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Recently, German media Handelsblatt reported that BIOTRONIK, the world's leading medical device company, is considering selling its coronary stent and balloon catheter business, with a potential transaction target of 1 billion euros (equivalent to about 7.759 billion yuan). BIOTRONIK REPORTEDLY INTENDS TO SELL THE BUSINESS WITH THE AIM OF REDUCING ITS CURRENT DEBT BURDEN OF AROUND €600 MILLION.
Founded in 1963, BIOTRONIK has developed into a global leader in cardiovascular medical devices and clinical solutions, with more than 20 million medical devices installed in more than 100 countries, starting from the invention of Germany's first pacemaker in 1963 by its founders, Professor Max Schaldach and Otto Franke.
BIOTRONIK IS NOW TAKING STEPS TO FOCUS ON ITS CORE BUSINESS AND REDUCE THE DEBT ACCUMULATED FROM ITS RECENT EXPANSION. Goldman Sachs is being commissioned by Biotronik to help it find a potential buyer to buy its vascular interventional unit, according to people familiar with the matter. Bids are expected based on 2023 financial data, which will be published soon.
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or a valuation of 1 billion euros
In the field of coronary intervention, BIOTRONIK aims to offer a comprehensive portfolio of stents, balloon catheters and guidewires for the treatment of patients with vascular diseases of the heart or lower extremities. As a world trailblazer in physiological stimulation, we have more than 2.5 million products used to improve the lives of patients to date.
In the 90s of the 20th century, Biotronik added a series of vascular interventional devices, such as balloon catheters and stents for the treatment of coronary arteries and peripheral blood vessels. In addition, a series of products have been added, such as urinary catheters for diagnostic and therapeutic purposes and high-frequency generators for excision. In 2003, in order to effectively and safely treat patients with atrial fibrillation, BIOTRONIK launched AlCath Gold, the first ablation catheter with a gold tip.
In addition, in 2011, the company opened a new era in the treatment of coronary artery disease by offering Orsiro, the world's first hybrid drug-eluting stent with a bioresorbable coating. In 2021, it launched the "world's thinnest absorbable percutaneous coronary intervention stent", the Orsiro ® Mission Bioresorbable Polymer Drug-Eluting Stent System (BP-DES). In June 2023, the Oscar Multifunctional Peripheral Catheter was launched in Europe.
Today, Biotronik's Coronary Interventional business has an extensive portfolio of cutting-edge coronary drug stents, balloons, drug-coated balloons, and absorbable stents.
Consider selling your business
HOWEVER, IT HAS RECENTLY BEEN REVEALED THAT BIOTRONIK IS CONSIDERING SELLING ITS CORONARY STENT AND BALLOON CATHETER BUSINESS, AND IS NOW TAKING STEPS TO FOCUS ON ITS CORE BUSINESS AND REDUCE THE DEBT ACCUMULATED FROM ITS RECENT EXPANSION. Goldman Sachs, an investment bank, is selling its vascular interventional unit to potential buyers on behalf of Biotronik, people familiar with the matter said. Bids are expected based on 2023 data, which will be announced soon.
According to reports, due to runaway costs, Biotronik has hired consultants from Rothschild and Freshfields to restructure its finances. Then, in the spring of 2023, banks expanded existing lending and provided liquidity. However, in return, they are said to have asked Biotronik to sell its stent business so that it can pay off its debts. Currently, Biotronik has a debt of around 600 million euros.
Valued at EUR 1 billion
BIOTRONIK GENERATES APPROXIMATELY 400 MILLION EUROS PER YEAR IN REVENUE FROM ITS CARDIAC STENT AND BALLOON CATHETER BUSINESS, WITH AN ANNUAL OPERATING PROFIT OF APPROXIMATELY 70 MILLION TO 80 MILLION EUROS PER YEAR, AND POTENTIAL BUYERS ARE EXPECTED TO PROVIDE APPROXIMATELY 14 TO 15 TIMES THE ANNUAL PROFIT, EQUIVALENT TO 1 BILLION EUROS.
For now, the financial capital is considered to be the main potential bidder, and it is unclear whether competitors such as Abbott, Boston Scientific, Medtronic or others will also show interest. Biotronik and Goldman Sachs declined to respond to this.
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Medical equipment giant
The global cardiovascular company Biotronik was founded in 1963. At that time, German physicist Max Schaldach and electronics engineer Otto Franke collaborated to develop Germany's first implantable pacemaker at the Technical University of Berlin and founded BIOTRONIK in Berlin.
In 1995, BIOTRONIK added a vascular interventional equipment department for the development and sales of a series of products including balloon catheters, coronary stents, and peripheral vascular stents.
Although the layout was relatively late, with the accumulation of technology in the cardiovascular field, BIOTRONIK quickly completed the corner overtaking on this track. Nowadays, the company has developed very comprehensively, and has excellent products in bradycardia, tachycardia, cardiac resynchronization, external equipment, coronary vascular introduction, and peripheral vascular introduction.
Today, BIOTRONIK is the leader of pacemakers in the European market, and is also a first-tier medical device company in the field of cardiovascular intervention and electrophysiological therapy, with representative offices in more than 100 countries and regions. He has always been committed to excellence in innovation in four areas: cardiac rhythm management, electrophysiology, vascular intervention, and neuromodulation.
- IN THE FIELD OF CARDIAC RHYTHM MANAGEMENT, BIOTRONIK OFFERS LEADING-EDGE TECHNOLOGIES, INCLUDING PACEMAKERS, PHYSIOLOGICAL PACING, IMPLANTABLE DEFIBRILLATORS, ELECTRODE LEADS, REMOTE MONITORING SOLUTIONS, AND IMPLANTABLE ECG MONITORS.
