Carl Zeiss Meditec Acquires DORC for €985 Million to Expand Retinal Surgery Portfolio and Strengthen Presence in China

Dec 17, 2023 00:16 CST Updated 00:16

Carl Zeiss Meditec

Ophthalmic Implant Developer

DORC

Ophthalmic Instrument R&D, Production, and Sales Provider

Eurazeo SE

Private Equity Investment Firm

Source: Eye Future; Editor: Pan Yanyan

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December 15, 2023Carl Zeiss MeditecAnnounced that it has reached an agreement with Eurazeo SE, a French Paris-based investment group, to acquireDutch Ophthalmic Research Center B.V.Dutch Ophthalmic Research Center (hereinafter referred to as "Dutch Ophthalmic" or "DORC")1100% of the shares。

This acquisition will enhance and complement Carl Zeiss Meditec's extensive ophthalmic product portfolio and digitally connected workflow solutions, addressing various ophthalmic conditions including retinal diseases, cataracts, glaucoma, and refractive errors.

Looking ahead, Dutch Ophthalmic Research Center B.V.'s products have entered China. Currently, there are 7 registered certificates, and there is also a Chinese WeChat Official Account.

ItsFlagship ProductThe EVA Phaco-Vitrectomy Machine was approved by the National Medical Products Administration (NMPA) in December 2022 and held its launch event in Suzhou in May 2023.

Its key productsVisionBlue^®Trypan Blue Solution, launched overseas in 2004, is the world's only ophthalmic anterior capsule staining agent to have received both CE and FDA certifications. In May 2023,Aibonuode (688050) will VisionBlue^®Officially introduced into the Chinese market.

The value of this acquisition is approximately985 million euros (approximately 7.6 billion RMB), is expected to be completed in the first half of 2024. The transaction is still subject to applicable regulatory and antitrust approvals. RBC Capital Markets is serving as the exclusive financial advisor for this transaction. (Carl Zeiss Meditec)Achieved in the 2022/23 fiscal year (ended September 30, 2023)Revenue of 2.089 billion euros.）

Dutch Ophthalmic Research Center B.V. asThe main players in the retinal surgery equipment market will become key contributors to the long-term strategy and success of Carl Zeiss Meditec. This acquisition will expand Carl Zeiss Meditec's presence in the vitreoretinal (Vitreo-retinal surgery）VR surgeryFurther solidify its position as the fastest-growing manufacturer of global ophthalmic medical devices.

#A Glimpse into the Ophthalmic Instruments Market

With the increase in the prevalence of refractive errors among teenagers and the rise in cataract surgeries among middle-aged and elderly people, the market size of ophthalmic devices in China is growing rapidly.

According to Frost & Sullivan data, in 2020, the market size of China's ophthalmic medical devices reached 12.9 billion yuan, among which the ophthalmic consumables market accounted for the largest proportion at 44.2%, followed by ophthalmic treatment equipment (35.7% market share), ophthalmic diagnostic equipment (15.5% market share), and ophthalmic technical services (4.7% market share).

It is estimated that by 2025, the market size of ophthalmic medical devices in China will reach 28.3 billion yuan; it is expected that by 2030, the market size will approach 50 billion yuan.

From the enterprise level, the global ophthalmic device market is highly concentrated. Ophthalmic examination equipment, optometry equipment, laser treatment devices, and optical surgical systems, which are mainly used for imaging diagnostics and treatments, are monopolized by a few large international brands.High-end manufacturing giants from Germany, Japan, and the United States (such as Carl Zeiss Meditec, Alcon, and Topcon) occupy the majority of the market share; the sales proportion of mid-to-high-end equipment is high, among which OCT is one of the products with the highest clinical value and greatest technical difficulty.

Relatively speaking, the ophthalmic medical device industry in China started relatively late, but its overall development momentum is strong. With favorable government policies, advancements in technology, and the increasing number of patients with eye diseases driving demand growth, China's ophthalmic medical device sector is accelerating its development. A number of domestically produced enterprises, such as Aibomed, Henan Universe, OcuScience, LiuLiu Vision, and SightMicro Imaging, are gradually emerging.

# Renowned Dutch Ophthalmic Research Center B.V.（D.O.R.C.）

Dutch Ophthalmic Research Center (DORC), headquartered in Zuidland, the Netherlands, has more than 750 employees worldwide and is one of the leading global suppliers of ophthalmic surgical equipment, instruments, and liquids.

DORC's landmark innovations began with advancements in instrumentation, including the introduction of the industry's first disposable vitrectomy consumables equipped with self-closing valve trocars, followed by the launch of the overhead light illumination system that enables ophthalmic surgeons to perform two-handed surgeries.

