Good afternoon. My name is Casey and I will your conference operator today. At this time, I would like to welcome everyone to the Millipore’s third quarter 2009 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator instructions) Thank you. Mr. Young, you may begin your conference.

Thank you very much, Casey. Good evening. I would like to welcome everyone to Millipore's third quarter 2009 earnings conference call. My name is Joshua Young and I am the Director of Investor Relations for Millipore. And joining me on today's call are Martin Madaus, Chairman, President and CEO; and Charlie Wagner, Chief Financial Officer. In addition to the earnings release we issued earlier today, we will be referencing a slide presentation as part of today's call. This presentation can be viewed by clicking on the webcast link on the millipore.com homepage or by accessing Millipore's Investor Relations website. A PDF copy of the slides will be posted to our website after the call. We will also be highlighting non-GAAP information. A reconciliation of our GAAP financials to our non-GAAP financial measures is included in our earnings release and posted on our website. Before we begin, I will make the usual Safe Harbor statement that during the course of this conference call, we will be making forward-looking statements regarding future events or the financial performance of the company that involve risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences include but are not limited to those discussed in today's earnings release and in our Form 10-K, as well as other subsequent SEC filings. Also note that the following information is related to current business conditions and our outlook as of today, November 5, 2009. Consistent with our prior practice, we do not intend to update our projections based on new information, future events or other reasons prior to the release of our fourth quarter financial results. Now I would like to turn the call over to Martin Madaus.

Thanks, Joshua. Good evening, everybody. Thank you for joining us on the call today. Q3 was another very strong quarter of operational performance for Millipore. Many of the same trends that began early in the year continued in the third quarter. There are parts of our business that are performing extremely well, while there are few other areas that remained somewhat soft, but overall driving very strong growth in revenues and earnings and in cash flow. The key contributors for this quarter’s great results are the following. First, our Bioprocess Division is sustaining its strong momentum and is generating very attractive growth. Just as we projected last year, the division’s performance has returned to tracking the strong fundamentals of the biotech industry and that we have seen also an additional benefit of an increase in vaccine productions. Second, we saw an improvement in our Bioscience Division performance, but segment of the bioscience market remained soft. It’s right now a difficult environment to sell laboratory instrumentation and spending from large pharmaceutical customers remains weak. The good news is that we continue to grow faster than many of our peers, but the division is still well below the levels of growth we’ve seen over the past five years. Third, we are capitalizing on the strength of our business to invest in our future growth. We continue to increase our R&D spending in the third quarter and we are improving our innovation capabilities throughout the company. Our higher growth and profitability gives us the opportunity now to invest while the general market is in a downturn. This investment will benefit our competitive position over time. Finally, our cash flow performance continued to be outstanding. We generated approximately $112 million in free cash flow in the third quarter. And in the first nine months,…

Thanks, Martin. I’ll now provide some additional details on Q3 and year-to-date results and our full year 2009 outlook. I’ll begin with a discussion of our GAAP operating results in the third quarter. Total revenues increased 4% from last year’s third quarter. Excluding a 3% unfavorable impact from changes in foreign exchange rates, organic revenue growth was 7% in the quarter. Revenues from our BioAnaLab acquisition were not material in the quarter, and Guava-related revenues are now part of our organic growth since we had Guava-related revenues in Q3 of 2008. Our gross profit margin increased 130 basis points on a year-over-year basis from an expense standpoint. SG&A costs increased 6% on a year-over-year basis, while our R&D spending was up 15%. Our GAAP operating margin increased slightly to 15.3% from 15.1% in Q3 2009, and earnings per share were $0.71 compared to $0.68 in Q3 2008. From a geographic perspective and excluding the effects of foreign currency translation, our revenue growth was 6% in both the Americas and Europe while our business in Asia grew 10%. Both of our divisions saw improved performance in Europe during the quarter, with our Bioprocess Division benefiting from higher levels of vaccine production in the region. Our growth in Asia continues to be driven by China and Singapore. We are seeing good growth from both divisions in China, while our growth in Singapore is more specific to our Bioprocess Division and expanded biotech manufacturing in the region. Asia also benefited from better performance in Japan, particularly in our Bioscience business where we had seen double-digit declines earlier in the year. On the next slide, we show our Q3 2009 non-GAAP operating results. And as always, I encourage you to review the non-GAAP reconciliation table in the press release for the detail of our…

Thank you. Casey, if you could please assemble the Q&A roster.

