07.22.14
$8.96 Billion ($19.1 B total)
KEY EXECUTIVES:
Steven M. Rales, Chairman
H. Lawrence Culp Jr., President & CEO
Daniel L. Comas, Exec. VP & CFO
Daniel A. Raskas, Sr. VP of Corporate Development
Matthias Weber, President, Leica Biosystems
Arnd Kaldowski, President, Diagnostics, Beckman Coulter
Rainer Blair, President, AB-SCIEX
Tom Stratton, President, Implant Direct
NO. OF EMPLOYEES: 66,000 (total)
GLOBAL HEADQUARTERS: Washington, D.C.
High-tech entrepreneur and billionaire Elon Musk once equated the practice of forming a successful company to the science of baking.
“If you’re trying to create a company, it’s like baking a cake,” said the co-founder of PayPal, SpaceX and Tesla Motors, among others. “You have to have all the ingredients in the right proportion.”
To take the analogy one step further, to get the best results out, the best ingredients need to go in.
That’s a philosophy that seems to be driving Washington, D.C.-based Danaher Inc. The multi-billion-dollar, multinational firm is an amalgam of different companies, brand names and technologies serving varied industries—in just the right amounts it seems, following a secret corporate recipe for successful bottom-line growth.
The company breaks its focus areas into five primary sectors: Test & Measurement, Dental, Industrial Technologies, Life Sciences & Diagnostics, and Environmental. For the purposes of MPO’s list of top companies, we include the performance of the Life Science & Diagnostics and Dental sectors.
The company’s diagnostic businesses offer a range of analytical instruments, reagents, consumables, software and services that hospitals, physician offices, reference laboratories and other critical-care settings use to diagnose disease and make treatment decisions. Life-sciences businesses provide research and clinical tools that scientists use to study cells and cell components to understand the causes of disease, identify new therapies and test new drugs and vaccines. Danaher’s dental businesses focus on consumables, equipment and services that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, and to improve smile aesthetics.
For the year, Danaher’s overall sales were $19.1 billion, up from $18.3 billion last year. The company’s Life Sciences & Diagnostics division reported sales of $6.86 billion, up from $6.49 billion in 2012, and the Dental unit grew marginally—$2.09 billion from $2.02 billion in fiscal 2012. Operating profit for Life Sciences & Diagnostics was $1.01 billion, up from $861 million. For dental, operating profit was $305 million, an increase from $293 million. Danaher’s overall operating profit was $3.3 billion, up from $3.2 billion.
The company’s life-sciences and diagnostics businesses accounted for 36 percent of revenue, while dental extracted dollars worth 11 percent of sales. Together, they represent nearly half of the company’s topline results for the year.
Growth Drivers
In the Dental business, single-digit sales growth for fiscal 2013 primarily was the result of increased sales of professional dental consumables and implant products. On a year-over-year basis, sales of dental consumables were strong in North America, China and other high-growth markets, and contracted slightly in Western Europe. In addition, sales from existing businesses in the segment’s dental technologies businesses grew at a low-single digit rate on a year-over-year basis primarily as a result of increased demand for imaging products and treatment units. Geographically, increased sales in North America, China and certain other high-growth markets more than offset lower demand in Europe, Danaher officials reported. North America accounted for 51 percent of sales, while Europe was 32 percent, Asia/Australia 10 percent, and all other regions 7 percent. Operating profit margins increased 10 basis points during 2013 as compared to 2012. Market penetration for the firm’s dental products is strong. For example, Danaher’s KaVo-Kerr Group, which includes 17 brands and makes a wide range of instruments and dental consumables, serves 99 percent of dental practices in the United States.
On the diagnostics side, sales from existing businesses grew at a mid-single digit rate during 2013 thanks to increased demand in the clinical, acute care and pathology diagnostic sectors. The clinical diagnostics business experienced strong sales of consumables and automation hardware in such high-growth markets as China, which more than offset slightly negative year-over-year sales performance in North America and Europe. Sales growth in the acute-care diagnostic business primarily was the result of “continued robust global consumables sales” related to the business’ growing installed base of instrumentation, which is expected to continue to grow in 2014, as well as strong demand for compact blood gas analyzers and cardiac care instruments, officials predicted. The year-over-year sales growth in the pathology diagnostics business was driven by strong demand for advanced staining systems and consumables in North America, China and Japan and increased demand for core histology instruments and consumables in North America and China.
Sales from existing life-sciences businesses grew at a mid-single-digit rate during 2013 primarily to strong demand for new product introductions across the life-sciences businesses. Sales of the business’ broad range of mass spectrometers grew on a year-over-year basis as strong sales growth in the applied and clinical research markets and the pharmaceutical market were partially offset by sales declines in the academic research market. Geographically, year-over-year sales growth in the mass spectrometry business was strong in high-growth markets and in the second half of 2013 the business also experienced strong demand in Europe and Japan. The business’ confocal microscopy, flow cytometry and sample preparation product lines also contributed to year-over-year growth, officials reported, principally from demand in high-growth markets.
