Darwin AG : Personalised lifestyle products based on DNA

Darwin is a European healthcare and biotechnology company, focused on human genetics. The genetic analyses carried out in its own laboratory are used in diagnostics, therapy and prevention of diseases as well as in the production of individually designed nutritional supplements and cosmetics. Its business is divided into diagnostics & personalised products (c. 30% of 2024 total revenues) and drug import & medical devices (c.70%) as well as minority investments. The company is growing rapidly and should generate profits from 2026 after two years of being negatively impacted by high IT development costs at Novogenia. We see CAGR revenue growth of +62% (2024 to 2027e, mainly driven by diagnostics & personalised products through partnerships with 10X Health and M42) and expanding EBITDA margins (+1610bp to 12.2% in 2027e vs 2025e). We initiate coverage with an Outperform rating and a target price of € 22.