Eurobio Scientific: Revenue Up 9%, but the End of Seegene Contract from 2027 Impacts Visibility
Eurobio Scientific released mixed 2025 results. While revenue increased by 9% to €168.3 million, this growth largely relied on acquisitions made in 2024-2025. On a like-for-like basis, organic growth was only 2.3%, with contracting margins and the company facing the scheduled end from 2027 of a contract that generated about €48 million in 2025, with transition discussions still ongoing.
Financial Performance Overview
Eurobio Scientific recorded a revenue of €168.3 million in 2025, up 9% from €154.2 million in 2024. However, this increase masks a more nuanced operational reality. On a comparable proforma basis, excluding perimeter effects from acquisitions (€4.9 million for EndoPredict and Prolaris, €0.9 million for Quimark, €4.1 million for Voden Medical's Life Sciences unit), organic growth stands at only 2.3%. The group attributes this limited growth to non-recurring contexts in France (Chikungunya and Dengue outbreaks) and the extension of some transplant procurement calls, while some European subsidiaries experienced declines following the discontinuation of distribution ranges. In contrast, proprietary products showed stronger dynamics with a 20% increase, now representing 35% of revenue compared to 32% in 2024.
Margin and Operational Challenges
The gross margin rate stood at 45.5% in 2025, down by 0.8 points from 2024. The group identifies two main sources of this contraction: firstly, the effects of the reorganization in Germany (closure of the site dedicated to EndoPredict and Prolaris, closure of the Munich commercial office) accounting for about 0.4 points, and secondly, structural price pressures, particularly in France where reimbursement policies are gradually eroding margins across the sector. This margin compression occurs as the group continues its innovation strategy: research and development expenses remain stable at €4.6 million, representing 8% of proprietary revenue. The group highlights the launch of NGSengine 4.0 and the presentation of the NGSgo-ProntoFLX prototype, as well as the achievement of IVDR certifications for several key references. Commercial and marketing expenses increased from €4.8 million to €34.3 million, with €3.7 million related to acquisitions and €1.1 million corresponding to the strengthening of commercial teams at the group and subsidiary levels.
Strategic Transition and Future Prospects
A major challenge for Eurobio Scientific lies in managing the end of its distribution contract with South Korean company Seegene, effective January 1, 2027. This partnership generated approximately €48 million in revenue in 2025, accounting for more than 28% of the group's revenue. Seegene has expressed its intention to enter the French market directly. Although the contract allows Eurobio Scientific to honor its previously concluded private commercial contracts for a maximum duration of three years, and its public contracts for the duration of the procurement calls, this transition introduces significant uncertainty. The group currently has a cash position of €20.6 million and a free cash flow of €6 million, with a net cash/financing position of -€1.9 million (after accounting for financial debt of €10.1 million excluding leasing and current accounts of €12.4 million). EBITDA stands at €27.4 million, almost stable compared to 2024, while net income reaches €4.9 million. Both parties remain in discussion to define the terms of this transition, but the group must simultaneously accelerate the development of its proprietary products and international expansion to offset the loss of revenue.