Overall, for the Life Sciences & Diagnostics business, North America accounted for 38 percent of sales in 2013, Europe was 29 percent, Asia/Australia brought in 27 percent, and all other regions were 6 percent.
Division News Worth Noting
In December 2013, Leica Biosystems, one of Danaher’s diagnostic divisions, increased its ownership of Jung Feintechnik from 50 to 100 percent. Jung Feintechnik—based in Eisfeld, Germany—is a developer and manufacturer of sectioning products for the histology process. Terms of the deal were not disclosed.
In October of fiscal 2013, Danaher’s Brea, Calif.-based Beckman Coulter Life Sciences business received 510(k) clearance from the U.S. Food and Drug Administration and an Import Medical Device Registration Certificate from the China Food and Drug Administration for the in-vitro diagnostic use of the Navios flow cytometry system. In the United States, the Navios flow cytometer is intended for immunophenotyping (a technique used to study the protein expressed by cells) in conjunction with proprietary Navios tetra software and Cyto-Stat TetraChrome reagents.
The company’s AB-Sciex division, headquartered in Framingham, Mass., which makes analytical technologies, introduced the AB-Sciex API 3200MD and 3200MD QTrap LC/MS/MS systems, two devices that can be used to analyze trace levels of multiple compounds in human samples for diagnostic purposes.
“Clinical diagnostics is the new frontier for mass spectrometry,” said Rainer Blair, president of AB-Sciex. “The introduction of the 3200MD series is a major milestone for AB-Sciex itself in response to the demand in clinical settings for mass spectrometers as medical devices that meet regulatory requirements.”
It is the first in-vitro device for AB-Sciex and the first of a family of in-vitro diagnostic devices the company plans to roll out.
In 2013, a unit of Danaher’s Dental division—Implant Direct—recorded 18.8 percent overall sales growth compared to 2012.
Growth for the company in North America was 25.8 percent. Danaher owns 75 percent of the Implant Direct, which competes with dental implant industry heavyweights such as Switzerland’s Straumann Group and Zimmer Dental Inc., a division of Warsaw, Ind.-based orthopedic company Zimmer Holdings Inc. Headquartered in Calabasas Hills, Implant Direct reported in November 2013 that the company’s founder and president, Gerald Niznick, DMD, planned to retire and would be succeeded by Tom Stratton, who joined the company in January 2013 as executive vice president of global sales and business development. Niznick’s career has spanned more than 32 years. He sold his first dental implant company for $100 million in 2000 to Sulzer Medica AG (which later was acquired by Zimmer).
KEY EXECUTIVES:
Steven M. Rales, Chairman
H. Lawrence Culp Jr., President & CEO
Daniel L. Comas, Exec. VP & CFO
Daniel A. Raskas, Sr. VP of Corporate Development
Matthias Weber, President, Leica Biosystems
Arnd Kaldowski, President, Diagnostics, Beckman Coulter
Rainer Blair, President, AB-SCIEX
Tom Stratton, President, Implant Direct
NO. OF EMPLOYEES: 66,000 (total)
GLOBAL HEADQUARTERS: Washington, D.C.
High-tech entrepreneur and billionaire Elon Musk once equated the practice of forming a successful company to the science of baking.
“If you’re trying to create a company, it’s like baking a cake,” said the co-founder of PayPal, SpaceX and Tesla Motors, among others. “You have to have all the ingredients in the right proportion.”
To take the analogy one step further, to get the best results out, the best ingredients need to go in.
That’s a philosophy that seems to be driving Washington, D.C.-based Danaher Inc. The multi-billion-dollar, multinational firm is an amalgam of different companies, brand names and technologies serving varied industries—in just the right amounts it seems, following a secret corporate recipe for successful bottom-line growth.
The company breaks its focus areas into five primary sectors: Test & Measurement, Dental, Industrial Technologies, Life Sciences & Diagnostics, and Environmental. For the purposes of MPO’s list of top companies, we include the performance of the Life Science & Diagnostics and Dental sectors.
The company’s diagnostic businesses offer a range of analytical instruments, reagents, consumables, software and services that hospitals, physician offices, reference laboratories and other critical-care settings use to diagnose disease and make treatment decisions. Life-sciences businesses provide research and clinical tools that scientists use to study cells and cell components to understand the causes of disease, identify new therapies and test new drugs and vaccines. Danaher’s dental businesses focus on consumables, equipment and services that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, and to improve smile aesthetics.
For the year, Danaher’s overall sales were $19.1 billion, up from $18.3 billion last year. The company’s Life Sciences & Diagnostics division reported sales of $6.86 billion, up from $6.49 billion in 2012, and the Dental unit grew marginally—$2.09 billion from $2.02 billion in fiscal 2012. Operating profit for Life Sciences & Diagnostics was $1.01 billion, up from $861 million. For dental, operating profit was $305 million, an increase from $293 million. Danaher’s overall operating profit was $3.3 billion, up from $3.2 billion.
