Codman Neuro Files for IPO: A Global Leader in Neurosurgical and Neurovascular Devices

Codman Neuro is a global company specializing in neurosurgical and neurovascular surgical devices, primarily offering equipment for hydrocephalus, neurocritical care, and neurosurgery, as well as aneurysm coils, vascular reconstruction devices, and other technologies for the treatment of cerebral aneurysms and stroke. It was formerly part of Johnson & Johnson’s DePuy Synthes Companies,In October 2017, the company was acquired by Integra LifeSciences for $1.045 billion.。

Stroke, also known as cerebrovascular accident, is characterized by its acute onset, high rates of disability and mortality, and ranks among the leading causes of death worldwide. The mortality rate from stroke tends to increase with age, and effective therapeutic interventions have long been lacking.

In June 2013, Codman Neuro, then a subsidiary of Johnson & Johnson, announced at the LINNC Congress in Paris that its second-generation REVIVE SE device had received CE marking. This is a self-expanding thrombectomy device designed for the treatment of acute ischemic stroke.

Previously, in February 2011, the company’s first-generation REVIVE SE device received CE certification. In addition to removing clots, clinicians can use the REVIVE SE device to non-surgically remove thrombi, as well as to aspirate or inject contrast agents and other fluids.

Later, in July 2014, Codman Neuro announced at the 11th Annual Meeting of the Society of NeuroInterventional Surgery (SNIS) the launch of the new ENVOY series of guiding catheters for neurovascular procedures.

“Each of our new catheters provides reliable navigation and stability, offering distinct advantages in neurovascular procedures,” said Ajit S. Puri, MD, Neurointerventional Surgeon at UMass Memorial Medical Center.

In addition, Codman Neuro has developed many other devices, such as intracranial pressure monitoring systems and bipolar electrosurgical systems—bipolar forceps.

Codman Neuro, part of Johnson & Johnson’s DePuy Synthes division, generated approximately $370 million in sales in 2016.

In recent years, the wave of mergers and acquisitions in the healthcare industry has remained strong, becoming even more frequent, with transaction values growing exponentially.

Divestitures and M&A are key strategic moves for medical device giants. Divesting non-core businesses allows companies to focus on their primary operations, thereby securing industry influence and stable profit margins. Meanwhile, mergers and acquisitions strengthen competitiveness, provide technological supplementation or reserves, expand product pipelines, or enable entry into blue ocean markets.

Codman Neuro not only underwent an acquisition but also experienced divestiture and another acquisition within the same year.

Since 2017, Johnson & Johnson has been continuously expanding its acquisition pipeline for medical device companies, completing a total of nine acquisitions by early 2019. In addition to Neuravi, Johnson & Johnson acquired spinal surgery company Sentio, surgical software technology developer Orthotaxy, 3D-printed spinal implant manufacturer Emerging Implant Technologies, and medical device company Auris Health, among others.

While strengthening its MedTech segment, Johnson & Johnson is also accelerating the divestiture of other businesses, initiating a major sell-off of its device portfolio. In 2017, J&J announced the cessation of operations and exit from its Animas insulin pump business and Codman Neurosurgery business. After divesting its diagnostics, cardiovascular stent, diabetes care, and sterilization/disinfection businesses, J&J’s MedTech segment now focuses on orthopedics, surgery, and vision care, with a strategic emphasis on advancing surgical robotics technology.

According to statistics, acute ischemic stroke accounts for more than 87% of all stroke types and is the leading cause of death and disability among strokes. Each year, there are 1 million and 700,000 patients with acute ischemic stroke in Europe and the United States, respectively. In the United States alone, the estimated treatment cost for this disease reaches as high as $65 billion.

In April 2017, Codman Neuro, a subsidiary of Johnson & Johnson, announced the acquisition of the Irish medical device company Neuravi, aiming to integrate Neuravi’s research with Codman Neuro’s capabilities to accelerate innovation in the treatment of acute ischemic stroke. Although the financial terms of the deal were not disclosed, The Irish Times reported that the transaction could be worth hundreds of millions of euros.

This is a landmark deal that enables Johnson & Johnson to enter the rapidly growing stroke care market.

It is reported that Neuravi, founded in 2009, is primarily engaged in scientific research on various thrombus subtypes responsible for acute ischemic stroke. The company also developed the EmboTrap blood flow restoration device and its second-generation product, EmboTrap II, which are designed to remove thrombi from cerebral vessels to restore normal blood flow and thereby treat patients. Furthermore, the company has raised over €25 million in funding.

