1 I NSTRUMENT Strategic Information for the Analytical & Life Science Instrument Industry Strategic Directions International, Inc. B USINESS O UTLOOK Please see MSACL page 3 MSACL: MS and Clinical Diagnostics Volume 24, Number 22 February 29, 2016 MSACL 2016 Conference Highlights Progress 1 Quarterly Review Agilent, BD Biosciences, Bruker, Danaher and HORIBA 1 Executive Briefing Illumina Sues Sequencing Firm 2 Stock Indexes Choppy Markets 4 News Life Science Instruments 6 Sequencing 7 Laboratory Products 8 ABRF 2016 Technology Solutions 7 Market Profile Particle Counters 12 Bottom Line 12 Please see Quarterly Review page 9 A Good Ending to a Sturdy Year A majority of large publicly held instru- ment and lab product companies ended 2015 on a strong note, benefiting from sus- tained demand from biopharmaceutical customers and steady growth in applied markets. Nevertheless, currency effects along with weak industrial markets con- tinued to dampen organic top line growth. Moreover, several companies were nega- tively impacted by fewer selling days and strong year-over-year comparisons. For the businesses in the IBO Life Science and Analytical Instrument Sales Indexes (see page 9), combined calendar year fourth quarter 2015 sales grew 2.7% excluding acquisitions, or 5.6% organical- ly. Quarterly estimates were calculated for Merck KGaA, Oxford Instruments and Tecan, whose results were not yet announced before this issue’s publication. For the year, sales for the combined Indexes improved 2.8% excluding acquisitions or 5.9% organically. Biopharmaceutical sales remained ro- bust in the fourth quarter 2015, especially for Thermo Fisher Scientific and Agilent Technologies, for which such sales grew roughly 16% and 19%, respectively. Sales for the two firms grew exponentially faster than the market due to technology upgrades, new products and demand in China. In addition, NanoString Technolo- gies recorded strong double-digit revenue growth from pharmaceutical customers. Several other companies recorded healthy biopharmaceutical demand, The eighth annual Association for Mass Spectrometry: Applications to the Clini- cal Laboratory conference (MSACL) was held in Palm Springs, California, from February 21 to February 25, its first year outside of San Diego, California. Selected presentations on Thursday evidenced both optimism about MS’s future in clin- ical diagnostics and the need for greater progress. The conference also marked the organization’s official launch of a new journal, Clinical Mass Spectrometry. Attendance totaled approximately 980, the same as last year. However, the number of exhibitors increased from 43 to 55 and included all of the major MS vendors: Agilent Technologies, Bruker, SCIEX, Shimadzu, Thermo Fisher Scien- tific and Waters. Among the conference topics were metabolomics, tissue imaging and cancer biomarkers. In his plenary lecture, Graham Cooks, PhD, of Purdue University laid out what he called “current tasks” for MS: ambient ionization, using no or minimum sample preparation; miniature MS with “just adequate” performance, enabling fast analysis in the field; and MS in situ and at point of care (POC). Discussing current progress in these areas, he highlighted the use of paper spray ambient ionization for quantitative analysis as well as the need for automated ambient ionization. For POC applications, he discussed the use of MS for surgical diagnostics, specifically an ambient imaging approach for the analy-
Transcript
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Instrument
Strategic Information for the Analytical & Life Science Instrument Industry
Strategic Directions International, Inc.
BusIness OutlOOk
Please see MSACL page 3
MSACL: MS and Clinical DiagnosticsVolume 24, Number 22February 29, 2016
MSACL 2016Conference HighlightsProgress 1
Quarterly Review Agilent, BD Biosciences, Bruker, Danaher and HORIBA 1
A Good Ending to a Sturdy YearA majority of large publicly held instru-ment and lab product companies ended 2015 on a strong note, benefiting from sus-tained demand from biopharmaceutical customers and steady growth in applied markets. Nevertheless, currency effects along with weak industrial markets con-tinued to dampen organic top line growth. Moreover, several companies were nega-tively impacted by fewer selling days and strong year-over-year comparisons.
For the businesses in the IBO Life Science and Analytical Instrument Sales Indexes (see page 9), combined calendar year fourth quarter 2015 sales grew 2.7% excluding acquisitions, or 5.6% organical-ly. Quarterly estimates were calculated for Merck KGaA, Oxford Instruments and Tecan, whose results were not yet
announced before this issue’s publication. For the year, sales for the combined Indexes improved 2.8% excluding acquisitions or 5.9% organically.
Biopharmaceutical sales remained ro-bust in the fourth quarter 2015, especially for Thermo Fisher Scientific and Agilent Technologies, for which such sales grew roughly 16% and 19%, respectively. Sales for the two firms grew exponentially faster than the market due to technology upgrades, new products and demand in China. In addition, NanoString Technolo-gies recorded strong double-digit revenue growth from pharmaceutical customers.
Several other companies recorded healthy biopharmaceutical demand,
The eighth annual Association for Mass Spectrometry: Applications to the Clini-cal Laboratory conference (MSACL) was held in Palm Springs, California, from February 21 to February 25, its first year outside of San Diego, California. Selected presentations on Thursday evidenced both optimism about MS’s future in clin-ical diagnostics and the need for greater progress. The conference also marked the organization’s official launch of a new journal, Clinical Mass Spectrometry.
Attendance totaled approximately 980, the same as last year. However, the number of exhibitors increased from 43 to 55 and included all of the major MS vendors: Agilent Technologies, Bruker, SCIEX, Shimadzu, Thermo Fisher Scien-tific and Waters. Among the conference
topics were metabolomics, tissue imaging and cancer biomarkers.
