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Recently, Integra LifeSciences (Integra LifeSciences), a U.S. supplier of medical devices for neurosurgery, plastic surgery, and soft tissue repair, announced,CompletedJohnson & JohnsonHealthcareThe acquisition of "Acclarent," a subsidiary under Integra LifeSciences.

The comprehensive cost of this acquisition is approximately $280 million.Yuan (approximately 1.96 billion RMB), including$275 million upfront payment and $5 million milestone payment.After the acquisition is completed, Acclarent will be integrated into Integra's Codman Specialty Surgical (CSS).Department, which is expected to increase CSS's total market share by approximately $1 billion, pushing it to over $6 billion.

Notably, the division was also acquired by Integra for $1 billion from Johnson & Johnson at the end of 2017.

Acclarent's sales in the United States were approximately US$110 million in 2022, and Integra expects the return on investment for this transaction to reach 10% by 2028.

It is reported that AcclarentNT is Johnson & Johnson Medical Technologies, which was acquired in 2010 through its subsidiary Ethicon.$7.85The price was acquired at a certain value. However, some media outlets believe that the value at the time may have been inflated due to "illegal sales technology," ultimately leading to the low-price sale of $280 million.

As a leader in the field of minimally invasive treatments for ENT diseases, Acclarent is renowned for its groundbreaking balloon technology.Focused on developing advanced instruments for sinus dilation, committed to improving the treatment and management of ENT diseases through innovative medical technology.

The company was founded in 2004.It then received FDA approval for its Relieva Balloon Sinuplasty in May 2005.In September 2017,FDA Approves Aera Balloon, the First Device for Treating Chronic Eustachian Tube Dysfunction

Relieva Balloon Sinuplasty

Relieva Balloon Sinus Dilation is an advanced medical technology,Aiming to utilize endoscopic technology to assist doctors in better managing patients with sinusitis, by dilating obstructed sinus openings and passages, alleviating symptoms, and improving patients' quality of life. The system, based on a flexible, over-the-wire design, offers physicians a variety of convenient functions:

• Minimally Invasive Navigation:Doctors can navigate the intricate sinus anatomy with minimal trauma, ensuring patient comfort and safety during treatment.

• Position Confirmation:Using the focused light of the RELIEVA LUMA SENTRY Sinus Illumination System, doctors can accurately confirm the position of the device, improving the precision and success rate of the surgery.

ACCLARENT AERA Eustachian Tube Balloon Dilation System

ACCLARENT AERA is the first balloon in the United States specifically designed for patients with persistent Eustachian Tube Dysfunction (ETD).This system aims to provide an innovative, non-invasive solution to improve patients' Eustachian tube function and alleviate ear discomfort. Meanwhile, patients can receive treatment more comfortably without enduring the pain and recovery period associated with traditional surgery.

Revenue reached 800 million in 2022, with an annual increase of 10%.

Currently, ACCLARENT's product portfolio includes more than 40 FDA-approved devices, in addition to the two mentioned above, such as the Relieva Ultirra Nasal Balloon.Cystoscope, Relieva Luma Nasal Illuminated Guidewire, Relieva Vortex for deep sinus fluid delivery, and TruDi Electromagnetic Blade for nasopharyngeal surgery, etc.

These products generated approximately US$110 million (RMB 800 million) in revenue for Johnson & Johnson in 2022, with an expected annual growth rate of 10%; the return on investment is projected to reach 10% by 2028.

Data shows,The buyer, Integra LifeSciences, is a supplier of medical devices for neurosurgery, orthopedics, and soft tissue repair in the United States.Committed to enhancing medical skills and treatment outcomes with innovative healthcare solutions, and has established an outstanding reputation in the industry through a parallel focus on neurosurgery and regenerative medicine. The company’s neurosurgical products, surgical instruments, and wound care products are used in hospitals' intensive care units and operating rooms worldwide.

As a global medical technology company,Integra LifeSciences ranked among the top 100 global medical device companies in 2022 with $1.557 billion in revenue.At the same time, on the latest list released by the well-known medical device industry website Medical Design & Outsourcing, he/she was named one of the "Most Influential Leaders in the Medical Technology Field in 2023."

In fact, when Integra was founded in 1989, Dr. Richard Caruso, the founder, set the goal of developing medical implants that could promote the regeneration of patients' own tissues, such as skin, nerves, bones, tendons, etc., andIn 1996, the first product, Integra LifeSciences® Dermal Regeneration Template (IDRT), received FDA approval, making the company the first to bring a tissue regeneration-indicated product to market.

Subsequently, Integra began to expand the IDRT technology platform, exploring new indications and potential new departments. Based on the IDRT technology platform, the company has developed products that canDuraGen® Dural Graft Matrix, which repairs and promotes the regeneration of autologous dura mater, received FDA approval in 1999, serving as its gateway into the neurosurgical market.

In the same year,Integra LifeSciences also staged a "snake swallowing an elephant"-style acquisition, purchasing Singapore-based NeuroCare for $25 million to further solidify its market position in the neurosurgery field.In the more than 20 years that followed, the company further expanded its product portfolio and steadily grew by acquiring 10 small innovative companies around the field of neurosurgery.

$1 Billion Acquisition of Johnson & JohnsonCodman Department

In 2017,Integra LifeSciences Completes Acquisition of Johnson & Johnson's Codman Neurosurgery Business for Over $1 BillionAt this point, the company officially formed two major business units: Codman Specialty Surgical and Tissue Technologies.

