Bard Medical Device Company Intelligence Report

Published:August 2011
No. of Pages: 48
Price: $515



  

Report Summary

Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.

Headquartered in Murray Hill, New Jersey, US, C.R. Bard (Bard) develops and manufactures medical, surgical, diagnostic and patient care devices. The company sells its products to hospitals, individual healthcare professionals, extended care health facilities and alternate site facilities in the US and in more than 100 other countries, principally in Europe and Japan. In general, Bard’s products are intended to be used once and then discarded or implanted either temporarily or permanently.

Bard medical device healthcare industry report serves through five divisions – Bard Access Systems Inc, Bard Electrophysiology Division, Bard Medical Division, Bard Peripheral Vascular Inc (including Bard Biopsy Systems) and Davol Inc – and four major product group categories – vascular, urology, oncology and surgical specialties. The company also has a product group of ‘Other Products’.

Vascular – Bard’s vascular products are produced by Bard Electrophysiology and Bard Peripheral Vascular. The company’s vascular products cover a wide range of minimally-invasive devices for the treatment of peripheral vascular disease (PVD) and heart arrhythmias. These products include: percutaneous transluminal angioplasty (PTA) catheters, chronic total occlusions (CTO) catheters, guidewires, introducers and accessories; peripheral vascular stents and stent grafts, vena cava filters and biopsy devices; electrophysiology products, including electrophysiology laboratory systems and diagnostic, therapeutic and temporary pacing electrode catheters; and fabrics, meshes and implantable vascular grafts.

Bard led the industry with the first angioplasty balloon catheter in 1980, giving cardiologists a safer and less costly alternative to open-heart procedures.

The January 2008 acquisition of the LifeStent range of stents from Edwards Lifesciences provided Bard with one of the broadest product offerings for peripheral vascular stenting.

The acquisition of Y-Med in November 2009 provided Bard with access to the VascuTrak catheter range.

More recently, the acquisition of FlowCardia in April 2010 expanded Bard’s portfolio of CTO endovascular products.

Urology – Bard claims to be the worldwide market leader in urological diagnostic and interventional products with a focus on urological drainage, continence and prostate disease management. Through its Bard Medical Division, the company has expanded its urology business to products in the areas of infection control, continence management, prostate management and catheter stabilisation.

The Foley catheter, which Bard introduced in 1934, remains one of the most important products in the urological field. Other urology products include: surgical slings used to treat stress urinary incontinence; faecal incontinence products; natural and synthetic devices for the treatment of pelvic floor and vaginal prolapse; brachytherapy services, devices and radioactive seeds used to treat prostate cancer; intermittent urinary drainage catheters, urine monitoring and collection systems; ureteral stents; and specialty devices for ureteroscopic procedures and stone removal.

Bard entered the brachytherapy business in March 1998 with the purchase of Proseed Inc, which offered a turnkey programme that allows a hospital to implement brachytherapy treatment with lower investment cost and financial risk.

The acquisition of Venetec International in 2006 gave Bard access to the StatLock range of catheter stabilisation devices, which are used primarily to secure peripheral intravenous catheters.

Oncology – Bard’s oncology products and services are provided through Bard Access Systems, Bard Biopsy Systems and Bard Medical Division. They are designed for the treatment and management of various cancers and other diseases and disorders. These include specialty access catheters and ports; vascular access ultrasound devices, dialysis access catheters and enteral feeding devices.

The acquisition of Dymax Corp extended Bard Access Systems’ portfolio to include ultrasound systems that allow physicians to have real-time visualisation of needle placement.

The purchase of SenoRx in July 2010 enabled Bard to expand its biopsy business into the stereotactic X-ray segments.
Surgical Specialties – Bard maintains a complete line of advanced surgical specialty products and services to complement its focus on disease state management. These products are produced by Bard Medical and Davol and include implanted patches and fixation systems for hernia and other soft tissue repairs, irrigation devices for orthopaedic, laparoscopic and gynaecological procedures and products for topical haemostasis.
Other Products – The other product group includes irrigation, wound drainage and certain original equipment manufacturer (OEM) products.
Bard employs approximately 11,700 people. In 2010, the company generated net earnings of US$510 million on revenues of US$2.72 billion. Net sales in the first six months of 2011 reached US$1.43 billion.

Bard's shares are traded on the New York Stock Exchange. In August 2011, ValueAct Capital Management, a San Francisco, California-based hedge fund, announced that it held 6.5% of the company's shares.

