bioMérieux: Business Review for the nine months ended September 30, 2012

  bioMérieux: Business Review for the nine months ended September 30, 2012

Business Wire

MARCY L'ETOILE, France -- October 23, 2012

Regulatory News:

Sales

  *Up 7.5% at constant exchange rates
  *Of which 3.2%^* organic growth

Confirmed strong momentum in emerging markets

  *28% of consolidated sales
  *17%^* organic growth

bioMérieux (Paris:BIM), a world leader in the field of in vitro diagnostics,
today released its business review for the nine months ended September 30,
2012.

Sales ended the period at €1,133 million, versus €1,021 million in the first
nine months of 2011. This represented year-on-year increases of 11% as
reported, of 7.5% at constant exchange rates and of 3.2% at constant exchange
rates and comparable business base.

Third-quarter sales were up by 3.8% on an organic basis, at €383 million.

                                                  % Change                                            % Change
Sales          Nine        Nine                   At               Three       Three                  At
               Months      Months      % Change   constant         Months      Months      % Change   constant
by Region     Ended      Ended      As        exch.         Ended      Ended      As        exch.
               September   September   Reported   rates &          September   September   Reported   rates &
In €           30, 2012    30, 2011               comparable       30, 2012    30, 2011               comparable
millions                                          business                                            business
                                                  base                                                base
Europe^(1)    588        541        +8.7%     +0.9%            192.6      181.7      +6.0%     +2.7%
North          252         231         +9.1%      -0.4%            85.2        75.8        +12.1%     -0.6%
America
Asia-Pacific   197         157         +25.5%     +15.6%           71.0        57.6        +23.2%     +12.5%
Latin         96         92         +4.3%     +4.3%            33.8       32.2       +5.1%     +4.6%
America
TOTAL         1,133      1,021      +11.0%    +3.2%            382.6      347.3      +10.1%    +3.8%
^(1) Including the Middle East and Africa

“At the end of September 2012, bioMérieux’s sales are up 7.5% at constant
exchange rates, of which 3.2% through organic growth,” said Jean-Luc
Belingard, Chairman and Chief Executive Officer.  “Quarter after quarter, we
have been adjusting to the new global context, with growth concentrated in the
emerging markets. In these countries, we achieved robust 17% organic growth,
supported by long-standing, diversified local operations. Despite high
prior-year comparatives in the fourth quarter, our current performance and
business outlook allow us to confirm our full-year 2012 sales growth
objective.”

^* At constant exchange rates and comparable business base

SALES

In the nine months ended September 30, 2012, sales rose by 3.2% at constant
exchange rates and comparable business base. They grew by 7.5% at constant
exchange rates and after changes in the business base (primarily the
acquisitions of AES Laboratoire and ARGENE and the divestiture of Dima
Diagnostika).

Analysis of Sales
                                                          In %    
In € millions
Sales - Nine Months Ended September 30, 2011        1,021 
Currency effect                                      +35     +3.5%
Organic growth (at constant exchange rates and       +32     +3.2%
comparable business base)                                               +7.5%
Changes in business base                            +45    +4.3%
Sales - Nine Months Ended September 30, 2012        1,133  +11.0%

At constant exchange rates and comparable business base, sales for the first
nine months of 2012 may be analyzed by region as follows.

Already representing 28% of consolidated sales, emerging markets have now
become the Group’s leading growth driver. These markets are home to more than
80% of the world’s population and offer attractive prospects, buoyed by the
rapid emergence of a middle class, the extension of public and private-sector
medical coverage and the modernization of healthcare and infrastructure.
bioMérieux enjoys fundamental strengths in these markets, including a
long-standing, diversified presence, leadership positions in clinical and
industrial microbiology, the robust, flexible, user-friendly VIDAS^®
immunoassay platform and a broad range of solutions for infectious disease
diagnostics. In addition, bioMérieux is building its local development on
operations combining production facilities, R&D activities and commercial
operations. Led by these factors, organic growth in emerging markets has
reached 17% since the beginning of the year.

