BIOMÉRIEUX

Analysis of Biomerieux share price

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To be able to analyse Biomerieux stock online effectively requires a certain amount of basic knowledge about this stock and its issuing company. Therefore, we have gathered here for you all the data you need to know such as a technical analysis and a historical fundamental analysis of this company and its share, but also information about the precise activities of this French group, its competition and its allies. This will allow you to carry out your own analysis with full knowledge of the facts and with the right information.

Elements that can influence the price of this asset:

Analysis N°1

The level of the European economy and the end of the current crisis will have an undeniable influence on the Biomerieux share price by directly influencing its status as a defensive stock.

Analysis N°2

The operations aimed at enabling Biomerieux to establish itself in emerging countries such as China and India with the development of production sites and with the aim of reducing operating costs should also be carefully analyzed.

Analysis N°3

The various tests conducted on the products developed and perfected by the group will also have to be closely monitored, as will the marketing of new products on the American or European markets.

Analysis N°4

The Biomerieux group also often makes substantial investments in certain companies or in production, logistics or traceability, which can influence its share price.

Analysis N°5

Finally, we will keep an eye on the strategic plans and objectives on which the group regularly communicates by comparing them with the actual results.

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General presentation of Biomérieux

The French group Biomerieux is a specialist in medical diagnostic systems. More precisely, it designs and develops systems for analysing biological samples such as blood, saliva or urine in order to diagnose diseases such as certain infectious diseases, STDs, cancers or other cardiovascular problems. Of course, its turnover is divided between different activities such as :

  • The design and development of clinical applications in the industrial sector with devices for the biological control of samples of finished products or during production and the environment. It offers these systems to the food, pharmaceutical and cosmetic industries. This part generates more than 80% of the company's turnover.
  • This is followed by industrial applications in general, which account for 18.5% of the company's total turnover.

The products marketed by Biomerieux include reagents, instruments such as platforms and automated systems, as well as analysis software and services.

Biomerieux generates most of its sales in Europe, the Middle East and Africa, but it also operates in other geographic areas such as North America, Asia-Pacific and Latin America. It has operations all over the world, in particular for the marketing of its solutions, and currently employs 9,806 people.

Analysis of Biomerieux share price
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The major competitors of Biomérieux

Let us now discover the main adversaries of the Biomerieux group in its sector of activity with a presentation of some of its competitors most likely to take market share and their activities:

Abbott Laboratories 

First of all, the Abbott Laboratories group is an American pharmaceutical company that has existed since 1888 and is based in Chicago. It is one of the leaders in its sector and therefore one of Biomerieux's main competitors. The group employs nearly 90,000 people.

Becton Dickinson and Company 

This other American company specializes in the production and sale of medical devices and was founded in 1897. Currently based in New Jersey, it employs more than 70,000 people and operates in about 50 countries around the world. Most of the company's sales are outside the United States and to hospitals, laboratories and researchers. Beckton Dickinson was also a pioneer in the production of hypodermic needles and the sale of syringes in the United States.

Roche 

Roche Holding is a Swiss pharmaceutical company and one of the world's leading companies in its sector. It operates in two parallel divisions, pharmaceuticals and diagnostics, and specializes in individualized medicine. Roche is present in 150 countries and has about 94,000 employees.

Siemens 

Finally, the German international Siemens Group is also a competitor with its activities in the health sector in addition to the energy, industry and construction segments. It has been in existence since 1847 and is based in Munich. It is currently the largest private employer in Germany and the largest engineering company in Europe.


The major partners of Biomérieux

Biomerieux regularly creates strategic partnerships with other companies around the world.

Copan

For example, in 2015, it signed a partnership agreement with pre-analytical solutions specialist Copan to jointly distribute and develop solutions with the aim of automating and optimizing laboratory organization.

Banyan Biomarkers

In early 2017, Biomerieux also partnered with Banyan Biomarkers to develop, verify and sell blood-based biomarkers to detect traumatic brain injury worldwide.

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The factors in favour of a rise in the Biomérieux share price:

First of all, the Biomerieux group is very well positioned in its business sector and ranks seventh worldwide in the field of in vitro diagnostics and is also the international leader in clinical and industrial microbiology. It is also very well positioned in the fields of infectious diseases, cardiovascular emergencies and oncology.

The Biomerieux group is also a reassuring company for investors as it benefits from the significant global growth of its main market.

We also appreciate the ability of the Biomerieux group to protect itself against the risks associated with a single activity by organizing its activities into two different divisions.

Biomerieux is also a company with strong geographic expansion potential. It has international coverage thanks to its 42 subsidiaries. More than 45% of the group's sales are in Europe, but it also covers the North American market with 25% of sales, the Asia-Pacific market with 21% of sales, Eastern Europe with 5% of sales, including the Middle East and Africa, and finally 4% of sales in Latin America. Thanks to this distribution, it is therefore protected against geographical risks.

Biomerieux can also rely on its high level of expertise in the field of infectious disease diagnostics and its substantial investments in research and development, which represent more than 12% of sales. This enables it to position itself among the market leaders.

Shareholders and investors also appreciate the Group's solid business model, which is based on a niche strategy with regular revenues and a wide variety of products. This strategy is also working with the rise of molecular biology, which it has been taking advantage of since its acquisition of the American company Biofire.

Biomerieux is also attracting significant and rapid market share gains in emerging countries thanks to its ability to adapt its offer with specific equipment.

The factors in favour of a drop in the Biomérieux share price:

First of all, the Biomerieux group is often affected by the austerity programs of certain countries, as is the case with the American and European health care systems, which limit investments in hospitals and therefore the group's sales possibilities.

Biomerieux must also face significant costs, particularly with respect to industrial and logistical expenses or the establishment of new platforms. All of these heavy investments naturally have a negative impact on the company's overall operating profitability.

Biomerieux's BioTheranostics division also worries analysts because of its recent repeated losses, which could hurt it in the longer term.

Biomerieux is also facing new competition in the European market with the companies eSensor and GenMark, which are currently gaining significant market share.

The emerging markets of China and Latin America, in which Biomerieux has succeeded in positioning itself, have the disadvantage of a significant lack of visibility that prevents any projection of results.

The recent rise in the value of the US dollar, which significantly increases production costs in the United States, can also be counted as a weak point.

The last disadvantage of this stock is its high price, which is currently at a 13-year high.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are Biomerieux's lobbying activities?

The Biomerieux Group has been registered since 2016 in the transparency register of interest representatives with the European Commission. It declared for the same year and for this activity annual expenses between 100,000 and 200,000 euros. In France and for the second half of 2017 Biomérieux declared to the High Authority for the transparency of public life to carry out lobbying activities for an amount of less than 400,000 euros.

Who is the majority shareholder of Biomerieux today?

Currently, the Merieux Alliance group is the majority shareholder of the BioMerieux group with 58.9% of the capital. Then comes the Dassault family with 5.10% of the capital, Jupiter Asset Management with 4.62% of the shares, Sofina with 2.12% of the capital, Oddo Bhf Aset management with 1.68%, Capital Research & Management with 1.33% of the shares, Norges bank Investment management with 1.29%, The Vanguard Group with 0.95%, BlackRock Fund Advisors with 0.62% and finally Candtriam Belgium with 0.61%.

What is Biomerieux's international presence?

Although Biomerieux is a French company that was founded in 1963 near Lyon, its activities are mainly international. Indeed, the group is now present in more than 160 different countries and has 44 sites around the world. With a turnover of 2.7 billion euros for the financial year 2019, the group reports that it generates more than 90% of its revenues abroad.

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