Business model for sustainable growth
BioGaia’s business model is based on long-term relationships in three external networks – research, production and distribution. Thanks to this successful model, BioGaia has been able to grow globally with a small, efficient and agile organization.
In the research there is collaboration with just over 50 research institutes and clinics worldwide. Many of the researchers are among the foremost in their field. Some collaborations have been ongoing since BioGaia was founded, others are newer. At present some 60 studies are in progress around the world.
The products are manufactured and packed in six different facilities in Sweden, Denmark, Belgium, Spain and the USA. Long-term and close collaboration with suppliers means that production and logistics are continually improved and can be adapted to market needs as well as new demands for sustainability.
Suppliers, above all the wholly-owned subsidiary BioGaia Production, are also key partners in product development, both for creating new products and further developing existing ones.
During 2017 BioGaia’s purchasing department started work on getting all producers and suppliers of cultures, raw materials and analysis services to sign up to the company’s Code of Conduct. Of the 16 suppliers, half have now signed up to the code and the remainder are in the process of doing so. The aim is that all suppliers will be signatories to BioGaia’s Code of Conduct in 2018.
The distribution network consists of some 80 partners with sales in 100 countries. Most of these companies have sales representatives that visit doctors and other healthcare professionals. By providing information on the published results of clinical trials they build the doctors’ interest and confidence and they then recommend the products to their patients who in turn buy the products at pharmacies and similar retail outlets.
In most markets BioGaia’s products are registered as dietary supplements. BioGaia’s regulatory specialists collaborate with the distributors’ experts to ensure compliance with local regulations.
BioGaia has also developed a Code of Conduct for distribution partners and work on getting all partners as signatories will start in 2018.
BioGaia’s Supplier Code of Conduct specifies minimum requirements and covers areas such as respect for human rights, working environment and workplace safety as well as environmental issues and business ethics/anti-corruption.
To date, 202 clinical studies using BioGaia’s human strains of Lactobacillus reuteri have been performed on 17,200 individuals of all ages.
BioGaia has a strong network of distribution partners around the globe. Most of the around 80 partners are pharmaceutical or other health companies.
BioGaia’s products are sold in around 100 countries. The largest segment is paediatrics, accounting for over 80 per cent of total sales.