CAB (Biogroup)

Overview Key strengths Key risks Established position in the French laboratory testing market, which enjoys resilient underlying demand. Structural pricing pressure as demonstrated by the two recent and material tariffs cuts. Leading player in the French diagnostics market with a recognized position in routine testing. Highly leveraged financial profile with high leverage above 7.0x. Good geographical footprint across France following an ambitious and successful external growth strategy, which has provided Biogroup with a 20% leading market share. Limited potential for growth barring resumption of acquisitions, which could weigh on the financial profile. Well-established track record of strong operating efficiency. In the first nine months of 2024, CAB registered revenue of about €1.15 billion, translating into a decrease of 3.6% compared

...CAB (Biogroup) reported soft operating performance as of September 2024, underpinned by several tariff cuts on the routine business across geographies, but offset by cost-saving initiatives. In the first nine months of 2024, CAB registered revenue of about 1.15 billion, translating into a decrease of 3.6% compared with the same period last year. Lower revenue generation is mostly attributable to both sales erosion, after a strong demand for PCR testing during the pandemic, and the impact of tariff cuts on routine testing in both France and Belgium at the beginning of the year, despite growing volumes in the routine segment across the board....

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