07.27.07
$2.5 Billion
Key Executives:
Scott Garrett, President and CEO
Mike Whelan, Group VP, High Sensitivity Testing Group
Scott Atkin, Group VP, Chemistry, Discovery and Automation Business Group
Bob Kleinert, (Acting) Group VP, Cellular Business Group
Pam Miller, Sr. VP, Supply Chain Management
Russ Bell, Sr. VP and Chief Scientific Officer
Bob Boghosian, Sr. VP, Quality and Regulatory Affairs
No. of Employees: 10,340
World Headquarters: Fullerton, CA
Like a roller coaster, 2006 was a series of twist and turns for Beckman Coulter, a manufacturer of biomedical testing instrument systems, as the company faced and overcame various challenges in its financial performance. With shaky numbers reported in the first half of of the year, the company proved itself capable of finishing the year on a positive note.
With a focus on immunoassay, clinical laboratory automation, geographic market expansion and molecular diagnostics, Beckman Coulter reported revenue of $2.53 billion in 2006, up 3.5% from FY 2005. About 75% of the company’s revenue came from sales in the clinical diagnostics market.
The company is divided into four main product areas, which include cellular systems, chemistry systems, immunoassay systems and discovery and automation. Each sector was valued at $806.3 million, $677.1 million, $484.4 million and $560.7 million, respectively, in sales for 2006. Products contributed $2.1 billion to overall sales in 2006, with services rounding out the balance. Beckman Coulter’s product stronghold is immunoassay testing, which in the past few years has been the company’s primary growth driver and an area where most high-value tests come to market.
Product highlights in 2006 included the introduction of the UniCel DxC 600i, which combines chemistry and immunoassay into a consolidated system, and the AutoMate 800 system, which has the ability to automate sample preparation in the clinical laboratory.
Looking back at the start of FY 2006, sales took a slight hit in the first quarter, but the company’s income remained undeterred. In the first quarter, ended March 31, sales were down 1.2% from FY 2005 to $569 million. The loss was attributed to a previously announced shift in a leasing policy towards more operating-type leases. Despite the negative effects of the leasing policy change, net earnings were $32.6 million. Net earnings in the United States increased 5.1% from the first quarter of 2005. International sales, however, were not as affirmative and decreased 3.2% from the first quarter of 2005.
Shortly after the close of the first quarter, Beckman Coulter resolved an outstanding legal dispute with Applera Corp. related to claims of certain Beckman Coulter patents and Applera’s allegations of breach of contract with respect to certain licensed technology. Under terms of settlement, Beckman Coulter would grant royalty-bearing licenses to Applera for its patents related to replaceable gels for capillary electrophoresis instruments and DNA sequencers and to its patent for a heated lid for thermal cyclers. Applera would grant Beckman Coulter licenses bestowing rights in the diagnostics market to its patent for nucleic acid sequencing and real time thermalcycling.
By the second quarter of 2006, which ended June 30, quarterly revenue took a minor hit and went down .4% to $616 million from 2005’s second quarter.
In July 2006, Beckman Coulter remained steadfast in its efforts to improve financial performance. The company sold its minority equity investment in APG to Applera for $50 million. In the same month, Beckman entered an agreement with Quest Diagnostics Inc. to have its cellular technology automate Quest’s hematology line. Also in July, Beckman Coulter acquired a product license for all real-time polymerase chain reaction (PCR) patents and pending patent applications owned and controlled by Roche Diagnostics. Beckman Coulter shelled out a license fee of $27.5 million to Roche.
Beckman Coulter finally made a turnaround in the third quarter, ended Sept. 30, with revenue up 6.4% to $631 million.
In October, Beckman Coulter signed an agreement to acquire Lumigen, Inc., a manufacturer of novel detection chemistries for high-sensitivity testing in clinical diagnostics and life science research, for a reported $185 million.
By the fourth quarter, which ended Dec. 31, 2006, Beckman Coulter stayed on its positive financial track with reported revenue of $712 million, up 8.6%.
If the first half of 2007 is any indication, the company will undergo a series of changes this year with the decision to close of one of its facilities, various acquisitions and newly established agreements.
In January, Beckman Coulter announced the closure of Palo Alto, CA operations by the end of 2008 in an effort to reduce operating costs. The facility develops and manufactures centrifuges, a major product line in the company’s Discovery and Automation product area. The company said it would shift operations to other Beckman Coulter facilities.
Beckman Coulter, through acquisitions and partnerships, has been able to boost its product offerings in the first half of 2007. With the acquisition of Diagnostic System Laboratories, Inc., Beckman Coulter received an exclusive license in April to manufacture and market Access Inhibin A, an automated assay for quantitative determination of dimeric inhibin A levels in human serum and plasma.
Also in April, Premier Inc. and Beckman Coulter formed new agreements in which the healthcare purchasing network will provide a full range of Beckman Coulter’s core laboratory systems and supplies.
In May, Beckman Coulter and Bio-Rad Laboratories extended their development and manufacturing agreement related to immunodiagnostic testing for blood virus and infectious disease. As part of the eight-year extension, Bio-Rad will develop new immunoassays for Beckman Coulter’s Unicel and Access immunoassay systems.
The company has remained in the spotlight this spring over its battle to acquire Inverness Medical Innovations Inc. After initially offering $85 a share, Beckman Coulter was challenged by Biosite, which swooped in with a $90 per share offer. Although Beckman Coulter sweetened its initial deal by rising to the $90-per-share purchase price, ultimately Biosite emerged the victor after it upped its offer to $92.50 a share and Beckman Coulter bowed out. Had the company won the bid, it would have paid about $1.67 billion in the deal.
