Getinge to Acquire Paragonix Technologies for $477 Million to Expand in Organ Preservation and Transplantation

On August 26, organ preservation and transportation company Paragonix Technologies announced that it had agreed to be acquired by Getinge for $477 million (approximately RMB 3.4 billion). The transaction aims to expand the use cases of Paragonix’s devices in pancreas, kidney, and liver transplantation.

Getinge, the acquirer, aims to leverage its expertise and industry experience in acute cardiopulmonary support, along with its comprehensive global sales network, to further expand the reach of Paragonix’s organ preservation and transportation technology. Meanwhile, Getinge will focus on promoting Paragonix’s products in overseas markets. Currently, nearly 100% of Paragonix’s sales are generated in the United States, and Getinge seeks to boost product sales through its international commercial division.

The acquirer, Getinge, was founded in 1904 and is headquartered in Gothenburg, Sweden. It is committed to providing innovative solutions for hospital operating rooms, intensive care units, sterile reprocessing, cardiovascular surgery, as well as life sciences-related companies and institutions.

As a company keen on “buying, buying, and buying,” Getinge has completed 17 mergers and acquisitions to date, according to incomplete statistics from Crunchbase, including three major acquisitions in 2023 alone:

In March 2023, Getinge announced that it would acquire 100% of the shares of Ultra Clean Systems, a U.S. manufacturer of ultrasonic cleaning technology, for SEK 170 million (approximately RMB 110 million);

On May 31, 2023, Getinge agreed to acquire High Purity New England, a supplier of single-use solutions for bioprocessing applications, for up to $370 million (RMB 2.63 billion);

In October 2023, Getinge acquired Healthmark Industries, a supplier of instrument care and infection control consumables, for approximately $320 million.

Driven by the dual engines of innovation and acquisition, Getinge has provided a range of innovative solutions for hospital operating rooms, intensive care units, sterile reprocessing, cardiovascular surgery, digital health, and pharmaceuticals. The acquisition of Paragonix Technologies not only expands its product portfolio in the medical device sector but also marks Getinge’s formal entry into the organ preservation and transportation market.

Recognition of the market prospects for organ transplantation is a key factor driving Paragonix Technologies to pursue this transaction. Getinge anticipates that the international transplantation market will continue to grow at a double-digit rate, surpassing $10 billion by 2033.

Paragonix Technologies, the target of this acquisition, has been deeply engaged in organ preservation and transportation technology for over a decade. Founded in 2010 and headquartered in Massachusetts, USA, Paragonix Technologies has revolutionized traditional organ preservation and transport methods that rely on simple consumer-grade coolers and ice. Its advanced organ preservation devices combine clinically validated temperature control technology with digital tracking and monitoring capabilities, providing clinicians with comprehensive, precise control and oversight throughout the entire donor organ transportation process.

Paragonix’s GPS tracking system utilizes temperature- and pressure-controlled containers to transport heart and lung tissues without causing excessive cellular damage. Notably, the clinical impact of Paragonix Technologies’ organ preservation technology is supported by the GUARDIAN Clinical Registry, the world’s largest database on organ preservation, which is used to analyze post-transplant outcomes in transplant recipients.

Currently, Paragonix has four organ preservation device products that have received FDA approval or CE marking: the Paragonix SherpaPak® Heart Transport System, the LUNGguard® Donor Lung Preservation System, the LIVERguard® Donor Liver Preservation System, and the BAROguard® Donor Lung Preservation System. Recently, Paragonix began launching its first FDA-approved hardware for protecting donated pancreases and initiated its own transplant logistics network.

In terms of digital monitoring and tracking, the Paragonix application provides a central platform that enables transplant teams to efficiently coordinate and manage organ procurement efforts. Furthermore, transplant centers using Paragonix devices have access to a comprehensive 24/7 national support system staffed by experienced transplant clinicians. According to its official website, the company has established partnerships with more than 130 transplant centers, facilitating the preservation of over 3,000 donated organs.

