Partnering Business

(OEM business)


(CHF million)


(CHF million)


(in % of sales)


(in % of sales)

Sales in the Partnering Business grew by 3.1 % in local currencies and 2.9 % in Swiss francs in the second half against a strong base in the prior-year period with a 14.7 % growth rate. Excluding contributions from Sias, since December 1, 2015 part of the Partnering Business, sales in the second half grew by 1.0 % in local currencies. The Partnering Business generated sales of CHF 187.3 million in financial year 2015 (2014: CHF 163.2 million), which corresponds to an increase of 14.9 % in local currencies and 14.7 % in Swiss francs. On an organic basis, sales increased by 13.7 % in local currencies. Instruments launched in the past two years made a significant contribution to the strong sales growth. Also, the components business continued to perform well. Order entry in the Partnering Business also grew at a double-digit percentage rate in 2015 and exceeded sales considerably.


The segment’s EBIT rose to CHF 30.2 million in 2015 (2014: CHF 24.9 million) and the EBIT margin grew to 16.0 % of sales (2014: 14.9 %). The impact of lower margins on profitability from some newly introduced instruments, which are normal during launch phase, was more than outweighed by higher sales volumes.



Tecan not only provides end customers with automation solutions , but is also a leading developer and manufacturer of OEM instrum ents and components which partner companies sell under their own name. Tecan has been operating its OEM business since the Company was found ed over 35 years ago – parts of the business within today’s Group can e ven look back on 40 years of history. The share of this segment in the total sales of the Tecan Group was 43 % in 2015.


  • US launch of FDA cleared ORTHO VISION™ Analyzer by Ortho Clinical Diagnostics
  • Acquisition of Sias AG on 30 November 2015, a leading OEM supplier of laboratory automation solutions, to further expand Tecan’s Partnering Business

In the Partnering Business, corporate customers, who are mainly diagnostics companies, are managed centrally via Key Account Management. Employees in Europe, North America and Asia ensure local management of existing customers and support the acquisition of new customers. There are direct sales employees in individual national markets for the components business.


In the components business, Tecan supports instrument makers with essential components where they want to develop an instrument themselves. By contrast, in the instruments business, Tecan takes over the development of the entire system, which it then manufactures under contract.



In the Partnering Business, Tecan benefits from diagnostics and other life science companies outsourcing instrument development, either entirely or for specific parts, to specialists like itself. This enables these companies to focus on developing diagnostic or researchrelated tests. In recent years, this trend has been accelerating. OEM customers benefit from Tecan’s extensive technology experience in a wide range of instruments and modules in the area of laboratory automation. By outsourcing instrument development, customers are able, among other things, to shorten the time to launch while also gaining access to Tecan’s innovative technologies.


Tecan has a wide range of products. The Company supplies various well-known diagnostics instruments in the OEM business and serves several hundred customers with components.



Tecan’s Cavro® product brand is the market leader in laboratory automation liquid handling components. The Company supplies laboratory instrument manufacturers with essential components such as precision pumps, valves, robotic arms and development software. They are used in systems that have a wide range of applications in life science research, diagnostics, forensics and numerous other industries. In customers’ product ranges, Tecan components generally remain an indispensable element over the entire life cycle of a device. For example, Tecan supplies manufacturers in the fast-growing area of next generation sequencing with the Cavro® XMP 6000 Multi-Channel Pump for precision handling of fluids in different sequencers.


Platform-based automation solutions

Rapid market launch and low development costs are key for some OEM customers. In these cases, Tecan can adapt the products and platforms it develops for its own end customers to the specific needs of OEM customers. These adapted and standardized platforms are then distributed under the customers’ own brand name as system solutions that combine Tecan’s instruments with the partner’s own specific tests. Detection instruments from Tecan can also be modified or integrated into fully automated laboratory solutions for OEM customers. 


One example of this type of platform-based automation solution is one of the world’s most successful molecular diagnostic platforms. It is marketed by the partner as a system solution jointly with a wide range of different molecular diagnostic tests. Applications include, for example, therapy monitoring in HIV or hepatitis patients and detection of sexually transmitted infections.



When an OEM customer is looking for a specific product, designed and manufactured to a specific functionality and cost, a dedicated system development can be the answer. Dedicated systems are usually most appropriate for products with a longer life cycle and when the specific functionality and total cost-of-ownership are the key decision criteria. By choosing to partner with Tecan, OEM customers get access to the Company’s full range of technologies, modules and software solutions as well as its expertise in system integration and regulatory and quality-related processes.


Segment strategy

The corporate strategy pursues three vectors to ensure sustainable profitable growth. The company’s specific strategies allow it to drive forward customer projects with the respective business models of the two business segments.


