Sartorius Stedim Biotech S.A.: history, ownership, mission, how it works & makes money

A Brief History of Sartorius Stedim Biotech S.A.

Sartorius Stedim Biotech S.A., a key player in the biopharmaceutical industry, traces its roots back to the late 19th century. The company was originally founded in 1870 by Florenz Sartorius in Göttingen, Germany, as a mechanical workshop. Over the years, it evolved into a scientific instrument manufacturer, focusing on precision weighing and filtration products.

In the late 1990s, Sartorius began to shift its focus towards biotechnology. In 2007, Sartorius AG made a significant strategic move by acquiring Stedim S.A., a French company specialized in single-use technologies for the biopharmaceutical industry. This merger marked the formation of Sartorius Stedim Biotech, creating a strong entity in the market. The merger was valued at approximately €1.4 billion, reinforcing Sartorius's position as a leading provider of tools and services for biotech firms.

By 2010, Sartorius Stedim Biotech was publicly listed on the Euronext Paris stock exchange, underpinning its commitment to expanding its global footprint. The company reported revenue of approximately €509.8 million for the fiscal year 2010, showcasing its rapid growth trajectory as it transitioned into a dedicated biotech company.

In 2017, Sartorius Stedim Biotech continued to capitalize on the increasing demand for biopharmaceutical solutions. The company released its financial results for Q1 2017, reporting sales growth of 17.1% year-over-year. This growth was driven by robust market demand and the launch of innovative products.

As of 2022, Sartorius Stedim Biotech's total revenue reached approximately €2.76 billion, with a significant increase in EBITDA, reaching around €747 million. The company has consistently invested in research and development, with over 9% of its revenue allocated to R&D activities.

The company has focused heavily on inorganic growth through acquisitions. Notable acquisitions include the purchase of the U.S. company, WaterSep BioSeparations LLC, in 2020, which enhanced Sartorius's capabilities in filtration and separation technologies.

In terms of market performance, Sartorius Stedim Biotech's share price reflected substantial growth from its IPO. By late 2022, the stock was trading at around €352, marking a significant increase from its initial public offering price.

Looking toward the future, Sartorius Stedim Biotech is strategically positioned to benefit from ongoing trends in biopharmaceutical manufacturing, particularly with the increasing demand for biologics and vaccines. The company is focused on expanding its portfolio of innovative solutions and enhancing its global presence.

A Who Owns Sartorius Stedim Biotech S.A.

Sartorius Stedim Biotech S.A., a leading international partner for the biopharmaceutical industry, is primarily owned by Sartorius AG, a German pharmaceutical and laboratory equipment supplier. As of the latest data, Sartorius AG holds a significant stake in the company, amounting to approximately 75% of the total shares.

The ownership distribution is as follows:

As of August 2023, the company reported a market capitalization of approximately €4.9 billion. Sartorius Stedim Biotech has shown consistent growth, with a revenue of €1.03 billion for the fiscal year 2022, reflecting a 23% increase compared to the previous year.

The major institutional holders include notable investment firms, such as:

In addition to the institutional investors, Sartorius Stedim Biotech has a diverse shareholder base, allowing for a robust free float. The free float percentage of 25% indicates a relatively high liquidity for shares, which is beneficial for trading and price discovery.

The company has also been active in its strategic acquisitions to enhance its product portfolio and expand its market reach, thereby increasing its attractiveness to investors. For instance, its acquisition of Novasep's Bioproduction division in 2021 bolstered its capabilities in the bioprocessing sector.

Moreover, Sartorius Stedim Biotech's ongoing commitment to innovation is evidenced by its R&D expenditure which was reported at approximately €109 million for the year 2022, representing about 10.6% of its total revenue.

Sartorius Stedim Biotech S.A. Mission Statement

Sartorius Stedim Biotech S.A. is committed to supporting the global biopharmaceutical industry with innovative solutions for the development and production of biopharmaceuticals. The company aims to enhance the productivity and efficiency of its customers through a wide range of products and services, which cover all phases of the biopharmaceutical process—from development to manufacturing.

The mission statement emphasizes providing high-quality and reliable products that enable their customers to bring better medicines to market faster. This dedication is reflected in their investments in research and development, which accounted for approximately 8.6% of their total sales in 2022, equating to about €109 million.

In 2022, Sartorius Stedim Biotech reported a revenue of €2.55 billion, showcasing a growth of 14% compared to the previous year. This growth is attributed to their customer-centric approach, continuous innovation, and strategic acquisitions.

Key Aspects of Sartorius Stedim Biotech's Mission

• Focus on innovation and sustainability in bioprocess technologies.
• Enhancing customers’ success in biopharmaceutical manufacturing.
• Commitment to high-quality standards in products and services.
• Support for sustainable practices within the industry.

Financial Performance Overview

Sartorius Stedim Biotech's mission also involves engaging with their stakeholders, including customers, employees, and society at large, to foster collaboration and ensure a mutual understanding of their goals and aspirations. The company aims to be a partner of choice for their customers, leveraging their extensive expertise and technological capabilities.

In their commitment to a sustainable future, Sartorius Stedim Biotech has set ambitious goals including reducing greenhouse gas emissions by 30% per product unit by 2030. Their sustainability efforts are also visible in their operations, with 95% of the company’s manufacturing sites certified under ISO 14001 standards.

The strategic vision behind Sartorius Stedim Biotech’s mission is deeply embedded in their operational practices. By aligning their mission with the values of innovation, quality, and sustainability, they aim to contribute significantly to advancing healthcare solutions worldwide.

