Letter to Shareholders (cont.)
There is already a surge in drug-development activity driven by:
• Double-digit
annual growth in global pharmaceutical R&D spending;
• Drug-patent expirations in large numbers over the next three years;
• Projected growth of 20 percent in U.S. National Institutes of Health
(NIH) funding for research
in 2001; and
• Continued work on human-genome research: Identifying the more than
30,000 human-protein coding genes believed
to exist,according
to renowned scientist Charles R. Cantor, Ph.D., who is one of Fisher's
science advisors.
The intense activity in drug discovery presents us with significant opportunities to grow our business. To meet the strong demand for laboratory systems and supplies that serve this market, we have added new, technologically advanced products to our portfolio.
Closely linked to the growth driving the life sciences are increased opportunities to serve other sectors of the healthcare industry. The aging U.S. population and an increase in the development of more advanced genome-based testing for the early detection of disease will accelerate spending by clinical laboratories served by Fisher HealthCare.
Strategic acquisitions Since 1991, we have acquired and successfully integrated 27 businesses. Through these acquisitions we have expanded the markets we serve and extended the breadth of our product and service offerings. In 2000, we continued to execute our strategic acquisition strategy with the purchase of Bayer Corporation's diagnostics- manufacturing facility in Middletown, Virginia. This acquisition enhances our line of self-manufactured diagnostics for clinical laboratories and our capabilities in supplying biopharmaceutical customers. It adds to the company's existing expertise in contract formulation and packaging of pharmaceutical, diagnostic and biotech products; custom synthesis for drug discovery; and manufacturing and sourcing of fine, organic and synthetic chemicals. Fisher currently supplies diagnostic reagents for use in hematology, immunology, clinical chemistry and other areas of medical testing and diagnosis in hospitals and laboratories around the world.
