Interview with Dr. Zsolt Németh, CEO, Diatron

13 May Interview with Dr. Zsolt Németh, CEO, Diatron

Could you briefly introduce yourself and your professional background?

I’m a chemical engineer with a PhD in physical chemistry. I graduated from the Technical University of Budapest, the largest engineering university in Hungary, and I’m proud to be an alumnus. I began my career at General Electric, where I spent eight years as a project manager, overseeing the transfer from R&D to production. It was a great learning experience that exposed me to all aspects of the company, from marketing and sales to technical teams and scientists.

After GE, I moved into the pharmaceutical industry. My first senior role was at GlaxoSmithKline as production manager of a site manufacturing active ingredients for innovative vaccines. I later served as general manager at Xellia, a Danish company specializing in antibiotics and then at Ceva Hungary, which develops vaccines for veterinary use.

Two years ago, I joined Diatron, part of the STRATEC Group, as general manager. This is my first role in the medical device sector and it has been an exciting new challenge beyond the pharmaceutical industry.

Diatron has grown from a startup in 1989 into a global leader in hematology and clinical chemistry analyzers, with products sold in over 100 countries. Can you share a brief overview of the company’s history and growth?

Diatron was founded by Hungarian engineers as a startup focused on hematology equipment and has grown significantly since. In 2016, it was acquired by STRATEC and became part of the group. Today, Diatron operates in three main segments. The first is hematology, where we analyze red and white blood cells in human samples. The second is clinical chemistry, where we examine the chemical composition of blood. We not only develop and produce lab equipment but also manufacture the reagents, diluents and liquids required, making us somewhat of a hybrid between a medical device and chemical company. We also develop our own test methods, especially in hematology and clinical chemistry, giving us a more integrated and research-driven approach.

Most of Diatron’s business comes through major OEM partners who sell our products under their own brand names. Some of our key partners include companies like Zoetis, FUJIFILM Diosynth Biotechnologies and Siemens. However, about 20-30% of our business is still under the Diatron brand.

When we work with OEMs, such as Siemens, they provide very specific requirements and we tailor the hardware and software accordingly. These customized systems are never sold under the Diatron name. While the underlying science may be similar, each solution is uniquely developed to meet the partner’s needs, often involving one to two years of dedicated development.

Diatron has been part of the STRATEC Group for nearly two decades. How has this partnership influenced the business operations, development and strategy?

STRATEC, as a larger group, offers Diatron valuable support beyond what we could achieve alone. We are currently co-developing a new hematology device in close collaboration with STRATEC’s scientific and engineering teams. While Diatron has strong in-house expertise, especially in optical science and engineering, we often leverage STRATEC’s broader expert pool to enhance our R&D.

Beyond product development, we also collaborate on sales strategies, customer engagement and global procurement. This integration allows us to benefit from STRATEC’s scale, such as better pricing through centralized purchasing and offering customers comprehensive solutions from across the group. While Diatron operates with its own P&L and responsibilities, we are deeply integrated into STRATEC’s global processes and continue to strengthen that partnership.

What are some of the most exciting recent projects and innovations at Diatron?

We are excited to launch our new clinical chemistry analyzer, the P780, in the coming months. It’s our highest-throughput model, capable of performing 780 tests per hour. More importantly, it features modern software and advanced testing capabilities. We are currently in the final stages of clinical testing under real-world conditions to ensure everything is fine-tuned before the summer launch. There is already strong interest from several major companies and we are in discussions about potential commercial collaborations. It’s one of our most exciting projects this year.

Our Aquila range is a 3-part hematology analyzer, capable of differentiating three types of white blood cells along with red cell counts. What makes it unique is its built-in battery and ease of use — it doesn’t require a highly trained lab technician. We are currently upgrading the device with plans to relaunch it in underserved regions, particularly in parts of Asia and Africa. It’s designed for settings with limited infrastructure or unreliable electricity and can be used in emergencies where fast, on-site results are critical. After the final improvements, we aim to bring this solution to areas that need it most.