In his plenary lecture, Graham Cooks, PhD, of Purdue University laid out what he called “current tasks” for MS: ambient ionization, using no or minimum sample preparation; miniature MS with “just adequate” performance, enabling fast analysis in the field; and MS in situ and at point of care (POC). Discussing current progress in these areas, he highlighted the use of paper spray ambient ionization for quantitative analysis as well as the need for automated ambient ionization. For POC applications, he discussed the use of MS for surgical diagnostics, specifically an ambient imaging approach for the analy-
2 Instrument Business Outlook February 29, 2016
Executive BriefingNews & Views for Executives
Illumina Sues Oxford NanoporeSan Diego, CA 2/23/16; San Diego, CA 2/23/16; Oxford, UK 2/24/16—NGS company Illumina, the University of Washington and the UAB Research Foundation have filed patent infringement suits against Oxford Nanopore Technologies with the US International Trade Commission and the US District Court for the Southern District of California. The suits allege infringe-ment of US Patents Nos. 8,673,550 and 9,170,230 (Msp Nanopores and Related Methods) by Oxford Nanopore’s MinION and PromethION systems. Msp is Mycobacterium smegmatis porin, a type of protein for making nanopores. The court complaint states, “On information and belief, Defendants’ MinION product more likely than not includes Msp porins.” The complaint requests damages and a permanent injunction. In a statement, Oxford Nanopore CEO Dr. Gordon Sanghera wrote, “It is gratifying to have the commercial relevance of Oxford Nanopore products so publicly acknowledged by the market monopolist for NGS.” The company expects no disruption to its commercialization progress.The patents were issued in March 2014 and October 2015, respectively, and exclusively licensed to Illumina in 2013 for the field of nucleic acid sequencing, according to the complaint. Launched in May 2015, the portable MinION sequencer, with up to 512 channels for sequencing, is listed on Oxford Nanopore’s website for an instrument access fee of $1,000 and a reagent cost per run of $99. Oxford Nanopore is expected this year to launch an early access program for the benchtop PromethION, which has as many as 3,000 channels.
MKS Acquires Newport for $980 MillionAndover, MA 2/23/16—MKS Instruments, a provider of instrument, subsystems and process control solutions, has agreed to acquire Newport, a supplier of advanced technology products, for $23 per share or approximately $980 million in cash. This is a 52.9% premium over Newport’s closing price on February 22. The combined company will have $1.4 billion in pro forma annual revenues. “The combination of MKS Instruments and Newport Corporation creates a premier supplier of critical components and subsystems for a diverse set of growing end-markets, each with a common need for highly precise technology enabling solutions,” stated MKS CEO and President Gerald Colella. The transaction is expected to be accretive to MKS’s non-GAAP earnings and free cash flow in the first 12 months. The purchase will be funded with cash on hand and as much as $800 million in debt financing. The deal is expected to close in the second quarter.
Thermo Expands XRD OfferingsTewksbury, MA 2/12/16—Thermo Fisher Scientific has acquired INEL, a French-based real-time XRD supplier. Financial details were not provided. “INEL offers a range of XRD instruments, from simple benchtop instruments for routine appli-cations to sophisticated platforms for analysis of nano-materials, pharmaceuticals, coatings and other advanced materials,” commented Michael Shafer, president, Chemical Analysis at Thermo. INEL will join Thermo Analytical Instruments.
PerkinElmer Adds to Food Testing PortfolioStockholm, Sweden 2/29/16—Perten Instruments, a PerkinElmer company, has ac-quired Delta Instruments for an undisclosed amount. Based in the Netherlands, Delta manufactures analyzers and testing equipment for milk and dairy products, including IR analyzers and somatic cell counters. “Together our two companies offer the most complete range of milk and dairy analyzers,” commented Perten Managing Director and CEO Gavin O’Reilly. “We look forward to introducing the Delta instruments to our current customers.”
Unchained Labs Buys Fourth CompanyPleasanton, CA 2/28/16—Unchained Labs, a supplier of high-throughput solutions for biologics formulation development and small molecule chemistry, has acquired Freeslate for an undisclosed amount. Freeslate develops configurable automated solutions for drug development. “Freeslate’s scale combined with Unchained Labs’ growth and capital creates a real juggernaut in the biologics formulation process,” commented Unchained Founder and CEO Tim Harkness. Unchained also an-nounced a $25 million Series B financing as part of the transaction. Unchained has 110 employees and more than $25 million in annual revenues. This is Unchained Labs’s fourth acquisition in the past year, following the purchases of AVIA Biosyste-ms, the Optim technology (see IBO 2/28/15) and Avid Nano (see IBO 10/31/15).
MKS stated that the purchase would allow it to expand into adjacent markets beyond its core semiconductor base. For process analytical applications, MKS supplies optical gas analyzers, multivariate data analysis software and MS-based residual gas analyzers. Newport provides lasers, optical components and subassemblies, as well as photonics, systems and components for a variety of end-markets, including an-alytical instruments. For the year ending January 2, Newport revenues were flat at $602.7 million.
Mr. Shafer told IBO, “With INEL, we see growth opportunities to create and expand integrated solutions across key application areas, including nano-ma-terials, thin films, stress and texture in metals and alloys, earth sciences and pharmaceuticals.”
The acquisition complements Perten, which was acquired by PerkinElmer in 2015 (see IBO 11/30/14). Perten provides NIR and materials characterization sys-tems for laboratory and process analysis of food, grain, flour and feed.
Taegen Clary, vice president of Marketing at Unchained, told IBO, “Freeslate adds around 60 employees to the Unchained Labs team, bringing our total up to 110 employees.” Regarding the expanded prod-uct lines, he said, “All of these products are perfect for the same customers working in biologics formulation labs and provide dif-ferent pieces of information that get them to their goal, the most stable biologic.”
3Instrument Business Outlook February 29, 2016
MSACL continued from page 1
CRISPR is a disruptive gene editing methodology that has invigorated the genomics market, taking life science research to another level of innovation. With explosive growth, the technology is not only creating opportuni-ties in genetic engineering but is fueling growth for en-abling technologies, such as NGS, PCR, lab automation, microarrays, nucleic acid preparation kits, flow cytometry and high-content analysis/imaging, that play key roles in preparation, transfection and cell identification/confir-mation. Gene editing including CRISPR is creating a more than $700 million market opportunity for the preparation and confirmation of samples.
This information was extracted from SDi’s newly pub-lished Market Brief entitled “Gene Editing: CRISPR/Cas9 Changes Everything.” If you have any questions about this report, please contact Glenn Cudiamat, vice president of Research Services, at [email protected].
Enabling Technologies
56%
Gene Editing 44%
2016 Gene Editing and Enabling Technologies Demand
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sis of diseased brain tissue in the operating room. He also advocated for the routine use of MS in organic synthesis.
The session presented by Timothy S. Collier, PhD, of ClevelandHeartLab provided an introduction to clinical proteomics, defining clinical proteomics as “the analysis of proteins/peptides in biological fluids, tissues and cells to provide diagnostic/prognostic insight into a patient’s state of health.” The talk gave an overview of how MS works and current challenges for it. Dr. Collier listed several constraints of clinical proteome diagnostics. Preanalytical constraints are prefractionation and enzymatic digestion. Analytical constraints are reproducibility, robustness, limits of detection; internal/external quality control; and reference intervals, target ranges, cutoffs. Postanalytical constraints are quantification strategies and software.
