Stryker Acquires TSO3 for $51.7 Million to Integrate Innovative Low-Temperature Sterilization System

On August 13, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biotechnology company Stryker Corporation (Stryker) announced the acquisition of medical device company TSO3 for $51.7 million. The transaction is expected to be completed in December this year.

TSO3, founded in 1998 and headquartered in Quebec, Canada, is a medical device company. The company specializes in developing sterilization technologies for medical devices, helping healthcare institutions and research institutes improve their R&D efficiency and accuracy. TSO3 primarily designs products for sterile work environments, with its business encompassing the R&D, production, and sales of consumables related to sterilization processes and accessories for heat-sensitive medical devices. The company was listed on the Toronto Stock Exchange in 2001.

It is reported that TSO3 completed a $20 million financing round in August 2018, led by Courage Capital.

TSO3’s flagship product is the STERIZONE VP4 Sterilizer, an FDA-cleared sterilization device designed for the disinfection and sterilization of multi-channel flexible endoscopes, including colonoscopes, gastroscopes, and duodenoscopes. This sterilizer employs low-temperature sterilization technology, utilizing hydrogen peroxide and ozone to sterilize heat-sensitive medical devices. Additionally, the STERIZONE VP4 is equipped with the intelligent Dynamic Sterilant Delivery System, which automatically adjusts the dosage of sterilant based on the size, intended use, and ambient temperature of the medical devices, thereby enhancing sterilization efficacy.

Compared with traditional low-temperature sterilization equipment, STERIZONE VP4 can significantly reduce medical disinfection costs and provide a safer medical environment for patients. The disinfection technology used by this device is environmentally friendly, making it an effective alternative to other low-temperature sterilization equipment.

Stryker, founded in 1941 and headquartered in Michigan, USA, is a world-leading biotechnology and medical device company. The company primarily manufactures spinal implants and surgical equipment, and develops minimally invasive treatment technologies for neurological disorders to improve patient outcomes. Stryker was listed on the New York Stock Exchange in 1990 and has 36,000 employees worldwide. In 2018, the company’s global sales reached $1 billion.

Stryker is also deeply committed to philanthropy. Since 1999, the company has maintained a long-term partnership with Operation Smile, an international medical charity, providing free treatment to children in developing countries born with cleft lips, cleft palates, or other facial deformities. To date, it has provided care to more than 100,000 patients.

R.M. Rumble, President and Chief Executive Officer of TSO3, stated, “TSO3’s Board of Directors and management believe that this acquisition represents a significant milestone in the company’s development. Stryker’s expertise and financial support will help TSO3 fully realize its potential, and we look forward to the successful completion of this transaction.”

Linda Rosenstock, a representative of the TSO3 Special Committee and Board of Directors, stated, “Stryker has a strong management team and a professional technical team. We are pleased to reach this agreement with them to drive the rapid development of TSO3.”

(Compiled by Xu Xiaoxue)