Expanding the core business

In the in-vitro diagnostics market, some of the instrument development and production will be outsourced to specialists like Tecan. In this addressable market share, Tecan, through its Partnering Business, is the partner of choice in automation systems for many companies in the in-vitro diagnostics industry. Tecan supports these partners with their regional product launches of new instruments – developed and manufactured by Tecan – and the associated ramp up in serial production.


Supply of major products

Tecan has a broad base of OEM customers and is continuously increasing the number of supply agreements. The supply of new instruments generates additional sales stepwise, building on the established base. This enables Tecan to grow more rapidly than the market. 


Numerous customers are also developing instruments incorporating innovative Tecan components as elements. When serial production of these instruments begins, it will result in higher volumes of the components being required and therefore higher sales for Tecan.


Dako Omnis for Dako

Dako Omnis, a platform for automated advanced staining for tissue-based cancer diagnostics, is one example of a dedicated automation solution. The system automates both established processes in the diagnosis of abnormal cells: immunohistochemistry (IHC) and in-situ hybridization (ISH).


The platform was launched by partner Dako, an Agilent Technologies Company, in 2013. Dako Omnis offers full automation and fulfils the requirements of large diagnostic laboratories, hospitals and universities. It offers continuous loading with individual samples or batch loading, as well as the option of leaving the system to run overnight. It therefore sets new standards for what customers can expect from an automated platform with regard to flexibility, capacity, efficiency and traceability of samples. The platform offers state-of-the-art software that is intuitive to operate and allows an improved level of monitoring in the laboratory. Key processes such as slide processing and instrument maintenance can now be traced back to individual employees, which significantly improves quality control.


ORTHO VISION™ Analyzer for Ortho Clinical Diagnostics

The ORTHO VISION™ Analyzer is a next-generation diagnostics instrument used for blood typing and to determine other important blood parameters. The device was developed by Tecan for Ortho-Clinical Diagnostics, a market leader in immunohematology, and was launched in several regional markets in the fourth quarter of 2014. The ORTHO VISION™ Analyzer heralds a new era in transfusion medicine, with Responsive Automation. Innovative monitoring technologies and control mechanisms give transfusion medicine professionals the ability to track every critical process step. The instrument can also be accessed, and data monitored and evaluated, remotely. In addition, laboratory personnel can react at any time to ever-changing conditions within the laboratory and unpredictable requirements. For example, particularly urgent cases can be rapidly processed by loading into the ORTHO VISION™ Analyzer on the fly, allowing for prioritization. 


In August 2015, Tecan’s partner Ortho Clinical Diagnostics, has launched the FDA cleared ORTHO VISION™ Analyzer in the United States as well. Tecan also successfully concluded the development of the ORTHO VISION™ Max, a variant of the instrument for high-volume transfusion medicine laboratories in the year under review. In October 2015, Ortho Clinical Diagnostics announced that this instrument variant has received CE Mark clearance, making it available for purchase in Europe and Japan.


Conclusion of new development and supply agreements

Tecan gained new customers for platform-based solutions in the recent past; these will contribute to sales growth in the years ahead. The Company has a pipeline that is well filled with potential new projects and is currently discussing a range of projects with potential partners. Numerous customers are also developing instruments incorporating innovative Tecan components as elements. Other customers have already started serial production of new devices, resulting in the supply of higher volumes by Tecan.



As in the Life Sciences Business segment, significant market potential is also presenting itself to Tecan in the Partnering Business in China and sales in this country increased disproportionately in recent years. Local device manufacturers are increasingly integrating Tecan components in various areas of application to ensure the necessary instrument quality and reliability. The first of these instruments were granted marketing authorization, and are now being manufactured in larger quantities. In addition, Chinese diagnostics companies are interested in the supply of complete instruments by Tecan. An initial development project of this type is in an advanced stage of development.



Through the Partnering Business, Tecan primarily supplies diagnostics companies with automation solutions or components. Currently, Tecan is only aiming to build up further pillars in the instrument market for life science research through the Life Sciences Business.



The third vector focuses on expanding recurring revenues. In Partnering Business, support for OEM customers does not end once the instrument development is finished. Tecan also offers OEM customers a range of services after the product is launched via its global service infrastructure. The Company can install instruments directly at the end customer’s location, provide a helpdesk facility, train the OEM customer’s service team and even handle customer service itself. In addition, Tecan maximizes instrument operation time by providing a global spare parts service.


OEM customers in the diagnostics market may benefit from Tecan’s high-quality consumables such as certified pipette tips, which are an important component of a validated workflow solution. Only high-quality consumables can help ensure a high level of quality and reproducibility in tests. Thanks to the growing number of installed devices in recent years, this business posted high growth rates.


Tecan is focusing increasingly on developing proprietary, patentprotected technologies. One example is the innovative consumable based eFluidics™ technology concept. eFluidics is an alternative liquid handling technology based on electrowetting, which can manipulate fluids by altering the electrical field.