  *Sales in the Europe-MiddleEast-Africa region (52% of the consolidated
    total) rose slightly over the period.

  *In Turkey, Russia, Eastern Europe, the Middle East and Africa, sales
    gained further momentum in the third quarter, lifting organic growth to
    18% over the first nine months and offsetting the difficulties encountered
    in certain European countries.
  *In Western Europe (44% of consolidated sales), there was still a sharp
    contrast between the Southern and Northern countries in a weak economic
    environment.

       *In Southern Europe (Italy, Spain, Portugal and Greece), sales
         continued to decrease at the same rate (down 6%). The demand was
         dampened by government austerity measures. In addition, the Company
         took steps to limit its exposure to default by certain public-sector
         customers and, as a result, redefined its commercial strategy.
       *Sales in France declined by 5% over the period, pushed down by the
         ongoing consolidation of the country’s clinical laboratory sector.
         Gains in clinical and industrial microbiology reagents were not
         enough to offset the decrease in routine VIDAS^® tests and in
         instrument sales.
       *Sales in Northern Europe continued to trend upwards. Growth was still
         a very robust 10% in the United Kingdom, where the success of
         clinical microbiology lines was confirmed. Sales remained firm in
         Germany, the Benelux countries and Austria. On the other hand, sales
         in the Nordic countries eased back slightly after the strong growth
         reported in 2011.

  *Sales in North America (22% of the consolidated total) held steady, in an
    environment where U.S. healthcare providers are preparing for
    implementation of the healthcare reform legislation.

    In clinical applications, this environment weighed on the consumption and
    prices of reagents, whose sales have been flat since the beginning of the
    year. In response, bioMérieux is pursuing its differentiation strategy and
    launching tangible competitive solutions. Its VIDAS^® high medical value
    immunoassays portfolio was recently expanded with the FDA-approved VIDAS^®
    D-Dimer Exclusion™ II assay. Additionally, the FMLA^® modular range for
    full microbiology lab automation is particularly suited to addressing the
    various business and organizational challenges faced by laboratories,
    while helping them to drive operational efficiencies. The range has
    confirmed the vitality of its takeoff, with sales rising 27% in the
    region.

    In industrial applications, sales grew at a satisfactory pace, driven by
    reagent sales in the food industry and the successful integration of AES
    Laboratoire’s U.S. teams.
  *In the Asia-Pacific region (17% of the consolidated total), sales rose by
    nearly 16%, led in particular by China (up43%) and India (up20%).

    At the China Health Forum in August, the Minister of Health reaffirmed the
    government’s commitment to advancing healthcare reform, improving the
    health insurance system and reforming public hospitals. In particular, his
    goal is to bring the main Chinese public health standards in line with
    developed countries’ by 2020. Given their ability to effectively address
    local healthcare challenges, the clinical microbiology lines, VIDAS^®
    immunoassays and industrial applications all offer real growth potential.
    After becoming the Group’s third largest company during the first half,
    bioMérieux China continued its rapid expansion over the third quarter.

    Organic growth rose to 20% in India, where bioMérieux’s presence was
    reinforced during the summer by the acquisition of RAS, a molecular
    biology start-up. The VIDAS^® line, which accounts for nearly half of
    sales, delivered growth of 24%.

    Spurred by equipment demand from laboratories, instrument sales enjoyed
    particularly fast growth during the period and represented nearly a
    quarter of total regional sales. In the clinical field, sales of VITEK^® 2
    cards and VIDAS^® reagents were robust, while industrial applications
    pursued their strong growth, with a 20% gain.
  *Sales in Latin America (9% of the consolidated total) were up by 4.3%. In
    Brazil, sales were stable in a slowing economy, consolidating the strong
    performance delivered in 2011. In the other countries of the region,
    aggregate organic growth reached 7%.

    In clinical applications, sales were led by microbiology products and
    VIDAS^® immunoassay reagents, while microplate sales fell sharply due to
    highly intense competition. Sales of industrial applications were up 18%
    for the period.

