Annual Report 2024 Review

How do you look back on 2024?

Michael Collasius: Our environment has experienced an extraordinary phase in recent months. For the first time in my memory, the global life sciences and diagnostics market has contracted for more than two years in total. Before that, an annual growth of around 4 % was the norm.

Hans Noser: Against this backdrop, I am very proud of what we have achieved. We were able to increase our sales by almost double digits, while the industry suffered a decline of over 2 %.

M. C.: Our longer-term development continues to be extremely positive. It seems that the dip following the “hypergrowth” in diagnostics triggered by the Covid-19 pandemic has now been overcome.

Is there a secret to success behind the above-average performance?

H. N.: We always think about device technology and biological processes together. It is crucial that the whole team thinks about both worlds. Our life sciences scientists want to understand technology and our engineers want to understand molecular biology. This enables us to work together much more effectively in teams.
In many organizations, specialists remain confined to their own areas of expertise. When they then work together in a team, misunderstandings arise almost automatically.

M. C.: This shared thinking between biology and engineering is also evident when we ask our customers why they like to work with us. The answers are that they “feel understood,” “can discuss things with us as equals” or that we “respond extremely flexibly and precisely to their needs.” Added to this is the “tangible enthusiasm of our developers” and the fact that we “keep our promises.”

What were the growth drivers last year?

H. N.: On the one hand, we are constantly acquiring new customers and can advance into new areas of application. This currently includes bioprocessing in connection with the automation of CAR T-cell therapies, for example. On the other hand, we are also increasingly being selected by existing customers for new projects. This shows us that we are on the right track with our focus on the automation of molecular biology laboratory processes and our aspiration to understand the applications just as well as the technologies.

M. C.: We are currently developing an entire family of measurement modules based on our OEM component eviDense UV, an optical analysis module. They can be used to check the quality of samples directly in the analysis workflow. Depending on whether nucleic acids, proteins or cell samples are being assessed, a different measuring unit is simply used.

H. N.: The development of the evi family – the branding of the modules derived from the word evidence – is another example of our understanding of applications and laboratory practice. Over the years, our developers have noticed in many customer projects that there is a break in the analytical processes in the optical quality control of samples, which costs a lot of time and therefore money. We have therefore set ourselves the task of designing possible solutions. All device manufacturers can now benefit from the results of our development efforts.

M. C.: Our culture is a key factor for attracting top performers. Most individuals who join us have already gained experience in one or two jobs after completing their studies. Therefore, the decision to join HSE•AG is usually a well-considered one.

Our open communication and mutual understanding make us attractive to both young professionals and experienced specialists. Engineers quickly realize that they can develop much better solutions if they understand the molecular biology of the assay and the disease in oncology diagnostics, for example.

Are there any projects that particularly stood out in 2024?

M. C.: One of our significant projects is in the field of bioprocessing for CAR T-cell therapies, where we are integrating ten tests into a single device. This integration not only makes the processes much more efficient compared to the manual analyses previously carried out but also greatly simplifies certification, as only the machine needs to be verified, not each individual manual step.

Other major projects include developing a complete liquid handler and a high-throughput diagnostics system.

A good corporate culture also includes responsible management

H. N.: That is very important to us. CSR (Corporate Social Responsibility) is an integral part of our corporate culture. Respect for each other and for society and the environment are two sides of the same coin.

After having our sustainability assessed by Ecovadis specialists for the first time in 2023, we drew up a binding Code of Conduct in 2024 and introduced it throughout the company. It uses specific examples to ensure that all HSE•AG employees, partners, customers and other stakeholders always meet high ethical standards.
It is based on our six fundamental corporate values: enjoyment, usefulness, ambition, sense of reality, search for the best solution, fairness and respect.

The Code of Conduct includes a whistleblower app, which can be used to report any irregularities anonymously.

What are your expectations for 2025?

M. C.: I expect our growth to increase again to up to 15 %. We will launch product innovations and products from our evi module family for checking sample quality. We will also continue to expand our range of services in line with sales. Our headcount is therefore likely to increase in line with sales growth.

H. N.: The silver lining on the horizon of the global diagnostics market is getting wider and wider. The industry is returning to its long-term growth path.

M. C.: Diagnostics, and especially their automation, are very effective means of reducing costs in the healthcare sector. The calculation is simple: the earlier a disease is detected, the more effective and less expensive the treatment is.

What trends are emerging in diagnostics? Is this the reason for this year’s focus on oncology in the annual report?

H. N.: The future pace of technology will largely depend on which forms of medical therapy become dominant. In this annual report, we focus on oncology. Pavel Pisa, with extensive experience in academic research and as Head of Translational Medicine at Roche Pharmaceuticals, highlights that advances in diagnostics are crucial to reducing the fear associated with cancer.

For instance, Next-Generation Sequencing (NGS) has paved the way for personalized therapies. One of the current challenges is to automate new, targeted treatments like CAR-T-cell therapies to transition them from the experimental stage to widespread application.

M. C.: Ann Costello, former Head of the Roche Group’s Diagnostics Solutions division, explains that developing a successful diagnostic device requires mutual understanding between engineers and scientists. We present various examples from our current projects where we assist our customers in the field of oncology.

The last few years have shown, especially in oncology, how quickly new technology and therapy trends can emerge and then lose importance again. However, these rapid changes do not worry us. We have an insight into a large number of market segments and can therefore sense early on when a diagnostics train is picking up speed or falling off the rails. Our broad and in-depth market knowledge is an additional added value from which our customers benefit.