STRATEGIC ACQUISITIONS OF SYNERGISTIC COMPANIES
With a market that moves as fast as life sciences, some of the best innovations sometimes reside outside the company. For this reason, we have created a world-class search system to identify emerging technologies early. We believe acquisitions are, and will continue to be, a cornerstone of our growth strategy. In 2003, we moved ahead diligently to execute this strategy. Acquisitions included Molecular Probes Inc. and Sequitur Inc, as well as the assets of PanVera LLC and Genicon Sciences Corporation. A definitive agreement to acquire BioReliance Corporation finished the busy year. Let’s briefly review these important additions to our organization.

PanVera, a provider of products and services for high-throughput drug screening, came on board last March. PanVera helps us better serve our customers’ needs in assay development. In addition to acquiring leading-edge biochemical and cellular assay capabilities, Invitrogen also obtained PanVera’s commercial portfolio of reagents, probes, and proteins. These products and capabilities complement our strong position in target identification and validation and help bridge the gap between discovery research and discovery screening.

Genicon Sciences joined Invitrogen in July. A pioneer in applying nanotechnology to life sciences, Genicon employs gold and silver nanoparticles for the detection of nucleic acids and proteins. This platform technology, called Resonance Light Scattering™, has been applied in diverse research applications, including protein microarray analysis, a core application for proteomics research. Given its ultra-sensitivity in detecting molecular activity, this technology holds many possibilities across drug discovery, development, and production.

Molecular Probes, a leader in fluorescence-based technologies for labeling biological molecules, was purchased in August for $322 million. This is a story of true synergy as combining our technologies with theirs enables entirely new research solutions. One example is the Multiplexed Proteomics™ Technology. Developed by Molecular Probes, it’s a powerful tool for studying phosphorylation patterns in proteins. Understanding protein phosphorylation is important in drug discovery because it can help unravel the mechanism of disease. Combined with our ZOOM Benchtop Proteomics System, the Multiplexed Proteomics Technology offers scientists a total protein analysis solution, including 2D electrophoresis and analysis of post-translational modifications from just a single protein or an entire proteome.

Sequitur became part of Invitrogen in November. A leader in ribonucleic acid (RNA) applications, Sequitur’s Stealth™ RNA interference (RNAi) Technology added to Invitrogen’s growing position in the nascent field of RNAi. Another synergistic union, combining Sequitur’s technology with Invitrogen’s market-leading Lipofectamine™ reagents, allows researchers to create the most stable, synthetic RNAi available and deliver it effectively into cells.

Finally, in 2003 we signed a definitive agreement to acquire BioReliance for $433 million. A leading contract service organization, BioReliance provides testing, development, and manufacturing services to biotechnology and pharmaceutical companies worldwide. The acquisition will advance Invitrogen’s presence in bioproduction and provide customers with comprehensive solutions to bring biological-based drugs to market more efficiently. We see synergy here, too. By using Invitrogen’s technologies to make testing more rapid and effective, we can develop a unique, differentiated advantage in the testing market.

Combined with our new and existing products, each acquisition fortifies the Invitrogen Operating System and helps streamline the discovery, development, and production of new drugs for our customers. At the same time, we continue to strengthen our integration process. For each acquisition, we assign an integration manager who is charged with ensuring a smooth and seamless integration of the new company. Via a global intranet, we can track our progress and quickly identify any issues for immediate course correction. With acquisitions being a key element of Invitrogen’s growth strategy, we feel strongly that an efficient integration process is key.