Eurofins cites pharma demand as 2015 driver and predicts more of the same in 2016
The Euronext-listed contractor reported revenue of €1.95bn ($2.1bn) for 2015, which is an increase of 38.3% on the previous year. EBITDA rose 38.5% to €360.8m, with the firm's margin stable at 18.5%.
Eurofins does not break down how each of its businesses performed, however it did say that its pharmaceutical testing division “achieved organic growth above the Group’s 5% objective during the year.”
The firm attributed this performance to increased demand for drug testing and the stabilization of its central labs business following its relocation to Lancaster, Pennsylvania, which it said had offset costs associated with the ongoing reorganisation of its discovery unit.
Eurofins has been rejigging its drug discovery services business since it bought Panlabs and Cerep in 2012 and 2013, respectively. The firm predicted that the reorganisation process will be “completed at the end of 2016.”
Outlook 2016
The firm expects to generate revenues in excess of €2.5bn and adjusted EBITDA of €460m in 2016.
CEO Gilles Martin cited positive trends in all the markets in which Eurofins operates – including pharma – as a driver.
“Given the positive trends in the markets where we operate, Eurofins’ leaders believe that organic growth in 2016 could once again be higher than 5% in spite of the lower growth profile of certain new clinical assets.”
Eurofins bought drug quality control testing firm Sinensis Life Science BV in January, also citing drug industry demand as a driver.
The Sinensis group consists of several separate branded services firms, namely: Microsafe Laboratories; Bactimm; ProBase Pharma; Farmalyse; Proxy Laboratories; Prolepha Lab; and Spinnovation Analytical BV.
Diagnostics
Eurofins also said its move into clinical diagnostics – which began with the acquisition of ViraCor IBT in 2014 and continued with other takeover last year – will be an import growth driver.
“These strategic acquisitions firmly establish Eurofins’ footprint in this fast-growing niche testing area to leverage its expertise in genomics, and more broadly in pharmaceutical testing.”
In June last year Eurofins announced it would pay $40m for a 75% stake in Emory Genetics Laboratory (EGL) – a specialist provider of genetic testing service – in a deal with current owner Emory University's School of Medicine.
A week earlier the firm bought French testing services firm Biomnis from Bio Alfras SAS for €220m and two weeks after it announced a €150m investment in lab group BioAccess.
A month before that Eurofins acquired US-based testing services specialist Diatherix Laboratories.