Dr. Collier also discussed success stories for the use of MS for clinical diagnostics, such the measurement of thy-roglobin as a marker for the recurrence of thyroid cancer. MS provides a direct measurement, addressing issues with immunoassay tests, such as interference from autoanti-bodies. He also highlighted that there are MS-based tests for Apolipoprotein A-I and ApoB for cardiovascular risk assessment whose precision and accuracy are “on par” with the immunoassay tests. Future developments in the field listed by him were increased multiplex capabilities (pseudo multiple reaction monitoring [MRM], parallel MRM, data independent acquisition), evolving calibration strategies, increased sensitivity and dynamic range in mass analyzers, and miniaturization.
Reviewing the history of MS-based protein tests in the US, Dobrin Nedelkov, PhD, of the Biodesign Institute at Ari-zona State University presented a summary of commercially available MS-based protein tests. Multiple tests on the list are offered by Quest Diagnostics, Nuclea Biotechnologies and Intrinsic Bioprobes. He stressed that only 8 of the 15 commercialized tests, about which the earliest publication was in 2001, are still available.
Characterizing the eight tests, he noted they all are LDTs, developed and characterized under CLIA require-ments and not cleared by the FDA. Most of them are focused on already known protein biomarkers and utilize top-down methods, primarily LC-MS/MS. In addition, they are so-called “esoteric” tests, meaning nonroutine, and for each of them the results are presented either as a concentration of the proteins or as yes/no answers. He noted that some of the tests face little or sporadic consumer demand. Empha-sizing that sample preparation remains the bottleneck for MS-based protein tests, he proposed that a single sample preparation approach is needed.
He also listed factors to consider in future MS pro-tein test development, including the level of demand, the complexity of using LC/MS, the need for simpler sample preparation and the need for FDA submissions.
Among the commercialized tests listed by Dr. Nedelkov, there are three using MALDI-TOF MS, including Biodesix’s VeriStrat, a multiplex test using MALDI-TOF profiling for guidance of treatment for advanced non–small cell lung cancer. As Mark W. Duncan, PhD, of the School of Med-
icine at the University of Colorado examined in his talk, improvements in MALDI-TOF instrumentation have made the technique more advantageous for clinical diagnostics, including faster analysis speeds, improved sensitivity, high-er throughput (thousands of samples per day) and greater quantification (a linear dynamic range up to 100,000).
A presentation by Melanie Yarbrough, PhD, of Wash-ington University in St. Louis discussed the use of MAL-DI-TOF for clinical microbiology and its broad application to organism identification, including gram positive bacteria, gram negative bacteria, mycobacteria, fungi and yeast. She noted that one limitation of MALDI-TOF for such testing is that it cannot differentiate between e. coli and shingella. She also provided an overview of the two different software analyses that Bruker’s MALDI Biotyper and bioMérieux’s VITEK systems use.
Also raising the profile of MALDI-TOF at the show was SimulTOF’s launch of its benchtop SimulTOF ONE system, a linear MALDI-TOF MS. The company told IBO that this system replaces its current product line and fea-tures a faster laser and more competitive price. The com-pany noted the new instrument’s increased sensitivity, ease of use and reliability as well as increased reproducibility for quantitation. In the future, the company will release a reflectron version.
The company’s work in advancing clinical MALDI -TOF MS applications include an assay for the testing of glycated hemoglobin for more accurate diagnoses of type 2 diabetes. Other tests that have been developed by the company for MALDI-TOF MS include a test for the mea-surement of albumin and creatinine in urine.
IBO Laboratory Instruments and Products Stock Index vs. S&P 500
Lab. Instruments and Products S&P 500
In February, the S&P 500 and NASDAQ declined for the third consecutive month, sliding 0.4% and 1.2%, respectively. Meanwhile, the Dow Jones Industrial Average weathered the negative trend as it posted a modest gain of 0.3%. Equity markets were extremely volatile as a result of fluctuating oil prices and anxieties over global economic growth. Neverthe-less, the US continued to show resilience, led by consumer spending and residential investments. Fourth quarter 2015 US GDP growth was revised higher by 30 basis points to 1.0%. Year to date, the Dow, S&P 500 and NASDAQ are down 5.2%, 5.5% and 9.0%, respectively.
Laboratory Instrumentation The Index slipped 0.7% in February to 220.39 and is
down 10.0% for the year. A majority of companies in the Index declined for the month in spite of a number of companies reporting stronger-than-expected quarterly earnings.
Bruker recorded the largest monthly gain, climbing 16.3%. The company easily topped analysts’ fourth quarter 2015 expectations on February 10, as EPS jumped 27% to $0.38 due to completed restructuring activity, pricing and operational improvements. The company projected 2016 EPS of $0.97–$1.02, which was ahead of analysts’ projections.
Likewise, FEI, Mettler-Toledo and MTS Systems all advanced after posting stronger-than-expected calendar year fourth quarter 2015 results. Reporting on February 2, FEI benefited from record life sciences revenue, margin improvements and product mix. The company projected 2016 GAAP EPS of $3.55–$3.70. Shares climbed 12.1% for the month. Mettler-Toledo reported on February 4 that quarterly adjusted EPS grew 10% to $4.65 in spite of currency head-winds and challenges in certain emerging markets. The firm forecast adjusted 2016 EPS to grow 9%–11% to $14.10–$14.30. Shares improved 0.7% for the month. Quarterly earnings for MTS Systems were boosted by cost control measures. However, the company maintained its fiscal 2016 EPS range of $3.03–$3.28 on February 4 due to slowing demand from industrial markets. Shares expanded 2.9% for the month.
Becton, Dickinson also beat analysts’ fiscal first quarter adjusted EPS estimates on February 3, but missed on sales. Despite increased currency headwinds, the company main-tained its fiscal 2016 adjusted EPS range of $8.37–$8.44 for growth of 17% including acquisitions. Deutsche Bank up-graded the company on February 11 from “Hold” to “Buy.”
Shares advanced 1.4% for the month.Several other companies similarly beat analysts’ quar-
terly earnings but traded lower for the month. On February 4, Fluidigm projected 2016 sales of $124–$128 million for growth of 10%, or 12% excluding currency. Mizuho upgrad-ed the company the following day from “Neutral” to “Buy.” Yet shares declined 1.2% for the month. Agilent reported on February 16 that fiscal first quarter adjusted EPS grew 12% to $0.46, which was ahead of consensus due to higher revenue growth and product mix. However, the company lowered its fiscal 2016 adjusted EPS outlook by $0.04 to $1.81–$1.87 because of currency. Shares slipped 0.8% for the month.
VWR topped analysts’ fourth quarter 2015 estimates on February 25, led by US biopharmaceutical demand and low-er interest expenses. It projected 2016 adjusted EPS to grow 7%–12% to $1.62–$1.70. Shares slipped 0.2% for the month.
