Covid testing windfall for lab groups coming to an end
After peaking earlier this year, testing volumes for Covid in Europe have fallen back to almost the level they were at in the first months of the pandemic.
Click here to see a list of the largest European lab groups by revenue and here to read our cross-national report on the sector in HBI Intelligence.
This has huge implications for the companies that capitalised on the need for vast amounts of testing during the pandemic. Three of the largest European labs groups, Synlab, Sonic and Eurofins, made close to €5bn revenue from Covid testing last year, and over €2bn in 2020. The 2022 figure will most likely be closer to the 2020 figure, as testing volumes wind down.
But it’s not just the big listed labs groups that will be affected. Many smaller companies got involved in testing. Some were set up specifically to do testing, others existed previously but were healthcare novices (events companies were among those getting in on the action).
As for what all these companies will do now, there is no one simple answer. Many will just go back to what they were doing before Covid. But those that were set up specifically to do Covid testing will have to either wind down or find a new area of healthcare to get involved in. We hear that is unlikely to be outpatient clinics, given the tight regulatory barriers in most European countries.
We would welcome your thoughts on this story. Email your views to Martin De Benito Gellner or call 0207 183 3779.