The company’s life-sciences and diagnostics businesses accounted for 36 percent of revenue, while dental extracted dollars worth 11 percent of sales. Together, they represent nearly half of the company’s topline results for the year.
Growth Drivers
In the Dental business, single-digit sales growth for fiscal 2013 primarily was the result of increased sales of professional dental consumables and implant products. On a year-over-year basis, sales of dental consumables were strong in North America, China and other high-growth markets, and contracted slightly in Western Europe. In addition, sales from existing businesses in the segment’s dental technologies businesses grew at a low-single digit rate on a year-over-year basis primarily as a result of increased demand for imaging products and treatment units. Geographically, increased sales in North America, China and certain other high-growth markets more than offset lower demand in Europe, Danaher officials reported. North America accounted for 51 percent of sales, while Europe was 32 percent, Asia/Australia 10 percent, and all other regions 7 percent. Operating profit margins increased 10 basis points during 2013 as compared to 2012. Market penetration for the firm’s dental products is strong. For example, Danaher’s KaVo-Kerr Group, which includes 17 brands and makes a wide range of instruments and dental consumables, serves 99 percent of dental practices in the United States.
On the diagnostics side, sales from existing businesses grew at a mid-single digit rate during 2013 thanks to increased demand in the clinical, acute care and pathology diagnostic sectors. The clinical diagnostics business experienced strong sales of consumables and automation hardware in such high-growth markets as China, which more than offset slightly negative year-over-year sales performance in North America and Europe. Sales growth in the acute-care diagnostic business primarily was the result of “continued robust global consumables sales” related to the business’ growing installed base of instrumentation, which is expected to continue to grow in 2014, as well as strong demand for compact blood gas analyzers and cardiac care instruments, officials predicted. The year-over-year sales growth in the pathology diagnostics business was driven by strong demand for advanced staining systems and consumables in North America, China and Japan and increased demand for core histology instruments and consumables in North America and China.
Sales from existing life-sciences businesses grew at a mid-single-digit rate during 2013 primarily to strong demand for new product introductions across the life-sciences businesses. Sales of the business’ broad range of mass spectrometers grew on a year-over-year basis as strong sales growth in the applied and clinical research markets and the pharmaceutical market were partially offset by sales declines in the academic research market. Geographically, year-over-year sales growth in the mass spectrometry business was strong in high-growth markets and in the second half of 2013 the business also experienced strong demand in Europe and Japan. The business’ confocal microscopy, flow cytometry and sample preparation product lines also contributed to year-over-year growth, officials reported, principally from demand in high-growth markets.
Overall, for the Life Sciences & Diagnostics business, North America accounted for 38 percent of sales in 2013, Europe was 29 percent, Asia/Australia brought in 27 percent, and all other regions were 6 percent.
Division News Worth Noting
In December 2013, Leica Biosystems, one of Danaher’s diagnostic divisions, increased its ownership of Jung Feintechnik from 50 to 100 percent. Jung Feintechnik—based in Eisfeld, Germany—is a developer and manufacturer of sectioning products for the histology process. Terms of the deal were not disclosed.
In October of fiscal 2013, Danaher’s Brea, Calif.-based Beckman Coulter Life Sciences business received 510(k) clearance from the U.S. Food and Drug Administration and an Import Medical Device Registration Certificate from the China Food and Drug Administration for the in-vitro diagnostic use of the Navios flow cytometry system. In the United States, the Navios flow cytometer is intended for immunophenotyping (a technique used to study the protein expressed by cells) in conjunction with proprietary Navios tetra software and Cyto-Stat TetraChrome reagents.
The company’s AB-Sciex division, headquartered in Framingham, Mass., which makes analytical technologies, introduced the AB-Sciex API 3200MD and 3200MD QTrap LC/MS/MS systems, two devices that can be used to analyze trace levels of multiple compounds in human samples for diagnostic purposes.
“Clinical diagnostics is the new frontier for mass spectrometry,” said Rainer Blair, president of AB-Sciex. “The introduction of the 3200MD series is a major milestone for AB-Sciex itself in response to the demand in clinical settings for mass spectrometers as medical devices that meet regulatory requirements.”
It is the first in-vitro device for AB-Sciex and the first of a family of in-vitro diagnostic devices the company plans to roll out.
In 2013, a unit of Danaher’s Dental division—Implant Direct—recorded 18.8 percent overall sales growth compared to 2012.
Growth for the company in North America was 25.8 percent. Danaher owns 75 percent of the Implant Direct, which competes with dental implant industry heavyweights such as Switzerland’s Straumann Group and Zimmer Dental Inc., a division of Warsaw, Ind.-based orthopedic company Zimmer Holdings Inc. Headquartered in Calabasas Hills, Implant Direct reported in November 2013 that the company’s founder and president, Gerald Niznick, DMD, planned to retire and would be succeeded by Tom Stratton, who joined the company in January 2013 as executive vice president of global sales and business development. Niznick’s career has spanned more than 32 years. He sold his first dental implant company for $100 million in 2000 to Sulzer Medica AG (which later was acquired by Zimmer).