We are working closely with STRATEC to launch a new product in the veterinary field, either later this year or early next year. At the same time, we are beginning collaborations with Hungarian and other European MedTech companies. While we don’t expect major breakthroughs in hematology or clinical chemistry in the near term, there is still room for innovation, especially in improving user experience, cost efficiency and rapid testing in special cases like with Aquila. By partnering with others, we aim to strengthen our position and better compete with major global players, particularly from China and Japan.

Diatron has recently expanded its presence in Asia, particularly in India, with plans for local reagent manufacturing. Where is your manufacturing currently focused and how do you plan to expand it?

Currently, all our manufacturing is done in Budapest. We have sales offices in the US and India, but no production outside Hungary yet. However, we are actively working to establish manufacturing in India, as it’s a key market with strong growth and increasing price pressure. To stay competitive, especially in India, we plan to localize part of our production, initially through contract manufacturing, with the potential to establish our own facility later. Producing reagents and consumables closer to the market also helps reduce logistics and customs costs, making our offering more attractive in this fast-growing region.

How are Diatron’s sales split globally, including some insights or numbers?

The US is Diatron’s largest market and strengthening economic ties between the US, Hungary and Europe is crucial for us. We are concerned about potential new customs fees, which could increase prices by up to 20% and affect our competitiveness, but we hope for a positive resolution.

STRATEC also considers the US a key market and we are closely collaborating with major American partners in both development and production. India and Southeast Asia are key growth areas for us, where we’ve already established a presence. In contrast, Europe isn’t a strong market for Diatron, as most labs here use larger-scale equipment, while our products are geared toward small and mid-sized labs. We are currently less active in Africa and South America due to strong competition from Chinese manufacturers. To succeed there, we would need to identify specific markets where we can offer a clear advantage.

We strive to be transparent with customers about new opportunities and carefully assess potential partners to ensure a good fit. For us, it’s about building a true partnership where the customer is satisfied with our products and services. Both STRATEC and Diatron have two key competitive advantages: our strong scientific and engineering expertise and our exceptional customer service. As a mid-sized company, we can quickly respond to customer issues, often within one or two days, offering swift solutions and support when needed. If a partner needs tailored equipment, software or solutions, we can quickly adapt existing models to meet their needs. This flexibility is our competitive edge. Unlike larger competitors, we may not compete on price, but we excel in customer service and flexibility, where we can truly stand out.

What are your goals and vision for the company over the next five to ten years?

The company’s vision is to innovate and stay competitive while continuing our focus on customer service and flexibility. We aim to ensure that partners are happy with our collaboration, making Diatron and STRATEC their first choice. In the coming years, we plan to form partnerships with other companies to enhance sales and develop tailored solutions. Additionally, we will improve internal efficiency by strengthening collaboration between our teams in Germany, Switzerland, Romania and Hungary to deliver faster solutions.

Why is now a good time to invest in Hungary and why should companies partner with Diatron?

Hungary is a great investment destination for several reasons. It has a highly skilled workforce, with strong technical and economic education. As part of the European Union, Hungary offers relatively low labor costs and attractive tax rates, especially for industry. The Hungarian government has been proactive in attracting investors, offering financial support and creating a business-friendly environment, making it an appealing choice for investment. Hungary has a strong pool of experts in the MedTech sector, with companies like GE Healthcare and Siemens having a long history in the country. Both have developed vast experience with software developers, scientists and AI experts.

The country’s collaboration with technical and scientific universities, combined with its strong technical background and financially attractive environment, makes Hungary an excellent choice for companies developing AI solutions, image analysis and software. Diatron has extensive experience in hematology, clinical chemistry and is expanding into other areas like immunoassays through strong external partnerships. As a small, flexible company, we offer open opportunities for collaboration with companies that share our goals. Our streamlined approach allows for quick decision-making and effective partnerships without the bureaucracy of larger organizations.