(Reuters) -Lab equipment maker Waters Corp ( WAT ) raised its annual profit forecast on Tuesday, after beating third-quarter profit estimates on improved demand from biotech clients for its tools used in drug development and research. 

The Milford, Massachusetts-based company expects annual adjusted profit per share in the range of $13.05 to $13.15, up from its prior forecast of $12.95 to $13.05. 

Larger peer Thermo Fisher also raised its annual profit and revenue forecast last month, as the medical equipment maker expects robust demand for lab tools and benefits from its recent acquisitions to offset a decline in China.

Waters supplies lab equipment and technology across the world, with the majority of its revenue coming from biopharma clients who use its tools for research and drug development.

The company in July entered a deal to buy a bioscience and diagnostics unit spun off from medtech provider Becton Dickinson ( BDX ), expanding its scale in clinical and diagnostic applications.

Waters has narrowed its forecast for full-year constant currency sales growth to a range of 6.7% to 7.3%, compared with its previous range of 5.5% to 7.5%.

It reported third-quarter adjusted profit of $3.4 per share, compared with analysts' average estimate of $3.2 per share, according to data compiled by LSEG.

The company previously projected quarterly adjusted profit per share of $3.15 to $3.25.

Its revenue rose 8% to $800 million during the quarter, compared with estimates of $781 million.

Waters also forecasts a fourth-quarter adjusted profit per share in the range of $4.45 to $4.55. Analysts on average expect it to be $4.59 per share.