MARCY-L’ETOILE, France, Jan. 17 /PRNewswire/ -- 2007-2012 Strategy
bioMerieux, a global leader in the field of in vitro diagnostics, today announced its strategic plan for 2007-2012. In clinical applications, it is committed to being recognized by biologists and clinicians as a leader in key pathologies, while in industrial applications, it plans to lead sector consolidation.
Commenting on this strategy, Chairman Alain Merieux declared: “We want to sustainably position bioMerieux as a major player in the field of in vitro diagnostics, in order to support more predictive, preemptive and personalized healthcare and to improve public health around the world.”
Clinical Applications
Previously focused on the laboratory, bioMerieux’s strategy is now shifting to pathologies and clinicians’ needs as well. The company intends to concentrate on infectious diseases -- notably sepsis, hospital-acquired infections, tuberculosis, HIV and hepatitis -- as well as on high medical- value tests for breast, colon and prostate cancer, and emergency cardiovascular diseases. To execute this strategy, bioMerieux will leverage its expertise in a variety of synergistic technologies, with the following objectives:
* In bacteriology, to become the undisputed leader, with a market share of nearly 40% in 2012. * In molecular biology, to become the leader in sepsis and hospital- acquired infections, with around 8% of the market for molecular diagnosis of infectious diseases in 2012. * In immunoassays, to strengthen the point-of-care business and extend the high medical-value test menu.
In addition, bioMerieux intends to leverage its capabilities in these technologies, its large installed base and its independence to become a preferred partner for pharmaceutical and biotechnology companies. To support this commitment, a new theragnostics (therapeutic + diagnostics) division was set up in January 2007, based in Cambridge, Massachusetts.
Industrial Applications
In industrial applications, bioMerieux’s goal is to lead sector consolidation and hold nearly 30% of the market in 2012.
Resources To successfully execute this strategy, bioMerieux will: * Pursue its R&D investments to support sustained organic growth. * Optimize the efficiency of its sales network, notably in the United States and Japan, by creating a global commercial operations department. The company will also continue to expand its network of subsidiaries. * Set up a global business development department dedicated to forging partnerships and distribution agreements and analyzing acquisition opportunities. This unit, also based in Cambridge, Massachusetts, will be supported by teams in Marcy, Shanghai and Tokyo.
“We are confident in our ability to execute this strategy,” noted CEO Stephane Bancel, “thanks to such critical strengths as our innovation capabilities, the quality of our sales network, our new global business development unit and the deep commitment of all our employees.”
Financial Outlook * Sales: -- From 2007 to 2012, bioMerieux expects to achieve compound average growth of between 7% and 9% a year at constant exchange rates, led by the following factors: - Current R&D pipeline: 5% - 6% - Sales network optimization: ~1% - Business development: 1% - 2% -- In 2007, the company anticipates like-for-like growth of 6%-7%, i.e., adjusted for the sale of the hemostasis product line and the phase- out of the microplate business in the United States. * Margins: -- Gross margin should remain unchanged, as improved production costs offset price erosion and lower gross margins on distribution agreements. -- Operating margin before non-recurring items should gradually increase by 100 to 150 basis points (at constant exchange rates) from the 14.4% reported at June 30, 2006. This forecast is based on R&D expenses equal to or less than 13% of sales, an anticipated decline in received royalties and economies of scale from higher sales. 2006 Sales Up 5.9% Like-For-Like
bioMerieux, a global leader in the field of in vitro diagnostics, today announced its full-year 2006 sales.
Net sales totaled 1,037 million euros versus 994 million euros in 2005. This represented an increase of 5.9% at constant exchange rates and scope of consolidation (adjusted for second-half 2005 and 2006 sales of the hemostasis product line and for the 2006 sales of Bacterial Barcodes Inc. since its acquisition last September 15).
Commenting on this performance, Stephane Bancel, Chief Executive Officer, noted that “we are pleased with our sales growth in 2006, which reflects significant contributions from all the operating regions. The year was shaped by the ramp-up of our new platforms, as well as refocusing on our core strategic markets.”