NanoString posted strong fourth quarter 2015 results, but after the markets’ close on February 29. The company’s EPS loss narrowed due to strong consumables demand and collaborative revenue. The company projected 2016 sales to grow 40% to $86–$90 million, and a GAAP EPS loss of $2.30–$2.45. Shares contracted 13.7% for the month.
Boosted by tax benefits, both Luminex and Bio-Rad Laboratories posted fourth quarter 2015 adjusted EPS well above analysts’ consensus on February 1 and February 25, respectively. Luminex projected 2016 sales of $245–$255
5Instrument Business Outlook February 29, 2016
The IBO composite Stock Indexes are weighted by market capitalization. Index averages for the various financial ratios presented are also weighted statistically to reflect the relative sizes of the constituent com-panies. Laboratory Instruments and Products Index: 12/30/11 = 100; Diversified Laboratory Index: 12/30/11 = 100. Exchanges: n = NYSE; o = NASDAQ; t = Tokyo; hk = Hong Kong; l = London; g = Germany; s = Switzerland; st = Sweden; no = Nordic Market.; os = Osaka Securities. N/A = not available. NM = not meaningful.
• NanoTemper Technologies opened an office in Benga-luru, India, in November 2015.• In December 2015, MR Solutions named Summit Phar-maceuticals as its sole supplier for Japan.• MR Solutions announced in January a partnership with Green Imaging Technologies and the introduction of the ImaCore 3017 for rock core imaging.• In December 2015, MBio Diagnostics announced a product development partnership and licensing agreement with Roka Bioscience covering certain exclusive and nonexclusive fields.• In January, Agilent Technologies announced an exten-sion of its agreement with PerkinElmer, which supplies chips for its 2100 Bioanalyzer system.• Crystal Diagnostics named Hardy Diagnostics as a North American distributor of its CDx Xpress System pathogen detection platform.• Biodesy completed a $10 million Series B financing and signed its 20th commercial services agreement. Financing was led by existing investors 5AM Ventures, Pfizer Ven-ture Investments and Roche Venture Fund.• Luminex announced in a January SEC filing that Dr. Jeremy Bridge-Cook, senior vice president, R&D, resigned.
Product Introductions• Quanterix introduced in October 2015 the Simoa 2.0 im-munoassay platform, featuring increased assay robustness, improved multiplex capabilities and reduced sample size.• In December 2015, LI-COR Biosciences launched the new Pearl Trilogy System for small animal imaging, fea-turing a new bioluminescent detection channel.• Dolomite introduced the µEncapsulator 1 System for encapsulation of single cells, DNA and/or functionalized beads in identically sized picoliter droplets.• SGI-DNA launched cell engineering services for cus-tom mammalian cell line development for research use.• SGI-DNA released a cloning module for its BioXp 3200 System, a DNA printer. The module can simultaneously deliver up to 24 circular DNA clones from custom DNA sequences.• In January, Thermo Fisher Scientific introduced the SureCast Gel Handcast System for leak-free custom de-velopment of protein gels for electrophoresis.• Nicoya Lifesciences launched the affordable Open-SPR-XT, a fully automated molecular analysis instrument.• GE Healthcare Life Sciences introduced the Amersham PhastSystem, an SDS-PAGE system that provides automat-ically analyzed results in one hour and runs unattended after electrophoresis is started.• ProteinSimple, a Bio-Techne firm, launched Maurice, an advanced capillary electrophoresis system, featuring a native fluorescence detection mode and a separate car-tridge for each application.
Stock Indexes continued from page 4
Please see Stock Indexes page 8
million for growth of 5%. Shares declined 2.7%. For 2016, Bio-Rad forecasts currency-neutral sales to grow 2.5%–3.0%, including flat earnings. Shares advanced 5.5% for the month.
Bio-Techne and Pacific Biosciences both posted quar-terly EPS in line with analysts’ expectations on February 2 and February 3, respectively. Bio-Techne, which improved 3.8% for the month, recorded stronger-than-expected sales in Europe and Asia within the Biotechnology segment. Pacific Biosciences also recorded strong revenue growth, which jumped 115% due to contractual revenue from Roche. However, the company announced an offering of up to $30 million in shares, creating further dilution. On February 4, Piper Jaffray downgraded the company from “Overweight” to “Neutral.” Shares slumped 22.5% for the month, leading all companies in the Index.
Conversely, Illumina, PerkinElmer and QIAGEN all missed analysts’ fourth quarter 2015 adjusted EPS expecta-tions. Illumina’s quarterly EPS slipped just below consensus due to currency headwinds and increased investments. On February 2, the company projected 2016 adjusted EPS of $3.55–$3.65 for growth of 8%, including $0.25 dilution from investments (see IBO 1/15/16). Canaccord Genuity down-graded the company on February 4 from “Buy” to “Hold.” Shares contracted 4.9% for the month.
Timing of diagnostic service revenue and lower instru-ment sales negatively impacted QIAGEN’s earnings on Feb-ruary 2. The company projected full-year 2016 adjusted EPS to grow 2%, 5% excluding currency, to $1.07–$1.08. Shares declined 7.0% for the month. Meanwhile, weak industrial markets and currency headwinds affected PerkinElmer’s earnings. On February 5, the company projected 2016 adjust-ed EPS to grow 6%, 8% excluding currency, to $2.65–$2.75. Shares slipped 2.2% for the month.
Diversified Instrumentation The Index grew 0.6% for the month to 182.38 but is
down 2.8% year to date. Half the companies traded higher in February, led by Teledyne Technologies, which improved 4.9%. Despite a decline in fourth quarter 2015 adjusted EPS on February 4, company earnings were ahead of analysts’ consensus and grew sequentially. Teledyne projected 2016 adjusted EPS of $5.05–$5.15.
Despite weak industrial markets, both AMETEK and Xylem reported fourth quarter 2015 adjusted EPS in line with analysts’ consensus. On February 4, Xylem projected 2016 adjusted EPS to grow 8% to $1.95–$2.05, led by higher organic growth and operational improvements. Shares improved 4.1% for the month. On February 5, AMETEK projected 2016 EPS to grow 2% to $2.55–$2.65. Shares fell 1.4% for the month.
Roper Technologies recorded the largest monthly de-cline in the Index, falling 4.4%. It fell short of analysts’ fourth quarter 2015 adjusted EPS estimates on February 1 due to challenges in the industrial and energy markets. In addition, the company projected 2016 adjusted EPS of $6.85–$7.15, which was below analysts’ consensus.
