(AOF) – bioMérieux has announced a change in the governance of the company. As of July 1, 2023, Alexandre Mérieux becomes Executive Chairman and Pierre Boulud Chief Executive Officer. Pierre Boulud has been a member of the Management Committee for seven years, three of which as Deputy Chief Executive Officer. “With this change in governance, which separates the functions of Chairman and Chief Executive Officer, Pierre Boulud will lead bioMérieux’s Management Committee to implement the company’s strategy in all its dimensions”, explains the specialist in in vitro diagnostics. .
Alexandre Mérieux will thus focus on the essential issues of general strategy. As Executive Chairman with extended powers, he will continue to chair the Board of Directors, whose mission is notably to define and validate the group’s strategy for the proper development of bioMérieux and its employees.
In collaboration with Pierre Boulud, he will also participate in the definition of orientations in terms of Social and Environmental Responsibility and innovation as well as in the recruitment of the main senior executives.
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Key points
– Seventh worldwide in in vitro diagnostics and world number one in clinical microbiology, industrial applications and molecular syndromic diagnosis of infectious diseases, created in 1963;
– Turnover of €3.6 billion, 54% from the two Americas (including the United States, the group’s largest market), 30% from Europe-Africa-Middle East and 16% from Asia- Pacific;
– Organization in 2 divisions: clinical applications (39% in molecular biology, 32% in microbiology, 11% in immunoassays then the other ranges including Biofire Defense and Applied Maths) and industrial applications – molecular biology products and sales of equipment- for 15%;
– Business model based on a rigorous industrial organization in in vitro diagnostics, on the positioning of niches with recurring revenues (reagents), on a positive product mix -automates, high value-added tests- and on the rise of molecular biology;
– Quality of management and governance for the 59% subsidiary of Institut Mérieux, of which Alexandre Mérieux is Chairman and Chief Executive Officer of the 9-member Board of Directors;
– Healthy balance sheet with €3.5 billion in equity, €47 million in net cash.
Challenges
– 4-point strategy: strengthen leadership in clinical microbiology, consolidate the reference position in syndromic diagnosis via Biofire, differentiate itself in immunoassays (VIDAS system) and develop industrial microbiology;
– Strong innovation strategy with 12.4% of R&D generated by 14 centers (portfolio of 570 patent families):
– 5 priorities: resistance to antibiotics, strengthening of the portfolio in immunoassays and molecular biology, new Data analytics solutions in the clinical field and, in industry, automation of solutions;
– 3 levers: structuring strategic acquisitions, research partnerships (with the Campus Biotech Digital to compensate for the lack of skills in bioproduction, with the IUT of Compiègne and the Hospices de Lyon in sequencing, within the Arpege consortium and in the European project VALUE-Dx against antibiotic resistance) and, finally, open innovation;
– 2030 environmental strategy validated by the SBTi:
– 50% reduction in direct CO2 emissions vs. 2019, via a 50% reduction in the energy consumption of activities and the vehicle fleet and remote maintenance of instruments (VIALINK system,
– environmental performance of products established from their launch;
– Continued growth, accelerated by acquisitions, in antibiotic resistance, and in the molecular biology division;
– Rapid acquisition of market share in emerging countries.
Challenges
– Sensitivity of activity in health programs to the extent of winter endemics and the negative impact of exchange rates, estimated at €40 million for 2023;
– In 2023, major product launches, such as the Spotfire molecular biology platform in the United States, and integration of Specific Diagnostics;
– Strong impact of inflation in raw materials and wages;
– After a 6.3% increase in activity and a 25% decline in net profit, 2023 expectations of +4% to +6% growth in sales, affected by the slowdown in sales of respiratory panels , and current operating income between €600 and €630 million;
– Stable dividend at €0.85 per share, i.e. a payout rate of 22%.
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Loss of speed in European research
European research is losing ground to American and Chinese research. In twenty years, Europe’s share has fallen from 41% to 31% in global R&D. China’s share jumped from 1% to 8%. As for the United States, which supplanted Europe, in 2001 it devoted only 2 billion euros per year more than Europe to R&D, whereas now this gap has reached 25 billion! Some experts accuse the European authorities of not having deployed effective policies. The financing of pharmaceutical research should therefore have been better targeted via the “Horizon 2020” programme. France only comes in eighteenth position in European funding despite the quality of its research. Conversely, the United States concentrates funding on Boston and a few centers of excellence.