21 INTANGIBLE ASSETS AND GOODWILL
21.1 AMOUNTS RECOGNIZED IN THE FINANCIAL STATEMENTS
| Development costs | Software | Patents and other rights | Acquired brand | Acquired client relationships | Acquired technology | Goodwill | Total 2024 |
CHF 1,000 |
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At cost |
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Balance at January 1, 2024 | 137,527 | 41,905 | 1,858 | 15,665 | 233,425 | 74,490 | 709,950 | 1,214,820 |
Acquisition through business combination | – | – | – | – | 341 | – | – | 341 |
Internally developed | 13,000 | 1,698 | – | – | – | – | – | 14,698 |
Disposals | (1,905) | – | – | (792) | – | (3,905) | – | (6,602) |
Reclassification | – | 956 | – | – | – | – | – | 956 |
Translation differences | 792 | 91 | 26 | 1,186 | 17,694 | 5,295 | 51,005 | 76,089 |
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Balance at December 31, 2024 | 149,414 | 44,650 | 1,884 | 16,059 | 251,460 | 75,880 | 760,955 | 1,300,302 |
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Accumulated amortization and impairment losses |
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Balance at January 1, 2024 | 97,064 | 32,763 | 363 | 5,020 | 35,245 | 23,148 | – | 193,603 |
Annual amortization | 10,724 | 3,114 | 290 | 1,506 | 11,561 | 5,917 | – | 33,112 |
Impairment losses | 5,602 | – | – | – | – | – | – | 5,602 |
Disposals | (1,905) | – | – | (792) | - | (3,905) | – | (6,602) |
Reclassification | – | 131 | – | – | – | – | – | 131 |
Translation differences | 480 | 47 | 13 | 399 | 2,723 | 1,532 | – | 5,194 |
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Balance at December 31, 2024 | 111,965 | 36,055 | 666 | 6,133 | 49,529 | 26,692 | – | 231,040 |
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Net book value | 37,449 | 8,595 | 1,218 | 9,926 | 201,931 | 49,188 | 760,955 | 1,069,262 |
| Development costs | Software | Patents and other rights | Acquired brand | Acquired client relationships | Acquired technology | Goodwill | Total 2025 |
CHF 1,000 |
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At cost |
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Balance at January 1, 2025 | 149,414 | 44,650 | 1,884 | 16,059 | 251,460 | 75,880 | 760,955 | 1,300,302 |
Acquisition through business combination | - | - | - | - | - | 5,129 | - | 5,129 |
Additions | - | - | 141 | - | - | - | - | 141 |
Internally developed | 10,241 | 17,405 | - | - | - | - | - | 27,646 |
Disposals | - | - | - | (4,070) | (21,429) | (9,840) | - | (35,339) |
Reclassification | - | 352 | 94 | - | - | - | - | 446 |
Translation differences | (1,373) | (154) | (48) | (1,844) | (29,827) | (8,855) | (88,585) | (130,686) |
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Balance at December 31, 2025 | 158,282 | 62,253 | 2,071 | 10,145 | 200,204 | 62,314 | 672,370 | 1,167,639 |
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Accumulated amortization and impairment losses |
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Balance at January 1, 2025 | 111,965 | 36,055 | 666 | 6,133 | 49,529 | 26,692 | - | 231,040 |
Annual amortization | 10,181 | 2,695 | 336 | 1,351 | 10,856 | 5,229 | - | 30,648 |
Impairment losses | - | - | - | 1,800 | 16,822 | 1,782 | 125,000 | 145,404 |
Disposals | - | - | - | (4,070) | (21,429) | (9,840) | - | (35,339) |
Reclassification | - | - | - | - | - | - | - | - |
Translation differences | (1,372) | (103) | (26) | (734) | (5,835) | (2,855) | (5,719) | (16,644) |
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Balance at December 31, 2025 | 120,774 | 38,647 | 976 | 4,480 | 49,943 | 21,008 | 119,281 | 355,109 |
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Net book value | 37,508 | 23,606 | 1,095 | 5,665 | 150,261 | 41,306 | 553,089 | 812,530 |
The net book value of position software contains assets of CHF 16.3 million that are not yet in use. They are related to the introduction of a new ERP system (SAP S/4 HANA – on-premises edition). The go-live date is planned for autumn 2026.
The amortization charge is recognized in the following line items of the statement of profit or loss:
2024 | 2025 | |||
| CHF 1,000 | Amortization | Impairment | Amortization | Impairment |
| Sales and marketing | 13,330 | - | 12,517 | 4,154 |
| Research and development | 16,668 | 5,602 | 15,436 | 1,782 |
| General and administration | 3,114 | - | 2,695 | - |
| Impairment goodwill and PPA-asset | - | - | - | 139,468 |
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| Total amortization and impairment losses | 33,112 | 5,602 | 30,648 | 145,404 |
21.2 IMPAIRMENT TESTS
For impairment testing, goodwill is allocated to a cash-generating unit or to a group of cash-generating units that are expected to benefit from the synergies of the corresponding business combination. Subsequently, the recoverable amount of the cash-generating unit (higher of fair value less costs of disposal and value in use) is compared with its carrying amount. An impairment loss is only recognized if the carrying amount of the cash-generating unit exceeds its recoverable amount. Value in use is normally assumed to be higher than the fair value less costs of disposal; therefore, fair value less costs of disposal is only investigated when value in use is lower than the carrying amount of the cash-generating unit.
