BD Sold Respiratory Business to Apax Partners

BD (Becton, Dickinson and Company) sold her Respiratory Solutions business to Apax Partners, with the latter as the majority owner of new Company.

BD announced in a press release, that —

‘BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced a definitive agreement to sell 50.1 percent of its Respiratory Solutions business to funds advised by Apax Partners, a leading global private equity firm, and form a joint venture that will operate as a new, independent Company.

The new company will include all business lines within BD’s Respiratory Solutions business including Ventilation, Respiratory Diagnostics, Vital Signs and AirLife, and have estimated annual revenue of approximately $900 million. BD’s Respiratory Solutions facilities will transfer to the new company, including locations in Yorba Linda, Calif.; Palm Springs, Calif.; Plymouth, Minn.; Mexicali, Mexico; Cotia, Brazil; Hoechberg, Germany and Shenzen, China. The new company will employ more than 5,000 associates around the world. BD will retain 49.9 percent of the company as a significant but non-controlling minority owner.

The completion of the transaction is subject to pending regulatory approval, consultations with employee representative bodies in Europe and customary closing conditions.’

The press release can be found from BD Website by clicking this link.

Avita Medical signs Distributor Deal with China’s largest healthcare Group

As per Avita Medical News release, Avita medical signs distributor contract with Sinopharm, China’s biggest healthcare group.

Avita Medical announced in the news release:

Avita Medical Ltd, (ASX: AVH), (OTCQX: AVMXY), a regenerative medicine company specialising in new Treatments for wounds and skin defects, has signed an exclusive distribution deal for China with the country’s leading healthcare group, Sinopharm.

The deal, signed in Beijing on Thursday with Sinopharm’s MedTech subsidiary, grants exclusive distribution of the Avita range of medical devices, which rapidly deliver a cellular suspension to trigger healing in burns, chronic wounds and aesthetic conditions. Avita has been active in the China market for five years, with sales in the main cities of Beijing, Shanghai and Guangzhou. Avita’s Focus to date has primarily been in the fields of plastics and repigmentation, with a presence in several leading hospitals, including Peking Union Medical College Hospital, Zhongshan University No.1 hospital, Shanghai No 9 Hospital and Beijing Air Force Hospital.

State-owned Sinopharm is the largest medical and healthcare group in the world’s most populous country. It is involved in distribution, retail sales, R&D and the manufacture of various healthcarerelated products, generating sales of RMB 200 billion (US$ 30 billion) in 2014. Sinopharm is the first Chinese pharmaceutical company to be listed in the Fortune Global 500 list, and the company is publicly traded on the Hong Kong exchange (Stock code: 01099. HK).

Avita said it had been drawn towards Sinopharm in part because of the group’s wide reach, as it has offices in all main Chinese cities, and representation in 31 of the country’s provinces and regions. The Company said achieving strong distribution in China was a key goal of its global commercialization strategy, given the size of the Chinese market, which has about 3.4 million people hospitalized with burns each year 1 and around 1.4 million afflicted by vitiligo. 2 Outside of these core markets, there was also great scope for expansion into cosmetic surgery and chronic wounds, the Company said.

“Sinopharm MedTech have a proven track record of building up strong recurrent sales of medical devices, and we greatly look forward to supporting their efforts in growing the China market,” said Avita CEO Adam Kelliher. “Avita has already done a lot of the hard work in China and now is the time to build on this and work with a strong partner to address the clear need for our regenerative medicine products.”

Ms. Qiu Shiru, General Manager of Sinopharm Group Med-Tech’s Beijing office, said the company viewed ReCell® to be a “significant milestone product in the field of regenerative medicine, as it not only heals physical wounds, but also supports mental health. We regard it as a great honor to be the exclusive distributor of ReCell® in China, as it aligns with our business philosophy of “Caring for Life, Caring for Health”.

Avita Medical will provide clinical support to the Sinopharm MedTech sales team and extended agent network, to help with interactions with medical professionals. The Company said the support strategy would also involve backing new research into Avita’s regenerative medicine approach, given the positive interactions with Chinese researchers to date. Investigators in Guangzhou last year delivered the first randomized controlled trial to use the device on chronic wounds, which showed superior wound closure amongst those treated with ReCell®

The Chinese distributor deal is the eighth territory to be signed by Avita in the past three months, as the Company escalates its commercialization activities and expands its sales footprint.

Here is the link to the news release on Avita website.

Whom will Toshiba marry?

Strapped by cash problem, Japanese Toshiba will sell the medical device unit in order to improve their finance situation after the accounting scandal.
Not many details are disclosed, it is believed that the value of the deal is between $6 billion to $6,5 billion. Fuji Film, Canon and a consortium form by Konica Minolta and an UK private equity fund are in the second round bidding.
The negotiation of the deal should not last very long, but whom will Toshiba marry in the end?
Another Japanese firm, Sharp Inc. was also trying to sell the business to potential buyers. Sharp was very close to closing a deal with Foxconn, but the deal is suspended. Foxconn-Sharp marriage is the best solution interm of product and business integration, but there are strong voices against this deal: a Japanese firm should stay in hands of Japanese, or some Japanese would rather leave Sharp in bankruptcy. A Japanese government endorsed investment fund was trying to acquire Sharp but eventually withdrew.
Hence now a Japanese company, Canon or Fuji, buys Toshiba medical device unit shall be the most possible and logical result. For the sake of saving the pride and dignity of the Japanese manufacturing industry, Toshiba has to marry a Japanese as a bitter happy end of the story.

Med Tech to be listed in China’s 13th 5-year-plan

Chinese Central Government proposed 100 most important projects in the 13th5-year-plan, the National People’s Congress (NPC) is reviewing the plan.
Global Med Tech
Among the 100 most important projects defined by the top leaders, 4 are from med tech cluster including:
– R&D of high performance medical devices such as nuclear medical imaging equipment, superconductor resonance imaging equipment and non-invasive life-supporting machine,
– Development and application of medical devices having Chinese traditional medicine advantages,
– Accelerating large scale application bio science, for instance genomics,
– Development of robotic surgical system

This proposal reflects the industry upgrading strategy of China at national level.

Opportunities for cancer diagnostics and treatment devices

It is believed that many patients suffering from cancer could be treated if the tumor can be detected at very early stage.

number of cancer patients
Number of newly diagnosed cancer patients in China

As per statistics, number of newly diagnosed cancer patients keeps growing in China, which escalates the demand of medical devices and in-vitro products such as early screening devices, diagnostic devices, bio-markers, imaging devices and radiology equipment. This also generates opportunities for medical examination centers as well as independent medical imaging centers.

ISO 13485:2016 published

The International Organization for Standardization (ISO) published ISO 13485:2016 for medical devices on 01 March 2016.

The update of the standards will have impact on medical devices including in-vitro products.

An Abstract of the requirements could be found here, by clicking this link. 

A preview to ISO 13485:2016 could be found from ISO website by clicking this link.