7Instrument Business Outlook February 29, 2016
SequencingCompany Announcements
• SYGNIS announced in December 2015 a US distribu-tion agreement with Lucigen focused on single-cell ampli-fication for NGS in the clinical oncology research market.• In January, NRGene signed a comarketing agreement with Illumina to promote its de novo assembly informatics solution exclusively using Illumina technology.• PierianDX closed a $9.3 million Series A financing, led by Health Catalyst Capital Management.• Rubicon Genomics sales rose 40% in 2015, and it named Delonix Healthcare as a distributor for India and Biocena as a distributor for Poland.• Rubicon Genomics announced a distribution agree-ment with Beckman Coulter Life Sciences for its Thru-PLEX Plasma-seq kits for research applications.• In January, DNAnexus integrated its cloud-based genomics platform with Sapio Sciences’ Exemplar NGS Laboratory LIMS.• In February, QIAGEN announced an agreement en-abling its CLC Genomics Workbench users to access and integrate CosmosID’s metagenomics analysis platform.• BC Platforms and Nexus Personalized Health Tech-nologies announced an agreement to create a joint trans-lational research–driven offering connecting genetic and clinical patient information.• Under a collaboration and comarketing partnership, Silicon Biosystems Menarini will develop new work-flows focused on translational medicine that combine its DEPArray System with Swift Biosciences’ NGS technol-ogy, enabling oncology research to fully access genomic information from FFPE tissue samples.• Invivoscribe announced a long-term strategic col-laboration agreement with Thermo Fisher Scientific to develop multiple NGS-based IVD oncology tests on the Ion PGM Dx System for applications in liquid biopsies.• Illumina announced a partnership with Genomics England under which it will develop interpretation and reporting tools for the 100,000 Genomes Project.
Product Introductions• ArcherDX and Horizon Discovery launched in January the Archer SureShot ALK, RET, ROS1 Fusion Control for NGS. • Clontech Laboratories introduced the SMARTer Hu-man TCR a/b Profiling Kit for human T cell receptor repertoire analysis. It works with mRNA.• LifeMap Sciences released the TGex (Translational Genomics Expert) integrated NGS analysis platform, de-veloped in partnership with Toldot Genetics.• Oracle Health Sciences launched the Healthcare Preci-sion Medicine software solution to connect genetic testing, report generation and clinical care decision making.• QIAGEN released more than 170 new QIAseq Targeted RNA Panels for NGS gene expression profiling.
The annual Association of Biomolecular Resource Facilities (ABRF) conference was held in Ft. Lauderdale, Florida, this year. Conference attendance increased for the third year in a row and included 559 attendees and 237 exhibitors. ABRF 2017 will be held in San Diego, California. Over three days, the 45 conference presentations and workshops addressed five topic areas: imaging, core administration, genomics, proteomics and trending topics.
The first plenary session on Monday, “Cancer Genom-ics: Discovery to Clinical Translation,” was presented by Elaine Mardis, PhD, of the Genome Institute at Washington University School of Medicine. The focus of her research group is breast cancer and making research samples widely accessible. She pointed researchers to the freeware API of the Database of Curated Mutations, and encouraged a focus on the translation of research into clinical applications.
As a conference, ABRF emphasized supporting its membership of laboratory and administrative profession-als, thus the Scientific Sessions were both educational and pragmatic. The imaging topic track began with a primer on light sheet microscopy, then in subsequent sessions on day one expanded the discussion through the evolution of the workflow and implementation in a core facility. On day two, the presentations took a deeper look at the technology applications and technique selection.
Exhibitors showed a wide variety of solutions, includ-ing instruments, reagent panels, workflow management software systems and lab administration systems. QIAGEN exhibited its new QIAseq Targeted RNA system for gene expression profiling, featuring molecular barcode counting. The system requires only 25 ng of total, fragmented RNA and 6 hours total time to process. Agilent Technologies high-lighted its new 4200 TapeStation System, a complete solution for end-to-end electrophoretic QC for DNA and RNA sam-ples within any NGS, microarray (including array CGH) or qPCR workflow. Samples can be provided in 16-well tube strips or 96-well plates. Reliable results can be reviewed within 1–2 minutes per sample, or less than 90 minutes for 96 samples. The software automatically provides integrity standards for RNA (RNA Integrity Number equivalent) as well as genomic DNA (DNA Integrity Number).
ILab Solutions promoted its system for comprehen-sive core facility management. The product integrates with lab information workflow systems, providing an administration over workflow layer for end-to-end facility management.
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Stock Indexes continued from page 6Laboratory ProductsCompany Announcements
• The Pittsburgh Business Times reported in November 2015 that lab equipment company Burrell Scientific ac-quired Reagents, a supplier of customized chemicals for the mid-Atlantic region of the US.• Air Liquide agreed to acquire Airgas for $13.4 billion, or $143 per share, a 51% premium to Airgas’ one month average share price prior to the announcement. Both companies provide laboratory gases and gas generators. • Plastic components firm BioPlast Manufacturing pur-chased Kord-Valmark, a manufacturer of petri dishes, in November 2015. • In January, China-based Haier Biomedical acquired Labtech International UK’s cold chain business.• VWR appointed Dr. Nils Clausnitzer as senior vice president and president of its EMEA-APAC Lab Business. He previously served as president, head of Commercial Operations EMEA, at QIAGEN.• In January, BATM Advanced Communications, a provider of real-time technologies for networking solu-tions and medical lab systems, agreed to acquire Green Lab Hungary Engineering, a lab product distributor and developer, for $3.8 million. In 2015, Green Lab revenues totaled $3.3 million and operating profit was $0.6 mil-lion. Green Lab will complement BATM’s lab product distribution in Romania and is synergistic with BATM’s Sterilization Unit in Hungary.• For the year ending November 30, 2015, sales for Porvair’s Seal Analytical business grew 4% in constant currency.
Product Introductions• NuAire released in November 2015 the LabGard AIR, a Class II, Type A2 cabinet for research facilities.• Porvair Sciences introduced the entry-level MiniVap Gemini for simultaneously removing solvent from two microplates.• Adam Equipment launched in December 2015 the Eclipse range of lab balances, featuring an advance capac-itive touch keypad.• In January, Grant Instruments introduced the LT ecocool range of energy-efficient refrigerated/heating circulating baths, consisting of three models.• RephiLe launched the benchtop Direct Pure RO 50 and UP 50 systems, featuring a pure-water flow rate of 50 L/h.• Wheaton introduced the AntiBIND microplate product line, which reduces protein binding and adsorption. The product line currently consists of the 0.5 mL 96 Deepwell Microplate and the 230 µL 384-well microplate.• BioCision launched new models of its ThawSTAR automated cell thawing technology platform to serve the cell therapy market. One model is designed for 1.5 mL cryogenic vials. The other model is designed for 6.0 mL AT-Closed Vials from Aseptic Technologies.