Yes, sir. (Operator instructions) And our first question will come from Derik DeBruin. Derik DeBruin – UBS: Hi, good afternoon.

Good afternoon.

Hi, Derik. Derik DeBruin – UBS: Hi. So, just looking at the – Charlie, looking at the gross margin for the quarter, I mean, you cited a bunch of reasons why it was down. I guess how do we look at the gross margin number for the fourth quarter, same type of mix issues (inaudible) impacting there? And I guess what do you see when you look to next year just given all the current fluctuations and just do you still expect to see gross margin expansion in 2010?

So Derik, you’re focused on sequential Q2 versus Q3? Derik DeBruin – UBS: Actually sequential Q3 and just kind of what you think about in Q4 if you’re going to expect to see the same type of mix issues in Q4.

Yes. Gross margin, obviously, it’s the mosaic of driver. So, you really have to focus on the few things to understand what happened there. Certainly mix had an impact in the quarter. And also as I mentioned, we took inventory levels down and also had some inventory write-offs associated with product rationalization. So those are some of the dynamics of the current quarter. Some of that does continue into the fourth quarter as well. I think the best way to think about it is that I’ve said I think a few times it’s very hard to look at gross margin in an individual quarter and draw too many conclusions because of the way the cost flow through the P&L – So if you at the year-to-date, the improvement of $140 basis points, good chuck of that is from currency, some of it is from operating improvements, and we would look at our ability to improve margins on a constant currency basis. That should continue into 2010 as well. Derik DeBruin – UBS: Okay. I guess let’s say, just looking at the historicals, I mean, typically Q4 tends to be sequentially down from Q3. And I just was wondering if that’s the same trend that’s going to repeat this year? That’s where I was going to go with that.

Got it. Derik DeBruin – UBS: Okay. And I guess how – what are you expecting for the top line impact on FX in Q4, and what are your first takes on looking at 2010 for the FX impact?

No point of view on 2010 yet, Derik. And Q4, I don’t have that handy. We can do that offline. Derik DeBruin – UBS: No problem. And I guess, Martin, you noted some expansion in Asia in the Bioprocess business. I guess what products are they making?

Well, it’s across the board. Our core filtration products will be required more because it’s not only the expansion of volume, it’s also the increase and quality requirements that is happening, particularly in China and then we have a very strong growth in our monoclonal production in Singapore with the large multinational organization. And our investment is around adding – technical people can support customer and we’re opening another lab in Singapore. It’s a very strong trend and it will continue. So it’s a good fundamental trend. Derik DeBruin – UBS: Great. And then just one final question, Charlie you said you had $155 million in debt in the quarter?

That’s right. Derik DeBruin – UBS: Okay. And what’s the interest rate on that?

It’s all fixed rates. It’s in the neighborhood of five basically. Derik DeBruin – UBS: Great. That’s what I thought. Thank you very much.

Our next question will come from Tycho Peterson with JPMorgan. Tycho Peterson – JPMorgan: Hey, good afternoon.

Good afternoon. Tycho Peterson – JPMorgan: Maybe just going off Derik’s question earlier about Asia, can you talk a little bit about from an infrastructure perspective how you feel? And you talked a lot about stepping up R&D investments. Can you talk a little bit about sales and where you may need to add and how we should think about that trending?

We have – the countries in Asia that are most relevant to our business are Singapore right now and China and Japan basically because our largest Asian business recovering. But in terms of investments, we are adding sales and technical people, particularly in China. We’ve done that in Singapore during the end of last year and early this year. And infrastructure are – mainly investments into more laboratory capabilities that help customers to do certain validation procedures and scale-up capabilities. So it’s a mixture of training people, adding new technical people and transferring some of our knowledge down there. Tycho Peterson – JPMorgan: Okay. That’s helpful. And in terms of some of the product launches, you talked I think in your comments about Mobius Flex, can you talk a little bit about the early demand and maybe give us some sense as to how large do you think that opportunity might be? I guess you will have five modules out by early next year?

