In vitro diagnostics market: STRATEC
The German company STRATEC referred projections that the in vitro diagnostics (IVD) market will continue to generate very healthy and sustainable growth rates.
Currently, this market has a volume of more than $100 billion.
From STRATEC’s angle, the steady aging of the population, the increasing prevalence of infectious diseases and the growing importance of personalized treatments are important and sustainable drivers of market growth.
In addition, ongoing research into innovative technologies, such as targeted biomarkers, will create new opportunities for future market growth.
The various segments of the IVD market are registering different growth rates.
In particular, STRATEC operates especially in those segments that, viewed over the long term, show above-average growth rates.
These are, for example, molecular diagnostics and highly sensitive immunodiagnostic processes.
STRATEC
The company designs and manufactures automated analytical instruments for clinical diagnostics and life science research, as well as related consumables.
These devices are used to diagnose and monitor diseases.
Among others, STRATEC’s customers are Roche, Danaher and Thermo Fisher, who market the systems, software and consumables, usually with their own reagents, to reference laboratories, blood banks and research institutes.
Industrial production of in vitro diagnostic machines is now 40% outsourced, up from 27% a decade ago.
STRATEC benefits from diagnostic companies saving time and money by moving away from in-house machine development.
In the first half of 2023, the company’s sales were €125 million, a year-on-year drop of 8.9 percent.
For 2023, Brown Capital Management Mutual Funds expects this company’s revenue growth to rebound to an 8-12% increase, but margins could remain under pressure, resulting in an expected EBIT range of 12-14% percent.
Revenue strength comes from newly launched systems, as existing systems remain weak following strong demand for them during the Covid-19 pandemic period.