Key Executives:
Scott Garrett, President and CEO
Mike Whelan, Group VP, High Sensitivity Testing Group
Scott Atkin, Group VP, Chemistry, Discovery and Automation Business Group
Bob Kleinert, (Acting) Group VP, Cellular Business Group
Pam Miller, Sr. VP, Supply Chain Management
Russ Bell, Sr. VP and Chief Scientific Officer
Bob Boghosian, Sr. VP, Quality and Regulatory Affairs
No. of Employees: 10,340
World Headquarters: Fullerton, CA
Like a roller coaster, 2006 was a series of twist and turns for Beckman Coulter, a manufacturer of biomedical testing instrument systems, as the company faced and overcame various challenges in its financial performance. With shaky numbers reported in the first half of of the year, the company proved itself capable of finishing the year on a positive note.
With a focus on immunoassay, clinical laboratory automation, geographic market expansion and molecular diagnostics, Beckman Coulter reported revenue of $2.53 billion in 2006, up 3.5% from FY 2005. About 75% of the company’s revenue came from sales in the clinical diagnostics market.
The company is divided into four main product areas, which include cellular systems, chemistry systems, immunoassay systems and discovery and automation. Each sector was valued at $806.3 million, $677.1 million, $484.4 million and $560.7 million, respectively, in sales for 2006. Products contributed $2.1 billion to overall sales in 2006, with services rounding out the balance. Beckman Coulter’s product stronghold is immunoassay testing, which in the past few years has been the company’s primary growth driver and an area where most high-value tests come to market.
Product highlights in 2006 included the introduction of the UniCel DxC 600i, which combines chemistry and immunoassay into a consolidated system, and the AutoMate 800 system, which has the ability to automate sample preparation in the clinical laboratory.
Looking back at the start of FY 2006, sales took a slight hit in the first quarter, but the company’s income remained undeterred. In the first quarter, ended March 31, sales were down 1.2% from FY 2005 to $569 million. The loss was attributed to a previously announced shift in a leasing policy towards more operating-type leases. Despite the negative effects of the leasing policy change, net earnings were $32.6 million. Net earnings in the United States increased 5.1% from the first quarter of 2005. International sales, however, were not as affirmative and decreased 3.2% from the first quarter of 2005.
Shortly after the close of the first quarter, Beckman Coulter resolved an outstanding legal dispute with Applera Corp. related to claims of certain Beckman Coulter patents and Applera’s allegations of breach of contract with respect to certain licensed technology. Under terms of settlement, Beckman Coulter would grant royalty-bearing licenses to Applera for its patents related to replaceable gels for capillary electrophoresis instruments and DNA sequencers and to its patent for a heated lid for thermal cyclers. Applera would grant Beckman Coulter licenses bestowing rights in the diagnostics market to its patent for nucleic acid sequencing and real time thermalcycling.
By the second quarter of 2006, which ended June 30, quarterly revenue took a minor hit and went down .4% to $616 million from 2005’s second quarter.
In July 2006, Beckman Coulter remained steadfast in its efforts to improve financial performance. The company sold its minority equity investment in APG to Applera for $50 million. In the same month, Beckman entered an agreement with Quest Diagnostics Inc. to have its cellular technology automate Quest’s hematology line. Also in July, Beckman Coulter acquired a product license for all real-time polymerase chain reaction (PCR) patents and pending patent applications owned and controlled by Roche Diagnostics. Beckman Coulter shelled out a license fee of $27.5 million to Roche.
Beckman Coulter finally made a turnaround in the third quarter, ended Sept. 30, with revenue up 6.4% to $631 million.
In October, Beckman Coulter signed an agreement to acquire Lumigen, Inc., a manufacturer of novel detection chemistries for high-sensitivity testing in clinical diagnostics and life science research, for a reported $185 million.
By the fourth quarter, which ended Dec. 31, 2006, Beckman Coulter stayed on its positive financial track with reported revenue of $712 million, up 8.6%.
If the first half of 2007 is any indication, the company will undergo a series of changes this year with the decision to close of one of its facilities, various acquisitions and newly established agreements.
In January, Beckman Coulter announced the closure of Palo Alto, CA operations by the end of 2008 in an effort to reduce operating costs. The facility develops and manufactures centrifuges, a major product line in the company’s Discovery and Automation product area. The company said it would shift operations to other Beckman Coulter facilities.
Beckman Coulter, through acquisitions and partnerships, has been able to boost its product offerings in the first half of 2007. With the acquisition of Diagnostic System Laboratories, Inc., Beckman Coulter received an exclusive license in April to manufacture and market Access Inhibin A, an automated assay for quantitative determination of dimeric inhibin A levels in human serum and plasma.
Also in April, Premier Inc. and Beckman Coulter formed new agreements in which the healthcare purchasing network will provide a full range of Beckman Coulter’s core laboratory systems and supplies.
In May, Beckman Coulter and Bio-Rad Laboratories extended their development and manufacturing agreement related to immunodiagnostic testing for blood virus and infectious disease. As part of the eight-year extension, Bio-Rad will develop new immunoassays for Beckman Coulter’s Unicel and Access immunoassay systems.
The company has remained in the spotlight this spring over its battle to acquire Inverness Medical Innovations Inc. After initially offering $85 a share, Beckman Coulter was challenged by Biosite, which swooped in with a $90 per share offer. Although Beckman Coulter sweetened its initial deal by rising to the $90-per-share purchase price, ultimately Biosite emerged the victor after it upped its offer to $92.50 a share and Beckman Coulter bowed out. Had the company won the bid, it would have paid about $1.67 billion in the deal.