We have four out to date, and the launch is good so far. The selling cycle in biotech is long gone, but it’s a first generation of products that will be followed up by many other versions. Our vision is to basically simplify the entire downstream production process. And this is the first series of a number of products. The feedback is very good. We see it in a number of trials that we see with these products. And as I said, we have received a number of orders already. And so we have booked some sales, which is pretty good after a few months in this industry. So that’s a key product. I should also say that our more classical products, very strong, particularly when you talk about the virus filtration products, is contributing a lot to our new product growth, our clarification products. And we have seen also some new wins in chromatography, which we have worked on for long time. So we are also getting some additional customers in chromatography. Tycho Peterson – JPMorgan: Okay. And then just one last one on drug discovery, you talked about some of the challenges with the pharma M&A. Is your sense that that is better next year or how disruptive do you think –?

Well, I sure hope it is better next year. Pharma companies are in the business of discovering drugs, and they will come back at one point. What’s difficult to call is when this will happen. So at this point, we have experienced a lot of cancellations this year. But at the same time, we are also seeing a lot of interests. So there is a lot of quoting going on, a lot of potential contracts, but that business is not yet in. So I think it’s going to be better next year, but I cannot tell when. Tycho Peterson – JPMorgan: Okay. Thank you very much.

Our next question will come from Isaac Ro with Leerink Swann. Isaac Ro – Leerink Swann: Hi, good afternoon. Thank you for taking the questions.

Sure.

Hi, Isaac. Isaac Ro – Leerink Swann: Hey, how are you? First item would be on just sort of thinking about some of the new manufacturing facilities that we’ve seen in biotech in the last few weeks and months, both the monoclonals and vaccines. I’m wondering if – when these types of events happen, if there are any sort of meaningful startup costs or initial stocking events for your types of products that benefit your business? And if so, does that create maybe a tough comp in 2010 and the back half or the middle part of the year?

This is a good question, and we are watching stocking levels like hawks based on our experience with that. We don’t see any increase in inventories at the major customers. I think that would lead us to believe this is significant and could be a challenge next year. I mentioned earlier that just the volume of vaccine production is much higher than usual, so some of that will not repeat. But at the same time, we have some template wins and we have some new molecules that are being produced. So I think overall, our mix of businesses between monoclonals, classic pharma, vaccine and plasma is very healthy. So we don’t think it would be a challenge next year. Isaac Ro – Leerink Swann: Great. And then just secondly, maybe a slightly different way to ask a similar question. You guys are obviously doing a good job controlling your working capital items. And I’m wondering – can you speak to the type of changes that you see either systemically or at least temporarily with both biotech and pharma customers on their own working capital items and to the extent that that might impact your own visibility?

There is more openness with large companies to collaborate as a strategic supplier. So, sharing information on demand. That is definitely better, and it’s happening – starting to happen on a global basis. As you know, we are a strategic supplier to all these customers, but we haven’t seen any different behavior right now. The only major shift, I would say, in the pharmaceutical and biotech industry is that the formally classical pharma companies are all basically investing through acquisitions or through R&D – their own R&D into biotech, which is a good thing. So whether it’s Eli Lilly or Merck or Pfizer, everyone is looking at biotech. And we see that in the drug pipeline and drug discovery, and that’s one reason why our drug discovery business that does exclusively biotech is growing very well. So there is a shift going on right now into biotech, which is very good for us. Isaac Ro – Leerink Swann: Great. And then last question would be just sort of putting the vaccine item that you mentioned aside for a minute and looking at the totality of the late state pipeline for biotech, how would you say you feel about – we see some good data out of various drugs of importance in recent months. Would you say that you are probably more comfortable with the total pipeline now than you were maybe six months ago?

Yes. I think there is a marked improvement. We track, as you know, all the molecules, and that’s why we are fairly comfortable and confident about the next wave of molecules, and our contribution and resulting growth from that. Isaac Ro – Leerink Swann: Great. Thank you very much.

(Operator instructions) And our next question will come from Marshall Urist with Morgan Stanley. Marshall Urist – Morgan Stanley: Hey, guys, good evening.

Good evening. Marshall Urist – Morgan Stanley: One question on SG&A levels. Obviously your business seems like going one that would have a pretty good amount of SG&A leverage year-on-year. So I’m wondering if you could just give us a sense of where the infrastructure is and how you see that playing out over the next few years. And can we look (inaudible) that piece of the income statement? Thanks.