In October 2017, Integra LifeSciences announced the completion of its acquisition of Codman Neuro, with the transaction valued at $1.045 billion.

“Following this, we can create one of the most extensive portfolios of medical devices in the neurosurgery market, thereby expanding our global leadership,” said Peter Arduini, President and Chief Executive Officer of Integra. “Through planned investments in product innovation and global infrastructure, we are able to provide more healthcare solutions to surgeons and their patients worldwide.”

Johnson & Johnson also stated that the transaction does not include Codman’s neurovascular products or pharmaceutical distribution business. The company will continue to focus on the treatment of ischemic and hemorrhagic stroke through its newly launched Cerenovus platform.

Integra LifeSciences was founded by Richard E. Caruso in 1989 and is headquartered in Princeton, New Jersey, USA.

The company is a global leader in medical technology, providing innovative solutions across various surgical disciplines. Its products are widely used in neurosurgery, post-operative reconstruction, wound healing, and dental care. The company is committed to eliminating uncertainty in clinical practice, enabling clinicians to focus on delivering patient care.

In addition to Codman Neuro, the company has acquired 18 other companies, including Arkis BioSciences, TEI Biosciences, and Tekmed Instruments. Furthermore, to date, Integra LifeSciences has registered 95 patents and 157 trademarks.

Following the transaction, Integra LifeSciences’ stock price also rose. The company expects its earnings per share to increase by $0.22 in the first year after the deal closes, with continued growth thereafter.

The repeated expansion in scale and business operations, along with several strategic development guidelines pursued by giants in the medical device industry, invariably revolve around “M&A.”

A review of the typical development trajectories of medical device giants reveals that:

For these industry giants, after undergoing technology-driven transformation, achieving mature business development, and reaching market scale, they are increasingly focusing on the market side while facing the challenge of “being too large to pivot” in R&D. To consolidate their positions and avoid disruption by small and medium-sized innovative companies, mergers and acquisitions have become a direct means for traditional medical device giants to break through product and technological silos.

[Part of this section is sourced from: VCBeat Special Report Pro]“Top 8 Medical Device Companies: Johnson & Johnson and Philips Close Behind, Medtronic Leads the M&A Marathon”】

Codman Neuro, part of Integra LifeSciences, remains passionate about the research and development of technical equipment, continuously launching new technologies and devices.

On April 11, 2019, Integra LifeSciences announced that its Codman Neuro division would showcase its latest innovative technologies at the Annual Scientific Meeting of the American Association of Neurological Surgeons (AANS).

At the conference, Integra LifeSciences showcased Codman’s innovative technology products, including:

· CereLink™ Intracranial Pressure (ICP) Monitoring System:This technology introduces new ways to capture and share critical information, reducing time lag and improving accuracy for neurocritical care teams. Furthermore, its MRI-conditional capability provides added safety; its durable and flexible ICP sensors offer medical teams greater flexibility in device selection; and its more advanced data visualization enables users to access richer information.

CereLink™ Intracranial Pressure (ICP) Monitoring System

· CUSA® ClearTough Tissue Technology:New surgical tips enable surgeons to rapidly and safely resect fibrous tissue and bone. These represent significant additions to Integra’s CUSA Clarity Ultrasonic Tissue Ablation Platform, which has been adopted by 30% of the top neurosurgery and pediatric neurosurgery programs in the United States.

· Certas™Plus Portfolio Expansion:Integra’s Certas Plus programmable valve portfolio builds on a strong legacy in cerebrospinal fluid management, offering surgeons multiple options for treating patients with hydrocephalus. Furthermore, the new Certas Plus Electronic Tool Kit reduces uncertainty in surgical practice by enabling surgeons to efficiently adjust and confirm the settings of these programmable valves.

· Integra® Duo LED Surgical Headlight:Compared with current surgical headlight products on the market, Integra’s innovative surgical headlight offers superior comfort and brighter visualization.

Integra^®Duo LED Surgical Headlight

Dan Reuvers, Vice President of Integra LifeSciences and President of Codman, stated, “The successful integration of the U.S. Codman business has spawned many new products that have significantly enriched our product portfolio.”

“Neurosurgery is a dynamic and challenging field, and the improvement of our tools is a key driver in optimizing patient care,” said Dr. Uzma Samadani, a neurosurgeon.