This company report provides

Overview
Key contact information
Introduction to the company and its current activities
Summary of its financial performance
Who are the company’s major competitors?
Key recent events in an “at a glance” format

Financial Review
Current year and annual financial data, including revenue breakdowns by product area and geographic region (if available)
Table providing in-depth five-year financial analysis
Employee data, including breakdown by company division and geographic location

Strategic Focus
Investigates the company’s aims and its areas of focus

Products
Core product areas, key brands, product approvals and launches Research and Development
How much has been invested in R&D?
Where is the research based?
What alliances and agreements does the company have and with whom?

Manufacturing and Distribution
Identifying the company’s manufacturing locations
Sales and marketing facilities

Agreements
With whom has the company reached agreements and what do they involve?
Key contracts awarded
Mergers, Acquisitions, Minority Investments and Divestments
Litigation

Key Corporate Events

The report was produced as part of Medical Device Companies Analysis (MDCA).

Table of Contents
OVERVIEW.1
FINANCIAL REVIEW3
First Half 2011 Financial Results 3
Vascular .4
Urology 4
Oncology .4
Surgical Specialty .5
Other 5
2010 Financial Results.5
Vascular .7
Urology 7
Oncology .8
Surgical Specialty .9
Other 9
Five-Year Financial Data10
Outlook11
Employees.11
STRATEGIC FOCUS12
PRODUCTS13
Vascular.14
Urology16
Oncology 18
Surgical Specialty.20
RESEARCH AND DEVELOPMENT.22
Product Pipeline.22
Studies and Trials 24
RESILIENT Trial.24
Bard Flair Endovascular Stent Graft24
MANUFACTURING AND DISTRIBUTION26
AGREEMENTS .27
Acacia Research’s Catheter Flushing Division27
Covalon Technologies.27
RTI Biologics 28
Thermal Scalpel 28
Philips.28
Medegen29
Genzyme29
TyRx Pharma29
Enpath Medical30
CardioTech International (now AdvanSource Biomaterials)30
Mentor30
Tissue Science Laboratories.30
Mediwatch .31
Floreane Medical Implants 31
Specialized Health Products International .31
Endologix.31
Collagen (Allergan)31
IS Pharma (formerly Maelor)32
Integra LifeSciences32
MERGERS AND ACQUISITIONS . 33
Romedex International 33
SenoRx .34
Bard Sendirian.34
FlowCardia.34
PacerView Technologies Assets.34
Spire Corporation Assets34
Y-Med34
Brennen Medical.35
Specialized Health Products International.35
LifeStent Product Line from Edwards Lifesciences.35
Inrad.35
Venetec International.36
PST’s Self-Expanding Stent Assets.36
Genyx Medical.36
Sorenson Medical’s Closed Suction Catheter System 36
Onux Medical 37
Bridger Biomedical .37
Prostate Services of America, Amertek Medical and Alton Design.37
Biomedical Instruments and Products GmbH’s Biopsy Device37
Source Tech Medical37
Imagyn Medical Technologies - Rights to Seed Business.37
NMT Medical’s Vena Cava Filter Business38
Mill-Rose Laboratories .38
Surgical Sense .38
Biosearch Medical Products’ Intermittent Urinary Catheter Business 38
Navarre Biomedical 38
Dymax 38
ProSeed38
Endomatrix 39
Impra 39
American Hydro-Surgical Instruments .39
Vas Cath .39
Angiomed 39
Cardial 39
Bainbridge Sciences .39
JOINT VENTURES  40
Medicon40
MINORITY INVESTMENTS .41
Hydromer 41
DIVESTITURES  42
Endoscopic Technologies Business42
Cardiopulmonary Business 42
Intra-Aortic Balloon Catheter and Pump Business.42
Coronary Cath Lab Business 42
Neonatal Product Line .42
Surgical Suction Product Line42
Sani-Spec Product Line.43
Sure-Closure System 43
Inspiron Division .43
MedSystems Division .43
Shield Healthcare Centers .43
Electromedical Systems .43
LITIGATION 44
Product Liability Matters. 44
Hernia Repair Implant Products 44
Women’s Health Products 44
Vena Cava Filter Products. 45
Hologic.45
Atrium Medical and Endologix.45
Covidien.45
W.L. Gore & Associates45
St Francis Medical Center. 46
US Department of Health and Human Services, OIG. 46
KEY CORPORATE EVENTS47
List of Tables
SUMMARY OPERATING RESULTS.iii
Recent Key Events2
Bard - First Half 2011 Financial Results.3
Bard - First Half 2011 Sales by Product Area.3
Bard - First Half 2011 Sales by Geographic Area.3
Bard - Annual Financial Results, 2006-20105
Bard - Annual Sales by Geographic Area, 2006-20106
Bard - Annual Sales by Product Area, 2006-20106
Bard – Five-Year Financial Summary.10
Bard – Product Contributions to Net Sales, 2006-201013
Key Vascular Products.14
Key Urology Products16
Key Oncology Products18
Key Surgical Specialty Products.20
Bard - Annual R&D Expenditure, 2006-201022
Bard – Principal Offices and Manufacturing Locations26
Agreements Summary27
Mergers and Acquisitions Summary.33
List of Charts
Bard - Annual Sales and Operating Income, 2006-20105
Bard - Annual Sales by Geographic Area, 2006-20106
Bard - Annual Sales by Product Area, 2006-20107
Bard - 2010 Sales by Product Group13
Bard - Annual Vascular Product Sales, 2006-2010.14
Bard - Annual Urology Product Sales, 2006-201016
Bard - Annual Oncology Product Sales, 2006-201018
Bard - Annual Surgical Specialty Product Sales, 2006-201021