DORC invented the most comprehensive series of dyes products, which can be used for imaging key tissues in cataract and retinal surgery. Since then, the company has made disruptive innovative progress, including the world's first double-edged vitrectomy cutter and EVA surgical equipment.

Its EVA surgical equipment features a revolutionary dual-mode fluid control system – VACUFLOW VTI, which provides both negative pressure and fluid flow modes. It also includes a high-speed dual-blade (TDC) vitrectomy probe with up to 16,000 CPM*.Reduce traction on ocular tissues, thereby lowering the incidence of surgical side effects and complications. Additionally, it also features10,000+ hours of LED enhanced lighting system, etc.

The latest product in the EVA series isEVA NEXUS New Phaco-Vitrectomy Integrated Machine,This all-in-one machine can be used for minimally invasive surgeries of fundus diseases, including vitrectomy, combined vitrectomy and cataract surgery, etc., and can apply VisionBlue Trypan Blue Lens Capsule Staining Solution for staining and/or identification of the anterior lens capsule.

EVA NEXUS All-in-One Phacoemulsification-Vitrectomy SystemIntroduced multiple innovations, including SmartIOP technology, which can be combined with the existing EquiPhaco technology to optimize control in cataract surgery. Additionally, it includes EVA AVETA, an innovative incision catheter system featuring a push-in infusion connection and unique laser-etched retention characteristics, which helps enhance scleral retention.

The device also employs a technology known as "Non-invasive Retinal Imaging," which allows for imaging and analysis of the retina without any contact with the eyeball. It can detect various conditions such as retinal diseases, glaucoma, cataracts, and macular degeneration, providing immediate test results and diagnostic recommendations.

In addition, DORC provides comprehensive anterior and posterior segment surgical instruments for ophthalmic surgeons, including the 27G ultra-short series that can be used for surgeries on patients with microphthalmos.

DORC's series of staining solutions are also proudly outstanding products. VisionBlue® Trypan Blue Lens Anterior Capsule Staining Solution has been on the international market for nearly 20 years, with global sales nearing eight million units. It is the only trypan blue staining solution to have received both FDA and NMPA dual certification for use in the anterior segment of the eye.

#Executive Evaluation

Markus, President and CEO of Carl Zeiss MeditecDr. Weber stated, "By acquiring Dutch Ophthalmic Research Center B.V., we will bring together two highly innovative ophthalmic giants, accelerate Carl Zeiss Meditec's position in the vitreoretinal surgery field, and expand our leadership in the ophthalmic medical device market."

"Meeting the growing surgical needs of our customers and improving patients' quality of life are the core objectives of this acquisition," said Euan S. Thomson, Head of the Ophthalmic Devices and Digital Business Unit at Carl Zeiss Meditec.Through the collaboration with Dutch Ophthalmic Research Center B.V., we will significantly enhance Carl Zeiss Meditec's retinal workflow and anterior/posterior segment surgical product portfolio, reinforcing our leading position in the global retinal surgery market.”

"On the 40th anniversary of celebrating innovations in eye surgery, we are thrilled to join a market leader and pioneer like Carl Zeiss Meditec," said Pierre Billardon, International CEO of Dutch Ophthalmic Research Center B.V. "We have built an amazing business with innovative and market-leading products, and we look forward to leveraging this growth opportunity to drive the future of eye surgery. I am personally proud and incredibly grateful for the dedication and expertise of the Dutch Ophthalmic team, who have helped patients regain their vision."

# About Carl Zeiss Meditec

Carl Zeiss MeditecCarl Zeiss Meditec AG(Stock Code: CZMWY)is on the German Stock Exchange MDAX and TecDAXOne of the world's leading medical technology companies. The company provides innovative technologies and application-oriented solutions to help doctors improve patients' quality of life. It offers comprehensive solutions, including implants and consumables, for the diagnosis and treatment of ophthalmic diseases. The company also provides innovative visualization solutions in the field of minimally invasive surgery.

The Group has approximately 4,823 employees worldwide and achievedRevenue of €2.089 billion，Increased by 10% year-on-year, making it the fastest-growing ophthalmic medical device manufacturer globally.

Headquartered in Jena, Germany, the group has subsidiaries both in China and abroad. More than 50% of its employees are based in the United States, Japan, Spain, and France. The company’s presence in these rapidly growing economies is strengthened by the Center for Application and Research in Bangalore, India (CARIn), and the Carl Zeiss Innovation and Research Center in Shanghai, China. Approximately 41% of Carl Zeiss Meditec AG's shares are freely traded, while the remaining approximately 59% are held by Carl Zeiss AG, one of the world’s leading groups in the optical and optoelectronic industries.

Editor-in-Chief | Zhao Qing Reviewed by | Yi He