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Drug production is to expand into other European countries, as the company announced on Thursday at its Capital Markets Day in Berlin. Medios also wants to get into the production of personalized medicine. The group is thus reacting to the recent regulatory changes that are affecting the margin. The news was well received on the stock exchange.
According to management’s ideas, the desired expansion and diversification will also be reflected in the figures: In the medium term, sales should increase to more than 2 billion euros and the adjusted operating margin before interest, taxes, depreciation and amortization should be in the mid-single digits. In 2021, the company had achieved sales of 1.4 billion euros and an operating margin of 2.8 percent.
The share, which is listed on the SDAX, temporarily gained 3.44 percent to EUR 19.86 via XETRA in the morning and thus continued its recovery. Especially in the past few days, investors had regained hope after Medios had announced an acquisition. The presentation of the quarterly figures two weeks ago had brought an abrupt end to the recovery attempt at the time, which started from the low for the year reached in mid-October. Despite the recent upswing, the market value has halved since the beginning of the year.
The personalized medicine market targeted by Medios includes, for example, RNA, gene and cell therapies. Its volume this year is estimated at 13 billion euros. It is expected to more than double by 2025.
As part of the planned expansion, Medios wants to buy laboratories in other European countries in order to also produce individual therapies there. The management defines the United Kingdom, the Netherlands, Belgium and Switzerland as potential markets. According to Medios, there are attractive margins here and the regulatory environment is also playing its part.
The purchase of further laboratories in Germany is also not excluded, and the expansion of the existing locations is sought. In the home market, however, Medios’ margins have recently been under pressure due to regulation.
Above all, the profitable business of patient-specific medicine has suffered, as Jefferies analyst Alexander Thiel wrote in a study before the investor day. The background to this is the price reduction that has been enforced by regulators for certain cytostatics since September. Cytostatics inhibit cell growth or cell division and are used in the fight against cancer, among other things.
Thiel therefore viewed the takeover of the Baden-Württemberg blister center announced by Medios on Tuesday as a reaction to the regulator’s decision in order to mitigate the effects.
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