Waters Corp cuts 2023 profit forecast as biotech funding crunch persists

Nov 7 (Reuters) - Lab equipment and software maker Waters Corp on Tuesday cut its annual profit forecast for the second time in a year as demand for its products continued to weaken over a funding crunch among its biopharma clients, especially in China.

Biotechs have seen reduced drug development budgets since the start of the year over higher borrowing costs.

Funding has further been hit by a slowdown in China, crippling demand for contract research services and lab equipment.

Waters' larger peers in the medical equipment business, such as Thermo Fisher, have also seen a negative impact from a soft demand for bioprocessing tools and services.

The company expects its full-year adjusted profit per share in the range of $11.65 to $11.75, down from its prior forecast of $12.20 to $12.30 per share.

Analysts are expecting full-year adjusted profit of $12.12 per share, according to LSEG data.

Waters also revised down its annual revenue growth to be in the range of -1% to flat, from the previously expected range of 3% to 4%.

The company, however, topped its third-quarter profit estimates on lower operation expenses and strong demand in the U.S. and European markets for pharmaceutical applications.

It reported an adjusted profit per share of $2.84 for the quarter, beating estimates of $2.55 per share, according to LSEG data.

The Milford, Massachusetts-based company supplies lab equipment and technology for scientists across the world, with the majority of its revenue coming in from biopharma clients who use its tools for research and drug development.

Wyatt Technologies, the peer it acquired in a $1.4 billion deal in February this year, contributed 4% to Waters Corp's total sales. (Reporting by Khushi Mandowara in Bengaluru; Editing by Tasim Zahid)