Hot Medtech Spin-offs

Hot Medtech Spin-offs

Da Vinci Newsletter 4.12.2023

Medtech 2023: Three Pioneering Spinoffs that Reshaped the Industry, Anticipating Future Developments

Corporate spinoffs are redefining the medical technology sector as executives seek to sharpen their operational focus, boost revenue and profit, and improve investor returns. These transformative developments and the upcoming spinoffs are shaping the face of the industry.

Past Groundbreaking Spinoffs:

1. GE HealthCare Charts Its Own Course Since its separation from the industrial conglomerate General Electric in January, GE HealthCare has raised its full-year sales outlook. Navigating a capital equipment spending slump and an anti-corruption campaign in China's medical sector, GE HealthCare is focused on reducing costs, benefiting from new product introductions, and doubling down on investments in machine learning. Notably, its Caption Health subsidiary received a $44 million grant to develop AI-assisted ultrasound technology.

2. Johnson & Johnson Sheds Consumer Unit In May, Johnson & Johnson spun off its consumer brands, forming the new company Kenvue. This strategic move raised $13.2 billion in cash for J&J, allowing the healthcare giant to concentrate on its pharmaceutical and medical device businesses. With double-digit sales growth in its medtech segment, J&J is restructuring its orthopedics business and eyeing new M&A opportunities following its acquisition of heart pump maker Abiomed.

3. Danaher Focuses on Life Sciences Danaher completed its evolution into a leading life sciences and diagnostics company with the spinoff of its water testing and product identification operations into the standalone Veralto. Despite challenges such as weaker China demand and sluggish biopharma spending, Danaher foresees rising global demand for biologic medicines. The company's long-term strategy includes the acquisition of Abcam to accelerate the drug discovery process.

Upcoming Spinoffs:

1. Baxter: A Step into the Future Medtech manufacturer Baxter is poised for a spinoff to strengthen its market position. The separation allows Baxter to focus on more profitable product lines and make strategic investments for future growth.

2. 3M: Realignment in Focus 3M also plans a spinoff to streamline its business segments and focus on areas with higher growth potential. Realignment enables 3M to adapt more flexibly to market demands and drive innovation.

3. Medtronic: Clear Focus on Innovation Medtronic is preparing for a spinoff to optimize its business and intensify the focus on innovative technologies. The separation will allow Medtronic to respond more efficiently to evolving healthcare sector needs and enhance its competitive position.

Conclusion: Spinoffs are proving to be pivotal in reshaping the medtech landscape, with companies strategically positioning themselves for future success. As the industry undergoes these transformative changes, the focus on innovation, efficiency, and market adaptability will be critical for sustained growth

Investment Spotlight: ArtVentive Medical Group Inc.

In the dynamic landscape of therapeutic embolization, ArtVentive Medical Group Inc. stands out as a trailblazer, having successfully developed and clinically validated groundbreaking technology. This California -based company has recently achieved significant milestones, positioning it as a prime investment opportunity in the multibillion- dollar market. Here's a critical look at the key aspects of ArtVentive's journey:

Investment Highlights:

  •  Recent FDA approval for the EOS-X, 2nd Generation Plug.

  •  Forged a strategic partnership with market leaders Worldwide, signaling a strategic move towards global expansion.

  •  Capital Injection for Strategic Growth:

  •  Actively seeking a $15 million investment to facilitate pivotal steps in

    commercialization before acquisition.

  •  The capital injection aims to support mass production and revenue phase of the EOS device, establish a robust commercial infrastructure, and fuel sales and marketing efforts.

Transition to Commercial Revenue Phase:

Positioned for commercial success with the FDA's green light for the EOSX Plug. Anticipated revenues ranging from $10 million to $20 million in the short term, paving the way for a strategic exit within 18-24 months post-funding.

Innovative Product Advancements:

EOS-X Plug introduces an expanded size range, lower crossing profile, enhanced retrievability, and maintains the hallmark precision and permanence of occlusion.

Global Market Penetration & Clinical Validation:

Targeting the US and EU markets, with additional initiatives in Japan and the Middle East. Successful early sales to select US and European customers, withover1,600 clinical procedures boasting a 100% success rate.

Leadership and Expertise:

Mr. Bill Olson, an industry veteran, assumes the pivotal role of CEO, bringingextensive experience from Abbott's endovascular business. Olson's leadership encompasses spearheading commercialization, fostering company growth, managing sales and marketing, and nurturing strategic partnerships.

 

 Critical Accomplishments:

1.FDA - Approved Next-Generation Plug: EOS-2, now EOS-X, secures FDA approval with immediate occlusion, exceptional anti migration properties, and an expanded range of sizes

2.Pilot Phase Success: Successful completion of the pilot phase involving1,600 clinical cases with ArtVentive EOS. Demonstrated efficiency, safety, and economic value, achieving a remarkable 100% clinical success rate.

3.Global Market Expansion: Strategic collaboration with Sumitomo Bakelite of Japan secures approval or EOS plugs in the lucrative Japanese market for embolization.

4.Revenue Generation and Market Positioning: Valuable revenue and clinical experience gained in the US, Europe, and Australia, despite limited active marketing. ArtVentive Medical is strategically positioned for a full-scale launch as it steps into the commercial phase.

Strategic Vision for the Future:

ArtVentive Medical Group Inc. is on the cusp of a transformative phase, and your investment could play a pivotal role in shaping its upcoming success. With a robust leadership team, innovative technology, and strategic partnerships, the company aims to expand its sales organization, drive revenue growth, explore additional clinical applications, and ultimately achieve a successful exit.

From a critical journalist perspective, the groundbreaking strides made by ArtVentive Medical Group Inc. underscore its potential as an investment gem in the ever-evolving landscape of therapeutic embolization.

Contact:

Artventive Medical Group Inc.

Mr. Giuseppe Trianni

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