We will – we see modest leverage from SG&A, nothing major. But we see continued modest leverage from SG&A like we’ve seen in the past. And as we alluded to earlier, we will take some of that and invest into R&D at a little bit faster rate than SG&A.

Marshall, I want to have to ask you to mute your phone after this next question if you have any other remaining questions. Okay. Operator, if you could go to the next question in the queue?

Our next question will come from Jon Groberg with Macquarie Capital. Jon Groberg – Macquarie Capital: Hi, good evening. Thanks for taking the call.

Good evening. Jon Groberg – Macquarie Capital: Martin, first from a couple of – maybe just kind of along the lines what you are saying in Asia, but I’ve heard from some players out there that some people are looking at being able to manufacture vaccines and biologics is almost a matter of national defense. And so you’re going to see some of these countries like – particularly the big ones, if you think about the BRICK countries, but a lot of other countries actually, build out so they have the capabilities. Is that something you are seeing at all or hearing?

Yes, that’s correct. In fact, when you look at a very large country like China, their population versus their vaccine manufacturing capability is way, way undersized. And as we see more – more focus now in these countries and also more money going into health care, developing vaccines is always a matter of public health and a priority. So I would very much expect as the technology becomes more available and skills are being built that these countries will absolutely invest into vaccines. I don’t think they want to buy them from Western companies all the time. Jon Groberg – Macquarie Capital: Would you have any – is this something you think as imminent? Is this five years out or –?

That – it takes a few years to build vaccine capabilities. That’s for sure. And it will be helped also by multinationals who are making investments at the same time. But I think it’s vaccine, but it’s also I think for us, in one-year term, is the pharma. The injectable pharmaceuticals are very strong in China. So from a business standpoint, that’s what we are focusing on near-term and then it will be followed by probably vaccine. Jon Groberg – Macquarie Capital: Okay. And then just another kind of broader question on Bioprocess. If you look at kind of the first nine months and you kind of average over 2008 and 2009, we obviously went through some of the inventory issues in 2008, but it’s about 2% growth. It goes back a little bit to the inventory question. But would you expect as you move out into 2010, ’11, to be able to continue at this 9% growth or do you think that this becomes more kind of maybe a mid-single digit growth business, as you look at the next year trends?

That’s a good question. And of course, I would hate to have it in 2008, because we see it more as a – a very low – I mean, definitely below average year. And there were some special items going on there. 9% is probably too high, but I think you’re right about the mid-single digit is on a business of about $900 million would be a very good rate for us. Jon Groberg – Macquarie Capital: Okay. And then last question, Charlie, can you just describe – I know on the Guava, because you were selling in the second half of last year, you now are including in your organic growth. But how is it accounted for in 2008? Did you account the whole sale, just the distributor margin, or can you maybe just describe how that works and just so we can understand kind of a year-over-year basis?

Sure, yes. We started selling it in Q3 of 2008, although I think there were almost no revenues in Q3. They were very modest. So it really only affected Q4. And it was the full revenue on the system sale from what we had in the partnership at that point, which was the ability to sell into academic accounts. When we completed the acquisition, we gained obviously the ability to sell into all accounts. And so the way we looked at it this year was rather than trying to track the revenue, go back to the customer level and segment out which came from academic and which came from pharma and other accounts to do the organic/inorganic calculation that way. We just simply took all the first half revenue this year and excluded it from the organic growth rate, and we will take all the second half revenue this year and include it in the organic revenue growth rate. It’s really unique to this transaction. We wouldn’t normally do that, but it’s because of the partnership set up from last year.

Our next question will come from Dan Leonard with First Analysis. Dan Leonard – First Analysis: Thank you. You mentioned that you are making a lot of investments in the back half of the year. I’m curious in your investments in the Bioscience business, are you investing more in products that would be used in an academic environment as opposed to pharma? Or is there no discernible customer mix?

