Aug 4 (Reuters) - Lab equipment maker Waters

raised the lower end of its annual profit forecast on Monday

after reporting better-than-expected second-quarter results on

improved demand from biotech clients for its tools used in drug

development and research.

Shares of the Milford, Massachusetts-based company were up

3.7% premarket in low trading volumes.

The company 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.

Last month, larger peer Thermo Fisher also raised

the lower end of its annual profit forecast on strong demand for

its products used in drug development.

Waters forecast annual adjusted profit per share in the

range of $12.95 to $13.05, compared with previously projected

adjusted profit between $12.75 and $13.05.

CEO Udit Batra said the forecast raise was partly driven by

"strong execution against our commercial growth initiatives,

rapid uptake of our new products, and contribution from

incremental growth vectors such as GLP-1s, PFAS and generics."

Last month, Waters 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.

Batra said the combination will also help extend the

company's reach into resilient, high-volume end markets.

Waters expects third-quarter adjusted profit per share in

the range of $3.15 to $3.25, compared with analysts' average

expectations of $3.23, according to data compiled by LSEG.

The company reported second-quarter adjusted profit per

share of $2.95, compared with analysts' estimates of $2.94.

Its second-quarter revenue rose 9% to $771.3 million,

compared with analysts' estimate of $748.7 million.