• Among them, CSS can be further divided into neurosurgical operations and instrumentation operations, possessingA series of professional technologies and instruments for neurosurgery, neurocritical care, and otolaryngology, including"Codman", "DuraGen", "DuraSeal", "CUSA", "Mayfield", and "Bactiseal"And other brand portfolios.

• TT can be further divided into two segments: Complex Wounds and Surgical Reconstruction, and Private Label.Focus on three areas, namely complex wound surgery, surgical reconstruction, and peripheral nerve repair.。Own"Integra Dermal Matrices", "AmnioExcel", "SurgiMend", "MicroMatrix", and "NeuraGen"And other brands.

  
  

In$1.5416 billion in revenue for 2022Inbox,Seventy percent of the performance comes from CSS business, and the remaining thirty percent comes from TT business.

Shut Down Factory and Lay Off Employees After $290 Million Acquisition

In 2020, Integra spent $201 million respectivelyAcquisition of InjuriesOral Care Company Derma ScienCes, and $400 million acquisition of regenerative medicine company ACell.

However,In February this year, Integra announced the closure of the ACell plant in Lafayette, Indiana, USA, and layoffs for nearly all workers.The layoff plan will be carried out in two phases: the first group of 52 employees will become unemployed on April 26, and the remaining 8 will leave on May 31, by which time the factory will also be completely shut down.

Recall and Discontinuation of Production

In addition, the company was previously facing serious recall issues.

In May 2023, the company releasedNotice,Voluntarily recall all products manufactured at the Integra Boston plant between March 1, 2018, and May 22, 2023., including SurgiMend, PriMatrix, Revize, and TissueMend. MeanwhileSuspend the production of this factory, to implement additional testing and quality control.

The reason is that the company discoveredThere are issues in its endotoxin detection process.Defects, leading toSome products have endotoxin levels exceeding the allowable standard specified in the product specifications, which may cause adverse reactions such as postoperative fever in patients.Despite the resumption of operations in November after a six-month shutdown, the company's performance was still significantly impacted.

The performance for the entire year was also impacted to a certain extent.The report showed its fiscal year 2023 revenue was $1.5416 billion, a year-on-year decrease of 1.0%, with organic revenue remaining flat.Organic revenue growth was 5.5%, excluding Boston.

Codman accounts for approximately 70% of Integra's total revenue. In the third quarter of this year, the Codman division generated revenue of $268.2 million, representing a year-over-year increase of 7.4%.

However, for a medical device company that has rapidly grown and expanded over 30 years, the path to growth is not solely reliant on production line expansion.

It can be found that Integra is expanding its business territory while conducting mergers and acquisitions.Have spread to many countries/regions around the world,And has large production and research facilities in California, Indiana, Maryland, Massachusetts, New Jersey, Ohio, Puerto Rico, Tennessee, Utah, Canada, China, France, Germany, Ireland, and Switzerland.

In China,Integra LifeSciences established its first office in Shanghai as early as 2011.Later, Integra LifeSciences (Shanghai) Co., Ltd. was established and gradually evolved into the company's China headquarters.In recent years, Integra has been further expanding its localization efforts in sales, manufacturing, and R&D in the Chinese market.

First Manufacturing, Testing, and Service Base in China

In September 2023, Integra announced the upgrade of its localization strategy in China, andIntegra Establishes Its First Manufacturing Base and Testing Center in China at Suzhou Industrial Park's Sino-Singapore Xingwan Industrial Complex.

In this regard, Jan De Witte, President and CEO of Integra Group, stated: "The Chinese market is full of opportunities and continues to unleash strong growth potential. Integra looks forward to working hand in hand with the park to introduce more innovative medical technology solutions into China and continuously strive to improve the quality of patients' lives."

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When the acquisition news was announcedAt the time, BTIG analyst Ryan Zimmerman believedThe "synergies" of the deal are less clear, as balloon sinus dilation will require a completely independent sales team.He pointed out that, despiteOtolaryngology（ENT）SurgeryIs a large-scale, rapidly growing market, but the competition is also fierce.Often intense.

Therefore, whether this is a favorable acquisition remains to be seen. However, Johnson & Johnson acquired Acclarent for $785 million, so for Integra, the $275 million price tag for the acquisitionThis company does notIt's a terrible price.

CL King and Associates' analyst Kristen Stewart, however, views this as a positive acquisition. He stated: "Acclarent is a high single-digit growth business that is highly complementary to the neurosurgery field, and this transaction is expected to advance Integra's strategic growth plans."

Integra itself also showed interest in this.The optimism for this transaction, its CodmanMichael McBreen, President of the Business Unit, believes that ENT and neurosurgery are highly specialized markets involving "high-impact" disease states. In these markets, highly specialized companies have an advantage over those attempting to sell a broader range of products, as ENT and neurosurgeons typically focus on equipment procurement for their centers.Has a significant impact on purchasing decisions.

Moreover, the Acclarent direct sales team has strong brand influence and the best sales channels, which can help Integra LifeSciences expand into adjacent care settings (such as outpatient surgery, ambulatory surgery centers, and physician offices).The extensive coverage will also help Integra reach new surgeon customers.

Moreover, Michael also revealed that in the future, Integra may seek more acquisitions to expand its ENT business.So, what innovative technologies will Integra bring in the future?Instrument之家 will continue to follow up.

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