The investments are in both divisions, I would say. And in the Bioscience Division, say, you’re correct. It’s a higher investment of products going into products that will be used predominantly by researchers in academic settings. It could also be used in pharma, but we have a big focus on that. I think we are also investing into our lab water new product offering, which go into a variety of settings, including research but not exclusively. It goes very broad. And then on the Bioprocess side, all the products that we’re developing, I mean, predominantly go into biopharmaceutical right now. And that’s also a major push. Dan Leonard – First Analysis: Okay. I guess what I was trying to get at is your investment to bioscience. Is there any – maybe more of a preference to be in academic and in pharma, or is that just what you see, maybe the biggest opportunity for your skill set?

For more the latter, more the biggest opportunity and skill set. But we have invested into drug discovery for biotech this quarter by making this bolt-on acquisition. So we do believe that pharma will come back and will be a good market over time. Dan Leonard – First Analysis: Okay. And then a question for Charlie on the working capital. Charlie, the improvement in the quarter really seems to be – the biggest driver seems to be coming from the large increase in accruals. Is that something I should assume reverses in the next question?

Yes, that’s definitely a part of the story. Q3 was very strong overall driven by profits and improvements and receivables and inventory. But there were also some timing differences, things like pension payments and tax payments and so on that were very positive in the third quarter. They reversed in the fourth quarter, absolutely. Dan Leonard – First Analysis: Yes. And then finally for BioAnaLab, should we expect meaningful sales from that going forward or now?

Yes, absolutely. I mean, we didn’t have it for much of the quarter, and we are going through the integration process right now. It will be meaningful in 2010. Dan Leonard – First Analysis: What’s the annual run rate?

We’re not breaking that out right now. Dan Leonard – First Analysis: Okay. Thank you.

(Operator instructions) And our next question will come from Peter Lawson with Thomas Weisel Partners. Eric – Thomas Weisel Partners: It’s actually Eric [ph] filling in for Peter. I was wondering if you could maybe talk about that R&D, increasing investments and how you see it going forward. Is it still ramping up or is it hitting a steady growth rate or a plateau level?

It depends a bit on the projects that we need to fund. So we can – as I mentioned, we can increase R&D expenditures because we have the capability today financially. I would say, more importantly, we have really great projects that we would call breakthrough innovation projects that we can invest into. And I will always try to find a way to fund these projects if at all possible because I really believe that drives our business. So I don’t want to say that R&D will grow at 15%. That’s obviously a very high rate. It’s 9% year-to-date. But we have – let’s say, when you benchmark us against other companies, we have still some room to grow our R&D versus sales ratio. So it’s more driven by the opportunities we see than just a strict financial ratio. Having said that, it’s all within the means of what we will deliver in terms of earnings growth and cash flow. Eric – Thomas Weisel Partners: Okay. And then on your diagnostics business, can you maybe talk a little bit about the strategy you have for that overall? I mean, is that something that you want to expand as you go or is it just something that’s a nice business to have and you’re kind of happy with where it is?

Yes, it’s more the latter. It’s a nice business we have. We have good success with that product line, but it’s not part of our overall strategic thrust at this time. Eric – Thomas Weisel Partners: Okay. And then just lastly, regarding the Asian build-out that you are kind of involved with, is that helping lab water in any way? I know you said that the instrumentation for lab water is kind of down in, say, the US and Europe maybe. But, is the Asian build-out kind of helping that growth out a little?

Yes, it does. It has always been a very strong part of the lab water business. Today it’s already – Asia is (inaudible) much bigger than for the other business. And it’s just a much better market growth and that growth is driven by lab expansions that are happening in those countries and we benefit from that. So we remain very important for lab water, and we are very active in that market. So particularly, China is a very big market for our lab water business. Eric – Thomas Weisel Partners: Great, thanks.

Ladies and gentlemen, that’s all the time we have allotted for today’s call. I will now turn the call back over to Mr. Martin Madaus for closing remarks.

So, thank you for joining us this evening. I’m pleased that once again we are able to report very positive news to our investors. We will be attending two investor conferences during the fourth quarter. Hope that you will have a chance to interact with many of us at those venues. We are presenting at the CSFB Healthcare Conference in Phoenix, Arizona, that is on November 11th, and at the Deutsche Conference in Boston on December 10th. If you’re interested in meeting with us, please contact Joshua Young. Thank you. Good night. Thank you for your attention. Have a good evening.

Ladies and gentlemen, this does conclude today’s conference call. Thank you for your participation. You may now disconnect.