At constant exchange rates and comparable business base, sales over the first
nine months of 2012 may be analyzed by application as follows:

Sales            Nine Months   Nine Months               % Change
                 Ended         Ended         % Change    At constant
by Application  September    September    As         exch. rates &
                 30, 2012      30, 2011      Reported    comparable business
In € millions                                            base
Clinical        903          850          +6.3%      +2.5%
Applications
Industrial      230          171          +34.3%     +6.2%
Applications
TOTAL           1,133        1,021        +11.0%     +3.2%

  *Sales of clinical applications increased by 2.5% over the period.

  *Microbiology, the Group’s core business, representing half of consolidated
    sales, advanced by4.1%. bioMérieux is the market leader in this business
    thanks to its offering, which comprises both the traditional lines (such
    as VITEK^®2 and BacT/ALERT^®) and more recent solutions (notably
    VITEK^®MS and FMLA^®). In 2013, the Company will broaden this offering
    with the launch of two new, particularly innovative systems: a new
    automated blood culture system and an incubator incorporating imaging
    technologies.

  *The VIDAS^® line was up 3.6%, reflecting the effectiveness of its
    repositioning in emerging markets and in high medical value assays, which
    together now represent nearly two-thirds of VIDAS^® reagent sales. Sales
    of routine tests continued to decrease in developed markets, due to the
    ongoing consolidation of clinical laboratories. Now entering into its
    launch phase, the new generation VIDAS^® instrument will meet the vast
    needs for equipment in emerging markets. Because it uses the same reagents
    as the current instrument, it will also meet the sustained demand for high
    medical value tests. Lastly, its enhanced automation will help to
    accelerate the upgrade of the installed base in mature markets.

  *Molecular biology sales continued to decrease (down 7%) over the period.
    In this area, bioMérieux is preparing to launch new parameters for
    infectious disease diagnosis by broadening ARGENE’s menu and working with
    Biocartis to develop a fully integrated molecular biology system.

  *Sales of industrial applications were up 6.2% for the period. Although
    demand slowed in certain European countries during the quarter, the
    Emerging 7^* confirmed their vitality, with a 36% gain over the first nine
    months. After consolidating AES Laboratoire, industrial applications
    represent 20% of the Group’s sales. With the market’s broadest product
    range and unified sales forces, they offer attractive growth potential.
  *Sales of reagents and services, which accounted for 89% of total sales,
    were up 3.5% at constant exchange rates and comparable business base.
  *11% of revenue was generated by instruments, whose sales were stable
    overall but saw very fast growth in emerging markets.

^* Brazil, China, India, Indonesia, Mexico, Russia and Turkey

THIRD-QUARTER FINANCIAL HIGHLIGHTS

  *Consolidated balance sheet

  *During the quarter, bioMérieux received €6.6 million in payments from the
    Portuguese government to settle invoices due from public hospitals. As a
    result, average days sales outstanding from public-sector customers in
    Portugal stood at 366 days at the end of September, down 89days since the
    beginning of the year.
  *Net debt ended the period at around €59million, down from €131million at
    December 31, 2011, reflecting the continuous strong generation of cash
    flow in the third quarter.

  *Human resources

    The Group had 7,182 full-time-equivalent employees as of September 30,
    2012. There were 7,014 full-time-equivalent employees as of December 31,
    2011.

THIRD-QUARTER OPERATING HIGHLIGHTS

  *Commercial offer

    bioMérieux has launched eight new products since the beginning of the
    year.

    During the third quarter, bioMérieux received FDA 510(k) clearance to
    commercialize the VIDAS^® D-Dimer Exclusion™ II assay, which, when used in
    conjunction with a clinical pretest probability (PTP) scoring, excludes
    deep vein thrombosis (DVT) and pulmonary embolism (PE) in outpatients in
    20 minutes. VIDAS^® D-Dimer Exclusion™ II is widely recognized around the
    world as the benchmark in D-Dimer testing.

    bioMérieux has a long-standing commitment to preventing and treating
    sepsis.

