BICO (STO: BICO) announced its second divestiture since Maria Forss took over as President and CEO in November 2023. Following the sale of Ginolis last year, BICO has now entered an agreement to sell its Nanoscribe brand to LAB14 for €26 million. The transaction is expected to close in the fourth quarter of 2024, aligning with BICO’s updated BICO 2.0 strategy.

According to Forss, the offloading is part of BICO’s ongoing focus on the life sciences sector: “The divestment of Nanoscribe is a major step in delivering on our updated strategy, which was launched during our Capital Markets Day in September. Nanoscribe is a profitable and stable business; however, it has its largest potential and customer base outside life science and is therefore concluded as non-core for BICO going forward.”

As of November 21, 2024, BICO’s stock closed at SEK 34.62 ($3.12). Over the past 12 months, the stock has declined by approximately 27%, reflecting the company’s restructuring efforts and market reactions to its strategic realignment.

BICO CEO Maria Forss. Image courtesy of BICO.

Nanoscribe’s Profile and Market Impact

In May 2021, under the leadership of then-CEO Erik Gatenholm, BICO (formerly Cellink) acquired Nanoscribe to complement BICO’s existing product portfolio, including boosting the brand’s bioprinting capabilities. By combining Nanoscribe’s microstructural bioprinting technology with BICO’s macrostructural bioprinting expertise, the company aimed to create more realistic tissue architectures, including vascularization and cell support structures.

Nanoscribe’s technology was expected to facilitate the development of consumables such as implants, microneedles, microporous membranes, and tools for omics applications, generating additional recurring revenue. The acquisition aligned with BICO’s broader bioconvergence strategy. By incorporating Nanoscribe’s two-photon polymerization (2PP) technology, BICO sought to stay competitive in the miniaturization of devices across a wide range of applications, particularly in life sciences.

Known for its groundbreaking 2PP technology, Nanoscribe has been a leader in high-resolution 3D printing applications. Its recent innovation, the Quantum X align, won the 2024 European Conference on Optical Communication (ECOC) Industry Award in the “Chip-Scale Packaging/Optical Sub-Assembly” category.

This recognition highlights the brand’s pioneering role in photonic integration, with innovations such as Aligned 2-Photon Lithography (A2PL), a technique for directly 3D printing precisely aligned optical components, and Two-Photon Grayscale Lithography (2GL), a proprietary technology that uses dynamic voxel tuning to create detailed 3D microstructures with unprecedented speed and accuracy.

Meanwhile, the Quantum X align is vital for industries requiring precise and reliable optical connections. With lateral alignment accuracy down to 100 nanometers and compatibility with materials like silicon, indium phosphide, and glass, it is used to 3D print components such as optical couplers and freeform micro-optics. It interconnects for photonic chips and optical fibers. These applications make it highly valued in photonics manufacturing. Despite its success, the company’s primary market lies outside life sciences—a key factor in BICO’s decision to sell the brand.

Quantum X align. Image courtesy of Nanoscribe.

The transaction is expected to bring a profit of about 10% compared to the value recorded in BICO’s books at the end of the third quarter of 2024. The exact amount could change depending on exchange rates and when the deal is finalized. What’s more, the money from the sale will be used to pay off part of BICO’s long-term debt, which, as of the latest available data, stands at approximately SEK1.4 billion ($126 million), including loans and bonds owed to multiple creditors.

According to BICO, Nanoscribe will be treated as a discontinued operation in BICO’s financial reports from Q4 2024, with the final financial impact to be disclosed in the upcoming year-end report 2024, which will be reported on February 19, 2025.

BU Researcher Mustafa Çağatay Karakan uses Nanoscribe’s 3D printer to make scaffolds essential for growing heart tissues at the White Lab. Image courtesy of 3DPrint.com.

Taking over the Nanoscribe reins will be LAB14, a German company specializing in advanced manufacturing solutions like nano- and microfabrication technologies. LAB14’s portfolio includes companies focused on semiconductor manufacturing, microelectronics, and materials science, suggesting that Nanoscribe will find a more aligned home under its new ownership. Nanoscribe will be joining eight sister companies, including Heidelberg Instruments, which makes direct-write lithography systems; Osiris International, for equipment used in semiconductor and microsystems technology; and Nanosurf, which makes atomic force microscopes, among others.

Nanoscribe’s leadership, including co-founders Martin Hermatschweiler (CEO) and Michael Thiel (CSO), is expected to continue driving the company’s innovative efforts, ensuring a smooth transition and sustained growth under LAB14.

Nanoscribe founders Michael Thiel (left) and Martin Hermatschweiler (right), with CFO Lars Tritschler (middle). Image courtesy of Nanoscribe

BICO’s Strategic Direction

The sale of Nanoscribe follows the November 2023 divestiture of Finnish company Ginolis, which was sold through a management buyout for a symbolic €1. Ginolis had also been deemed a non-core asset due to its post-pandemic market challenges. Both moves show that BICO is committed to its new BICO 2.0 strategy, concentrating resources on life sciences.

The company’s updated strategy emphasizes profitability and scalability in the life sciences sector. During the second quarter of 2024, BICO reported stable sales and positive EBITDA across all business areas despite a volatile market environment. The proceeds from divestitures, coupled with operational adjustments, strengthen the company’s position in its core markets.

Cell culturing with Nanoscribe’s Quantum X bio. Image courtesy of Nanoscribe.

Under the new strategy, BICO now has eight subsidiaries, focusing on core areas within life sciences. However, this leaves room to wonder which company might be next in its quest to streamline operations. While many of its subsidiaries, such as Cellink, Visikol, and MatTek, have clear and direct connections to life sciences, others may have a broader focus or serve industries outside BICO’s sharpened life sciences strategy. This could influence the executive’s decisions to refine its portfolio further.

Looking Ahead, the upcoming Q3 report, set for release on November 26, 2024, will provide additional insight into the company’s financial performance and roadmap under Forss’s leadership. In the meantime, for Nanoscribe, the transition to LAB14 could mark an opportunity to expand its impact in markets outside life sciences, from photonics to optical communication.