In 2010, the Group entered into an OEM agreement with a global diagnostics company. The agreement comprises the development and supply of a dedicated diagnostic instrument. The related customer-specific development costs are capitalized in the position inventories as part of the production costs and amounted to CHF 117.9 million at the end of June 2016 (December 31, 2015: CHF 123.7 million). All versions of the instrument have been launched and the customer calls the units with individual purchase orders. The corresponding development costs are recognized in cost of sales.

Further information regarding this critical accounting estimate and judgment can be found in note 2.2.4 of the consolidated financial statements 2015.