Single-use and M&As drive double-digit growth for Sartorius
For Q2 2014, the bioprocessing equipment supplier reported sales revenue of €170m ($220m) up 10% on the same period last year, while order intake stood at €163m, up 15%. Net profit remained stable for the quarter but was up 7% for the half year 2014, to €40.7m.
Globally, for the first six months 2014 North American sales - which represent over a quarter of Sartorius’ market - rose $29% year-over-year, whilst Europe (representing half of the firm’s business) grew 8.5%. Asia-Pacific was also up double figures.
The figures demonstrate the company has “continued on the growth track,” Sartorius said. “Backed by recent acquisitions and significant organic growth with single-use products, order intake and sales revenue were up in double digits.”
The firm acquired 50% of Pennsylvania-based start-up firm AllPure Technologies during the quarter for €4.5m ($6m), saying the deal would complement Sartorius’ bioprocessing solutions portfolio with a range of single-use components.
Sartorius also benefitted from the consolidation of cell culture media firm TAP Biosystems, acquired for €33m in November 2013, with the two bolt-on firms having contributed so far this year around ten percentage points to the sales growth, showing “positive development in the reporting period as expected.”
The current merger and acquisition environment in the biopharma industry – synonymous with Pfizer’s failed AstraZeneca bid and Abbvie’s successful Shire approach – was also commented on in the earnings report as an opportunity for suppliers, such as Sartorius.
Whilst “the supplier structures of newly merged companies come under review and the number of suppliers may be reduced,” Sartorius said “those suppliers that have a strategically relevant product portfolio, strong application expertise, a global presence and an excellent track record have a favourable starting position.”
Amongst suppliers themselves, there has been consolidation with competitors Pall also bolstering its offering through the acquisition of ATMI’s life science business.