Marcy l'Etoile, France - January 17, 2007. bioMérieux, a global leader in the field of in vitro diagnostics, today announced its strategic plan for 2007-2012. In clinical applications, it is committed to being recognized by biologists and clinicians as a leader in key pathologies, while in industrial applications, it plans to lead sector consolidation.
Commenting on this strategy, Chairman Alain Mérieux declared: “We want to sustainably position bioMérieux as a major player in the field of in vitro diagnostics, in order to support more predictive, preemptive and personalized healthcare and to improve public health around the world.”
Clinical Applications
Previously focused on the laboratory, bioMérieux’s strategy is now shifting to pathologies and clinicians’ needs as well. The company intends to concentrate on infectious diseases – notably sepsis, hospital-acquired infections, tuberculosis, HIV and hepatitis – as well as on high medical-value tests for breast, colon and prostate cancer, and emergency cardiovascular diseases.
To execute this strategy, bioMérieux will leverage its expertise in a variety of synergistic technologies, with the following objectives:
- In bacteriology, to become the undisputed leader, with a market share of nearly 40% in 2012.
- In molecular biology, to become the leader in sepsis and hospital-acquired infections, with around 8% of the market for molecular diagnosis of infectious diseases in 2012.
- In immunoassays, to strengthen the point-of-care business and extend the high medical-value test menu.
In addition, bioMérieux intends to leverage its capabilities in these technologies, its large installed base and its independence to become a preferred partner for pharmaceutical and biotechnology companies. To support this commitment, a new theragnostics (therapeutic + diagnostics) division was set up in January 2007, based in Cambridge, Massachusetts.
Industrial Applications
In industrial applications, bioMérieux’s goal is to lead sector consolidation and hold nearly 30% of the market in 2012.
Resources
To successfully execute this strategy, bioMérieux will:
- Pursue its R&D investments to support sustained organic growth.
- Optimize the efficiency of its sales network, notably in the United States and Japan, by creating a global commercial operations department. The company will also continue to expand its network of subsidiaries.
- Set up a global business development department dedicated to forging partnerships and distribution agreements and analyzing acquisition opportunities. This unit, also based in Cambridge, Massachusetts, will be supported by teams in Marcy, Shanghai and Tokyo.
“We are confident in our ability to execute this strategy,” noted CEO Stéphane Bancel, “thanks to such critical strengths as our innovation capabilities, the quality of our sales network, our new global business development unit and the deep commitment of all our employees.”
Financial Outlook
- Sales:
- From 2007 to 2012, bioMérieux expects to achieve compound average growth of between 7% and 9% a year at constant exchange rates, led by the following factors:
- Current R&D pipeline: 5% - 6%
- Sales network optimization: ~1%
- Business development: 1% - 2%
- In 2007, the company anticipates like-for-like growth of 6%-7%, i.e., adjusted for the sale of the hemostasis product line and the phase-out of the microplate business in the United States.
- From 2007 to 2012, bioMérieux expects to achieve compound average growth of between 7% and 9% a year at constant exchange rates, led by the following factors:
- Margins:
- Gross margin should remain unchanged, as improved production costs offset price erosion and lower gross margins on distribution agreements.
- Operating margin before non-recurring items should gradually increase by 100 to 150 basis points (at constant exchange rates) from the 14.4% reported at June 30, 2006. This forecast is based on R&D expenses equal to or less than 13% of sales, an anticipated decline in received royalties and economies of scale from higher sales.