Carestream Health Medical Device Company Intelligence Report

Published:August 2011
No. of Pages: 34

Price: $515

 

   

Report Summary

Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.

Carestream Health provides dental and medical imaging systems and healthcare information technology (IT) solutions; molecular imaging systems for the life science research and drug discovery/development market segments; and X-ray film and digital X-ray products for the non-destructive testing market. It also operates the Carestream Advanced Materials group, which is developing new film products for the printed electronics market, including solar-panel and touch-screen technology.

Carestream Health was formed in May 2007 following Onex Corporation's acquisition of Eastman Kodak's Health Group for US$2.35 billion. Carestream Health has licensed the Kodak brand for use with its own brands across its portfolio of medical imaging and healthcare IT products.

In 2010, Carestream Health generated revenues of US$2.3 billion and served a global customer base in 150 countries. Its revenues in the first six months of 2011 amounted to US$1.15 billion. The company employs approximately 7,425 people worldwide.

Onex is a Canada-based private equity group that trades publicly on the Canadian stock exchange. It owns a portfolio of companies that are active in a diverse range of industry segments, including: healthcare, electronics manufacturing services, aerostructures, financial services, customer support services, metal services and other businesses such as aircraft, commercial vehicles, gaming, building products and real estate. In addition to Carestream Health, Onex’ other healthcare interests consist of: Center for Diagnostic Imaging, a US provider of diagnostic and therapeutic radiology services; Skilled Healthcare Group, an organisation of skilled nursing and assisted living facilities operators in the US; and Res-Care, a leading provider of residential, training, educational and support services for people living with disabilities and special needs in the US, Canada and Europe. Onex completed the sale of its interest in Emergency Medical Services Corporation in May 2011.

This company report provides

Overview
Key contact information
Introduction to the company and its current activities
Summary of its financial performance
Who are the company’s major competitors?
Key recent events in an “at a glance” format

Financial Review
Current year and annual financial data, including revenue breakdowns by product area and geographic region (if available)
Table providing in-depth five-year financial analysis
Employee data, including breakdown by company division and geographic location

Strategic Focus
Investigates the company’s aims and its areas of focus

Products
Core product areas, key brands, product approvals and launches Research and Development
How much has been invested in R&D?
Where is the research based?
What alliances and agreements does the company have and with whom?

Manufacturing and Distribution
Identifying the company’s manufacturing locations
Sales and marketing facilities

Agreements
With whom has the company reached agreements and what do they involve?
Key contracts awarded
Mergers, Acquisitions, Minority Investments and Divestments
Litigation

Key Corporate Events

The report was produced as part of Medical Device Companies Analysis (MDCA). For more information on MDCA, click here.

