Operating highlights in the first half of 2021

To further drive its application-focused strategy, Tecan continued to launch new variants of the leading Fluent Automation Workstation for key research and diagnostic applications. The Fluent Mix and Pierce Workstation provides end-to-end automation for whole blood pipetting in clinical environments. This newly developed instrument configuration is intended to standardize pre-analytical sample handling and mixing for consistent and scalable blood sampling and reduces the risk of laboratory staff coming into contact with infectious materials. Another example is the Frida Reader(TM) for Fluent that was launched earlier this year. It offers researchers the ability to quantify nucleic acids without sample loss. This unique solution performs UV absorbance-based quantification and purity assessment in a hanging drop, avoiding the consumption of rare and precious samples following nucleic acid purification (NAP).

Tecan also introduced new important reagent and digital offerings. New reagent kits for example enable end-to-end processing of human samples to allow complete viral RNA-Seq library preparation in a single day. New offerings in Tecan's growing digital ecosystem include the development of a fully integrated, sample-to-result solution for PCR workflows together with laboratory software specialist UgenTec and the FluentControl Scheduler for the Fluent Automation Workstation. The FluentControl Scheduler is a new software that offers a number of features designed to simplify day-to-day laboratory automation for significantly increased throughput and workflow efficiency, streamlining workflows for laboratories that run various assays and processes in parallel.

At the beginning of the year, Tecan has become one of the first companies to meet the requirements of the European Union's In Vitro Diagnostic Regulation (IVDR) 2017/746 (Annex IX, Chapter I and III), successfully completing certification of its IBL International DHEA Saliva ELISA diagnostic assay kit through BSI Notified Body 2797. The valuable insights gained from this process will now be applied to the registration of Tecan's complete portfolio of specialty IVD products -- as well as to help its OEM partners ensure they are 'IVDR ready' -- ahead of the May 2022 transition deadline. The new IVDR represents a major regulatory overhaul, requiring reclassification and certification of all EU-registered IVD assays and devices.

Tecan firmly believes that a trust-based, purpose-driven, diverse and inclusive workplace culture makes a crucial difference in helping the company to become an even more successful business in the long term. In order to continue to improve in a targeted manner, for the first time in 2020 Tecan conducted the TrustIndex(TM) employee survey by the international research and consulting company Great Place to Work(R) . As a result of this survey and an additional in-depth Culture Audit(TM) , Tecan has been officially certified as a Great Place to Work in January. Moreover, Tecan was ranked one of Switzerland's Best Workplaces in the Large Company category (more than 250 employees) in May.

Acquisition of Paramit Corporation

On June 23, Tecan announced that it had entered into a definitive agreement to acquire US-based Paramit Corporation and its affiliates ("Paramit") for a total purchase consideration of USD 1.0 billion (CHF 920 million). Paramit, headquartered in Morgan Hill (CA), US, is a leading OEM developer and manufacturer of medical devices and life sciences instruments. With the addition of approximately USD 300 million in revenues (CHF 276 million) expected in 2022, the acquisition will further extend Tecan's position in solutions for life sciences and in-vitro diagnostics (IVD). It will also add a new business vertical in the attractive and fast-growing market for medical devices. The acquisition will bring significant engineering as well as cost-competitive manufacturing capabilities, both in North America and in the APAC region. Equipped with proprietary computer-directed assembly technology, these facilities deliver ultra-flexible production planning, while reducing the potential for errors ("zero-defect manufacturing").

The acquisition of Paramit was successfully completed on August 2, 2021.

Strong balance sheet -- high equity ratio

Tecan's equity ratio was 69.6% as of June 30, 2021 (December 31, 2020: 66.2%). Net liquidity (cash and cash equivalents plus short-term time deposits minus bank liabilities and loans) increased to CHF 534.4 million (June 30, 2020: CHF 354.0 million; December 31, 2020: CHF 467.7 million).

At the Tecan Group Annual General Meeting on April 13, 2021, shareholders approved an increase in the dividend from CHF 2.20 to CHF 2.30 per registered share. Half of the dividend, i.e., CHF 1.15, was paid out from the available capital contribution reserve and was therefore not subject to withholding tax.

Organic outlook for full-year 2021 raised

Based on the positive business performance in the first six months of 2021, as well as on the continued high order backlog and the anticipated demand in the second half of the year, Tecan raised its organic outlook for full-year 2021. Tecan continues to benefit from exceptional demand for COVID-19 related products and demand trends for these products remain subject to greater uncertainty.

Tecan now forecasts organic sales growth for full-year 2021 to be in the low to mid-teens percentage range in local currencies (previously "mid single-digit to mid-teens percentage range").

At the same time, excluding acquisition-related effects, Tecan now expects a reported EBITDA margin in fiscal year 2021 of at least 23% of sales (previously "at least at the 2020 level of 21.8% of sales").

The expectations regarding profitability are based on an average exchange rate forecast for full year 2021 of one euro equaling CHF 1.08 (unchanged) and one US dollar equaling CHF 0.90 (unchanged).

Impact of the acquisition of Paramit Corporation on Tecan's 2021 financial results

The acquisition of Paramit Corporation was successfully completed and from August 1, 2021, Paramit will be included in the consolidated financial statements of the Tecan Group as a part of the Partnering Business segment.

Tecan expects that Paramit will generate additional sales of around CHF 100 million and an additional EBITDA, before acquisition-related costs, of about CHF 18 million in the five months of August to December 2021.

Initial integration and transaction costs (including hedging costs and various fees) are expected to amount to approximately CHF 20 million in 2021.

Financial Report and Webcast

The full 2021 Interim Report can be accessed on the company's website www.tecan.com under Investor Relations.

Tecan will hold a conference call to discuss the results in the first half of 2021 today at 9:00 a.m. (CEST). The presentation will also be relayed by live audio webcast, which interested parties can access at www.tecan.com. A link to the webcast will be provided immediately prior to the event.

The dial-in numbers for the conference call are as follows:

For participants from Europe: +41 (0)58 310 50 00 or +44 (0)207 107 0613 (UK)

For participants from the US: +1 (1) 631 570 5613

Participants should if possible dial in 15 minutes before the start of the event.

Key upcoming dates 


   -- The 2021 Annual Report will be published on March 15, 2022. 
 
   -- The Annual General Meeting of Tecan's shareholders will take place on 
      April 12, 2022.

About Tecan

Tecan (www.tecan.com) is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. The company specializes in the development, production and distribution of automation solutions for laboratories in the life sciences sector. Its clients include pharmaceutical and biotechnology companies, university research departments, forensic and diagnostic laboratories. As an original equipment manufacturer (OEM), Tecan is also a leader in developing and manufacturing OEM instruments and components that are then distributed by partner companies. Founded in Switzerland in 1980, the company has manufacturing, research and development sites in both Europe and North America and maintains a sales and service network in 52 countries. In 2020, Tecan generated sales of CHF 731 million (USD 778 million; EUR 683 million). Registered shares of Tecan Group are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).

For further information:

Tecan Group

Martin Brändle

Senior Vice President, Corporate Communications & IR

Tel. +41 (0) 44 922 84 30

Fax +41 (0) 44 922 88 89

investor@tecan.com

www.tecan.com

Attachment 


   -- Press Release with financial tables 
      https://ml-eu.globenewswire.com/Resource/Download/3d1f392f-34d0-4e24-a74b-adba67917d95

(END) Dow Jones Newswires

August 18, 2021 00:30 ET (04:30 GMT)