BUSINESS AREA
Medtech Business Area
In the Medtech business area, the subsidiaries offer products and services in the field of medical technology, as well as assistive equipment and digital solutions for use in home care. The Medtech offering mainly focuses on publicly funded healthcare, home care and social care in Europe.
The Medtech subsidiaries offer their own products and a wide range of products from other suppliers as well as training, support and service . The product line ranges from simple consumables to advanced instruments for surgical procedures, as well as welfare technology and assistive technology for the elderly and people with disabilities. The range of products requires a solid foundation of medical knowledge to guide customers in the right direction. Around 85 percent of sales are made through public procurement.
The recovery in elective surgery resulted in increased demand for Medtech's products and the organic growth, excluding exchange rate fluctuations, amounted to 7 percent for full-year 2024.
Key strategic measures were taken during the year to improve profitability going forward. The eye surgery company AddVision implemented activities during the year, focusing primarily on a more agile, decentralised and efficient organisation, improved commercial offering and working methods, as well as cost-cutting measures.
During the year, the subsidiary Camanio was also discontinued. The Homecare companies will continue to offer a portfolio of digital products and services, but they will no longer be proprietary.
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Dynamisk graf: Medtech net sales by market
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MEDTECH IN FIGURES Net sales: SEK 6,496 m |
Market trend 2024
The recovery in elective surgery positively impacted demand in 2024, although lengthy waiting lists for surgical procedures remained significant across Europe.
Waiting lists in healthcare have not decreased significantly, primarily due to staff shortages and strikes. The long queues are expected to continue requiring more planned surgeries, thereby driving demand. Growth was also driven by companies gaining market share through continuously updated product portfolios, market-leading customer support, and reliable deliveries. Increased activity in elective surgery spurred demand, primarily in the product areas of orthopaedics, surgery, respiratory medicine and endoscopy.
The Homecare companies have also performed well during the year. Demand for renovation and new construction projects remained weak throughout the year, but the long-term underlying positive drivers, such as an ageing population and new technologies, remain unchanged.
In Medtech, AddLife has identified prioritised growth segments that are expected to contribute to profit growth. For example, orthopaedics and endoscopy, with margins of over 10 percent, are prioritised growth segments. Within Homecare, the Company has also identified welfare technology, assistive devices, and home adaptation as growth segments, with profit margins ranging between 8-12 percent.
MEDIPLAST A PART OF ADDLIFEMediplast was one of the first companies acquired by AddLife, which laid the foundation for the Medtech business area. Mediplast has more than doubled in size, and now we reached a turnover of SEK 1 billion. Mediplast values long-term relationships and strives to offer the best products and services, with a focus on sustainability.
MEDTECH´S PRODUCT SEGMENTS
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- Employees with extensive medical experience, local knowledge and a high level of service, as well as product developers in welfare technology
- Broad range including both in-house developed products and products from other respected manufacturers
- Great flexibility regarding customised solutions, as well as cutting-edge expertise in public procurement procedures
- European distribution and service network for the Group’s own products and services, as well as the products and services of other suppliers
- Large accessible market with high growth and good margins, especially in advanced products