Table of Contents
OVERVIEW .1
FINANCIAL REVIEW 2
First Half 2011 Financial Results 2
2010 Financial Results  .2
Five-Year Financial Data 5
Employees 6
STRATEGIC FOCUS  7
PRODUCTS 8
Medical Imaging and IT Solutions   9
Imaging 9
IT Solutions 12
Dental 16
Molecular Imaging 19
Non-Destructive Testing   .20
Carestream Advanced Materials   .20
RESEARCH AND DEVELOPMENT 22
Research Establishments 22
Carestream Centres of Excellence 22
MANUFACTURING 24
AGREEMENTS 26
PenRad Technologies 27
K-Dental   27
Darby Dental Supply 27
Apelem 27
Acacia Research 27
Technology Partners (IMAGINE Software) 27
Genesis Digital Imaging  28
Onconcepts 28
National Digital Medical Archive (NDMA)  28
Siemens Healthcare 29
Collaborative Medical Technology Corp (CMTC) 29
Médical Tronik Montreal  30
Hitachi 30
MedLink International   30
Confirma (Merge Healthcare) 30
Meridian Technique 30
IMTEC Imaging  30
Novadaq Technologies   .31
Medlink Imaging   .31
CompuMed 31
Viatronix   31
Cisco Systems   31
IBM 32
Questra (Axeda) 32
MERGERS AND ACQUISITIONS  33
Quantum Medical Imaging   33
Healthsoft Assets   33
Logicon Caries Detector Software 33
Orex 34
Algotec Systems 34
PracticeWorks  34
MiraMedica’s Computer-Aided Detection Technology  34
Lumisys 34
Computer Knowledge   .35
Imation’s Medical Imaging Business  35
Nova MicroSonics   .35
Vortech Data 35
DIVESTITURES   . 36
AuntMinnie.com 36
NanoSystems 36
Sterling Winthrop, Clinical Diagnostics and L&F Products   36
LITIGATION   37
Caliper 37
KEY CORPORATE EVENTS   38
List of Tables
SUMMARY OPERATING RESULTS iii
Recent Key Events  1
Carestream Health - First Half 2011 Financial Results  2
Kodak Health Group - Financial Results, 2005-2007   2
Carestream Health - Annual Financial Results, 2007-2010  3
Onex – Five-Year Financial Summary 5
Carestream Health’s Major Manufacturing Facilities, August 2011  .25
Agreements Summary   26
Mergers and Acquisitions Summary 33
List of Charts
Carestream Health - Annual Revenues and Gross Profit, 2008-2010  .3
Carestream Health - Annual Revenues by Product Area, 2007-2010  .4
Carestream Health - 2010 Product Sales by Business Area   8

Medistat Interactive

Published:August 2011

Price: $4365

   

Report Summary

Combining Espicom’s world class data with a state-of-the-art analysis tool, Medistat Interactive takes medical market evaluation to a new level.

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Whether it’s fast access through one of the many pre-defined tabs or the easy-to-use custom report builder, you have complete control over the data, making it work quickly for you.

For over 30 years, Espicom has been the leader in analysing medical device market and equipments worldwide. Its reputation as a provider of reliable and thorough information is well founded and its services are used by leading healthcare companies in more than 50 markets.

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Molecular Imaging: A Market Coming of Age

Published:August 2011
No. of Pages: 290

Price: $1749

 

 

Report Summary

• Critical review of the market conditions, trends and challenges
• Unique market forecasts to 2015 by major sector
• Comprehensive and detailed competitive analysis of 75 leading players

The early vision for molecular imaging (MI) was that it would revolutionise clinical diagnostics and pharmaceutical research, allowing disease to be explored and identified with greater accuracy and long before physical symptoms were experienced. But economic recession and technical challenges have taken their toll on the speed at which that vision has become reality - until now. While for many years MI delivered more promise than profits, the signs are that new products, applications and increasing clinical/health payer acceptance will see the market accelerate in the medium term to achieve global sales of US$6 billion by 2015.

Strong fundamentals are driving growth

Despite cost pressures from reduced capital spending and lower reimbursement for some procedures, the molecular imaging market fundamentals remain solid and there are strong opportunities for growth within the MI industry. The increasing incidence of cancer, cardiovascular and neurological diseases means that demand for faster and more accurate diagnosis, as well as drug development and pre-clinical study efforts, will continue to accelerate in the coming years. In addition, imaging technologies will become more widely adopted as clinical evidence is established as to their benefits, and new technological innovations continue to be brought to market, particularly related to the MI of cancer and neurological diseases. In addition, the current lack of penetration for nuclear and molecular imaging in emerging economies such as China, India and Brazil is driving demand in these regions, where new nuclear imaging facilities are being set up and lower-cost systems are in demand.

Corporate manoeuvres

The industry is still developing but already companies in the medical diagnostic imaging equipment business such as Philips, Siemens and GE, and in the radiopharmaceutical and contrast agent market such as GE, Bracco, Covidien, Bayer and Lantheus Medical Imaging are taking leading positions. And opportunities for big Pharma are not being missed, with both Eli Lilly and AstraZeneca actively involved. As the market develops, expect more consolidation in the tussle for dominance.

This new report provides unique 5-year market forecasts

Molecular imaging is still a developing sector and the question is often asked what it will be worth commercially. For the first time, this report provides a 5-year evaluation of the market’s prospects and provides year-by year growth for key sectors:

Nuclear Imaging
Pre-Clinical Imaging Systems
Molecular Imaging End-Use Products Market
Radiopharmaceuticals

This report easily answers key business questions such as:

• Which sector of the molecular imaging market is expected to achieve global sales of US$3.5 billion in 2015?
• What steps are being taken to ensure availability of the key istope Mo-99?
• How is Gallium-68 being used to better understand cancer cell migration?
• What advantages does PET have over other imaging technologies?
• What challenges must be overcome to meet growing demand in emerging markets and how is this influencing developers?
• Which European company is developing nanoprobes which identify the expression of the HER2 protein and with whom is it collaborating?
• Which US company was granted a European patent in March 2011 for its contrast agent used in the diagnosis of deep vein thrombosis?
• Now approved in the US and EU, does Digirad’s portable nuclear system mark a move to distributed MI technologies?

