The Business of Biofabrication

BICO (STO: BICO) has announced its second major divestiture under the leadership of Maria Forss, who became President and CEO in November 2023. Following the sale of Ginolis last year, BICO has now agreed to sell its Nanoscribe brand to Germany-based LAB14 for €26 million. The transaction is expected to close by the end of 2024, marking another milestone in the company’s BICO 2.0 strategy, which focuses on life sciences.

Forss highlighted that the divestiture aligns with BICO’s streamlined strategy, noting that while Nanoscribe is a profitable and stable business, its primary potential and customer base lie outside the life sciences, making it a non-core asset for the company moving forward.

As of November 21, 2024, BICO’s stock closed at SEK 34.62 ($3.12), reflecting a 27% decline over the past 12 months amid ongoing restructuring efforts and market adjustments to its refined focus.

Nanoscribe’s Journey and Market Impact

Nanoscribe, a leader in high-resolution 3D printing, was acquired by BICO (formerly Cellink) in May 2021 under former CEO Erik Gatenholm. The acquisition aimed to integrate Nanoscribe’s microstructural bioprinting capabilities with BICO’s macrostructural expertise, enabling advancements in tissue engineering, including vascularization and cell support structures.

Renowned for its two-photon polymerization (2PP) technology, Nanoscribe’s innovations have been pivotal in high-precision manufacturing for various applications. Its Quantum X align, for example, earned the prestigious 2024 ECOC Industry Award for its role in photonic integration. The technology enables precise 3D printing of optical components, with alignment accuracy down to 100 nanometers—critical for applications such as photonic chips and optical communication systems.

Picture of Nanoscribe high-precision 3D printer.

Despite these breakthroughs, Nanoscribe’s primary market lies outside life sciences, making it a non-core asset under BICO’s updated strategy.

Financial Impact and Future Prospects

The sale is expected to yield a profit of around 10% above its book value as of Q3 2024. Proceeds will be directed toward reducing BICO’s long-term debt, which currently stands at approximately SEK 1.4 billion ($126 million). The company plans to treat Nanoscribe as a discontinued operation in its Q4 2024 financial reports, with full financial details disclosed in February 2025.

LAB14, the buyer, specializes in nano- and microfabrication technologies and owns several advanced manufacturing companies. Nanoscribe will join LAB14’s portfolio, which includes Heidelberg Instruments, Osiris International, and Nanosurf, creating synergies for further growth in photonics, semiconductors, and optical communication.

Nanoscribe’s co-founders, Martin Hermatschweiler and Michael Thiel, along with CFO Lars Tritschler, will remain with the company to ensure a smooth transition under LAB14’s ownership.

BICO’s Life Sciences Focus and Strategic Streamlining

The Nanoscribe divestiture follows BICO’s sale of Ginolis in 2023, a Finnish company sold for a symbolic €1 amid post-pandemic challenges. Both sales underscore BICO’s commitment to its BICO 2.0 strategy, which prioritizes scalability and profitability in the life sciences sector.

The strategy has already begun yielding results, with BICO reporting stable sales and positive EBITDA during Q2 2024 despite market volatility. The company now operates eight subsidiaries focused on core areas within life sciences, including Cellink, Visikol, and MatTek.

What’s Next for BICO and Nanoscribe?

BICO’s upcoming Q3 2024 report, due November 26, will shed further light on its financial performance and roadmap under Forss’s leadership. As the company narrows its focus, questions remain about which non-core subsidiaries might be next in its portfolio reshaping.

For Nanoscribe, the transition to LAB14 opens doors to broader markets, particularly in photonics and optical communication. Freed from the constraints of a life sciences-centered parent company, Nanoscribe is poised to enhance its impact in advanced manufacturing.

This divestiture is a win-win scenario: BICO strengthens its focus on life sciences, while Nanoscribe finds a better-aligned home to thrive in its niche markets. As bioprinting and related technologies continue to evolve, the story of BICO and Nanoscribe serves as a reminder of the strategic pivots companies must make to stay competitive.

About BICO

BICO (formerly Cellink) is a global leader in bioconvergence, merging biology, engineering, and technology to create innovative solutions for life sciences and healthcare. The company specializes in bioprinting, cell culturing, and digital manufacturing technologies, enabling advancements in drug development, tissue engineering, and diagnostics. Headquartered in Gothenburg, Sweden, BICO operates a diverse portfolio of subsidiaries and focuses on delivering scalable, profitable solutions that enhance human health and sustainability.

About Nanoscribe

Nanoscribe is a pioneering company in high-resolution 3D printing and microfabrication technology, known for its groundbreaking two-photon polymerization (2PP) solutions. Headquartered in Karlsruhe, Germany, Nanoscribe’s technology enables the creation of highly precise microstructures and components used in photonics, semiconductors, optical communication, and biomedical applications. Its award-winning products, such as the Quantum X series, have set industry standards for accuracy and innovation in micro-scale manufacturing.