In 2023, Paragonix Technologies generated $43.1 million in revenue, representing a 136% year-over-year increase. The acquisition is expected to close within the next few weeks and includes an upfront payment of $253 million.

Data from the International Registry of Organ Donation and Transplantation indicate that by the end of 2020, more than 345,400 patients were still waiting for organ transplantation. In 2020, at least 23,103 patients on the kidney transplant waiting list died without receiving a transplant. Among the more than 2.66 million patients with end-stage renal disease (ESRD) receiving dialysis treatment worldwide, only 5.65% of ESRD patients have the opportunity to receive an organ transplant.

Amidst the severe shortage of organ donors, it is crucial to maintain the viability and function of organs in a blood-free state. This imposes stringent requirements on the transportation of transplant organs, making it particularly important to extend organ viability time and prevent donor organs from being wasted due to loss of viability.

Currently, the most commonly used technique for organ transplantation and transport is static cold storage (SCS), also known as traditional “ice box” preservation. This method involves placing the ex vivo organ in an organ preservation solution at approximately 4°C, where the low-temperature environment suppresses the organ’s metabolism and enzymatic degradation, thereby mitigating organ injury.

However, this method also has some obvious limitations. For example, when donated organs are placed on ice, they can only remain viable for a short period; prolonged lack of blood supply will lead to permanent organ damage. Furthermore, in a hypothermic state, organs neither function nor undergo metabolic activity. Therefore, physicians cannot assess whether the organ is suitable for transplantation, which also increases the risk of transplant failure. Throughout the cold storage process, no therapeutic interventions can be applied to improve the condition of the donated organ.

In comparison, machine perfusion can largely address this issue. Machine perfusion is a method that utilizes specific perfusion equipment to simulate the human physiological environment ex vivo, thereby extending organ preservation time and improving transplantation success rates. This approach is primarily categorized into hypothermic machine perfusion and normothermic machine perfusion. Currently, machine perfusion is gradually becoming the standard of care for the preservation and transport of kidneys for transplantation. Studies have shown that, compared with static cold storage (SCS), this method can significantly reduce the risk of delayed graft function (DGF).

Among these, Xvivo Perfusion’s kidney assist transport system is a portable device that employs hypothermic machine perfusion (HMP) technology to provide up to 24 hours of hypothermic, pulsatile, oxygenated perfusion for donor kidneys. The system features a unique patch and kidney cradle design, eliminating the need for cannulation and protecting the kidney during transport.

TransMedics’ Organ Care System employs normothermic machine perfusion to maintain donor organs in a viable and functional state. By supplying oxygen and nutrients, the system optimizes organ health during transport and continuously monitors each organ throughout the process, ensuring that transplant teams can preserve organs in optimal condition. Currently, the company has product offerings in the fields of lung, heart, and liver transplantation.

Currently, in the field of donor organ preservation and transportation, foreign companies hold a significant market share due to their advanced technologies and long-term market presence. Overall, there is still considerable room for increasing the localization rate. However, as domestic companies ramp up R&D investment and technological innovation, Chinese innovative forces are gradually emerging.

Shanghai Jian Geng Pharmaceutical Technology Co., Ltd. focuses on the field of transplantation, providing products for the preservation, transportation, evaluation, and repair of transplant organs throughout the entire transplantation process, as well as in vitro diagnostic reagents for personalized precision diagnosis in transplant recipients. Its products are exported to approximately 46 countries and regions worldwide. The LifePort® Kidney Transporter is primarily used for hypothermic preservation, perfusion, and transportation of donor kidneys prior to kidney transplantation.

Hangzhou Laipusheng Medical Technology Co., Ltd. focuses on the research, development, translation, and production of medical technologies and products related to organ and tissue preservation. The company has a comprehensive product portfolio in the field of organ preservation and transportation, including liver perfusion repair and transportation devices, fully automated pancreatic perfusion systems, mobile intelligent preservation and transportation units, and multi-organ preservation and repair solutions. Notably, its LPS2000 liver perfusion repair and transportation device is the world’s smallest fully automated dual-pathway liver repair system developed independently.