Biotech Values

[DewDiligence]

Why PKI is growing so fast in China (from the 2Q12 CC):

http://seekingalpha.com/article/777031-perkinelmer-management-discusses-q2-2012-results-earnings-call-transcript

Jonathan P. Groberg (Macquarie Research): China seems really strong. Can you maybe give a little bit more detail? …others are seeing a slowdown there, sounds like you haven't. Can you maybe just talk about what you're seeing and what you're outlook for those businesses?

Robert Friel (CEO): We fundamentally have two businesses. One, the newborn screening, and that continues to grow. But more importantly, when we bought SYM-BIO in 2009, we also got a business that's involved in infectious disease, so hepatitis and HIV. And that continues to see very strong growth and [we] continue to come out with new products there. …we've continued to invest there and that's contributing a big portion of the growth in China.

The SYM-BIO acquisition has been one of PKI’s shrewdest decisions. Here’s an excerpt from the Sep 2009 PR announcing the acquisition (http://www.perkinelmer.com/AboutUs/PressRoom/PressReleaseDetails/ArticleId/11968 )

SYM-BIO Lifescience is a major supplier of diagnostics to hospitals in China, particularly in the area of infectious diseases, which represents a major addition to PerkinElmer's diagnostics portfolio. The acquisition doubles PerkinElmer's access to the hospitals market segment in China, offering a larger base from which to expand its prenatal and newborn screening business in the country…

As part of the acquisition, PerkinElmer gains access to substantial manufacturing plant capacity in Shanghai and the surrounding area, where the company will be able to expand local production capabilities for a number of PerkinElmer products in China, in addition to the diagnostics portfolio.

All that for $64M in cash.