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Recently, Cook Medical announced thatIt has signed a letter of intent with leading private equity firm Astorg, which will acquire Cook’s reproductive health business (“Cook ART”).It is reported that this sale includesIn Vitro Fertilization (IVF) and Assisted Reproductive Technology (ART) Products.

Data shows that Cook Medical operates in 135 countries and regions worldwide, with its product portfolio primarily comprising vascular interventional and medical surgical products, covering multiple fields including critical care, endoscopy, otolaryngology/head and neck surgery, reproductive health, general surgery, and urology.

As early as February 2022,Cook Medical had planned to sell its reproductive health business to CooperCompanies for $875 million (approximately RMB 6.3 billion)., but the deal was terminated due to an antitrust investigation launched by the U.S. Federal Trade Commission into the acquisition.

November 2023,Cook Medical Announces Sale of Select Maternal-Fetal Medicine Products from Its Reproductive Health Portfolio, Gynecological Surgical Products, and Doppler Monitor Technology for $300 Million (Approximately RMB 2.2 Billion)Sold to Cook Group.

Public information indicates that Astorg is a leading pan-European private equity firm, managing over €2.2 billion in assets and boasting an extensive track record in global healthcare investments. Astorg collaborates with entrepreneurs and management teams to acquire market-leading global companies headquartered in Europe or the United States, providing them with the strategic guidance, governance, and capital necessary to achieve their growth objectives.

Following Astorg's acquisition of Cook Medical's ART product portfolio,Plan to Merge the ART Product Portfolio with Hamilton ThorneHamilton Thorne is a supplier of precision instruments, consumables, software, and services for the fields of ART research and cell biology.

Astorg stated that by merging Cook Medical ART and Hamilton Thorne,To establish a leading ART provider with a comprehensive portfolio of high-quality, innovative, and reliable devices and consumables,To better serve physicians, embryologists, researchers, and patients.

According to the announcement,Cook Medical expects the transaction to be completed this fall, with plans for the 93 commercial employees in its reproductive health division to receive job offers or automatically transfer to the newly merged company upon closing.The transaction also includes the manufacturing facility in Vandergrift, Pennsylvania, where Cook plans to continue providing services during a three-year transition period. Afterwards,Vandergrift’s 209 employees will join the merged company.

Cook Medical stated that the proceeds from this sale (undisclosed) will be reinvested in the company’s strategic initiatives.

DJ Sirota, Senior Vice President of Cook Medical’s MedSurg Division, stated: “Cook is dedicated to providing a continuous stream of innovative products and services to meet unmet customer needs.”Part of implementing this business strategy involves reviewing our product portfolio to determine which product lines are best suited for Cook Medical’s future growth and which may have greater opportunities to develop or thrive elsewhere.”

Cook Medical stated: “Astorg plans to establish an IVF/ART manufacturing center at its Vandergrift, Pennsylvania facility, creating a central hub for the production of Cook ART products.“The expertise and knowledge of our reproductive health commercial and manufacturing teams were critical to this transaction, reflecting the value our employees bring to this business, its customers, and patients worldwide.”

Cook Medical is a medical device company from Indiana, USA, founded in 1963 by Mr. Bill Cook and his wife. Currently, Cook Medical's business spans 135 countries and regions worldwide.The product portfolio primarily comprises vascular interventional and medical surgical products, covering multiple specialties including critical care, endoscopy, otolaryngology/head and neck surgery, reproductive health, general surgery, and urology.Production bases are primarily located in the United States, Europe, and Australia. The company operates six global logistics distribution centers and multiple local warehousing and distribution centers, with a workforce of over 10,000 employees.

In the field of reproductive health,Cook Medical has been deeply engaged in the field for over 40 years, successfully developing products for obstetrics and gynecology, in vitro fertilization (IVF), and assisted reproductive technology (ART).This includes the development of the world’s first needle specifically designed for in vitro fertilization (IVF) treatment, used to transfer IVF embryos into the uterine cavity. Additionally, Microvol™ technology reduces the volume of medium required for transfer.Additionally, the Bakri Postpartum Balloon and Rapid Infusion Kit is used to provide temporary control or reduction of postpartum uterine bleeding when conservative treatment is required.

In 2021, Cook Medical’s reproductive health business generated $158 million in revenue, representing a year-over-year increase of approximately 17% on a constant currency basis.

In recent years, Cook Medical has undergone significant changes in its customer base, supply chain, and ways of working. To ensure success in this new phase of development, its global leadership team has implemented a new five-year vision and strategic plan, developed based on extensive feedback from customers, employees, and the leadership team.

Public information indicates that, in order to execute its “Five-Year Vision and Strategic Plan,” Cook Medical has undertaken several major initiatives in recent years, including divesting business units and implementing layoffs.

As early as February 2022, Cook Medical announced that it had signed a letter of intent with the Cooper Companies to sell its entire business in the reproductive health segment of its Medical Surgical Division.

Under the proposed transaction, Cook Medical will pay $875 million (approximately RMB 6.3 billion), including $675 million upon completion of the acquisition and an additional $200 million paid in four annual installments of $50 million each. In terms of value, this acquisition ranks among the top 10 mergers and acquisitions in the medical device sector in 2022.However, in August 2023, the U.S. Federal Trade Commission blocked this acquisition on antitrust grounds.

In November 2023, certain maternal-fetal medicine products, gynecological surgical products, and Doppler monitor technologies from Cook Medical’s reproductive health product line were sold to CooperCompanies.The transaction price is $300 million (approximately RMB 1.96 billion), of which $200 million will be paid at the closing of the transaction, and the remaining $100 million will be paid in two installments of $50 million each year.

The products included in this sale comprise the majority of Cook Medical’s maternal-fetal medicine (MFM) products within its reproductive health portfolio, select gynecological surgical products, as well as Doppler monitor technology, disposable devices, and accessories.

Cook Medical will continue to produce these products for at least two years.Over the next two years, production will be gradually transferred to CooperSurgical. Currently, employees in Cook Medical’s production roles are not affected by this transaction.The product lines affected by this incident account for approximately 2.5% of Cook Medical’s total sales.

The Cook Medical assets acquired in this transaction are primarily minimally invasive medical devices,Including the Bakri Balloon, Cook Balloon, Doppler blood flow monitor portfolio, and selected surgical products.According to the company, this transaction does not involve any reproductive products included in the original acquisition (the $875 million acquisition announced in 2022).

Taking the Chinese market as an example, driven by factors such as population aging, rising maternal age at childbirth, and government-implemented fertility incentive policies, the demand for assisted reproductive technology (ART) in China continues to grow. However, the overall penetration rate of ART remains low, indicating substantial market potential, with future growth rates expected to exceed the global average.

Notably, since 2023, regions such as Beijing and Liaoning have successively included assisted reproductive technology (ART) services in their medical insurance coverage, marking a long-awaited breakthrough for ART in accessing public reimbursement. Industry analysts suggest that the formal inclusion of ART services in medical insurance represents a significant milestone for the sector. The implementation of relevant policies is expected to substantially increase market penetration, potentially doubling the size of the ART market within five years.

Cook Medical, as a large multinational medical device company, has long been established in the reproductive health sector and holds significant influence in the global reproductive medicine field.So, after selling its reproductive health business, how will the company position itself in other medical sub-sectors?In this regard, MedDevice Home will continue to monitor the situation.

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