Only one company offers a full suite of MI products - is this a competitive advantage and does it represent an opportunity for further entrants to provide whole-market service?
A complete analysis packed with market analysis, sector forecasts to 2015 and detailed company evaluations

This report delivers the most complete and critical appraisal of the market, products and companies operating in this fast-growing health sector

EXECUTIVE SUMMARY MOLECULAR IMAGING COMPANIES
For each company an evaluation is made of their financial performance/status, products, research areas and significant deals or strategic partnerships

BACKGROUND
Applications of MI
Neurological Disease
Oncology
Cardiovascular Disease
MI for Drug Development

MI Modalities
Hybrid MRI/PET Imaging
Tracers and Radiopharmaceuticals

CURRENT MARKET DYNAMICS
Major Market Players
Recent Developments in the SPECT Market
Recent Developments in the PET Market
Reimbursement and Regulatory Approval Issues

MARKET OUTLOOK
Molecular Imaging: Market Drivers, Restraints & Future Opportunities
Market Forecasts 2010 -2015
Nuclear Imaging
Pre-Clinical Imaging Systems
Molecular Imaging End-Use Products Market
Radiopharmaceuticals
Emerging Technologies
The Role of Academic Institutions
Collaborative Development Efforts
New Imaging Modalities
ABT Molecular Imaging
ABX
Advanced Accelerator Applications
Advanced Cyclotron Systems
Advanced Medical Isotope
Affibody
Agenix
AntiCancer
Aleres Pharmaceuticals
Aposense
ART Advanced Research Technologies
Astellas Pharma
AstraZeneca
Atreus Pharmaceuticals
Avid Radiopharmaceuticals (Eli Lilly)
Bayer HealthCare Pharmaceuticals
Bioscan
Biospace Lab
Bracco
Bruker Biospin
BV Cyclotron Vu
Caliper Life Sciences
Cardinal Health
Carestream Health
CellPoint
Covidien
Cyclopharma
Digirad
Dilon Diagnostics
DRAXIMAGE
Eckert & Ziegler
Eczacibaşi-Monrol Nuclear Products
Erigal
GE Healthcare
Guerbet
Hamamatsu Photonics
IBA (Ion Beam Applications)
Imaging Diagnostic Systems
ImaginAB
Immunomedics
INDEC Systems
IntraMedical Imaging
Kereos
Lantheus Medical Imaging
Lightools Research
Mediso Medical Imaging Systems
MiLabs
Molecular Insight Pharmaceuticals
Naviscan
Neoprobe
Neurologica
Nordion
Novelos Therapeutics (Cellectar)
NuView Life Sciences
OncoVision
PerkinElmer
Pharmalucence
Philips Healthcare
Positron
Proportional Technologies
Scintomics
Seno Medical Instruments
Shimadzu
Siemens Healthcare
Sofie Biosciences
Spectrum Dynamics
Triad Isotopes
UltraSPECT
United Pharmacy Partners
Visualsonics (Sonosite)
Wilex
Diagnostic Imaging Systems Market by Modality, 2010
Medical Imaging Market, 2005-10 (US$b)
Nuclear Imaging Equipment Market, 2007-10 (US$b)
Molecular Imaging Market by End-Use Product Type, 2010
Nuclear Imaging Equipment Market, 2010-15E (US$m)
Pre-Clinical Imaging Systems Market, 2010-15E (US$m)
Radiopharmaceuticals Market, 2010-15E (US$m)
Molecular Imaging End-Use Products Market, 2010-15E (US$m)
Astellas Pharma Cardiac Imaging Sales, 2008-10 (US$m)
Caliper Life Sciences - Revenue by Division, 2010
Covidien’s Imaging Sales, 2006-10 (US$m)
Digirad - Revenue by Division, 2010
Eckert & Ziegler - Revenue by Product Segment, 2010
GE Healthcare - Revenue by Product, 2010
IBA - Revenue by Business Unit, 2010
Lantheus Medical Imaging: Cardiolite Sales, 2008-10 (US$m)
Nordion - Revenue by Segment, 2010
Nordion: Medical Isotope Sales and Earnings, 2008-10 (US$m)
Philips Healthcare - Revenue by Segment, 2010
Philips Healthcare - Revenue by Region, 2010
Siemens Healthcare: Sales by Division, 2010

Trends and challenges - make sure you are fully briefed on the issues which are shaping the market...

