In terms of stock prices, companies in the diagnostics sector have been big underperformers in three out of the past four years. In business terms, the war for market share continues. However, the intensity of the price wars between well-established players and new technology companies has diminished. It might be too early to board the bus, but it is probably time to put them back on your watchlist for tactical purposes. The reason: One simple characteristic of these businesses is that they fulfill a need which is a necessity – and one that is not postponed when it arises.