* Geographically, like-for-like sales may be analyzed as follows. Full- Full- % change In millions euros year year As Like-for- 2006 2005 reported like Europe(1)(2) 586.0 566.6 +3.4 % +5.0 % North America 268.8 255.9 +5.0 % +6.9 % Asia-Pacific(2) 113.1 107.7 +5.0 % +7.9 % Latin America 69.0 63.4 +8.8 % +7.1 % TOTAL 1,036.9 993.6 +4.4 % +5.9 % % change In millions euros Q4 Q4 As Like-for- 2006 2005 reported like Europe(1)(2) 154.4 151.5 +1.9 % +5.0 % North America 69.1 73.3 -5.8 % +3,0 % Asia-Pacific(2) 30.4 29.6 +2.9 % +10.0 % Latin America 17.6 18.1 -2.4 % +6.1 % TOTAL 271.5 272.5 -0.4 % +5.1 % (1) Including the Middle East and Africa (2) After reclassifying 2005 revenue from SAARC countries * Sales in the Europe - Middle East - Africa region, which accounted for 56% of consolidated business, increased by 5% over the full year. Outside France, sales rose 8.3%, driven by strong gains in the United Kingdom (up 10%), Spain (up 7%) and the Middle East - Africa region. In Italy (up 4%), Portugal (stable) and France (down 2%), where customer bases are concentrating, sales of VIDAS(R) routine tests slowed. In the clinical segment, growth in the bacteriology lines was led by higher sales of VITEK(R) 2 reagents and the culture media ranges. Sales of immunology ranges rose 1%, lifted by microplate tests, while the molecular biology lines were up by nearly 50%. The industrial applications segment continued to grow, by 12.3%. * In North America (26% of the consolidated total), sales rose 6.9% over the full year. In the clinical segment, growth was fueled by sales of VITEK(R) 2 Compact instruments and of VITEK(R) and BacT/Alert(R) reagents. Molecular biology sales increased by 50%. In the industrial applications segment, sales gained 9.7%. * In the Asia-Pacific region (11% of the consolidated total), business was up 7.9% over the full year. Sales in Japan declined 2% as the market absorbed the impact of a 10% decrease in reimbursements. The downtrend also reflected the closure of the Saitama site in July 2005 and comparison with the high prior-year sales of blood culture instruments in the industrial applications segment. Growth was strong in South Korea (up 21%), Australia (up 14%) and India (up 16%). Sales in China rose 6% over the previous year, when a large number of instruments were invoiced between August and October under a major tender awarded in 2005. Excluding this factor, growth came to 20% for the full year. Clinical application sales were lifted by bacteriology and molecular biology reagent lines. Growth in industrial applications was strong across the region, except in Japan. * Sales in Latin America increased by 7.1%, reflecting a slight decline in sales in Brazil and growth of 10% in Mexico and 13% in Argentina. The clinical bacteriology and industrial application lines each expanded by nearly 20% over the year. * In all, clinical applications gained 5.1% like-for-like in 2006 (4.4% in the fourth quarter), while industrial applications rose 11.5% (9.3% in the fourth quarter). Full- Full- % change year year As Like-for- In millions euros 2006 2005 reported like Clinical Applications 894.3 865.5 +3.3 % +5.1 % Bacteriology 505.5 475.5 +6.3 % +6.5 % Immunoassays (1) 302.0 297.4 +1.5 % 1.4 % Molecular Biology 39.9 26.9 +48.0 % +45,9 % Other 46.9 65.7 -28.6 % -10,2 % Industrial Applications 142.6 128.1 +11.4 % +11.5 % TOTAL 1,036.9 993.6 +4.4 % +5.9 % (1) After reclassification of microplate and manual lines under immunoassays in 2005. * Like-for-like growth in clinical applications may be analyzed as follows: -- Bacteriology sales were up 6.5%, reflecting strong performances by the VITEK(R), BacT/ALERT(R) reagents and culture media lines. -- In the immunoassays market, microplate line sales rose and the VIDAS(R) line continued to expand in value-added tests and in the Physician Office Labs segment. However, VIDAS(R) sales in the routine test segment declined in France and certain Southern European countries. The launch of the new VIDIA automated immunoanalyzer continued, enriched in the fourth quarter with three new thyroid parameters (TSH, FT3 and FT4). -- With the combination of easyMAG(R) for extraction and EasyQ(R) for amplification and detection, sales of molecular biology lines rose 46%, supported by strong instrument sales. * In the industrial segment, sales were up 11.5% like-for-like, with growth driven by expansion in the culture media, VITEK(R) 2 Compact and VIDAS(R) lines. Sales of the TEMPO(R) system continued to ramp up, although volumes are still limited. The sales outlook is improving with the system’s current launch in the United States and recent menu extension.
The above forward-looking statements are based, entirely or partially, on assessments or judgments that may change or be modified, due to uncertainties and risks related to the Company’s economic, financial, regulatory and competitive environment, notably those described in the 2005 Reference Document. Accordingly, the Company cannot give any assurance as to whether it will achieve the objectives described above. The Company does not undertake to update or otherwise revise any forecasts or objectives presented herein, except in compliance with the disclosure obligations applicable to companies whose shares are listed on a stock exchange.
About bioMerieux
bioMerieux is a leading international diagnostics group that specializes in the field of in vitro diagnostics for clinical and industrial applications. bioMerieux designs, develops, manufactures and markets systems (i.e. reagents, instruments and software) used in:
Clinical applications: the diagnosis of infectious diseases such as hepatitis, HIV, tuberculosis and respiratory illnesses, as well as pathologies such as certain cardiovascular diseases and certain cancers, based on the analysis of biological samples (such as blood, saliva or urine); and
Industrial applications: the microbiological analysis of food, environments (such as water and air), surfaces and pharmaceutical and cosmetic products, based on product or environmental samples.
bioMerieux is listed on the Premier Marché of Euronext Paris .
bioMerieux
CONTACT: Investor Relations, Herve Laurent, of bioMerieux, Tel: + 33 4 7887 22 37, investor.relations@eu.biomerieux.com, or Nancy Levain, of LTValue, Tel: + 33 1 55 27 15 88, nancy.levain@ltvalue.com; Media Relations,Christelle Chabert, of bioMerieux, Tel: + 33 4 78 87 52 01,christelle.chabert@eu.biomerieux.com; or Laurence Heilbronn, Tel: + 33 1 5370 74 64, lheilbronn@image7.fr, or Tiphaine Hecketsweiler, Tel: + 33 1 5370 74 59, thecketsweiler@image7.fr, both of Image Sept; U.S. Press Contact,Paige Sargent, FrenchWestVaughan, Tel: +1-919-277-1162, psargent@fwv-us.com
