Source: Siyu MedTech; Editor: Liu Xinyi
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On December 13, 2023, Integra Lifesciences, a leader in tissue repair, announced that the company has reached an agreement and is preparing to$275 million (approximately 1.95 billion RMB) in cash to acquire Acclarent, a subsidiary of Johnson & Johnson focused on ear, nose, and throat (ENT).
# Johnson & Johnson Sells ENT BusinessIn addition to $275 million (approximately 1.95 billion RMB) in cash,Integra LifesciencesThe company also stated that it would make an additional payment of $5 million upon achieving specific regulatory milestones. After the completion of the acquisition,Acclarent will be integrated into Integra's CSS business unit. The transaction is expected to be completed in the second quarter of 2024.。So what is the CSS business department? Let's take a look.Integra's Business Composition:Integra LifeSciences has two major business segments:Codman Professional Surgical(CSS, Codman Specialty Surgical, this division also has a connection with Johnson & Johnson, see details below) andTissue Technology(TT, Tissue Technologies). Among them, the CSS department is further dividedDivided into neurosurgery and instruments businesses, while the TT department is further divided into complex wounds, surgical reconstruction, andPeripheral Nerve Repair。In the fiscal year 2022, the revenue of the CSS departmentAccounting for total revenue65%。Integra's Acquisition This Time IsIn order to become a leading supplier of ENT products and technologies, the company itself has products for ENT surgeryThe MicroFrance® series of instruments, after the acquisition of Acclarent, will mainly gain balloon technology for sinus and Eustachian tube dilation, as well asSurgical Navigation System。In addition, in the skull base surgeryDuring the operation, neurosurgery (an important business of Integra) and otolaryngology are involved due to the related human anatomical structures.Similar, naturally closely related. Acquisition canEnough to further accelerate the company's R&D speed in these two aspects.# Acclarent SoldAnnual income of $110 millionAcclarent specifically belongs to Ethicon, a subsidiary of Johnson & Johnson.Revenue in 2022 was $110 million, with a gross margin similar to the average level of Integra LifeSciences Corporation.. Johnson & JohnsonThe decision to streamline this department was aimed at focusing the company's attention on the fastest-growing market segments. Acclarent, one of the largest suppliers of balloon sinus dilation technology, requires a fully independent sales force.
Acclarent was acquired by Johnson & Johnson in 2010 for $785 million.Acquired in the acquisition, in the analysts' view, Integra's $275 million...Purchase at the price of YuanBelow is a cost-effective price. Currently, Integra LifeSciencesIntegra has not yet disclosed how this deal will impact the company’s financials, but the company stated that it would share more detailed forecast information after the transaction is completed.
Products under Acclarent are divided intoAirway Balloon Dilation System、Balloon Sinuplasty Instruments、Balloon Eustachian Tuboplasty System、Nasal Dilation System、Surgical NavigationAndNasal Sinus Surgery InstrumentsThese few categories.
Among them, the navigation system particularly favored by Integra isTruDi® Navigation System。In September 2021, Acclarent launched TruDi®, the first artificial intelligence-supported ENT navigation system, an innovative image-guided platform that includes two modules: TruSeg™ and TruPath™.The three-dimensional navigation and innovative software system provided by the TruDi® system offers surgeons real-time visual tracking from start to finish, ensuring surgical precision and ease of instrument use.In September last year, Johnson & Johnson announcedThe surgical blade designed for the TruDi® Navigation System has received FDA 510(k) clearance. Integrated with advanced sensors, this single-use, navigable electromagnetic blade works in conjunction with the TruDi® system to display the real-time position of the blade opening during surgery on the TruDi® navigation system. It is suitable for cutting or removing soft and hard tissues or bones in otolaryngology, maxillofacial surgery, head and neck, and skull base surgeries.# Integra LifeSciences' Second AcquisitionJohnson & Johnson BusinessIntegra is only in her thirties. The company was founded in 19Founded in 1989 in the United States, Integra LifeSciences is an emerging company that made its name in tissue repair technology. The company's headquarters is currently located in Princeton, New Jersey. It ranks among the top in the three fields of trauma recovery and reconstruction, surgical reconstruction, and extremity orthopedics, particularly standing out with its unparalleled expertise in tissue repair technology.The company's previous important inventions and acquisition history are as follows:- In 1989, Dr. Richard Caruso founded Integra Lifesciences and also acquired the collagen technology platform.
- In 1995, the company developedIntegra® Dermal Regeneration DressingEntering the burn repair market, isThe first company to successfully develop and bring an approved skin regeneration product to market。
▲Integra® Dermal Regeneration Template- In 1999, the company invented based on collagen technologyDuraGen® Dural Graft(Now DuraGen® Plus)Received FDA approval,Entering the Field of Neurosurgery。
- In 2001, the company's NeuraGen® Nerve Guide received FDA approval.
- In 2006, Integra acquired Miltex, expanding into the surgical and dental instruments market.
- In 2007, the company's TenoGlide® Tendon Protector Sheet received FDA approval.
▲TENOGLIDE® TENDON PROTECTOR SHEET- In 2009, Integra entered the repair market for shoulders, hands, elbows, and ankles.
- In 2014, Integra entered the ENT (otolaryngology) surgical instruments market, the hernia repair market, as well as the ankle replacement and fixation market.
- In 2015, Integra entered the chronic wound care market and expanded its service scope.
- In 2017, Integra acquired Derma Sciences andJohnson & Johnson's Codman Neurosurgery Business (The Root of Integra's CSS Business!), in order to expand its market layout outside the United States.
- In 2021, Integra acquired Acell and launched Aurora and CereLink ICP.
- In 2022, Integra acquired SIA and launched the Aurora Evacuator with a coagulation device in the United States.
The company's performance for the fiscal year 2023 is as follows:In the first quarter of fiscal year 2023, Integra reported revenue of $380.8 million, a year-over-year increase of 1.1%. Total revenue from the CSS division was$2.481 billion (accounting for 65%), a year-on-year increase of 0.3%, the main factors driving departmental growth include: CUSA® Clarity capital and disposables as well as Certas® valves.
▲CODMAN® CERTAS® Plus Programmable ValveIn the second quarter of fiscal year 2023, Integra's revenue was US$381.3 million, a year-on-year decrease of 4.2%. The total revenue of the CSS division was$271 million (accounting for 71%), a year-on-year increase of 5.1%, The main factors driving growth include: CUSA® Clarity capital and disposables, Certas® Plus valve, Mayfield®, DuraGen®, and instrumentation business.In the third quarter of fiscal year 2023, Integra's revenue was $382.4 million, a year-on-year decrease of 0.7%. The total revenue of the CSS division was$268.2 million, a year-on-year increase of 7.4%The main factors driving growth include: Certas® Plus valve, BactiSeal® catheter, ICP microsensor, DuraGen® DuraSeal®, Mayfield®, and instrumentation business.▲DuraSeal® Dural Sealant System, 5 mLIn September this year, Integra Lifesciences also held a signing ceremony with Suzhou Industrial Park.China's First Manufacturing Base and Testing Center Officially Settles in Suzhou Industrial ParkIn the second quarter of this year, the company's DuraGen® Plus also received NMPA approval. It is a material suitable for the repair and replacement of the dura mater.Editor-in-Chief | Zhao Qing Reviewed by | Yi He
