Boule Diagnostics refocuses its operations on consumables, service and OEM – discontinues its instrument business

Background to the decision
Boule is a global specialist in hematology diagnostics with more than 70 years of experience and sales in more than 100 countries through approximately 200 distributors. Its operations are conducted through the Diagnostics business area, which manufactures and sells instruments and consumables, and the wholly owned US subsidiary OEM CDS, which provides contract development and manufacturing of reagents, blood controls and calibrators for global diagnostics companies.
Boule’s instruments use three-part differential technology, which is now considered an older technology. The market is increasingly shifting to instruments using five-part differential technology, which provides a more detailed analysis of white blood cells. The Company’s attempt to develop its own five-part instrument (BM950) was discontinued in 2025 following technical problems. At the same time, prices for five-part instruments have come under pressure as Chinese companies have entered the market, further weakening the prospects for Boule’s instrument business.
The decision follows a strategic review of Boule’s operations and long-term capital allocation. The Company has assessed that the investments required to remain competitive in the global market for hematology instruments are not proportionate to the expected returns, and that shareholder value is better served by a focused strategy centred on consumables, service and OEM.
“Over time, the economics of the instrument business have become increasingly challenging for a company of Boule’s size. We are now refocusing our operations on consumables and service for the installed base, as well as OEM CDS, where we have good margins. This brings to light the underlying value in Boule that has previously been obscured by the unprofitable instrument business,” says Johan Folkunger, CEO of Boule Diagnostics.
Operations going forward
The installed base of Boule instruments is locked to Boule’s RFID-protected reagents, enabling continued, recurring sales of consumables throughout the instruments’ lifetimes. In 2025, approximately 78 per cent of net sales of SEK 490 million came from consumables, OEM and service, while instrument sales accounted for approximately 22 per cent.
Boule will continue to support the installed base and its long-standing relationships with distribution partners worldwide. The Company will continue to provide reagents, controls, spare parts and technical support to existing customers and will communicate detailed transition plans to distributors and other stakeholders during implementation.
OEM CDS is a profitable and stable business with multi-year manufacturing agreements. In 2025, sales amounted to SEK 134.6 million with an adjusted operating margin of 22.7 per cent, and sales have increased by 128 per cent since 2020.
Cost savings and transition
The discontinuation of the instrument business is expected to reduce the Company’s cost base by approximately SEK 90–100 million per year when the savings take full effect. The transition will entail a reduction in the number of employees within Diagnostics, and the Company will initiate negotiations with the relevant trade unions. Taking into account, among other things, notice periods, the cost reduction is expected to take full effect in early 2028.
“This is a difficult but necessary decision. By concentrating on the parts of the business where we have the greatest competitive advantages, we create a more focused company with better profitability, stronger cash flow and more sustainable financial performance over the long term,” says Johan Folkunger.
Web conference
Boule invites shareholders, investors, analysts and the media to a web conference on Thursday 5 November 2026 at 10.00 a.m. CEO Johan Folkunger will present the decision to discontinue the instrument business and then answer questions. Link to the web conference: https://us06web.zoom.us/webinar/register/WN_gfywFUEsSh6gabl2qKy3Iw