Medtronic Acquires Fortimedix Surgical, a Pioneer in Articulated Endoscopic Technology
Fortimedix Surgical
Intravascular Stent Developer
Medtronic
Chronic Disease Medical Device and Therapy Developer
Pioneer in Medical Device Media Reports
Share Professional Medical Device Knowledge
November 21,Fortimedix Surgical Announces Successful Acquisition by Medtronic
Fortimedix is renowned for its unique articulating instrument technology, which disrupts tradition and aims to set a benchmark in robotic and non-robotic endoscopic therapy and minimally invasive surgery.
"We are thrilled to announce that Fortimedix Surgical has officially joined the Medtronic family," the company happily shared on LinkedIn. "This collaboration will apply our articulating instrument technology to patient care, opening a new chapter. We look forward to shining on the Medtronic platform."
Fortimedix's official website shows that the company uses all-laser cutting technology to create a multi-layer nested, welded product structure. This innovative process magically transforms ordinary metal tubes into flexible articulating shafts, which, after assembly, contain hundreds of precision moving parts, offering powerful and complex functionality.
This proprietary technology has demonstrated significant value in endoscopic treatment and minimally invasive surgery, enabling early endoscopic surgical intervention, namely endoluminal surgery, bringing benefits to patients.
Launched the World's Thinnest Surgical Solution in 2015
In terms of specialty products,In 2016, Fortimedix Surgical announced that its FMX314 received the CE mark, and the product was FDA-approved in 2015. FMX314 is described as the world's thinnest single-port surgical solution and the first single-port surgical solution compatible with standard 15 mm trocars., for minimally invasive laparoscopic surgery. FMX314 addresses unmet needs in laparoscopic surgery by providing a small, simple, and safe platform solution.
According to the company, because it is the first single-port platform compatible with the standard 15mm laparoscopic trocar, FMX314 is expected to reduce port-site complications, lessen postoperative pain, allow faster recovery, and achieve superior cosmetic results compared to traditional multi-port laparoscopic surgery.
FMX314 simulates traditional multi-port laparoscopy, is easy to use, and enables surgeons to perform surgical steps ergonomically, achieving a comfortable and safe single-port approach.
The official website shows that Fortimedix Surgical, established in 2012, is an independent spin-off company from a global leader in B2B contract stent manufacturing, serving leading medical device players in the cardiovascular field. The roots of Fortimedix can be traced back to 1999, with a solid track record and 25 years of experience in product development and high-volume in-house medical device manufacturing.
Fortimedix Surgical is a rapidly growing medical device company aiming to challenge the status quo of minimally invasive surgery by creating new devices with the advantages of single-port surgery. Headquartered in Nuth, Netherlands, the company has a U.S. subsidiary in San Diego, California. Fortimedix, as the global market leader in contract stent manufacturing, boasts a long-standing history and has been a trusted partner in the medical device industry for 15 years. Fortimedix Surgical is committed to advancing minimally invasive surgery through intelligent innovation in surgical specialties to improve the quality of life for patients worldwide.
The company's most advanced facility is located at the Brightlands Chemelot Campus in Geleen, Netherlands, near top academic centers, knowledge institutions, and renowned technology hubs. The 2,400-square-meter building is fully equipped with design and development resources (including development and testing laboratories and workshops), rapid prototyping capabilities, as well as equipment for high-volume medical device manufacturing and assembly.
Recently, Medtronic executives revealed their M&A strategy during the Q2 earnings call. When asked about the M&A approach, Medtronic CEO Geoff Martha stated that Medtronic would adopt a "top-down" precision strategy, focusing on smaller acquisitions.
Although Geoff Martha did not disclose specific M&A targets, he and the interim CFO both emphasized the importance of small-scale M&A and portfolio management. Martha stated, "Small-scale M&A is a key part of our growth blueprint. Our leadership team is examining priority areas from top to bottom, hoping they will become the focus of M&A."
Medtronic not only focuses on high-growth markets and fields but also aims to revitalize mature businesses through small-scale mergers and acquisitions.Martha emphasized that portfolio management is an ongoing optimization process, rather than a one-time task."We constantly review our investment portfolio to ensure it aligns with our mission and strengths, allowing us to stand out in fierce market competition."”
He further pointed out that the sophisticated layout of portfolio management will bring Medtronic steady, lasting, and innovation-driven mid-single-digit growth. Martha said, "This will directly enhance our revenue and profitability, translating into profit leverage on the income statement, which in turn will lead to substantial dividends and double-digit shareholder returns. Therefore, we are actively adjusting our portfolio to ensure it continues to support this goal."
Looking ahead, Medtronic is more optimistic about its performance expectations for the fiscal year 2025. The company forecasts organic revenue growth to be between 4.75% and 5%, with non-GAAP diluted earnings per share reaching $5.44 to $5.50.
(Partially Organized)
On November 19, Medtronic released its fiscal year 2025 second-quarter financial report,Reported revenue of $8.4 billion, an increase of 5.3%, with organic growth of 5.0%.
