New era in medical diagnostics 77 Elektronika

NEW ERA IN MEDICAL DIAGNOSTICS

The electronic medical device manufacturer 77 Elektronika started its operation as a family business in 1986 in Hungary. The company’s focus on innovation and product development resulted in rapid growth and enabled it to achieve a significant global presence. Edina Beale reports.

Since its establishment, 77 Elektronika has been developing and manufacturing two core products: blood glucose monitoring systems and urine analysers. From the very beginning the company’s strategy was to continuously develop and improve its product ranges. One of its recently launched products is Ideal, a new blood glucose meter for personal use which is capable of measuring blood glucose level with laboratory accuracy. “This is a major step forward for both our company and for our customers. In addition to accuracy, measuring is much quicker, and less blood is needed to get results,” adds Mr Zettwitz Sándor, the company’s owner and founder who still manages its day-to-day operations.

In the field of urine analysers there are three product ranges: a small output device used by GPs, a middle range manual device for laboratories and the large automated urine analysers. The products in the small and medium-size range product portfolio have been completely replaced recently by newly developed products. The second generation of large automated urine analysers have just been developed and its market launch is keenly anticipated in April this year. “We have developed numerous technical solutions in these machines which has made the use of the device simpler, which means many more examinations can be carried out with significantly more accurate results than was possible before,” reveals Mr Zettwitz.

Between 6 and 7 per cent of blood glucose meters are exported, although in the foreign markets the large urine analysers are more dominant. The European Union is the most important market, where 77 Elektronika has already sold more than 800 machines. The emerging markets in China and Turkey have also led to increased orders over recent years, with 350 machines sold to date. The company has experienced significant growth in the South American market, especially in Brazil, and other markets are also being explored. Today the firm exports to 80 countries altogether including Australia and several other overseas countries.

State-of-the-art facilities

A total of 360 people are employed by 77 Elektronika in three different sites in Budapest and one other production site outside the capital. The company’s annual turnover reached HUF 10.5 billion this year, which accounts for 13 per cent growth compared

to last year, and 22.6 per cent growth compared to the year 2009.

In line with its ever-increasing sales revenues, the company has gradually outgrown its production capacity which has led to the need to enlarge its facilities. Last year a state-of-the-art production facility was built, providing sufficient capacity to cope with the increased demand for large urine analysers. The company has also invested in establishing a suitable production facility to manufacture its own cuvettes (disposables for the automated analysers). “Customers who purchase our machines will also buy the cuvettes from us. This is a small but complex plastic product that can only be produced in a clean room,” explains Mr Zettwitz. “In the last two years we invested HUF 8–900 million to create two of these clean room facilities.”

Sustaining future growth

The company’s leading position in Hungary as a blood glucose meter supplier has been threatened recently by the increasing competition arriving from the Far East. “Our policy has been to manufacture premium quality

products in the domestic market at 30–35 per cent cheaper than global market prices. However, competitors from the Far East are able to undercut our prices. Unfortunately, in today’s climate the fact that we supply products developed and manufactured in Hungary is no longer an advantage in the domestic market.”

However, sales figures in Hungary show a boom in the market of automated urine analyser machines. The company managed to sell 15 pairs of machines last year, which is very good considering the small size of the country and the current economic climate. At the same time, the soon-to-be launched second generation and the already-started third generation developments of 77 Elektronika automated urine analysers should enable the company to maintain its advantages against rivals in the global market. “This new development is protected by nine patents, which enable us to acquire one third of the global market against two large rivals that had been major players prior to us having a global presence,” confirms Mr Zettwitz. “Our current focus therefore is to carry out the completion and the launch of the second generation of the large urine analyzers, which will introduce new and improved sample results using the Auto Image Evaluation Module.”

This year 77 Elektronika expects to achieve a turnover of HUF 11.5 billion. The company has already earmarked cash for investment in research and development. The medical world is one where there is a continuous need to improve existing technology and develop new solutions. Two things are certain: firstly, with an aging population the need for this company’s products will continue to grow; secondly, 77 Elektronika has the foresight, skills and ability to research, identify and implement the new technologies and is taking steps now to secure its place in the future. n