InternationalMost major international equity markets traded lower
in February as a result of fluctuating oil prices, weak manu-facturing data in the Eurozone, and tepid fourth quarter 2015 GDP growth in Germany and the UK. However, hopes for oil production cuts and increased stimulus in China helped offset negative sentiment. Japan’s Nikkei 225 and India’s Sen-sex 30 recorded the largest monthly declines, falling 8.5% and 7.5%, respectively. Conversely, Taiwan’s TAIEX advanced 4.1% and the UK’s FTSE 100 improved 0.2%.
Prices for most Pacific Rim companies in the IBO Stock Table declined, led by JEOL, which slumped 20.1%. On February 12, it reported that fiscal third quarter EPS ending December 31, 2015, jumped 54% to ¥9.09 ($0.08), led by Sci-ence and Measurement Equipment revenue growth.
HORIBA, which fell 12.8% for the month, reported on February 9 that fourth quarter 2015 EPS fell 15% to ¥133.73 ($1.10) due to gains from investment securities in the previ-ous year. Full-year 2015 EPS climbed 22% to ¥304.36 ($2.51), which was ahead of company projections. Annual dividend payout expanded 4% to ¥70 ($0.58) per share. For 2016, EPS are expected to decline 16% to ¥256.57 ($2.30) as a result of currency and increased investments. Precision System Sci-ence also declined double digits this month, sliding 11.5%. On February 5, the company lowered its fiscal 2016 EPS guidance from a modest gain to a loss of ¥17.82 ($0.15) due to lower reagent and consumables sales. On February 12, the company reported that fiscal second quarter EPS loss ending December 31, 2015, widened 13% to ¥3.48 ($0.03) due to a 4.8% decline in sales.
Similar to JEOL, Shimadzu declined for the month de-spite strong quarterly results. On February 9, the company reported that fiscal third quarter EPS ending December 31, 2015, climbed 23% to approximately ¥16.80 ($0.14), led by strong pharmaceutical sales growth in India and Southeast Asia. The company maintained its previous financial out-look. Shares fell 4.2% for the month. Conversely, GL Sciences improved 3.2% for the month. For the same fiscal third quar-ter, the company reported on February 3 that EPS expanded 26% to ¥13.92 ($0.11) despite a revenue decline of 8%.
Prices for the UK-based companies in the IBO Stock Table advanced with the exception of Oxford Instruments, which fell 4.5%, and Scientific Digital Imaging, which was unchanged. Spectris recorded the largest monthly gain, advancing 14.2%. On February 16, the firm reported that adjusted 2015 EPS fell 8% to 114.3 pence ($1.76). It projected an improved outlook due to restructuring measures and new products. Spectris was upgraded by JPMorgan Chase from “Neutral” to “Overweight” on February 17, and by Numis Securities from “Reduce” to “Add” on February 18.
Prices for other European firms in the Table were mixed. Tecan recorded the highest return, rising 5.0%. Biotage, which improved 3.4% for the month, reported on February 11 that fourth quarter 2015 EPS climbed 23% to SEK 0.32 ($0.04) due to currency benefits. On February 8, Exiqon reported that fourth quarter 2015 EPS jumped to a profit of DKK 0.14 ($0.02), compared to a loss of DKK 0.10 (0.02), driven by revenue growth of 35%. Shares slipped 0.8% for the month.
Reported IBO Index sales growths exclude acquisitions and are based on constant exchange rates for international companies when converted into US dollars.
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Organic Grow. 10.4% 7.1% 9.0% 7.2% 7.3%
Adj. OP Margin 25% 26% 24% 24% 25%
18%
20%
22%
24%
26%
28%
0.0%
3.0%
6.0%
9.0%
12.0%
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. OP
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Quarterly Life Science Sales Index
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Organic Grow. 4.8% 2.4% 5.2% 5.3% 4.1%
Adj. OP Margins 18% 20% 17% 17% 19%
12%
14%
16%
18%
20%
22%
0.0%
3.0%
6.0%
9.0%
12.0%
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/Y
Quarterly Analytical Instrument Sales Index
Life Science Index SalesFourth quarter 2015 IBO Life Science Index sales rose
5.0%, 7.3% organically, to $3,772 million. Excluding Illumi-na, Index sales grew 5.2% organically, led by demand from biopharmaceutical markets, including particular strength for bioproduction sales within Thermo Life Sciences Solutions. Clinical demand boosted growth for Affymetrix, Illumina and NanoString Technologies. Adjusted operating profit expanded 50 basis points to 24.7% of sales.
For 2015, Index sales climbed 6.0%, 7.7% organically, to $13.9 billion. Excluding Illumina, Index sales grew 5.0% organically. Adjusted operating margin advanced 130 basis points to 24.4%.
Analytical Instrument Index Sales Fourth quarter 2015 sales for IBO’s Analytical Instru-
ment Index grew 0.6%, 4.1% excluding currency, to $4,018 million. Sales were particularly strong for LC and LC/MS, including aftermarket revenue. Index sales also benefited from increased demand within Bruker’s NMR and Detec-tion businesses, as well as strong Health Sciences revenue for Waters. Adjusted operating margin climbed 170 basis points to 21.4% of sales, as a number of companies benefit-ed from product mix and improved operating efficiencies.
For 2015, Index sales were flat at $14.7 billion but grew 4.3% organically. Adjusted operating margin expanded 140 basis points to 18.7%.
including PerkinElmer, whose sales from its top pharma-ceutical customers outside of Japan grew double digits. Bio-Techne quantified upper single-digit biopharmaceutical revenue growth within its Biotechnology segment. Biophar-maceutical sales for Waters expanded roughly 7%, driven by demand from generic customers in India. However, the com-pany’s organic growth slowed compared to the rest of the year due to a tougher comparison, especially in China. Like Waters, Shimadzu’s Analytical and Measuring Instruments (AMI) and Spectris’s Materials Analysis (MA) segments experienced significant biopharmaceutical demand in India.
Sales to health care and clinical markets also contributed to growth in the quarter. Illumina detailed that shipments to clinical oncology customers grew 40% and that NIPT reve-nue grew more than 50%. Similarly, PerkinElmer experienced strong demand for prenatal testing as well as infectious dis-ease screening. Shimadzu AMI sales were aided by improved demand from therapeutics markets.