The CEO of the company confidently pointed out that cutting-edge businesses such as TAVR, pulsed field ablation, neuromodulation, diabetes, and renal denervation will continue to drive the company's vigorous development.He also revealed that the highly anticipated Hugo surgical robot will be submitted to the FDA for approval in early 2025, marking a new chapter in medical technology.
Cardiovascular
The Cardiovascular portfolio includes the Cardiac Rhythm and Heart Failure (CRHF), Structural Heart and Aortic (SHA), and Coronary and Peripheral Vascular (CPV) divisions. Revenue was $3.102 billion, with reported growth of 6.1% and organic growth of 5.6%. SHA grew at a high single-digit rate, while CRHF and CPV grew at mid-single-digit rates, all organically.
Neuroscience
The Neuroscience Portfolio includes Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation. Revenue was $2.451 billion, with reported growth of 7.1% and organic growth of 6.7%. The Neuromodulation division achieved low double-digit growth, while the CST and Specialty Therapies divisions both achieved mid-single-digit growth, all on an organic basis.
Medical Surgery
The Medical Surgical portfolio includes the Surgical and Endoscopic (SE) division and the Acute Care and Monitoring (ACM) division. The report shows revenue growth of 1.2% to $2.128 billion, with organic growth of 0.7%, including low single-digit organic growth for ACM and flat organic growth for SE. SE's year-over-year performance was impacted by tough comparisons with last year’s surgical supply recovery, while it saw high single-digit sequential growth.
Diabetes
Revenue was $686 million, an increase of 12.4% year-over-year, with organic growth of 11.0%.
This acquisition of an endoscopy and minimally invasive treatment company is highly complementary and synergistic with Medtronic's previous business layout.
In the field of endoscopy, on December 23, 2020, NewGlow Medical signed a strategic cooperation agreement with Medtronic (Shanghai) Management Co., Ltd. The two parties planned to establish comprehensive cooperation in areas such as the research and development of innovative endoscopic products and commercial promotion, aiming to promote technological innovation and production services and provide leading medical endoscopic products and high-quality services. The two parties jointly planned to comprehensively cooperate in areas such as the research and development of innovative endoscopic products, academic activities, education and training, commercial promotion, and sales services, jointly enhance the level of research and application of medical devices in China, and provide world-leading medical endoscopic products and services to medical institutions in China.
Shineway Medical's self-developed "4K Ultra-HD Endoscopic Camera System" becomes the first endoscopic product in China to receive U.S. FDA certification.
In 2021, NewGrowth Medical announced that it had secured nearly 400 million yuan in Series A financing, led jointly by Hillhouse Ventures and Lilly Asia Ventures, with participation from Matrix Partners China, Medtronic, Chengwei Capital, and WHC Innovation Fund.
In the field of endoscopic surgical robots, Hugo is a soft tissue surgical robot developed by Medtronic. It features a modular design, consisting of an open surgical console with a 3D-HD display, a four-arm cart, and a system tower. Its modular robotic arm design allows for easy movement, maximizing equipment utilization. By integrating advanced technologies from traditional laparoscopic and open surgeries, including the Storz endoscope, Valleylab electrosurgical system, and Touch Surgery analytics system, it provides surgeons with greater flexibility in tool selection.
In October 2021, Medtronic's Hugo RAS System received EU CE certification. In October 2023, during the 6th CIIE, Medtronic announced that the Hugo RAS Robot-Assisted Surgery System had established a training center in Taiwan, China.
On May 24, 2024, Medtronic announced the launch of additional clinical studies for its Hugo robotic-assisted surgery system to expand its indications to hernia repair and gynecological procedures.
Medtronic's Hugo Soft Tissue Surgical Robot Has Achieved Significant Commercial Progress in Europe, Latin America, and Asia, and Is Expected to Challenge the Market Position of the Da Vinci Surgical Robot Worldwide in the Future.
——
What benefits will Medtronic's acquisition generate? What other small acquisitions will Medtronic focus on in the future? Medical Device Community will continue to follow up.
More exciting content
Welcome to follow WeChat Video Channel
$5 Billion Investment, the World's First Plant in This Field
R&D Ultrasound! Chinese Medical Device Company Receives $2.65 Million Grant from Gates Foundation
China-Made Medical AI Leader: Multimodal Medical Large Model Debuts at CCR
Well-Known Imaging Supplier Layoffs 530 Employees
Rocket Material Leader, 400 Million Bet on Medical Imaging
A-share listed device company terminates 7.33 billion yuan high-cost project
World Record for the Longest-Distance Remote Surgery + Breakthrough in European and American High-End Markets: The Development of China-Produced Surgical Robot Industry Opens a "New Chapter"
CCR 2024: United Imaging, Neusoft, Philips... Live Report from the Scene
Investment Opportunity! China's First "Monopolar/Bipolar Low-Temperature Hemostatic Cutting System," A Non-Bundled Orthopedic Bestseller
First Unit Landed at Xiehe Hospital, Roche's Groundbreaking Product Enters China
BusinessBusiness cooperation email: qxzj@landianyiliao.com