Are the cost benefits of molecular imaging being recognised? Health payers, in the midst of an economic downturn, are focused on limiting immediate costs and this has impacted expansion and reimbursement of several imaging procedures. But advanced imaging enables detection and diagnosis at earlier stages of disease development, enabling treatment to begin before disease becomes systemic or established and reducing costs for invasive surgery or later-stage drug treatments. Similarly, there is much concern over the cost of new drugs, many of which may be used without the most accurate diagnostic insight into the underlying pathology of the disease. Molecular imaging’s advanced ability to evaluate disease at the molecular level has a critical role to ensure that only appropriate medicines are administered. Evidence is still building, but health payers would be wise to consider future molecular imaging technology as a benefit and not a cost in their financial plans.

Molecular Imaging - only for the big boys?

Although MI technologies hold great promise and market potential, there are significant barriers to market entry for companies, including the significant capital investments required to develop such products and get them through the lengthy and costly regulatory approval process. Adding to the challenge has been the difficult economic environment in recent years, which has limited the ability of start-up companies to raise capital from financial institutions or attract investment. Despite a difficult market for start-ups, the strong growth potential of MI technologies is providing good opportunities for companies with cash or financing available to them to add to their MI operations or enter this market, both through acquisitions or by licensing technologies from companies that cannot afford to commercialise them themselves.

A case in point...

Alzheimer’s disease imaging is currently a major area of opportunity, both in terms of helping to achieve a clinical diagnosis for a condition that can currently only be diagnosed at autopsy and also for pharmaceutical companies developing drugs to treat the condition. Previously privately-held, Avid Radiopharmaceuticals was acquired by the multi-national pharmaceutical company, Eli Lilly and Company, in December 2010. Avid’s lead MI agent, Amyvid, is being developed to diagnose Alzheimer’s disease and is expected to become the first MI agent for Alzheimer’s disease to be FDA-approved later in 2011. There are plenty of examples where smaller companies have ceased trading or changed status - investment capital is crucial to innovation, and how much of that comes from big Pharma will be closely watched.

In research...new imaging modalities

MI is driven by technical innovation. New modalities in research include GMI’s dual modality MRI/SPECT system, Philip’s Magnetic Particle Imaging platform for imaging nanoparticle concentrations in blood and GE’s 13C Hyperpolarised metabolic MR, which produces real-time, quantitative data regarding the presence and aggressiveness of tumours.

Kinetic concepts medical device company intelligence report

Published:July 2011
No. of Pages: 46
Price: $515


 

Report Summary

Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.

Founded in 1976, Texas, US-based Kinetic Concepts Inc (KCI) is a global medical technology company with primary business units serving the advanced wound care, regenerative medicine and therapeutic support systems markets. The company operates three business units:

Active Healing Solutions (AHS) - based at the company’s headquarters in San Antonio, Texas, the AHS business is focused on the development and commercialisation of advanced wound care therapies based on its negative pressure technology platform (NPTP), which employs negative pressure in a variety of applications to promote wound healing. NPTP comprises three primary product categories: negative pressure wound therapy (NPWT), negative pressure surgical management (NPSM) and negative pressure regenerative medicine (NPRM). NPWT, through the company’s V.A.C. therapy portfolio, currently represents the primary source of revenue for the AHS business. In addition, it continues to develop new products and therapies in NPSM and plans to launch NPRM products to broaden and diversify its NPTP revenue streams in the future. During 2010 and 2011, KCI’s latest NPWT product, the V.A.C.Via therapy system, was launched in the US and in select European markets, respectively. In addition, during 2010, the company launched the Prevena Incision Management System globally. Prevena is an NPSM product designed specifically for the management of surgically-closed incisions. In the acute care setting, KCI bills its customers directly for the rental and sale of its products. In the homecare setting, the company provides products and services to patients in the home and generally invoices third-party payers directly.

LifeCell - located in Branchburg, New Jersey, US, the LifeCell business is focused on the development and commercialisation of regenerative and reconstructive acellular tissue matrices for use in reconstructive, orthopaedic and urogynaecologic surgical procedures to repair soft tissue defects, as well as for reconstructive and cosmetic procedures. Existing products include human-based AlloDerm regenerative tissue matrix and porcine-based Strattice reconstructive tissue matrix in various configurations designed to meet the needs of patients and caregivers. The majority of LifeCell’s revenue is generated from the clinical applications of challenging hernia repair and post-mastectomy breast reconstruction, which is generated primarily in the US in the acute care setting on a direct billing basis. KCI continues efforts to penetrate markets with its other LifeCell products while developing and commercialising additional tissue matrix products and applications to expand into new markets and geographies.

