Qiagen announced strong Q4 results and good overall growth for 2007, despite going through significant integration and acquisition efforts. The firm also gave guidance for a 40 per cent growth rate in 2008.
The Dutch biotech company reported net sales for Q4 2007 increased by 67 per cent to $210.2m. For the whole of 2007, net sales also increased 40 per cent to $649.8m.
This contrasts to net income for Q4 2007 decreasing 23 per cent to $15.0m, though the adjusted net income - which excludes integration and acquisition costs - shows net income increasing 31 per cent to $32.0m.
Figures for the whole of 2007 also show the same trends when comparing non-adjusted net income (decreasing 29 per cent to $50.1m in 2007 from $70.5m in 2006) to adjusted net income (increasing 31 per cent to $111.5m in 2007 from $85.3m in 2006).
"The launches of 72 new products in 2007 contributed 4 per cent to 2007 net sales growth. New products included innovative sample and assay technologies for research in the areas of epigenetics, gene expression, micro RNA, proteomics, RNAi, applied testing and molecular diagnostics as well as innovative platform solutions such as the very successful QIAcube," said Peer Schatz, Qiagen's CEO.
Schatz also commented that the integration with Digene has resulted in Qiagen being a leading player in the molecular diagnostics business, with particular advantages in human papillomavirus (HPV) testing. He estimated molecular diagnostics represented about half of current sales and intends to keep developing technology and more products in this area.
"We are significantly investing in clinical trials for a number of molecular diagnostic products with the goal of adding more regulated products to our portfolio. Our pipeline of automated solutions for our sample and assay technologies is exceptionally strong. QIAsymphony (a modular processing platform which can integrate entire workflows) is already generating a lot of excitement and has the potential to bring significant value to our customers."
Qiagen's revenues and adjusted earnings per share in Q4 2007 and the whole of 2007 also exceeded their increased guidance released last November. In 2008, they expect revenues between $875m and $905m, which represents a revenue growth rate between 35 per cent and 40 per cent when compared to 2007 and adjusted diluted earnings per share to be between $0.76 and $0.80.
"Revenue growth for the full year was 40 per cent and was fueled by strong organic growth of 12 per cent and positive contribution of 22 per cent from acquisitions," said Roland Sackers, Qiagen's chief financial officer.
"Reported revenues and adjusted earnings per share exceeded our increased guidance and reflected our good progress in integrating acquired businesses."