Boule Diagnostics Announces Closure of BM950 Project and New Portfolio Strategy
Boule Diagnostics announces the decision to close the BM950 project due to newly identified technical issues that have significantly impacted the project’s time to market and overall profitability. This decision comes after careful consideration and analysis of the project’s progress and its alignment with our business objectives. The closure of the project will result in a write down of intangible assets of 92M SEK that will be recognized in the 2024 financials and approximately 25M SEK in additional restructuring cost in the first quarter of 2025.
“We understand the importance of delivering competitive and profitable solutions to our, customers”, said Torben Nielsen CEO of Boule Diagnostics. “Despite our best efforts, we have not been able to bring the BM950 to the market fast enough to support the current demand and therefore we are closing the project and adjusting our portfolio strategy.
For many years Boule Diagnostics have enjoyed successful collaboration with technology partners to supplement and strengthen its proprietary product portfolio. Moving forward, Boule will focus exclusively on collaborating with leading technology partners to build a competitive product portfolio that meets the evolving needs of our customers in a timely and more cost-effective way.
“We recognize the rapid advancements being made by Asian technology companies, which have increased the pace of development in the industry in recent years” said Torben Nielsen. “This necessitates a different approach to how we bring innovation to the market and where we allocate our resources to ensure we remain relevant to our distribution partners and end-customers.”
“Our new strategy is expected to positively impact our market position in several ways,” added Torben Nielsen. “By partnering with leading technology companies, we can leverage cutting-edge innovations to strengthen our offering much faster and with less investments. It allows us to intensify investments in the profitable growing blood controls and OEM reagent business, where we are competitively differentiated and where we have seen above market growth in recent years. Finally, this strategy aligns with our long-term growth objectives and positions us to grow faster and more cost effectively”.
It is not expected that this decision will adversely impact the 2025 growth projections and given the significant reduction in R&D spend it is projected that we will return to positive cashflow in the second half of 2025.
We remain committed to this course, and the decision is in line with our previously communicated strategic priorities. To increase the operating margin through reduced structural costs, accelerate growth through strategic organic investments and building a better, stronger and growth-oriented portfolio.
For more information, please contact:
Torben Nielsen, CEO and Group President, torben.nielsen@boule.com, phone +46 (0)70-558 51 05
Holger Lembrér, CFO, holger.lembrer@boule.com , phone +46 (0)72-230 77 10
About Boule Diagnostics AB (publ)
Boule Diagnostics AB (publ) is a global diagnostics company specializing in near-patient, decentralized blood diagnostics and one of the few companies in the global diagnostics market that conducts its own development, manufacturing and marketing of instruments and consumables for blood diagnostics. The Company primarily serves hospitals, clinics, laboratories and other diagnostics companies to which it offers complete systems for blood diagnostics (hematology) in both the human and veterinary areas. Boule has strong positions in important emerging markets such as in Asia and in recent years has improved its position in the fast-growing veterinary market. Operations are conducted through operating subsidiaries in Sweden, the United States, Mexico and Russia. The Group reported net sales of SEK 559 million in 2024 and has more than 200 employees. Sales are conducted globally, predominantly through the company’s 200 or so distributors in over 100 countries, supported by Boule’s own local sales and service personnel. Boule has been listed on Nasdaq Stockholm since 2011. http://www.boule.com
This information is information that Boule Diagnostics AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 09:55 CET on March 12, 2025