- IN THE FIELD OF ELECTROPHYSIOLOGY, BIOTRONIK IS DEDICATED TO THE TREATMENT OF INDIVIDUAL PATIENTS, IN-DEPTH EXPLORATION OF THE ROOT CAUSES OF ARRHYTHMIAS, PROVIDING 3D IMAGING, ABLATION, DIAGNOSTICS AND TRANSSEPTAL SOLUTIONS.
- In the field of vascular intervention, BIOTRONIK is a pioneer in providing cutting-edge products such as coronary drug stents, balloons, drug-coated balloons and absorbable stents.
- In the field of neuromodulation, they create personalized and effective pain relief programs that include innovations such as spinal cord stimulation, remote management, and active care.
Despite the recent financial challenges, Handelsblatt reported that BIOTRONIK's overall revenue exceeded 1.5 billion euros and saw significant growth in 2023. The company's proactive measures are aimed at streamlining operations, focusing on core businesses and ensuring financial stability.
Not long ago, the company also announced the opening of its new Asia-Pacific manufacturing and research center in Singapore. The 20,000-square-meter site will serve as the company's central hub in the Asia-Pacific region, with hundreds of employees working in manufacturing, quality, R&D, and sales and marketing.
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A number of machinery companies reorganized and sold their businesses
With the improvement of economic level and enhanced awareness of medical care, the aging of the global population continues to accelerate, the demand for life and health continues to expand, and medical expenditure is increasing year by year, and the global medical device market size is on the rise year by year, reaching US$616 billion in 2023, a year-on-year increase of 7.11%.
As one of the largest market segments in the world, cardiovascular interventional devices have also ushered in rapid development in recent years. According to the white paper, the global cardiovascular interventional device market size is US$48.3 billion. Due to the continuous increase in the incidence of coronary heart disease, heart failure, valvular disease, congenital heart disease and cardiomyopathy, according to authoritative reports, the global cardiovascular medical device market is expected to reach $82.2 billion in 2026, with a compound annual growth rate of about 6.9% during the forecast period.
However, it should be said that in recent years, the medical device industry has begun to change, except for the giants who spin off/sell traditional businesses while acquiring emerging technologies or potential enterprises to optimize the strategic layout and accelerate strategic transformation. Some companies have also ushered in restructuring, bankruptcy, and the sale of core businesses due to financial and technical problems.
LivaNova is scaling down its Advanced Circular Support (ACS) business unit in an orderly manner
Among them, LivaNova PLC, a global giant medical device company, announced that it has decided to downsize its Advanced Circulatory Support (ACS) business unit in an orderly manner in order to further concentrate resources and strengthen its core cardiopulmonary (CP) and neuromodulation businesses. In the first nine months of 2023, the ACS business contributed approximately 4% of the company's net revenue. It is expected that this closure will be fully completed by the end of 2024.
It is understood that LivaNova's Advanced Circulatory Support (ACS) business unit includes a range of products, mainly designed to support patients with heart and respiratory problems. This includes systems and equipment, such as the LifeSPARC System, Hemolung System, and a variety of surgical kits such as ProtekDuo, TandemHeart, TandemLung, and TandemLife. These products meet the needs of extracorporeal life support (ECLS) and mechanical circulatory support (MCS), providing solutions such as oxygenators, specialized and standard cannulas, blood pumps, pre-connected circuits and accessories.
Cook Medical sells business
Cook Medical announced that it has signed an agreement with C2Dx, Inc., a portfolio company of Shore Capital Partners, to sell the remaining OHNS portfolio to C2Dx as the latest decision in its five-year strategic plan. This agreement does not cover employees, facilities, or manufacturing equipment.
According to the data, Cook Medical was founded in the United States in 1963, the world's largest minimally invasive medical device company, committed to the research and development, production and sales of minimally invasive medical devices, its products cover nearly 60 clinical disciplines, covering vascular intervention, endoscopy, surgery, urology, intensive care, etc., business in more than 130 countries and regions around the world.
Prior to the agreement with C2Dx, the company had sold part of its reproductive health and ENT/head and neck surgery business to Cooper Companies in November 2023. The transaction amount is US$300 million (about RMB 1.96 billion), of which US$200 million will be paid at the end of the transaction, and the remaining US$100 million will be paid in two installments, US$50 million per year.
IceCure Medical或将退市
In early November 2023, IceCure Medical, a leading global leader in minimally invasive cryoablation technology, announced that it had received written notice (the "Notice") from the Nasdaq Stock Market ("NASDAQ") that the Company does not meet the minimum share price requirement for continued listing under Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum price of $1.00 per share.
It is understood that IceCure Medical was founded in 2006 and opened trading on NASDAQ on August 26, 2021 under the ticker symbol "ICCM". Development and marketing of an advanced liquid nitrogen cryoablation therapy for the treatment of tumors (benign and cancerous) by cryotherapy, with a primary focus on breast, kidney, bone, and lung cancers, with CE, FDA, NMPA approvals, and a partner of Medtronic. It has a 180-calendar day compliance period pursuant to Nasdaq Listing Rule 5810(c)(3)(A) to re-comply with the Nasdaq's minimum bid price requirement.
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As the world's leading medical device company, BIOTRONIK is the leader of pacemakers in the European market, and is also a first-tier medical device company in the field of cardiovascular intervention and electrophysiology. However, it has recently been suddenly reported that it is considering selling its coronary intervention business, due to the company's previous out-of-control costs, resulting in debt problems. SO, WHO WILL BE ATTRACTED TO BIOTRONIK'S HIGH-QUALITY CORONARY INTERVENTIONS, AND WHO WILL END UP WITH THEM? In this regard, the home of equipment will continue to pay attention.