Scale, Automation and Moats in Diagnostics

RBC BlueBay’s Ben Yeoh examines how operational scale underpins competitive advantage in a flagship U.S. diagnostics lab 

• Processing over 100,000 samples daily, automation lowers error rates and raises marginal profitability once fixed costs are absorbed.

• Workflow design enables more tests per sample, driving revenue intensity without proportional cost growth.

• Culture and technician retention remain decisive in a 24/7, high-skill environment where automation complements—not replaces—lab staff.

Is the moat technological—or organisational? The full note dissects the operating model.