bioMerieux is cautious about its 2006 prospects

French diagnostics producer bioMerieux says that its net profits for 2005 were 90.0 million euros ($108.8 million), up 13% on the previous year. The firm also saw its sales increase 7% to 994.0 million euros for the year.

Despite its progress in 2005, the company has predicted that an increase in the price of raw materials will impact on its profit margins during 2006, adding that it will maintain its 2005 margin of 14% in the coming year. The group has also forecast that its global sales will increase between 5% - 6% for the full year 2006. The announcement caused bioMerieux' share price to fall 6.7% to $48.04 in trading on the French Bourse, although analysts say the share price had increased 60% since the firm was first listed in 2004.