Edison Extends its Diagnostic Industry Coverage with In-depth Research on Leading Diagnostic Instrument Supplier Stratec Biomedical
LONDON, May 30, 2013 /PRNewswire/ –
Edison Investment Research, a leading international investment research firm,
announces the initiation of coverage of Stratec, a German company that designs and
manufactures sophisticated automated instruments and software, for global companies like
DiaSorin, Abbott and Siemens.
Edison has just published a comprehensive report examining the investment merits of
Stratec. The company, based in the Black Forrest, is rooted in long-term relationships
(68.6% of 2012 revenues were from four global customers), enabling it to grow its profits
over 10-15-year product life cycles. It has an installed base of c 12,000 systems
generating service part revenues. Total sales have grown at an average of 20% per year
since the 1998 IPO. Stratec is seeking a further new contact in 2013, which, will require
significant extra capacity if signed. Stratec aims to develop its share of clinical
molecular diagnostics as this developing market segment expands.
In the report, Swabian Strategy, analyst Dr John Savin, argues that Stratec’s
innovation and deep understanding of its clients’ needs and diagnostic chemistries has
powered its success. Development staff are about half of personnel costs. The new,
expanding, molecular diagnostics market needs reliable, automated systems like the
Hologics Panther, approved in 2012 by the FDA and designed and built by Stratec. New
technologies like Quanterix’s SiMoA digital diagnostics, built by Stratec and partnered
with bioMerieux, will start research sales in 2013 and could reshape key sectors of the
industry from 2014.
If there are no further deals in 2013, Edison values Stratec on a 2014 prospective
multiple of 25x, indicating EUR39.79/share including dividends of EUR0.5 per year. If a
further deal is signed as expected, the multiple might rise to 35x indicating
EUR55.25/share at a 12.5% discount rate.
For the full report see:
The launch of coverage on Stratec Biomedical is part of a programme of research
initiations on healthcare companies exposed to global market opportunities. Edison
provides detailed research coverage on more than 180 healthcare companies in Europe, North
America and Australia. Its healthcare team has a range of coverage across small-, mid- and
large-cap companies active in pharmaceutical and healthcare subsectors, allowing a
complete understanding of the entire industry. All reports published by Edison are
available to download free of charge from its website http://www.edisongroup.com.
About Edison Investment Research
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Stratec was founded in 1979 as a typical “Mittelstand” engineering business. It built
its first medical systems in 1987. Stratec is professionally managed by a stable senior
team. Its headquarters and main development centre is in the Black Forest near Karlsruhe
in Germany. The ethos is of a solid, conservative business pursuing a differentiated focus
strategy. Three cautious acquisitions have been made in software, molecular diagnostics
and optics. A Swiss manufacturing subsidiary has been developed. Stratec listed on the
Deutsche Borse in 1998. The founding Leistner family retains 42%. Stratec has EUR66m of
revenue reserves with EUR28m of equity.
For more information on Stratec please contact: Dr John Savin Edison Investment Research +44-(0)20-3077-5735 firstname.lastname@example.org
SOURCE Edison Investment Research