Business environment
Liquid handling product market outlook
The total global market potential for pipettors and disposable pipettor tips is about EUR 600 million per annum. North America and Europe are the major market areas.
The company estimates that the total market has increased by an annual average of about five per cent over the last few years. Although growth has slowed in western countries, total pipettor market growth is faster than average in emerging markets. Pipettor tip consumption is increasing by a good five per cent a year.
Operating in the liquid handling market are both larger global manufacturers and marketers as well as numerous smaller players. Increased supply and cheap production have heated up price competition in all of Biohit’s main market areas. Strict quality standards and authorisation procedures have made market entry difficult for cheap pipettors manufactured in Asia. The importance of quality is being underlined, which is why Biohit has made substantial investments in quality at all its production facilities and in all of its operations. This has enabled the company to grow its market share despite heightened competition. The significance of Asia and North America will also increase in Biohit’s operations. The company is still the global market leader in electronic pipettors and OEM liquid handling products.
As the level of precision and safety required in liquid handling rises and quality assurance regulations become stricter, equipment performance and measurement traceability have become a challenge for many laboratories. Pipettor accuracy and safety must be ensured with comprehensive calibration and performance testing. Several laboratories have already outsourced these operations and this trend is continuing.
The diagnostics market
The success of new products in the diagnostics business depends on many different factors.
Approvals from the relevant authorities are required for market entry in many countries. Biohit’s diagnostic tests have already been granted authorisation in the EU and Russia. The approval process is currently ongoing in the United States. In the United States, examinations for clinical use must receive authorisation from the FDA. In addition to SFDA authorisation in China, local authorities must also grant separate price approvals before sales of diagnostics tests can begin. The user base – physicians, laboratories and other healthcare professionals – usually follows recommendations made by the scientific community and opinion leaders.
GastroPanel and GastroView are new and unique. There are no comparable competing product on the market. Their customers include hospitals, service laboratories and private practices. These affordable and reliable examinations also have excellent potential for introduction into State-funded routine tests and screenings.
Operating in the diagnostics market are both large global companies and more specialised companies, such as Biohit. Proactive sales and marketing efforts, as well as strong partners specialising in diagnostics, are required if Biohit is to realise the substantial market potential of its diagnostics products.
