Galenica to enter the diagnostics business by acquiring Labor Team

Galenica Ltd. is acquiring Diagnostics Group GmbH (hereinafter the Labor Team Group) and will enter the diagnostics business. The planned acquisition of Switzerland’s fourth-largest medical laboratory will give Galenica access to a leading diagnostic service provider with a strong market position. This enables Galenica to continue along its path of growth and to strengthen its healthcare network and value chain with an additional strategic business area. The transaction requires the approval of the Swiss Competition Commission (COMCO).

“Labor Team is a perfect fit for our strategic focus and our goal further connecting the healthcare sector. The business activities of Labor Team and Galenica are an ideal match, and the two companies share highly compatible corporate cultures. Both companies want to drive forward healthcare innovations,” says Galenica CEO Marc Werner.

“By joining the Galenica network, we can further expand our leading position and make our broad-ranging offering even more widely available throughout Switzerland. In addition, Galenica’s corporate culture offers the best conditions for innovations in the field of diagnostics,” says Dr med. Alain M. Cahen, CEO of Labor Team.

Stronger networking and innovation in Swiss healthcare

Labor Team offers a comprehensive range of services from laboratory medicine and pathology to personalised special diagnostics. The company operates the largest central laboratory in Switzerland in Goldach, St. Gallen, which is integrated into an efficient logistics network and is complemented by several specialist laboratories throughout Switzerland. This means that samples can be delivered to the central laboratory for analysis within 30 minutes to a maximum of five hours from anywhere within Switzerland.

Within the physicians’ market, Labor Team’s main customer segment, Galenica already holds a leading position in the wholesale pharmaceuticals market with a market share of around 31%. The acquisition is an ideal strategic addition to the Galenica network. In addition to the existing offerings in the area of drugs and products for the physicians’ market, it will also be possible to offer innovative laboratory services as a single provider. Labor Team will also gain access to potential new customers.

In the long term, Galenica plans to work with Labor Team to develop an innovative range of selected diagnostic laboratory services for end users and patients within the scope of the possibilities afforded to pharmacies by the regulatory frameworks in place. This will further strengthen healthcare for patients in Switzerland.

Continuity in management

In future Labor Team is set to be managed as an independent “Galenica Diagnostics” business unit and to be reported in the “Products & Care” segment. The current management will continue to bear operational responsibility and will continue the success story of Labor Team and its more than 330 employees. The main site in Goldach and all subsidiaries will remain unchanged.

Key financial figures and planned closing

Labor Team has a market share of around 8% in Switzerland’s continuously growing market for private laboratories. In particular, Growth drivers include demographic change, higher demand for healthcare services and an increase in specialised outpatient diagnostics. Combined net sales of Labor Team Group in 2024 amounted to CHF 114 million.

The laboratory market is expected to be affected by further regulatory changes relating to tariffs in the coming years, which is likely to drive market consolidation. In acquiring Labor Team with its highly automated central laboratory and efficient logistics, Galenica considers itself well positioned to rise to these challenges.

Financing will be executed by means of bridge debt financing in the short term. The parties have agreed not to disclose the sale price. The transaction will be completed following COMCO approval, which is expected in the second half of 2025.