— Business review — Healthcare review
Healthcare review
Healthcare business area revenue limited due to high customer inventories in Dental
Our Healthcare business area comprises the Dental, Drug Delivery and Surgery segments, which produce and market a broad range of products such as dispensers, cartridges, mixers, tips, syringes, pen injectors for subcutaneous delivery of biologicals, and delivery devices for bone repair and tissue treatment. These devices are used in a variety of applications by our end-customers. In the Dental business, our products are used for prosthetics, restoratives, anesthetics and aesthetics. The pen injectors produced and marketed by our Drug Delivery segment are used in fertility and growth hormone treatments, and to deliver medical substances to treat diabetes, osteoporosis and rare diseases. The delivery devices produced and marketed by our Surgery segment are used by tissue banks for bone repair and bone cement in trauma surgeries, and by pharma customers in other medical substances for internal and external wound healing.
Key figures Healthcare
January 1 - June 30
|
millions of CHF |
|
2023 |
|
2022 |
|
Change in +/–% |
|
+/–% adjusted 2) |
|
+/–% organic 3) |
|
Revenue Dental |
|
53.7 |
|
71.3 |
|
–24.8 |
|
–23.9 |
|
–23.9 |
|
Revenue Drug Delivery |
|
26.9 |
|
23.8 |
|
12.8 |
|
18.0 |
|
18.0 |
|
Revenue Surgery |
|
8.6 |
|
6.7 |
|
27.7 |
|
27.7 |
|
27.7 |
|
Total revenue Healthcare 1) |
|
89.2 |
|
101.9 |
|
–12.5 |
|
–10.7 |
|
–10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business area cost of goods sold |
|
–35.1 |
|
–38.1 |
|
8.0 |
|
|
|
|
|
Business area gross profit |
|
54.1 |
|
63.8 |
|
–15.2 |
|
|
|
|
|
Business area gross profit margin |
|
60.6% |
|
62.6% |
|
|
|
|
|
|
1) Revenue from external customers.
2) Adjusted for currency effects.
3) Adjusted for acquisition and currency effects.
Revenue by market segment
H1 2023
Revenue by market segment
H1 2022
Ongoing high customer inventories within Dental
The Dental segment generated a revenue of CHF 53.7 million, an organic decrease of 23.9% year-on-year. The remarkable growth witnessed in 2021 and 2022 can be attributed to a surge in orders following the Covid pandemic, with customers concerned about supply chain bottlenecks as markets reopened, and to customers purchasing ahead of successive inflation-driven price increases. These factors combined to create abnormally high customer inventories and therefore a slowdown in new orders starting in the second half of 2022 and only now starting to reverse.
Strong Drug Delivery performance
The Drug Delivery segment achieved CHF 26.9 million in revenue, which corresponds to an organic increase of 18.0% compared with the same period last year.
We have achieved further success with our autoinjector platform PiccoJect through successful feasibility studies with customers and cooperation partners like Nipro.
In June 2023, the Drug Delivery team and DCA Design International received a Red Dot Award for PiccoJect in the product design category. This is the second design award that medmix and DCA Design International Limited have received for PiccoJect™.
We look forward to the second half of 2023 as our D-Flex injector pen prepares for its highly anticipated launch. The first D-flex devices will then reach patients, marking a significant step towards future success and growth.
Strong double-digit growth in Surgery
Revenue in our Surgery segment was CHF 8.6 million in the first half of 2023, a double-digit organic growth of 27.7% compared with the same period last year. The growth in revenue with tissue bank customers surpassed expectations, driven by the increasing acceptance of human tissue utilization in trauma surgeries. Moreover, Surgery benefited from successful co-creation projects with global orthopedic companies.