Biologie médicale : Towards more pricing pressure in France?

The Igas-IGF report that has been prepared by two independent government bodies and published in the course of July 2025 is having a tough stance on the biology sector in France. It has made 20 recommendations that would lead to a sharp decline in profitability over time towards more “reasonable” levels and the average (EBITDA – Capex)/sales ratio of 7% in the entire healthcare sector. In its July report on 2026 perspectives, the CNAM highlights inter-alia the economic rents of various medical sectors, including biology, that generate an EBITDA margin in excess of 15%, and some medical tests that are considered irrelevant. This creates some regulatory uncertainty as we don’t know yet if all or part of the Igas-IGF suggestions will be adopted, and when they will be implemented. Given the budget constraints in France and the willingness of the CNAM to put an end to the aforementioned economic rents in certain sectors, including biology, we believe that the probability of an acceleration of price declines from 2027 has increased. In this report, we review the potential impacts on Biogroup (BIOGRP, B3/B), Cerba (CERBA, Caa1/CCC+) and Synlab (SYABGR, B2/B).