Invitrogen Q2 growth strong

By Katrina Megget

- Last updated on GMT

Related tags: Cell biology, Cell culture

Invitrogen has announced its second quarter financial results with
the BioDiscovery business unit showing a greater than expected
growth.

In the first six months of 2007, the California-based life sciences technologies company reported a revenue of $630m, reflecting an 11 per cent increase over revenues at the same time in 2006, excluding discontinued operations. Revenue for the second quarter alone was $322m, an increase of 13 per cent over the $285m for 2006, excluding the impact of discontinued operations. The BioDiscovery unit, comprising products used in functional genomics for gene cloning and manipulation, cell biology and drug discovery product lines and software, posted a revenue of $223m in the second quarter , which was an increase of 10 per cent over the same period the previous year. "Our BioDiscovery business is doing better than we have anticipated, driven by the improvements that we have made in the sales force and the strength of the product portfolio,"​ Invitrogen chief financial officer David Hoffmeister said in a conference call. The solid revenue growth in the BioDiscovery business unit was a result of strong growth in cell biology product lines, including labeling and detection, multiplex and protein cytokine assays and enzyme substrates as well as a growth in molecular biology basics, such as transfection, qPCR and protein gels. "The way we look at our business on the BioDiscovery side, or even rally across the entire broad portfolio is cell-based technologies or molecular-based technologies, and I would say a universal statement is that cell-based technologies, especially in BioDiscovery, are growing much faster than the molecular-based technologies,"​ Hoffmeister said. "And that's where we have made virtually all our acquisitions over the last four years, because we had a particular view point that the world would move from molecular-based to cellular-based in terms of research , and we wanted to be well positioned there." ​ About 40 per cent of the company's portfolio was cell-based and was showing much stronger growth than the molecular side, Hoffmeister said. Invitrogen's Cell Culture Systems unit, including the products sera, cell and tissue culture media, reagents and cell lines, also showed strong growth with a posted revenue of $99m in the second quarter, representing an increase of 20 per cent over the same period the previous year. While strong growth was anticipated to continue for the remainder of the year, Hoffmeister said "we don't expect that kind of growth rate to continue for the entire year".​ However, Invitrogen chief executive and chairman Greg Lucier said he was "encouraged"​ with the progress made so far in 2007. "The results we achieved this quarter were a combination of thorough action plan, solid execution and positive market dynamics. That's not to say we don't still have work ahead of us, but we are encouraged with what we have been able to accomplish in such a short period of time,"​ he said. "Moving forward, the tightly integrated portfolio of technologies we have built in recent years around cellular science makes us well positioned to capitalize on research trends in cell biology and the growth of biologics." ​ Hoffmeister added: "We are entering the second half of the year in a good position. We have a balanced portfolio of products and geographies that are all contributing to our total company growth. In addition, we continue to launch new products each quarter, which should drive future growth. We will continue to execute upon our improvement plans in the short run, while investing for the long-term to ensure we delivered consistent value to our shareholders." ​ New product highlights that the company has introduced include: engineered cell line for human embryonic stem cells - the first of its kind generally available for sale - which allows the cells to be monitored for pluripotency without sacrificing them; anti-foaming agent that prevents and eliminates foam in mammalian and microbial cell culture; and a new magnetic bead-based immunoassay for in vitro diagnostic applications.

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