These are not new spaces for the firm, but it will now increase its investments to align and allocate more of the business to these opportunities. Overall, Bio-Rad sees a total addressable market of $63 billion, with $23 billion from biopharma, $20 billion from translational research, $16 billion from diagnostics, and $5 billion from applied markets.īio-Rad sees the highest growth potentials in biopharma, translational research, and diagnostics, Last said. "Over time we see this mix evolving to be about equal thirds," Schwartz said. About 70 percent of its sales are counted as "recurring," which he said provides stability and predictability across the business.īio-Rad's global presence is broken into 42 percent in the Americas, 33 percent in Europe, the Middle East, and Africa, and 25 percent in Asia/Pacific. In clinical diagnostics, the firm serves hospital, reference, and transfusion labs, while in life sciences it serves academic and government labs, applied markets, and biopharma customers.įrom its two business units, Bio-Rad markets more than 8,000 products "across a variety of technologies," Schwartz said. "We're seeing a closer connection between disciplines that used to be distinct, defined segments are now more of a continuum of translational research through to its application in healthcare." Yet, the customers and markets are also evolving, Schwartz said. It serves more than 150,000 customers, but no single customer accounts for more than 2 percent of sales, he said. He noted that Bio-Rad has a diverse customer base and geographic profile. Schwartz emphasized that the firm's global direct sales model is critical to its ability to stay close to its customers, which he said is a hallmark of the firm's success. The firm also restructured its clinical selling organization in Europe, Last said, realigning it to the fact that the market there has become more consolidated.īio-Rad will now continue to implement a three-year European restructuring program announced last year that will affect 530 people and lead to a net headcount reduction of about 200 people, Last said.īy 2025, Last said the firm plans to consolidate the R&D from Europe into US and targeted European locations and cultivate Budapest, Hungary, as its hub for administration and customer service, noting that there are approximately 200 employees currently at that site.īio-Rad will also move two manufacturing plants to Singapore, which executives said is the leading edge of a broader push to take more life science and clinical diagnostics market share in the Asia/Pacific region. It also tripled its market capitalization since 2017, from $8.3 billion to $22.4 billion, which the firm attributed to improved focus, scale, and operating leverage.Ĭhief Operating Officer Andrew Last said Bio-Rad reduced its sales, general, and administrative spending and tweaked where and how it is investing in its business over this time, which involved "a lot of restructuring."įor example, it trimmed its headcount by 400 people in the past few years and moved two clinical diagnostics manufacturing facilities from France to Singapore. The final phase of the transformation, scheduled between 20, is devoted to enhanced and accelerated growth.Īs a result of these transformational strategies, Bio-Rad achieved a compound annual growth rate of 5.2 percent between 20, exceeding its expectations of 3 percent to 5 percent CAGR, Schwartz said. It began in 2015 with globalizing its operations and executing operational and performance improvements. To support this wave of innovation, Bio-Rad has spent the past four years diligently transforming its business. "We are today in the golden age of biology," Schwartz said, adding, "I think we're poised to see a continued acceleration in the biological sciences, in further application and discovery, and in healthcare." Growth will also be spurred by a pipeline of new product offerings, such as multiplex syndromic molecular diagnostic panels and new digital PCR instruments.īio-Rad has been around for more than 70 years, has nearly 8,000 employees, and currently generates approximately $3 billion in annual sales that is fairly evenly split between its Life Science and Clinical Diagnostics business units.įrom this unique perspective, Norman Schwartz, Bio-Rad's CEO, opined at Friday's event that the breathtaking scientific advances of the past few decades are just beginning. The firm is expecting a 9 percent compound annual growth rate through 2025 in its core business, driven by an increased focus on biopharma and the Asia/Pacific market. NEW YORK – In its first investor day presentation since 2017, Bio-Rad Laboratories offered both high-level and granular insights into the direction of its business. Advances in Clinical Genomics Profiling.
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