencing firm in the world. of the leading US-based manufacturers Cutbacks in government research budgets 11 Company Reports of laboratory equipment and analytical have had a dismal effect on the fortunes instrumentation shows that in the first of the life sciences sector over the last few Life Technologies - PerkinElmer quarter, turnover improved by an average of months, hitting top- and bottom-line growth 2% from the same period a year ago, while for many firms. Olympus found sales of 12 Company Reports at the same time net earnings fell by 5%. its life science products slumping in the Qiagen - Waters Revenue growth was therefore only half that double-digits, as public research institutes of our 4% estimate for the sector in last year’s held back on spending, while Roche Applied fourth quarter, although it was better than Science also blamed funding cuts for a drop the relatively flat 1% gain of the period from in revenues. Meanwhile, glassware giant July to September. Gerresheimer also struggled against US It was tough going for most laboratory budgetary restrictions and the on-going firms in the first quarter as market headwinds effects of the European recession. LPA Laboratory Business World is a newsletter and negative currency effects began to bite. Losses were the order of the day for of the Laboratory Products Association. Unfavourable exchange rate movements many US-based manufacturers of life www.lpanet.org caused seperations giant Waters to turn in science instrumentation, as charges ate into [email protected] a relatively flat quarter of top-line growth, the bottom line of many key firms. While although the firm said that it was encouraged a recent acquisition offset weak demand Laboratory Products Association, P.O. Box 428 Fairfax, Virginia 22038 by demand for its newer instrument lines for its instruments, Affymetrix still found its Telephone: (703) 836-1360 Fax: (703) 836-6644 from India and China. PerkinElmer too found losses tripling in the first quarter as the firm its growth hindered by currency, prompting took a multi-million charge related to recent Editor Jonathan Hare management to lower its full-year guidance. restructuring measures, while Illumina also [email protected] After failing to turn a profit in three of unexpectedly plunged to a loss despite Content powered by Instrument News last year’s reporting periods, laboratory solid sales growth, as a recent patent distribution giant VWR International posted infringement case with a rival firm caused positive earnings in the period, although sales it to take a major charge for both damages were down as demand suffered from cautious and legal costs. PAGE 1 LPA LABORATORY BUSINESS WORLD ISSUE 1234 INDUSTRY NEWS Miniaturised MS developer, 908 Devices, has received an Liberation Analysis software was purchased from FEI’s investment of unknown size from the non-profit investment partner JKTech. firm In-Q-Tel as part of a strategic partnership aimed at building rugged, hand-held MS instruments for the detection and analysis of For a purchase price of up to RMB240 million, Halma has hazardous chemicals. acquired Thinketron Precision Equipment, its manufacturing operations Baoding Longer Precision Pump and its US A developer of kits and reagents for epigenetic research, Active distributor, Langer Instruments. The acquired assets included a Motif, has acquired the privately held SwitchGear Genomics, a cash sum of RMB22.5 million. provider of cell-based functional assays for the high-throughput study of regulatory elements in the human genome, for an Electrochemical instrumentation giant Hanna Instruments is undisclosed sum. opening a sales office in Sursee, Switzerland near Luzern. While competitors invest in gene sequencing, Agilent Expanding its gas detection business further, Honeywell has Technologies has secured an equity stake of undisclosed size in entered into a definitive agreement to acquire RAE Systems for Gen9, a developer of gene synthesizing technologies. The sum of $340 million in case. RAE had 2012 sales of $107 million, up from $21 million will give Gen9 the opportunity to continue its product $87 million in 2010. development efforts and furthermore expand the commercial infrastructure of its business. Horiba Scientific is now representing the particle characterisation instruments from Izon Science in France. The qNano and qViro-X Analytik Jena has opened its ninth foreign subsidiary in Bangkok, instruments are able to accurately determine the size, concentration Analytik Jena Far East (Thailand), to expand sales activities in the and zeta-potential of viruses, exosomes and drug delivery particles. region. AJ has operated a representation in Bangkok since 2001, but now wants to build its own infrastructure and sales network for Horizon Technology, a developer of automated sample the entire Southeast Asian market. preparation technology for organic compounds, and oil and grease testing in environmental laboratories, has moved into BioFire Diagnostics has raised a total of $45 million to concentrate new headquarters, providing the business with 30% more on the commercialisation of its FilmArray PCR -based diagnostics manufacturing space. The immediate reason for the new facility was platform and associated panels. the rapid growth of demand for the company’s instruments from developing countries. After one amendment to patent EP No 1,491,552, held by CEM and covering microwave-assisted solid phase peptide synthesis, the Two established providers of synthetic DNA, Integrated DNA European Patent Office in Munich, Germany, has upheld the patent Technologies and Synthetic Genomics, through its newly against litigation started two years ago by Biotage. established subsidiary SGI-DNA, have expanded their partnership to develop, manufacture and market a variety of DNA products. This BioTek Instrument, a developer of analytical instruments based on builds on the agreement from February 2012, which saw the two microplate formats, has grown its network of direct presences with companies co-operating on small synthetic gene products of up to the opening of offices in Tokyo, Japan and Taipei, Taiwan. 5,000 bases. The microscopy business of Danaher, Leica Microsystems, and The provider of the DART® atmospheric pressure ion sources for its sister company Leica Biosystems, have bought all shares of MS, IonSense, has teamed up with the data analysis software firm their long-time distributor Aotec Instrumentos Cientificos for an Cerno Bioscience to integrate Cerno’s MassWorks™ software with undisclosed sum. All representatives of Aotec will remain with the the DART GSX system, to achieve accurate mass assignments on the business. Agilent 5975 GC-MSD. Evotec, a specialist in the discovery and development of small Kinesis has become the exclusive distributor of a new line of pre- molecule drugs, has extended its drug discovery alliance with packed low-pressure LC columns for biomolecule separation and Genentech, a company of Roche Group, first entered into in 2010, purification from Diba Industries, the fluidics business of Halma. by a further three years. This builds on a two-year-old global partnership between the two companies. FEI has sold more than 200 automated mineralogy systems since two product-line acquisitions laid the foundations Knauer, which prides itself on being the largest family-owned of this instrument portfolio. The assets for the QEMSCAN producer of HPLC instruments in Germany, celebrated its 50th automated mineralogy systems were bought from bankrupt anniversary last year with the launch of a number of new products, Intellection in late 2008, while six months later the Mineral including the BlueShell® core-shell column line, the Contichrom® PAGE 2 LPA LABORATORY BUSINESS WORLD ISSUE 34 INDUSTRY NEWS purification system and the AZURA® preparative HPLC instrument. the integration of their respective data interpretation systems. Life Technologies has acquired a leading reagent distributor, Redd&Whyte, developer of the Preddator non-contact bulk KDR Biotech, Life Tech’s primary partner for reagents since 1982. reagent dispenser, has signed HighRes Biosolutions, a designer of KDR’s employees throughout Korea will become part of Life robotic systems and laboratory devices for life science research, as Technology Korea, while the company’s CEO Jong-moon Kim will its distribution partner for the North American market. serve as external advisor for the business.