Phadia

€ 1,285 million, Jan 2007

Healthcare

Allergy diagnostics

Business
Phadia is the global leader in in-vitro allergy diagnostics and the European leader in autoimmunity diagnostics. It has a global footprint, distributing directly in 21 territories and enjoying further reach through a broad international network of distributors. The company is headquartered in Uppsala, Sweden, and employs over 1,100 people worldwide. The company has been a pioneer in bringing new allergy diagnostic tests to the market since it was established in 1967 and its products, including the ImmunoCAP range, have a high reputation. Phadia’s success has been founded on strong R&D, which competitors have been unable to match. Phadia provides its highly advanced diagnostic systems to hospital and commercial laboratories. Its installed machine base generates a continuing revenue stream through the supply of allergens, autoimmunity tests and related consumables. Over 5,000 of the company’s machines are installed in more than 3,000 laboratories worldwide.

Strategy
Cinven’s strategy, developed in conjunction with the existing management team, is to further develop Phadia’s successful business model in order to take full advantage of the growth opportunities presented by an expanding market. These include widening sales of the ImmunoCAP range to countries such as the USA, where the in-vitro allergy testing market is still developing. There is also potential to further develop Phadia’s autoimmunity division, which, although a market leader in Europe, is under-represented elsewhere.

Progress
Following Cinven’s post-acquisition review, a number of measures to optimise the salesforce in the USA have been implemented, as the USA is a large and particularly under-penetrated market for in-vitro allergy testing. These measures include enhanced monitoring and targeting processes, as well as an acceleration of the salesforce roll-out in specific regions where the potential for increasing testing is highest. In the autoimmunity space, the roll-out of Phadia’s full product range into the USA and Japan has begun, leveraging on the ongoing success of this product range in Europe.