Millipore reports Q4 income surge

US-based biopharmaceutical product providers Millipore has met its revenue and earnings target over the fiscal year, helped by its Serologicals acquisition in the fourth quarter and a solid performance by its main business driver: lab waters.

For the full year, the company has reported net income of $97m (€75m), a 21 per cent increase, when compared with $80.2m in 2005. The fourth quarter net income totalled $18.5m in comparison with $1m a year ago, with the profit surge attributed to its $1.4bn acquisition of Serologicals in July 2006.

The firm's integration of Serologicals is to be completed by the end of the second quarter, whereupon, the firm intends to combine products from Serologicals and Millipore.

The company's bioscience division increased 10 per cent during the full year, and 12 per cent during the fourth quarter. The main division driver was accredited to Millipore's laboratory water business, which snapped up 16 per cent of the revenues.

"As companies build or expand laboratories, a lab water system is one of the first investments they need to make," said Martin Madaus, Millipore chairman, president and CEO.

"Lab water has also had very successful product launches over the past year such as Milli-Q Advantage, which was one of our most successful product launches ever."

The firm adds that the underlying growth of bioscience division has accelerated over the past two years, due to completion of its reorganisation in 2005 and Millipore's 'go-to-market' initiatives in 2006.

The bioprocess division reported a 12 per cent increase during the full year, and 7 per cent during the fourth quarter. The main division driver was attributed to Millipore's consumables sales to its biopharmaceutical customers.

Millipore's biotechnology related business resides in its core filtration and chromatography business unit, where the high-volume monoclonal antibodies and bioengineered vaccines has contributed to its strength.

"Bioprocess is a great long-term business, and as results, we manage the business on a long time horizon, especially given the year-to-year demand fluctuations that are a normal part of customer's purchasing patterns," said Madaus.