Millipore, a maker of purification systems used in drug manufacturing, reported lower third-quarter profit due to acquisition-related tax charges and manufacturing consolidation costs.
The filtration and separation specialists recorded third quarter net profit figures of $22.9 million (€19 million) or 44 cents per share, compared with a profit of $25 million, or 50 cents a share, a year ago.
This drop in income was attributed to a charge of $7 million, net of taxes, principally for acquisition-related in-process R&D costs, fair value adjustments for acquired inventory, and costs related to the company's manufacturing consolidation strategy.
Millipore's acquisition related costs include the purchase of NovAseptic, a Swedish company specialising in aseptic processing equipment used in the production of pharmaceutical and biologic drugs.
The deal came just days after it bought MicroSafe, a contract microbiological testing company based in the Netherlands, for $9.3 million.
"Excluding revenues from our MicroSafe and NovAseptic acquisitions, we achieved revenue growth of 11 per cent. Cash flow from operations and proceeds from stock option exercises allowed us to maintain our cash position despite investing more than $100 million on these acquisitions," said Martin Madaus, Millipore's CEO.
Millipore additionally recorded third quarter revenues of $240 million, up 14 per cent from the same period in 2004.
"Growth was particularly strong in sales of chromatography media and filtration products to biotechnology customers. Revenue growth for our bioscience business accelerated as planned," said Madaus.
In 2002, Millipore acquired the assets of CPG, a supplier to Millipore providing the base material for its Chromatographic Media, in a deal that was strategic in terms of manufacturing; ensuring a secure supply of a key component of its chromatographic media.
Millipore makes filtration products used in drug manufacturing and development and its financial performance often serves as a barometer of the fortunes of the biopharmaceutical industry.
Madaus added: "We also initiated an important alliance with Gen-Probe Incorporated for rapid molecular testing in biopharmaceutical production facilities, with the first products from that alliance expected in 2007."