Addtech Life Science markets and sells instruments and consumable supplies to laboratories in health care and research, diagnostics equipment for health care and process and analysis equipment for industry. During 2010/2011 net revenues in the business area amounted to MSEK 884, which is equivalent to 20 percent of Addtech’s revenues.
Business
Addtech Life Sciences markets and sells instruments and con-sumables to laboratories in healthcare and research, diagnostics equipment for the healthcare sector, and process and analysis equipment for industry. The business area focuses on products from globally successful suppliers; its companies’ main market comprises the Nordic countries. Products include blood-gas equipment for the healthcare sector, chromatography instru-ments for research, and chemical analysis equipment for the process industry.
Companies in this business area create value added for their customers by providing knowledge-intensive services such as technology and application knowledge, consulting, training, support and maintenance. Calibration is also offered in process engineering. Its employees’ extensive technology and application expertise make it possible to optimise customers’ solutions for maximum user benefit.
Customers and market
Addtech Life Science sells its products and services to end users in the Nordic countries. Customers mainly operate in healthcare and research, as well as in the energy, chemicals, food and pharmaceutical industries.
The Addtech companies enjoy strong market positions in their respective areas of operation and, thanks to the ever increasing knowledge and technology content of their products, they are key partners for customers and suppliers. These developments also create a growing need for aftermarket services, which is profitable to Addtech.
Customers represent globally competitive Nordic companies and organisations in industry and research. The market for diagnostic equipment in healthcare is stable over time, and is mainly affected by the general economy.
Examples of customers
AstraZeneca, Karolinska Institutet, Novo Nordisk, Sahlgrenska University Hospital and DONG Energy.
Examples of competitors
Roche, VWR International and Endress+Hauser
Development
The growth and good results in this business area during the year were chiefly generated by ongoing strong demand for diagnostic equipment and consumables from Nordic healthcare customers. The trend is attributable to the business area’s long-term and strategic work on establishing an installed base of diagnostic instruments. This has resulted in a market-leading niche position and steadily growing demand for consumables, service and technical user guidance.
Price competition remains fierce in the market segments for basic instruments and sophisticated analysis and measuring instruments for laboratories. During the year, the market was permeated by a cautious approach to investments in this area, and intensive work continued with the goal of increasing profitability in the companies. This included phasing out a large, yet unprofitable, agency company in one of the companies. During the fourth quarter the business climate for laboratory equipment stabilised somewhat. Operations based on sales of measuring and analysis instruments to industrial customers experienced a quiet market during the first six months. The business climate subsequently improved; demand rose on a broad front in all countries and had climbed back to a good level in the final quarter.