Therapeutic Support Systems (TSS) - also based in San Antonio, the TSS business is focused on commercialising specialised therapeutic support systems, including hospital beds, mattress replacement systems, overlays and patient mobility devices. The business rents and sells products in three primary surface categories: critical care, wound care and bariatric care. Its critical care products, typically used in the ICU, are designed to address pulmonary complications associated with immobility; its wound care surfaces are used to reduce or treat skin breakdown; and its bariatric care surfaces assist caregivers in the safe and dignified handling of obese and morbidly obese patients, while addressing complications related to immobility. The TSS business moved into the patient mobility sector in January 2011 with the acquisition of TechniMotion Medical.

The addition of LifeCell to KCI's portfolio in May 2008 provided the company with additional long-term growth opportunities since changes in the NWPT market – the core of KCI’s business – mean that rivals are emerging with lower-priced, but equally effective, products to challenge KCI’s dominance of the field. Larger and more diversified companies are looking to buy those smaller companies with activities in NPWT – the purchase of BlueSky Medical by Smith & Nephew in 2007 is a good example – and, where it is able, KCI is defending itself by seeking legal opinion as to whether its rivals are infringing its NPWT patent rights. Indeed, KCI and Wake Forest University – which granted KCI an exclusive global licence to certain patents that are integral to the technology incorporated in V.A.C therapy products – are in dispute after a Federal District Court entered an order in a Smith & Nephew case invalidating Wake Forest patent claims. Since the beginning of 2011, KCI has refused to pay any further royalties to Wake Forest, which in turn, has filed a notice to terminate their licence agreement and demanded that KCI cease manufacturing and selling licensed V.A.C. products.

Overall, KCI rents and sells its products in more than 20 countries. The company has approximately 7,100 employees worldwide, operates R&D facilities in the US and the UK, and maintains manufacturing and engineering operations in the US, the UK, Ireland and Belgium. In 2010, KCI generated net income of US$256.1 million on revenue of US$2.1 billion. The AHS business accounted for 70% of revenue, the LifeCell business for 17% and the TSS business for the remaining 13%. In the first three months of 2011, KCI’s earnings were up 30% on a 3% increase in revenues.

On 12th July 2011, KCI entered into a definitive merger agreement under which a consortium comprised of funds advised by Apax Partners, together with controlled affiliates of Canada Pension Plan Investment Board and Canada's Public Sector Pension Investment Board, would acquire KCI in a transaction valued at US$4.98 billion (or US$6.3 billion including KCI’s outstanding debt).

The US$68.50 per share in cash acquisition price represents a premium of approximately 21% to the one-month historical average stock price of US$56.49 to 5th July 2011 (one day prior to press speculation of a transaction) and a premium of 52% to the 12-month historical average stock price of US$45.01 through to 5th July 2011.

James R. Leininger, founder of KCI and former chairman, and certain shareholder parties related to or affiliated with him, which collectively hold approximately 11% of the company's outstanding shares, entered into a voting agreement with the consortium under which those shareholders agreed to vote their shares in favour of the transaction.
The transaction is subject to certain closing conditions, including the approval of KCI’s shareholders, regulatory approvals and the satisfaction of other customary closing conditions but is not subject to any condition with regard to the financing of the transaction. The investment consortium plans to further invest in the global medical products sector to expand KCI's core business, develop new products and extend into new geographies where it believes significant opportunities exist.

As provided for in the merger agreement, KCI was granted a 40-day "go-shop" window (expiring 21st August 2011) during which the company could solicit offers from other potential buyers. If all approvals and closing conditions are met and a superior offer failed to materialise, the deal with Apax-led group is expected to close in the fourth quarter of 2011.

Earlier in July, it was rumoured that KCI was the subject of a takeover approach by the US private equity group, Blackstone, and other investors including the global asset management company, Kohlberg Kravis Roberts.

This company report provides

Overview
Key contact information
Introduction to the company and its current activities
Summary of its financial performance
Who are the company’s major competitors?
Key recent events in an “at a glance” format

Financial Review
Current year and annual financial data, including revenue breakdowns by product area and geographic region (if available)
Table providing in-depth five-year financial analysis
Employee data, including breakdown by company division and geographic location

Strategic Focus
Investigates the company’s aims and its areas of focus

Products
Core product areas, key brands, product approvals and launches Research and Development
How much has been invested in R&D?
Where is the research based?
What alliances and agreements does the company have and with whom?