  *On September 13, 2012, the Company sponsored the first World Sepsis Day,
    which was initiated by the Global Sepsis Alliance with, in particular, the
    goal of reducing the global incidence of sepsis by at least 20% by 2020.
  *In early October, bioMérieux and Thermo Fisher Scientific Inc. announced
    they had renewed their partnership agreement for Procalcitonin (PCT)
    biomarker testing using Thermo Fisher’s PCT product on bioMérieux’s
    VIDAS^® and mini VIDAS^® immunoassay platforms, including the
    new-generation VIDAS^®. The PCT biomarker test is the gold standard for
    the early detection of sepsis in critically ill patients. In Europe, the
    test helps doctors make an early determination whether an infection is
    bacterial or viral and provides information on the severity of a patient’s
    condition for appropriate treatment. In the United States, the PCT test is
    marketed for use on the first day of ICU admission and, combined with
    other laboratory tests and clinical assessment, aids in risk assessment of
    critically ill patients for progression to severe sepsis and septic shock.
    Broader availability of PCT testing for diagnosing sepsis will lead to
    improved hospital management and patient care.

  *Medical Operations Department

    On October 1^st, Dr. Mark Miller joined bioMérieux in the newly created
    position of Chief Medical Officer. A member of the Management Committee,
    his role will be to enhance the medical scope of the product offering and
    R&D projects. Dr. Miller will continue to head the Division of Infectious
    Diseases at Jewish General Hospital in Montreal (Canada) and will remain
    Professor of Medicine at McGill University in Montreal.
  *ARGENE and AES Laboratoire

  *Merger of bioMérieux SA and ARGENE SA

    bioMérieux and ARGENE have prepared a project to merge ARGENE into
    bioMérieux. The proposed merger agreement was filed with the Commercial
    Courts of Foix and Lyon on September 20, 2012. The merger will be carried
    out on December 31, 2012, with retroactive effect as of January 1, 2012,
    for accounting and tax purposes.

  *Merger of bioMérieux SA and AES Laboratoire Groupe SA

    bioMérieux and AES Laboratoire Groupe, the holding company of AES, have
    prepared a project to merge AES Laboratoire Groupe into bioMérieux. The
    proposed merger agreement was filed with the Commercial Courts of
    Saint-Malo and Lyon on October 9, 2012. The merger will be carried out on
    December 31, 2012, with retroactive effect as of April 1, 2012 for
    accounting and tax purposes.

  *Production and supply chain

  *Warning Letter from the U.S. Food and Drug Administration

    On August 23, 2012, the FDA sent a Warning Letter to bioMérieux following
    its inspection of the Durham, NC plant, conducted in the first quarter.
    The letter notified seven points related to the Quality System, which the
    Company is committed to resolving quickly. The Durham plant is working at
    normal capacity and all the products made at the Durham site respect final
    acceptance release criteria.

  *Outsourcing supply chain management in the United States

    bioMérieux has initiated a project to outsource and consolidate reagent
    distribution in the United States. The new organization concerns the
    product storage and reagent order preparation and shipping activities
    currently conducted at the Durham, NC, Saint Louis, MO and Lombard, IL
    facilities. Scheduled for gradual deployment in 2013, it will help to
    enhance quality of customer service and optimize the flexibility of supply
    chain operations.

  *Deployment of the Global ERP system

    The Global ERP system continued to be successfully deployed. After coming
    on stream in Colombia in September and in Mexico in early October, it is
    now implemented in 14subsidiaries.

INVESTOR CALENDAR

January 23, 2013: 2012 sales - Before start of trading

January 23, 2013: Investor Day at Marcy l’Etoile, France

The above forward-looking statements are based, entirely or partially, on
assessments or judgments that may change or be modified, due to uncertainties
and risks related to the Company's economic, financial, regulatory and
competitive environment, notably those described in the 2011 Registration
Document. Accordingly, the Company cannot give any assurance nor make any
representation as to whether the objectives will be met. The Company does not
undertake to update or otherwise revise any forecasts or objectives presented
herein, except in compliance with the disclosure obligations applicable to
companies whose shares are listed on a stock exchange.

