Demand for laboratory supplies continues unabated

By Dr Matt Wilkinson

- Last updated on GMT

Related tags: Cent, Revenue

As second quarter financial results continue to be released
laboratory suppliers Sigma-Aldrich and Invitrogen have both posted
13 per cent revenue growth.

Combined with the results for laboratory equipment manufacturers previously highlighted​ by it appears to be good time to be a laboratory supplier. Sigma-Aldrich​ saw good growth in the quarter, posting a new quarterly high of $507.5m, up 13 per cent on the same time period last year. "We are very pleased with our improved growth during the second quarter that resulted in quarterly sales of more than $500 million for the first time in our history,"​ said Jai Nagarkatti, CEO of Sigma-Aldrich. Pre-tax profits grew inline with revenue growth to $109.9m, up 13 per cent on last year's value of $97.1m. The company's strong growth was driven by 20 per cent growth in the company's SAFC (Sigma-Aldrich fine chemicals) division which reported record quarterly earnings of $132.6m, approximately 26 per cent of total revenues. The divisions growth was aided by the acquisition of Molecular Medicine Bioservices during the quarter which the company believes will add approximately $12m revenue a year. Sales to the Canadian, Asia-Pacific and Latin American regions grew by 17.6 per cent compared with the same time period last year. R&D expenses during the quarter were $14.5m, which accounts for approximately 2.8 per cent of total revenues. This is in the region expected for a company with such a strong founding in consumables and catalogue products. Invitrogen​ recorded sales for the second quarter totalling $321.7m an increase of 13 per cent over revenues of $285.4m for the same period last year. Pre-tax profits increased 50 per cent to $38.9m compared from last year's $25.4m, with the operating margin increasing from 8.9 per cent to 12.1 per cent. R&D costs increased 11 per cent to $28.6m, which accounted for nearly 9 per cent of total revenues. "The intense focus we placed on operations, IT infrastructure and integrations during the last twelve months is delivering results,"​ said Greg Lucier, Chairman and Chief Executive Officer of Invitrogen. "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." ​Revenues from the company's two main divisions remained constant, with biodiscovery products accounting for 70 per cent of income and cell culture products accounting for the remaining 30 per cent. The company cited strong growth in cell biology product lines and molecular biology basics as major drivers for the growth in the biodiscovery arena. R&D investments for biodiscovery products accounted for over 83 per cent of total investments.

Related topics: Contract Manufacturing & Logistics

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