Applied markets were sturdy in the calendar year fourth quarter 2015, including healthy sales of food and environ-mental products. Demand in these markets contributed to growth for PerkinElmer, Thermo and Waters. Agilent posted a 9% increase in environmental sales but slightly lower food sales. In addition, Bruker benefited from new NMR custom-ers for food screening applications.
Academic and government markets remained stable in spite of weakness in Japan and certain European regions.
Several companies benefited from budget flushes, including Agilent and Thermo, for which academic and government sales each grew in the mid-single digits. Despite lower spending in Japan, PerkinElmer recorded academic and government sales growth. Furthermore, academic sales were positive for Bruker Nano Group and grew in the low single digits for Bio-Techne’s Biotechnology segment. Con-versely, Waters recorded roughly a mid-single digit decline in academic and government revenue because of a strong comparison.
Industrial markets experienced little improvement in fourth quarter 2015, as Bruker Nano Group, PerkinElmer and Thermo Analytical Technologies all reported weakness. Agilent encountered a significant drag on sales from oil and gas exploration and production customers.
Geographically, US and European demand varied by company and were also impacted by timing of orders and year-over-year comparisons. Growth in China was particu-larly strong for Agilent, Illumina, PerkinElmer and Thermo. Despite only a modest percentage of sales, Bio-Techne’s Biotechnology sales in China jumped roughly 30%. India was similarly strong for Waters, Shimadzu AMI and Spectris MA.
Japan remained a headwind for most companies, with the exception of Agilent for which sales grew 5.7%. Japanese sales for the Waters Division were flat. In addition, sales in certain emerging markets such as Latin American, Russia and Brazil affected growth for PerkinElmer and Thermo.
Agilent Posts Solid QuarterAgilent Technologies fiscal first quarter revenues ending January 31 improved 0.2%, 6.4% organically, to $1.03 bil-lion (see page 12). Sales were slightly ahead of company expectations, driven by strength in the pharmaceutical, and clinical and diagnostics markets. Furthermore, aca-demic and government sales returned to growth due to increased government spending in China for environmen-tal and food products.
All sales figures below are based on organic growth. Total sales to analytical laboratory markets grew 6% to ac-count for 86% of revenues. Growth was led by broad-based biopharmaceutical demand, for which sales climbed 19%
due to new products, technology upgrades and aftermarket sales. Environmental sales advanced 9% driven by demand in China. Academic and government sales grew 4% as a result of increased budget spending in the US. In spite of strong demand in China, food sales slipped 1%. The largest drag
on sales was from oil and gas exploration and production customers, which led to a 2% decline in chemical and en-ergy sales. Accounting for the remaining 14% of revenues, diagnostic and clinical sales grew 7%, led by double-digit sales growth for NGS target enrichment products.
Overall, Agilent sales in the Americas and Europe grew 6.1% and 1.7% to account for 34% and 32% of rev-enues, respectively. Asia Pacific sales increased 12.2%, including 5.7% growth in Japan and 13.5% growth in Other Asia Pacific, to make up 34% of revenues. Adjusted gross margin expanded 180 basis points to 54.9% due to a stron-ger mix of higher-margin LC products. Adjusted operating margin advanced 200 basis points to 20.2%.
Given the strengthening of the US dollar, Agilent lowered its fiscal 2016 revenue outlook by $50 million to $4.10–$4.12 billion for growth of 2%. However, the compa-ny’s core growth range of 4.0%–4.5% remained unchanged. Fiscal second quarter sales are projected to grow 1% at the midpoint, 4% organically, to $965–$985 million.
Pharma Boosts BD Biosciences Growth Fiscal first quarter revenue for Becton, Dickinson’s
BD Biosciences unit contracted 4.4% to $276 million to account for 9% of company sales (see page 12). Excluding currency, segment sales grew 1.2%, led by demand for high-end instruments and research reagents. Sales for the advanced bioprocessing business were particularly strong. However, this growth was partially offset by tender delays from clinical customers in emerging markets and a strong year-over-year comparison. US sales grew 6.1% to make up 36% of Biosciences revenue. International revenue de-clined 9.4%, 1.1% excluding currency, to account for 64% of segment sales.
Bruker Tops ExpectationsFor the fourth quarter 2015, Bruker Scientific Instru-
ments (BSI) sales declined 7.8% to $438.9 million to account for 92% of revenues. However, excluding currency and divestments, net of acquisitions, organic sales were flat. All sales figures below are based on or-ganic growth. Bruker CALID sales grew in the mid-high single digits to account for roughly 37% of BSI revenues. The Detection business performed particularly well due to large orders and new explosive trace detection products. The Daltonics business was stable with growth across most product lines, includ-ing strong sales of the MALDI Biotyper. Despite weak industrial markets, sales for the Optics business expanded.
Bruker BioSpin sales benefited from a continued rebound in the NMR business, for which orders grew in double digits. Favorable pricing also contributed to reve-nue growth. Conversely, sales and orders for the Preclinical Imaging business declined.
Bruker Nano sales were mixed, as higher demand from academic markets and China was offset by weak demand from industrial and semiconductor customers. Given the challenges in these markets, sales for the Nano Surfaces Division declined. In contrast, the AXS Division recorded mid-single digit sales growth, and sales for the Nano Analytics Division grew in the low teens.
BSI adjusted operating profit improved 19.3% to $78.0 million due to completed restructuring activity, divest-ments, increased pricing, product mix and currency.
For 2015, BSI sales fell 10.5% to $1.50 billion but grew 1.3% organically. Bruker CALID sales grew 7% to account
for 33% of segment sales. This growth was driven by strong demand in the Detection Division, especially from various European airports. In addition, sales for the MAL-DI Biotyper grew roughly 10% to around $100 million, including high single digit growth for systems, and above 10% growth for consumables and services.
Bruker BioSpin sales declined 3% due to weakness in the Preclinical Imaging Division. Given their slow start in 2015, NMR sales were flat for the year, while orders grew in the low teens, led by higher volume and pricing. Bruker Nano sales grew 1% to make up 31% of segment revenue. AXS Division sales grew in the high single digits, including strong sales of XRD products. Nano Analytics Division sales grew in the low teens, led by strong demand for mi-cro-XRF products. Nano Surfaces Division sales declined due to challenges in the industrial markets, especially in certain Asia Pacific regions.
Geographically, total 2015 Bruker sales in Europe grew in the high single digits. Sales in the Americas ad-vanced in the low single digits. Asia Pacific sales declined in the high single digits due to weakness in Japan, Korea, Taiwan and Southeast Asia. However, China maintained positive growth due to academic and research spending.
