Sales will be lower than expected due to post-pandemic reductions in inventories, but Sartorius believes this a temporary blip in biopharma.

Dan Stanton, Managing editor

June 19, 2023

2 Min Read
Sartorius lowers 2023 forecast as COVID hangover drags on
Image: DepositPhotos/ Elnur_

Sales and margins will be lower than expected due to post-pandemic reductions in inventories, but Sartorius believes this a temporary blip in the highly positive biopharma space.

It was October 2022 when bioprocess vendor Sartorius warned of a sales growth comedown after demand during the COVID-19 pandemic drove two years of unprecedented growth.

And while the realization of a “swift normalization of demand” was factored into the firm’s 2023 forecasts, six months in and Sartorius has lowered its expectations for the year.

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Image: DepositPhotos/
Elnur_

According to a statement, the factors behind this are “the longer-than-expected lasting reduction in inventories among biopharma customers following the Covid-19 pandemic as well as the relatively low investment activities of customers due to available production capacities.”

Specifically, management says the firm is set to see a percentage decline in the low to mid-teens for both its group and Bioprocess Solutions division. Previously, Sartorius had expected revenue growth in the low single-digit percentage range.

Expected EBITDA margin is also expected to drop to around 30% from the forecasted 33.8%.

“Sartorius views the current demand normalization after the pandemic as a phase that only temporarily overshadows the highly positive growth drivers of the life science and biopharma markets. Accordingly, the company does not change its medium-term targets until 2025.”

Sartorius is not alone among vendors in feeling the post-pandemic hangover. Danaher Corporation, which owns bioprocess peer Cytiva, has seen drops as high as 20% in orders coming out of COVID and has spoken of destocking issues within the industry. Thermo Fisher, meanwhile, has claimed to have been insulated from much of the industry trend but has attributed cut jobs across several bioprocess sites citing “macro-economic conditions.”

About the Author(s)

Dan Stanton

Managing editor

Journalist covering the international biopharmaceutical manufacturing and processing industries.


Founder and editor of Bioprocess Insider, a daily news offshoot of publication Bioprocess International, with expertise in the pharmaceutical and healthcare sectors, in particular, the following niches: CROs, CDMOs, M&A, IPOs, biotech, bioprocessing methods and equipment, drug delivery, regulatory affairs and business development.


From London, UK originally but currently based in Montpellier, France through a round-a-bout adventure that has seen me live and work in Leeds (UK), London, New Zealand, and China.

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