[Video Profile] Interview with E. Kevin Hrusovsky, President & CEO of Caliper Life Sciences

Caliper Life Sciences combines microfluidics, liquid handling and laboratory automation to deliver research tools for drug discovery and development, and genomics and proteomics laboratories. The company uses direct, indirect distribution, and partnership channels to increase penetration of its products and technologies. Caliper’s partnership distribution channel is core to Caliper’s business strategy and complimentary to its direct sales and distribution network activities.

Using their partnership channel, Caliper has participated in the launch of many products, including lab systems with Agilent, Bio-Rad and Affymetrix. Recently, Affymetrix and Predicant Biosciences have licensed a portion of Caliper’s microfluidics patent estate for use in proteomics and GeneChip analysis.

Caliper’s in house products include the LabChip 3000 Drug Discovery system, used by 75% of the largest 15 pharmaceutical companies as a tool in their screening effort. The number one application of the system is kinase profiling. LabChip assays are separations-based, so the quality of results exceeds what is achievable in homogenous, well-based assays. Few false positives, few false negatives and analytical quality reproducibility are the reasons cited for using the LabChip 3000.

Caliper also manufactures and markets high volume liquid handling workstations, more compact assay workstations, and an Automated Electrophoresis system. In 2006 the company introduced the IVIS Spectrum System which provides optical imaging of deep tissues. The system can be used to analyze laboratory animals. Caliper gained access to the technology in their acquisition of Xenogen in August 2006.

In 2005, Caliper acquired NovaScreen Biosciences. NovaScreen offers drug discovery and development services to improve productivity while reducing costs and accelerating the pace of pharmaceutical research and development. NovaScreen offers over 650 in vitro screening assays and assay development services to major pharmaceutical, biotechnology and educational institutions worldwide. In addition, NovaScreen works with government agencies such as the National Institutes of Health (NIH) and the National Institute of Allergy and Infectious Diseases (NIAID) and National Institute on Drug Abuse NIDA).

Caliper has met or exceeded financial guidance for 13 consecutive quarters. 25% of their 2007 revenues are coming from new products with long term growth prospects on the order of 10-12% per year. They expect revenue growth of approximately 8-12% over the next few years. Caliper is cash flow positive from operations, excluding restructuring payments.