The medical laboratories market - France

Medical biology laboratories (LBM), formerly known as medical analysis laboratories (LAM), are facilities whose function is to carry out medical diagnosis and monitoring using samples of various human biological fluids. They are managed by biologists. The French market includes suppliers of reagents and consumables (gloves, masks, etc.), various laboratory groupings, sampling sites, technical platforms and, last but not least, government bodies (Assurance maladie). Sales in France have grown strongly, thanks in particular to PCR testing (120 million tests were carried out between May 2020 and the end of 2022, generating high revenues for laboratories and representing 25% of laboratory sales). This is reflected in the evolution of the CSBM (Consumption of Medical Care and Goods) in analysis laboratories, which has exploded in 2021[Alternatives économiques]. This strong growth is attracting a number of investors, such as Ardian and BPI, who see a high return on investment. At the same time, the market is undergoing radical restructuring, with the number of laboratories declining considerably over the past 10 years , and mergers and acquisitions multiplying. In June 2022, for example, Innovie acquired Biocolinic Laboratories. Nevertheless, the number of sampling sites and employees remains stable, despite the rationalization of the sector. In 2022 and 2023, the sector's sales are down on 2020 and 2021, but should reach a much higher level than in 2019. Against this backdrop, where medical biology laboratories have enjoyed strong revenues during the health crisis, and where the Assurance Maladie has disbursed 7.3 billion euros to finance tests[Alternatives économiques], the French Social Security Financing Bill for 2023 aims to reduce fees for routine medical biology in order to achieve savings of 250 million euros. The announcement of this measure has led to sharp tensions between the government and industry representatives.