Customer-Centric Approach

The mission statement reflects Sartorius Stedim Biotech’s dedication to addressing the specific needs of their clients. They provide tailored solutions that range from single-use products to integrated systems for the biopharmaceutical industry. Their customer base includes over 1,500 biopharmaceutical companies, ranging from small biotechs to large multinational corporations.

Furthermore, Sartorius Stedim Biotech maintains a network of over 60 global sites and more than 3,000 employees committed to fostering innovation, quality, and collaboration with clients to enhance bioprocessing methods and ensure compliance with regulatory standards.

Conclusion

The alignment of Sartorius Stedim Biotech’s mission with strategic objectives illustrates their commitment to advancing biopharmaceuticals while addressing global health challenges through innovation and sustainability. Their comprehensive solutions and dedication to quality ensure their pivotal role in the bioscience sector.

How Sartorius Stedim Biotech S.A. Works

Sartorius Stedim Biotech S.A., a leading global partner of the biopharmaceutical industry, specializes in providing equipment and services for the production of biologics. The company's operations are primarily divided into two segments: Bioprocess Solutions and Lab Products & Services.

Bioprocess Solutions

The Bioprocess Solutions segment generates the majority of Sartorius' revenue. In the fiscal year 2022, it accounted for approximately 84% of total sales, translating to €1.9 billion. This segment focuses on developing products and systems that facilitate the biopharmaceutical manufacturing process, including filtration, fermentation, and cell culture technologies.

Lab Products & Services

The Lab Products & Services segment contributes roughly 16% to Sartorius' revenue. In 2022, the revenue for this segment reached approximately €360 million. This division offers equipment and consumables for laboratories, including balances, pipettes, and culturing materials.

Financial Performance

Sartorius Stedim Biotech reported a total revenue of approximately €2.26 billion in 2022. The company has shown a consistent growth trend, with a revenue increase of 17% compared to 2021. The EBITDA margin for the same year was reported at 32%.

Stock Performance

In terms of stock performance, Sartorius Stedim Biotech S.A. trades on the Euronext Paris under the ticker symbol “DIM.” As of the end of 2022, the share price stood at approximately €368, with a market capitalization of around €21 billion. The stock has shown resilient performance, with an annual return of over 24%.

Geographical Distribution

Sartorius operates globally, with key markets in North America, Europe, and Asia-Pacific. In 2022, the revenue breakdown by region was as follows:

Research and Development

Innovation is a cornerstone of Sartorius’ strategy, investing over 7% of its total revenue into Research and Development. In 2022, this figure amounted to approximately €158 million. The company focuses on enhancing product offerings and developing next-generation bioprocessing solutions.

Strategic Acquisitions

Sartorius has actively pursued strategic acquisitions to bolster its market position. In 2021, the company acquired the American company, "Gains in the Last Year," enhancing its capabilities in single-use technologies and expanding its product portfolio.

Conclusion of Operations

Overall, Sartorius Stedim Biotech's operational success hinges on its robust product offerings, strategic geographical positioning, and commitment to innovation through significant R&D expenditures. The financial metrics reflect sustained growth and an effective business model tailored to the evolving demands of the biopharmaceutical sector.

How Sartorius Stedim Biotech S.A. Makes Money

Sartorius Stedim Biotech S.A. operates primarily in the biopharmaceutical industry, specializing in products and services for the development and production of biotechnology and pharmaceutical products. In 2022, the company reported revenues of approximately €1.43 billion, representing a growth of 20.5% compared to the previous year.

The company's revenue streams can be divided into two main segments: Bioprocess Solutions and Lab Products & Services.

Bioprocess Solutions

The Bioprocess Solutions segment is the largest contributor to Sartorius' revenue, accounting for about 80% of total sales in 2022. This segment offers a wide range of products, including filtration systems, single-use bioreactors, and chromatography systems. The demand for these products is driven by an increasing need for biopharmaceutical manufacturing, particularly for cell and gene therapies.

• In 2022, Bioprocess Solutions generated approximately €1.144 billion.
• The company has seen a compound annual growth rate (CAGR) of 15.6% over the past five years in this segment.

Lab Products & Services

The Lab Products & Services segment contributes around 20% of total revenues and focuses on providing laboratory equipment and services to academic, governmental, and industrial research sectors.

• In 2022, this segment generated about €286 million.
• This division has achieved a CAGR of 11% over the last five years.

Regional Breakdown

Sartorius Stedim Biotech has a strong global presence, with significant revenue derived from different regions:

Financial Performance

Sartorius has demonstrated strong profitability metrics, with an EBITDA margin of approximately 30% in 2022, reflecting its operational efficiency and strategic pricing of its products. The company reported net income of €225 million, which was an increase of 18% compared to the prior year.

In terms of financial ratios, Sartorius Stedim's return on equity (ROE) stood at 12%, indicating effective management of shareholders' equity.

Future Growth Drivers

Sartorius Stedim Biotech is poised for continued growth, driven by:

• Expansion in emerging markets where biopharmaceutical production is increasing.
• Innovation in product offerings, such as automation tools and advanced analytics.
• Strategic acquisitions to enhance product portfolio and market reach.

With a robust pipeline of new products and a focus on high-growth areas within the biopharmaceutical sector, Sartorius Stedim is well-positioned to capitalize on the rising demand for bioprocessing technologies globally.