Target Information

Galenica has successfully completed the acquisition of Diagnostics Group GmbH (Labor Team Group, including labor team w ag), one of the leading diagnostic service providers in Switzerland. The transaction was finalized on September 9, 2025, following approval from the Swiss Competition Commission (WEKO), approximately two months after the announcement of the acquisition. This strategic purchase marks Galenica's entry into the diagnostic sector.

Labor Team will operate as an independent business unit under the name "Galenica Diagnostics" within the Products & Care segment. It will maintain its status as a legally independent entity and brand in the market. The newly formed board of directors for labor team w AG will combine management experience from Galenica with specialized lab expertise. Ole Wiesinger, the previous chairman of the board, will remain in this role to ensure stability. He will be joined by Thomas Szuran, Chief Products & Home Care of Galenica; Julian Fiessinger, CFO of Galenica; Christian Rebhan, CEO of Tentamus Group; and Ralph Panoff. Rahel Kubik, the previous board member, will step down, and both Labor Team and Galenica express gratitude for her contributions in recent years. The current management team of Labor Team, led by CEO Alain M. Cahen, will continue to oversee operational responsibilities.

Industry Overview in Switzerland

The Swiss healthcare sector is characterized by a strong emphasis on quality and innovation, making the country a hub for medical and diagnostic services. The national healthcare system is well-regulated and offers a range of services, including pharmaceuticals, laboratory diagnostics, and patient care. With high public spending on health and a robust private sector, the demand for diagnostics continues to grow, driven by an aging population and rising health awareness among citizens.

Switzerland is home to numerous leading healthcare and life sciences companies that contribute to significant advancements in diagnostics technology and therapeutics. This vibrant industry is complemented by strong research and development initiatives supported by both public institutions and private enterprises. As such, the Swiss diagnostic market benefits from a favorable environment that fosters innovation and high-quality services.

Additionally, the rising use of personalized medicine is reshaping the diagnostic landscape, providing substantial growth opportunities for companies capable of delivering integrated lab services. Policies promoting early diagnosis and preventive care further enhance the role of diagnostics in the healthcare continuum, making it an attractive sector for investment.

The competitive landscape is marked by established players focusing on advanced testing techniques and laboratory automation, yet there remains room for new entrants that can provide unique offerings. With an increasing focus on patient-centered care, there is an ongoing demand for comprehensive diagnostic solutions that integrate seamlessly within the healthcare ecosystem.

Rationale Behind the Deal

Galenica's acquisition of Labor Team is a strategic move aimed at diversifying its service offerings and enhancing its presence in the diagnostics market. By bringing Labor Team into its fold, Galenica can leverage its existing pharmaceutical distribution networks to offer innovative laboratory services and personalized healthcare solutions.

This acquisition is also expected to strengthen Galenica's healthcare network, allowing it to provide a more comprehensive range of products and services to healthcare practitioners and patients alike. Long-term, Galenica aims to develop a unique offering of selected diagnostic lab services in pharmacies, further solidifying its commitment to enhancing healthcare provision in Switzerland.

Investor Information

Galenica is a well-established Swiss healthcare company focusing on pharmaceutical distribution and healthcare products. With a strong market presence and a commitment to quality, Galenica aims to improve healthcare delivery through innovation and expansion. The company's extensive experience and resources place it in an advantageous position to integrate Labor Team effectively and capitalize on the growing demand for diagnostic services.

By investing in Labor Team, Galenica seeks to align with current industry trends and address increasing consumer needs for integrated healthcare solutions. Its strategic vision is complemented by a well-structured operational capacity, ensuring that objectives are met efficiently.

View of Dealert

The acquisition of Labor Team by Galenica appears to be a well-calculated investment that aligns with industry trends towards integrated healthcare solutions. By entering the diagnostics space, Galenica is positioning itself to benefit from a growing market characterized by technological advancement and rising health consciousness among consumers.

Moreover, Labor Team's established reputation and strong market position add significant value to Galenica's portfolio, creating synergies that can enhance overall service delivery. This acquisition not only broadens Galenica's operational capabilities but also expands its strategic reach in the healthcare market.

In a rapidly evolving healthcare landscape, possessing a comprehensive network of diagnostic services is becoming increasingly critical. Galenica's foresight in recognizing this trend underlines the potential for enhanced healthcare outcomes and patient satisfaction through improved access to diagnostics.

Overall, this deal is likely to be a promising investment for Galenica, as it opens doors to new opportunities in Switzerland's robust healthcare sector while empowering the company to fulfill its mission of delivering high-quality healthcare solutions.

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