“BD Biosciences is a $1 billion business, and we expect a balanced portfolio of technologies will keep our revenues growing at a compound annual growth rate of 15 percent through the next decade. We created BD Biosciences by bringing together three traditional BD strengths: microbiology, immunocytometry and labware. Together with our newer initiatives in molecular biology, the business is positioned to create unique value by enabling faster research and quicker time to detection and, thus, make a major impact on therapeutic decisions.

“In our market-driven approach, we have aligned our product/technology capabilities-microbiology, cellular analysis and molecular biology-with the most attractive growth opportunities in four customer segments: the clinical market, life sciences research, the industrial/ environmental market and labware/cell management.

“In microbiology, we are now launching the BDProbeTec ET system in the United States, after a successful introduction in Europe. Utilizing our proprietary Strand Displacement Amplification (SDA) technology, the BDProbeTec ET system offers more rapid time to result, simpler workflow and higher throughput. The BD Phoenix system, shown on page 10, is our new instrument for speeding drug susceptibility testing.

“In the area of cellular analysis, BD Biosciences is growing rapidly. We have the leadership position with our BD FACSCalibur automated flow cytometry systems for research laboratories studying cell function and for clinical laboratories’ use in immunology, hematology and cell biology. We are expanding this line with the introduction of the BD LSR, our first six-color, ultraviolet research bench-top flow cytometer product. This easy to use, flexible system enables researchers performing cellular analysis to look at additional parameters simultaneously.

“Our acquisition of PharMingen in 1997 and Transduction Laboratories this year significantly broadens our cellular analysis product line. PharMingen develops reagents for the biomedical research market and Transduction Laboratories focuses on research reagents for cell biology. Between them, they are launching nearly two new products a day.

“We also acquired Clontech Laboratories, Inc., a company serving the life sciences market in the areas of gene-based drug discovery technology and molecular biology research. Clontech’s products help researchers identify genes, study how cells are regulated and search for drugs that treat disease.

“With Transduction Laboratories in cell biology, PharMingen in immunology and Clontech Laboratories in molecular analysis, we are a powerhouse research reagent company. No one else has that combination.

“This year we acquired Biometric Imaging, Inc. (BMI), giving us entry into the cell analysis market segment that depends on rapid results for clinical decisions, principally blood banks, transfusion and transplant centers.

“Another highly promising initiative is our drug discovery and development program to provide cell-based solutions to speed pharmaceutical companies’ discovery and development of new drugs. Screening thousands of compounds to find the few with the potential to become successful drugs can require substantial investment of time and money on the part of pharmaceutical companies. We’ve developed cell-based tools and services to speed up the drug discovery process.

“In industrial microbiology we also are targeting high growth opportunities within the pharmaceutical and food safety markets. In the bioproduction phase of the drug development pipeline, critical solutions are needed to confirm product sterility and to increase production yields. With new products for environmental monitoring and for cell yield enhancement, we are creating value for biotechnology and pharmaceutical companies as they look to gain greater efficiencies in getting drugs to market. The successful integration of Difco, which we acquired two years ago, has enabled us to build this leadership position in the industrial microbiology market.