Manufacturing and Distribution
Identifying the company’s manufacturing locations
Sales and marketing facilities

Agreements
With whom has the company reached agreements and what do they involve?
Key contracts awarded
Mergers, Acquisitions, Minority Investments and Divestments
Litigation

Key Corporate Events

The report was produced as part of Medical Device Companies Analysis (MDCA). For more information on MDCA, click here.

Table Of Contents

OVERVIEW.1
Recent Key Events2

FINANCIAL REVIEW 3
First Half 2011 Financial Results3
AHS4
LifeCell5
TSS.5
2010 Financial Results.6
AHS9
LifeCell10
TSS. 12
Five-Year Financial Data14
Outlook15
Employees.16

STRATEGIC FOCUS17
PRODUCTS19
Product Overview19
AHS.19
NPWT Products21
NPSM Products23
GraftJacket Matrix.23
Competition.23
LifeCell.24
Products and Clinical Applications24
Allograft-Based Regenerative Tissue Matrix Products.24
Xenograft-based Reconstructive Tissue Matrix Products25
Competition.26
TSS26
Products and Clinical Applications27
Critical Care27
Wound Care27
Bariatric Care.28
Competition.28

RESEARCH AND DEVELOPMENT.29
R&D Facilities.29
R&D Expenditure.30
Studies and Trials.30
Transcontinental Wound Registry.30
RICH Study31
Trial Comparing NPWT between the KCI Wound V.A.C. Therapy System and Spiracur’s SNaP Wound Care System 31
Conexa Clinical Trial32
ABTAC Study.32

MANUFACTURING AND DISTRIBUTION33
AHS33
LifeCell33
TSS.33

AGREEMENTS 34
Wright Medical34
Novadaq Technologies.35
Carroll Hospital Group35
3M Health Care35
Hill-Rom36
NovaBay Pharmaceuticals36
Paul Hartmann.36
Avail Medical Products37
Wake Forest University.37

MERGERS AND ACQUISITIONS 38
TechniMotion Medical38
LifeCell38
BioMonde Assets.39
MedClaim.39
Polymedics.39
Beiersdorf-Jobst DVT Products39
RIK Medical.39
Equi-Tron Manufacturing.39
Ethos Medical Group.39
H.F. Systems.39
Trac Medical’s Access Assets.40
Clinical Systems.40
Medical Retro Design40
DIVESTITURES .41
KCI Insurance.41
KCI Financial Services41
KCI Therapeutic Services.41
LITIGATION.42
Wake Forest University.42
Smith & Nephew and Medela.42
Innovative Therapies Inc42
Boehringer and Convatec42
Medela, Mölnlycke Health Care and Smith & Nephew - Germany43
Smith & Nephew - Australia43
Smith & Nephew - Germany43
Smith & Nephew - France43
Smith & Nephew - UK.43
LifeCell44
OIG Investigation.44

KEY CORPORATE EVENTS45

List of Tables

SUMMARY OPERATING RESULTS.iii
KCI – First Half 2011 Financial Results3
KCI - First Half 2011 Revenues by Geographic Area.3
KCI - First Half 2011 Revenue by Business Segment and Geographic Area.4
KCI - AHS Business Segment Revenues, First Half 2011.4
KCI - LifeCell Business Segment Revenues, First Half 20115
KCI - TSS Business Segment Revenues, First Half 20115
KCI – Annual Financial Results, 2006-20106
KCI - Annual Revenues by Geographic Area, 2006-20107
KCI - Annual Revenue by Business Segment and Geographic Area, 2006-20108
KCI - AHS Business, Annual Financial Results, 2006-20109
KCI - LifeCell Business, Annual Financial Results, 2008-2010.10
KCI - TSS Business, Annual Financial Results, 2006-2010.12
KCI – Five-Year Financial Summary, 2006-201014
KCI – Annual R&D Expenditure, 2006-2010 30
Agreements Summary34
Mergers and Acquisitions Summary.38

List of Charts

KCI - Annual Revenue and Operating Income, 2006-2010.6
KCI - Annual Revenues by Geographic Area, 2006-20107
KCI - Annual Revenue by Business Segment, 2006-20108
KCI - AHS Business, Annual Revenue and Operating Income9
KCI - AHS Business, Annual Product Sales, 2006-2010.10
KCI - LifeCell Business, Annual Sales and Operating Income, 2008-2010.11
KCI - LifeCell Business, Annual Sales by Geographic Region, 2008-201011
KCI - TSS Business, Annual Revenues and Operating Income, 2006-201012
KCI - TSS Business, Annual Product Sales, 2006-201013
KCI – 2010 Revenue by Product Area19