ABOUT BIOMÉRIEUX

Advancing Diagnostics to Improve Public Health

A world leader in the field of in vitro diagnostics for over 45 years,
bioMérieux is present in more than 150 countries through 40 subsidiaries and a
large network of distributors. In 2011, revenues reached €1,427 million with
87% of sales outside of France.

bioMérieux provides diagnostic solutions (reagents, instruments, software)
which determine the source of disease and contamination to improve patient
health and ensure consumer safety. Its products are used for diagnosing
infectious diseases and providing high medical value results for cancer
screening and monitoring and cardiovascular emergencies. They are also used
for detecting microorganisms in agri-food, pharmaceutical and cosmetic
products.

bioMérieux is listed on the NYSE Euronext Paris market (Symbol: BIM – ISIN:
FR0010096479).

Corporate website: www.biomerieux.com. Investor website:
www.biomerieux-finance.com.

APPENDIX: QUARTERLY SALES DATA

Sales by Region

In € millions
             First Quarter  Second         First Half     Third Quarter  9 Months
                               Quarter
             2012   2011   2012   2011   2012   2011   2012   2011   2012     2011
Europe^(1)     195.6  176.9  199.3  181.9  394.9  358.8  192.6  181.7  587.5    540.5
North          80.9    76.0    86.1    79.1    167.0   155.1   85.2    75.8    252.2     230.9
America
Asia-Pacific   56.4    46.6    69.6    52.7    126.0   99.3    71.0    57.6    197.0     156.9
Latin         29.9   28.1   32.6   32.1   62.5   60.2   33.8   32.2   96.3     92.4
America
TOTAL         362.8  327.6  387.6  345.8  750.4  673.4  382.6  347.3  1,133.0  1,020.7
^(1) Including the Middle East and Africa

Change in Sales by Region

In %
             First Quarter          Second Quarter         First Half             Third Quarter          9 Months
                          At                      At                      At                      At                      At
                          constant                constant                constant                constant                constant
                          exch.                   exch.                   exch.                   exch.
             As        rates &     As        rates &     As        rates &     As        rates &     As        exch.
               reported   comparable   reported   comparable   reported   comparable   reported   comparable   reported   rates &
                          business                business                business                business                comparable
                          base                    base                    base                    base                    business
                                                                                                                          base
Europe^(1)     +10.6%    +0.1%       +9.5%     -0.1%       +10.1%    0.0%        +6.0%     +2.7%       +8.7%     +0.9%
North          +6.4%      +2.3%        +8.9%      -2.8%        +7.7%      -0.4%        +12.1%     -0.6%        +9.1%      -0.4%
America
Asia-Pacific   +21.1%     +13.9%       +32.0%     +20.6%       +26.9%     +17.5%       +23.2%     +12.5%       +25.5%     +15.6%
Latin         +6.4%     +5.9%       +1.6%     +2.7%       +3.9%     +4.2%       +5.1%     +4.6%       +4.3%     +4.3%
America
TOTAL         +10.8%    +3.1%       +12.1%    +2.7%       +11.4%    +2.9%       +10.1%    +3.8%       +11.0%    +3.2%
^(1) Including the Middle East and Africa

Contact:

Investor Relations
bioMérieux
Isabelle Tongio
Tel: + 33 4 78 87 22 37
investor.relations@biomerieux.com
Media Relations
bioMérieux
Koren Wolman-Tardy
Tel: + 33 4 78 87 20 08
media@biomerieux.com
Image Sept
Laurence Heilbronn
Tel: + 33 1 53 70 74 64
lheilbronn@image7.fr
Claire Doligez
Tel: + 33 1 53 70 74 48
cdoligez@image7.fr
 
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