Investors
Market
Biohit operates in a growing field of diagnostic tests and, apart from Acetium® products, is placed in the diagnostic market for the gastrointestinal tract in the overall testing market. The global diagnostic market for the gastrointestinal tract was USD 4.6 billion in 2021 and is estimated to grow by 4.6% per year (CAGR) until 2030. Gastrointestinal disorders are a growing global phenomenon with medical, ethical and economic problems, and are one of the most common causes for seeking treatment or facing problems due to the lack of treatment worldwide.
Biohit's target market is rather independent of macroeconomic cycles and is characterized by defensiveness; when a particular test reaches a strong position among users, its typically used for a long time. In this market with a relatively slow change rate, product quality and security of supply are key competitive factors.
Biohit operates globally, but a majority of net sales are generated in Europe (excl. Finland) and Asia, where China is the main market. Biohit’s products are sold through subsidiaries and a global distribution network.
Market growth drivers
The diagnostic test industry has strong structural growth drivers. The demand for Biohit’s products is supported by global megatrends, of which demographic aging and rising health care costs are key to Biohit's business.
The increasing life expectancy of the population is a global phenomenon, leading to an increase in the number of care measures linked to aging. As the population ages, the needs of global gastrointestinal tract diagnostics and health care are growing, requiring new cost-effective treatments supporting the growth of Biohit’s relevant market.
The driving force of Biohit's overall market growth is the increasing prevalence of gastric cancer and gastritis. The growing number of patients increases the cost pressure of health care, and health care capacity is not sufficient to meet the growing demand for treatment, which is expected to make point-of-care testing outside clinical laboratories more common.
In addition, the many health problems caused by smoking are the most common preventable cause of mortality in Western countries.
Geographical focus
Our main market areas are Europe, Great Britain, China, and the Middle East. About 98% of Biohit's net sales comes from exports, and the most important country is China.
Our sales are based on the use of distributors and product licensing, and our goal is to grow by expanding the distribution network of core products. We are building a committed and concentrated distributor and partner network. We aim for new distribution agreements for diagnostic products especially among distributors specialized in gastroenterology i.e., stomach diseases.
Geographical distribution of net sales 2023
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