For 2016, Bruker projected both reported and organic revenues to grow roughly 3%. A strong backlog and higher pricing of NMR products as well as slightly higher growth in China are projected to drive BSI sales. Daltonics’ sales growth is expected to fall back in line with the company average. Industrial markets will continue to drag on rev-enue growth, along with weakness in the semiconductor and data storage businesses. The company also expects little improvement in Japan.
Modest Organic Growth for DanaherFourth quarter 2015 sales for Danaher’s Life Sciences
& Diagnostics segment advanced 2.0% organically to ac-count for 46% of company revenues. As a result of fewer selling days and slower demand in developed markets, organic sales for the diagnostics business grew in the low single digits. Sales for the life sciences business grew sim-ilarly at a low single-digit pace. The company also did not experience any budget flushes as in previous fourth quar-ters. SCIEX sales grew in the mid-single digits organically, led by strength from clinical and applied customers. Leica Microsystems organic sales were roughly flat, as higher demand in China and Japan was offset by weakness in Europe, the Middle East and Latin America. Quarterly segment operating profit margin fell 270 basis points to 13.9%. For the full-year 2015, Life Sciences & Diagnostics sales grew roughly 4.0% organically to $8.21 billion to make up 40% of revenues.
Quarterly revenue for the Environmental segment grew 4.0% organically to make up 17% of revenues. Or-ganic sales for the segment’s water quality platforms grew
in the low single digits. Trojan sales were strong due to in-creased activity from the North American municipal mar-ket and ChemTreat sales were slightly higher. Core Hach sales were flat, as fewer selling days and weakness from industrial customers in developed regions curbed growth. However, the BioTector business, which offers online TOC analyzers, recorded double-digit revenue growth. Segment operating margin expanded 265 basis points to 21.8%. For 2015, Environmental sales grew roughly 5.5% organically to $3.64 billion to account for 18% of revenues.
HORIBA Posts Mixed ResultsFourth quarter 2015 HORIBA Process and Environ-
mental Instruments & Systems (P&E) revenue grew 5.0% to ¥4,899 million ($40.3 million = ¥121.42= $1) to make up 9% of company sales. Currency had a marginal impact on segment sales. Japanese sales rebounded, climbing 8.6%. Sales to other Asian markets were particularly robust with growth in the strong double digits. However, sales in Europe declined in the mid- to high single digits, while sales in the Americas fell double digits. Segment operating income expanded 12.4% to ¥627 million ($5.2 million). Quarterly sales for HORIBA’s Scientific Instruments & Systems (SI) segment declined 1.1% to ¥8,171 million ($76.8 million) to account for 15% of revenues. Currency was roughly neutral to SI sales. Segment sales grew double digits in Japan and Asia, but declined double digits in Eu-rope and the Americas. SI operating profit slumped 31.9% to ¥836 million ($6.9 million).
Full-year 2015 HORIBA P&E sales advanced 1.8% to ¥16,754 million ($138.4 million = ¥121.04= $1) to account for 10% of total sales. Sales were led by demand for stack gas analyzers in Japan and China. However, excluding currency, P&E revenue declined roughly 2%. Japanese sales declined 0.3% to make up 50% of P&E revenue. Excluding currency, sales in other Asian markets and the Americas contracted to represent 21% and 15% of P&E revenue, respectively. European sales were roughly flat to account for 14%. P&E operating profit declined 11.6% to ¥1,773 million ($14.6 million).
For 2015, HORIBA SI sales grew 5.6% to ¥27,059 mil-lion ($223.6 million) to account for 16% of sales. Exclud-ing currency and acquisitions, SI sales advanced roughly 1%, led by robust instrumentation demand from academ-ic customers in China. Segment sales in Japan and Asia each grew in the low single digits organically to account for 27% and 23% of revenue. Organic sales growth in the Americas was marginal, while European sales declined to make up 26% and 24% of sales, respectively. SI oper-ating profit grew 8.4% to ¥1,307 million ($10.8 million). For 2016, SI and P&E sales are expected to grow 5% and 8% to ¥28,000 million ($245 million) and ¥18,000 million ($158 million), respectively.
12 Instrument Business Outlook February 29, 2016
The Bottom LineAmounts in millions in reported currencies.
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Market Profile: Particle Counters
Particle Counters at a Glance:
Leading Suppliers• Danaher• Rion• Lighthouse Worldwide Largest Markets• Pharmaceuticals• Semiconductors & Electronics• EnvironmentalInstrument Cost• $2,000–$30,000
Contamination by particles can pro-duce deleterious effects in a number of ways; consequently, the analysis of the particulate content of air, gases and liquids represents an important way that this hazard can be monitored. Particular matter in the air is associat-ed with health effects in humans and other dangers to the environment. Particles in manufacturing facilities or process streams can indicate unwant-ed contaminants, or signs of wear and degradation. A wide variety of particle counter systems provide information about these hazards in many differ-ent application areas. While many systems for particle characterization also analyze the size distribution of particles in a sample, the focus of this profile is on instruments that primarily provide a total count or concentration of particles.
Particles in a transparent medium, whether air or water, can block light when they pass in front of a sensor, so that light obscuration is a common method of particle counting. Other light-based instruments make use of the scattering of light off of small particles, or direct imaging of the particles. For detecting very small particles in air, condensation counters cause the particles to act as nuclei for
the condensation of droplets—these larger droplets can then be detected by other methods. Another class of instruments use the Coulter princi-ple. If the sample flows through an aperture outfitted with electrodes, the passage of particles through the aperture causes changes in resistance between the electrodes, resulting in a
signal that can be processed.Airborne particles in the atmo-
sphere are monitored both in the external environment and indoors, and help form a determination of air quality. Specific manufacturing envi-ronments may require very low levels of particular matter in the air. Under
these cleanroom conditions, air must be monitored in order to ensure prop-er air quality is maintained. Different levels of stringency exist for different categorizations of cleanroom, setting limits on the maximum concentration of particles that may be present.
Drinking water is a common ap-plication that is monitored for particle contamination, and many manufac-turing activities in pharmaceutical or food production lines can also be monitored. Semiconductor wafer manufacturing is another important application, as large particles that may form during chemical mechanical pol-ishing can damage the product. Other industrial uses involve hydraulic and lubrication fluids, which must be mon-itored for particles that may hamper performance or damage the overall system. Cells can also be counted in this fashion, and there are specialized systems to count cells for clinical and research purposes.
Several Danaher firms are in-volved in particle counting, making it the leading vendor. Beckman Coulter offers systems for many different applications. Hach and Fluke offer portable systems for air quality testing. The total market for particle counters was about $160 million in 2015.