Value in use is calculated according to the discounted cash flow method. The cash flow projections are based on a five-year financial planning period. Cash flows beyond the five-year period are extrapolated applying the estimated long-term growth rates stated below. The expected growth in sales is based on external market studies and internal assessments prepared by management. Future cash flows are discounted using the weighted average cost of capital (WACC). The discount rates applied are pre-tax.
31.12.2024 | 31.12.2025 | |
| CHF 1,000 |
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| Goodwill Life Sciences Business | 108,735 | 100,251 |
| Goodwill Partnering Business | 652,220 | 452,838 |
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| Total goodwill | 760,955 | 553,089 |
21.2.1 FINANCIAL YEAR 2025 - MANDATORY TESTS
The Group performed impairment tests on cash-generating units containing goodwill in June 2025, using the following key assumptions:
Goodwill Cash-generating unit | Carrying amount at test date (CHF 1’000) | Test date | Method | Basis for recoverable amount | Pre-tax discount rate | Projection period | Long-term growth rate |
Goodwill Life Sciences Business Life Sciences Business | 100’356 | June 2025 | DCF-method | Value in use | 10.5% | 5 years | 1.9% |
Goodwill Partnering Business Partnering Business | 572’398 | June 2025 | DCF-method | Value in use | 11.7% | 5 years | 1.9% |
In addition, the Group prepared mandatory impairment tests for capitalized development costs relating to products that are not yet launched on the market on August 31, 2025.
Based on the impairment tests at the end of June 2025, there was no need for the recognition of any impairment.
21.2.2 FINANCIAL YEAR 2025 – YEAR - END UPDATE
The Group has undertaken an impairment assessment as part of the yearly financial closing process. During this process, the Group conducted a comprehensive evaluation of the product portfolio to ensure that the resources remain aligned with the long-term strategic priorities.
As part of this process, certain intangible assets were identified and deemed not recoverable. Market dynamics, evolving customer demand, and increased operational costs have impacted the financial performance of these assets, reducing their ability to generate expected future cash flows.
Consequently, the Group has performed a goodwill recoverability assessment resulting in an impairment of CHF 125.0 million. This reflects the decision to streamline the portfolio by eliminating less profitable and non-strategic product lines. This action will enable the Group to focus investments on areas with stronger margins, greater scalability, and clearer competitive advantage.
21.2.2.1 GOODWILL PARTNERING BUSINESS
Goodwill Cash-generating unit | Carrying amount at test date (CHF 1’000) | Test date
| Method | Basis for recoverable amount | Pre-tax discount rate
| Projection period
| Long-term growth rate
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Goodwill Partnering Business Partnering Business | 579,801 | November 2025 | DCF-method | Value in use | 11.3% | 5 years | 2.0% |
Based on the impairment test at the end of November, the Group recognized an impairment loss of CHF 125,000 million.
21.2.2.2 PPA ASSESTS
| Asset | Carrying amount at test date (CHF 1’000) | Carrying amount after test (CHF 1’000) | Rationale |
| PPA asset client relationships Tecan Technology Development Boston, Inc. (part of the Paramit acquisition) | 14,468 | 0 | The underlying customer base has significantly declined since the acquisition with resulting EBIT and EBITDA not expected to reach positive levels in the foreseeable future. |
| Further PPA assets related to trademarks, client relationships and technology | 5,936 | 0 | All these PPA assets relate to business activities that are shrinking and are not expected to recover. Trademarks and technology have become obsolete. |
21.2.3 FINANCIAL YEAR 2024
The Group performed impairment tests on cash-generating units containing goodwill in June 2024, using the following key assumptions:
Goodwill Cash-generating unit | Carrying amount at test date (CHF 1’000) | Test date
| Method | Basis for recoverable amount | Pre-tax discount rate | Projection period | Long-term growth rate |
Goodwill Life Sciences Business Life Sciences Business | 108,689 | June 2024 | DCF-method | Value in use | 11.1% | 5 years | 1.7% |
Goodwill Partnering Business Partnering Business | 647,052 | June 2024 | DCF-method | Value in use | 11.1% | 5 years | 1.7% |
In addition, the Group prepared mandatory impairment tests for capitalized development costs relating to products that are not yet launched on the market on August 31, 2024.
Based on the impairment tests at the end of June 2024, there was no need for the recognition of any impairment.
A profound review of the product portfolio triggered an aperiodic impairment test in the area of reagents. The tests showed that a product launched in 2022 did not meet the expectations of the original business case. Consequently, the Group recognized an impairment of CHF 5.6 million on the capitalized development costs which was charged to the business segment ‘Life Sciences Business’. The recoverable amount of the asset was determined based on its value in use, which was CHF 0 million.