Strategy
Laying solid foundations for a robust future
Building on our mission and vision, we have refined our strategy in order to create a sound foundation for our future growth and outline a clear path towards achieving our aspiration to be a market leader in demanding fluid management and high precision delivery devices. Our strategic priorities focus on adapting our organizational setup to enhance our customer proximity and pace of innovation and to ensure clear accountability. The chart provides an overview of the individual pillars, which are described in more detail below.
Strategic Priorities To Ensure Sustainable Growth
1. Transform medmix into a high performance organization
Our first strategic priority is to create an entrepreneurial culture that empowers our employees and rewards individual and team performance at all levels of our organization. We strive to achieve a flawless customer experience. To this end, we have simplified reporting lines, defined clear accountabilities and streamlined our processes to ensure we are fast and agile and deliver the performance our customers expect. This is relevant for all aspects of our customer experience in innovation, order execution and after sales service.
An important pillar in our journey to becoming a high-performance organization is the launch of a Growth & Efficiency program aimed at aligning our cost structure with our strategic priorities. We will reduce costs and, more importantly, enhance operational efficiency, enabling us to reallocate our resources to the high-priority growth areas. We will implement over 80 initiatives over the next two years targeting operational improvements (e.g., automation of manufacturing processes, simplifying process flows and insourcing differentiating activities), FTE reduction, and other cost-saving measures such as reducing headquarter and support functions. Through this program we target cost out of CHF 30 million over the next two years, with most of the actions to be executed in 2025 and a significant portion of the savings expected to have an impact already in 2025. We will continue to invest in our production capabilities, with a focus on Atlanta in 2025, as well as in R&D, which will ensure we stay at the forefront of innovation.
2. Healthcare segment: Dental – Create the next generation of dental applicators
As we stated in our results section, our Dental business unit has resumed strong growth after destocking ended in the second half of 2024. We have strategically increased our exposure to faster-growing product categories to further reduce our exposure to the impression category, supported by a full pipeline of innovative solutions. Our focus lies on building strategic partnerships with our key OEMs to foster collaboration and further customize our products to their needs. In addition, we will advance our trade channel strategy to better capture private label opportunities and penetrate our value segments.
3. Healthcare segment: Surgery – Becoming a strategic partner for our global OEMs
In our Surgery business unit, with the build-up of our Atlanta site, we started to insource manufacturing and increased our customer proximity. This enables us to build a full portfolio of value-adding services for our customers and therefore become a strategic partner providing them with a competitive advantage.
Today, large MedTech companies are increasingly seeking to collaborate in a platform approach with their suppliers and medmix is one of the few players who can provide a comprehensive range of value-adding services. We not only have solutions for bone repair and tissue banks, but also for surgical sealants and adhesives. We are co-developing products with a market leader in the segment of topical adhesives and have a significant customer overlap in hemostats that we can leverage. This full portfolio provides relevant business opportunities with our global OEMs, which we will leverage going forward. Mid-term, we will also enhance our offering with additional value-adding services like packaging or sterilization.
4. Healthcare segment: Drug Delivery – Scale up our next generation platforms
With the market trend toward biopharmaceuticals and injectable drugs, drug delivery is one of the most attractive growth areas in Healthcare. In our Drug Delivery business unit, in addition to our existing devices in the market, we have two next generation device-platforms with PiccoJect and D-Flex that are at the beginning of their lifecycle. We have a strong pipeline of projects, for a mix of originator drugs, biosimilars and generics for a variety of indications. Our focus is on commercializing these platforms, scaling up our capacity and ensuring launch readiness orchestrated with our customers. We are well positioned to capture the growth opportunities and are already working with leading pharma companies who use our solutions for demanding applications - for example for the injection of drugs with higher viscosities or emergency devices.
5. C&I segment – Expand margins
In our Industry business unit, our Valencia facility –after a record build up phase of one year– is now delivering our full portfolio. In the next step, we are focusing on increasing efficiency and profitability through smarter flows and automating production processes. We are implementing new co-development projects with our key customers creating new growth opportunities. Our long-standing relationships and proven solutions are a sound basis for innovative solutions such as our greenLine portfolio designed to enhance our customers' competitive edge. In our Beauty business unit, our latest acquisition Qiaoyi is delivering on its acquisition plan and is accretive. We have been continuously increasing our profitability through new high margin projects showcasing our broad capabilities. Today, our Beauty business unit delivers top quartile margins compared to the industry and its relevant peers.
6. Strategic focus on Healthcare and leadership in high-growth niches
An integral part of our strategic review is the continuous evaluation of our portfolio of activities. It is our clear goal to pivot towards healthcare and increase our business stake – organically or through strategic acquisitions – in areas where we see strategic fit and high-growth/ high-margin potential.