07.29.15
$4.1 Billion
KEY EXECUTIVES:
Koji Nakao, Chairman, Terumo Group
Yutaro Shintaku, President, Terumo Group
Hideo Arase, Managing Director, Terumo Asia Holdings Pte., Ltd.
Hiroshi Matsumura, President, General Hospital Company
Shinjiro Sato, President, Cardiac & Vascular Company
David Perez, President and CEO, Terumo BCT, and President, Blood Management Company, Terumo Corp.
Mark Sutter, Division President, CV Systems Division, Cardiac & Vascular, and President & CEO, Terumo Cardiovascular
Systems Corp.
Richard Cappetta, Division President, Neurovascular Division, Cardiac & Vascular, and President & CEO, MicroVention Inc.
James Rushworth, President and CEO, Terumo Medical Corp.
NO. OF EMPLOYEES: 19,934
GLOBAL HEADQUARTERS: Tokyo, Japan
Where profit is, loss is hidden near by.
— Japanese proverb
Words to live by in the highly regulated and fiercely competitive medical device sector (as if any professional in this business could forget). For venerable Japanese medical technology firm Terumo, the story of fiscal year 2014 (ended March 31, 2015) mostly was one of steady, modest growth—and profit. For the year, the 94-year-old company posted sales and profit gains, both through increased organic sales but also through favorable currency exchange rates.
Sales for the 2014 fiscal year were 489.5 billion yen, up 5 percent ($4.09 billion). Net income was 38.5 billion yen ($321 million), up 13 percent.
Net sales outside Japan (which made up 63 percent of the company’s revenue) grew 10 percent (which takes into account the impact foreign currency exchange rates, as do the following international figures). Sales in Japan, 37 percent of the company’s annual take, slipped 3 percent. The Americas showed the largest growth at 13 percent to 125.3 billion yen ($1.05 billion). Sales in Europe grew 8 percent to 104.6 billion yen ($874 million). The sector the company calls “Asia and Others” grew 12 percent to 51.9 billion yen ($434 million). The Chinese market grew 2 percent to 24.5 billion yen ($205 million).
The company separates into three sectors: Cardiac & Vascular (intravascular ultrasound systems, catheters for the treatment of coronary artery disease, drug-eluting stents, angiographic catheters, abdominal and peripheral endovascular coils, heart-lung machines, oxygenators with integrated arterial filter, and artificial vascular grafts); Blood Management (automated blood collection systems, automated blood component processing devices, blood bag systems, pathogen reduction technology systems, therapeutic apheresis systems, and cell expansion systems); and General Hospital (intravenous catheters, infusion sets, syringe pumps, blood glucose monitoring systems, lancing devices for blood collection, blood pressure monitors, peritoneal dialysis systems).
By business segment, the Cardiac & Vascular division was responsible for 47 percent of sales, and grew 10 percent to 229.2 billion yen ($1.92 billion). General Hospital sales, 33 percent of revenues, shrank 2 percent to 161.5 billion yen ($1.35 billion). Sales for the Blood Management division grew 4 percent to 98.9 billion yen ($827 million).
Notable Fiscal-Year Mile Markers
The company launched 13 new products across all three divisions and in diverse markets globally.
In February this year, Terumo execs announced that the company would establish a research and development (R&D) center in Southern California to enhance the R&D capability of the coronary and peripheral interventional therapeutic area. The company will invest approximately 10 billion yen (roughly $83.5 million based on exchange rates when the project was announced) in the center. The target start date will be within fiscal 2017. MicroVention Inc., a Terumo subsidiary in Tustin, Calif., has served as an innovation center for Terumo.
“The region is one of the leading medtech business clusters in the U.S. and offers access to a pool of medtech experts,” officials noted in a statement at the time. Terumo bigwigs decided to build the new R&D center for the development of cutting-edge interventional systems products by leveraging MicroVention’s capability and networking resources in a high-technology area such as Southern California. The initiative, according to officials, “will accelerate the growth of the company’s interventional business growth in the United States.” The facility also will drive neurovascular device development by MicroVention.
In addition, Terumo has been actively pumping money into Silicon Valley—investing in a venture capital fund since 2013, establishing its own venture subsidiary in 2014, and this year, setting up its own R&D center. The venture capital fund searches for cutting-edge technologies and new innovative ideas. The venture subsidiary is responsible for incubating innovation, while the R&D center pursues early-stage product development.
In December, the company began sales of the Tercross PTA (percutaneous transluminal angioplasty) balloon catheters in Europe. Tercross is designed for treating peripheral artery disease including ones below the knee. PTA is a procedure in which a small balloon, having a diameter around 1 millimeter, is at the end of thin catheter and inflated in the narrowed or occluded lesions of peripheral blood vessels in the arms and legs to restore blood flow. In addition to conventional drug-based treatment and surgery, peripheral intervention with PTA balloon catheters and stents is a minimally invasive therapy for the treatment of patients with peripheral artery disease. Accordingly, its application is expected to further expand. Tercross uses hydrophilic coating on part of its surface, which increases lubrication when it contacts blood, in order to enhance lesion crossability. Physicians can choose between two types of balloons. One is non-compliant balloon with high-pressure resistance, suitable for calcified lesions. Another is flexible semi-compliant balloon designed to enhance crossability in stenotic lesions. In addition, to accommodate the long lesions often found below the knee, Terumo offered a lineup of six balloons with different lengths ranging from 20 to 200 millimeters. Terumo also reinforced the catheter shaft with rigid materials in order to improve its pushability.
Going forward, Terumo executives said the company is planning to broaden the product lineup of its peripheral intervention business. The release of Tercross was part of that plan, executives said.
Also in December, the company continued to expand its cardiovascular portfolio with CE mark approval for a line extension of its Ultimaster drug-eluting stent (DES). The addition brought the product line up to 48 items, with diameters ranging from 2.25 millimeters to 4 millimeters and lengths from 9 millimeters to 38 millimeters.
A stent is an implant device used in the treatment of angina pectoris, myocardial infarction, and other coronary events caused by blood vessels around the heart (coronary artery) that are blocked. After expanding coronary artery with a balloon catheter, the stent is implanted in the vessel. However, since restenosis (re-blockage of the artery) may occur after implanting, drug-eluting stent often are used.
Drug-eluting stents reduce tissue proliferation that may cause restenosis by gradually releasing anti-blockage drugs into surrounding tissues.
In September 2014, Terumo’s Ann Arbor, Mich.-based Cardiovascular Group began distributing Nonin Medical Inc.’s SenSmart Model X-100 Universal Oximetry System to adult and pediatric cardiovascular hospitals in the United States. The agreement was an expansion of the distribution pact between Terumo and Nonin, which originally was signed in May 2013. The Nonin SenSmart Universal Oximetry System is a dedicated oximeter system that provides measurements of both regional oximetry (rSO2) and pulse oximetry (SpO2). The SenSmart system provides comprehensive monitoring of up to six-channels of rSO2 and SpO2 in a side-by-side view. At the time, the Nonin claimed, no other oximeter system provided more than four channels of monitoring. The signal processor is substantially smaller than previous versions, making the SenSmart system a good choice for use in a variety of settings where space is an issue, such as the cardiovascular operating room or intensive-care unit. The system allows anesthesiologists, perfusionists, cardiovascular surgeons and other clinicians to quickly identify tissue ischemia events before they become critical. Terumo Cardiovascular Group manufactures and markets medical devices for cardiac and vascular surgery with an emphasis on cardiopulmonary bypass, intra-operative monitoring and vascular grafting. Nonin Medical is headquartered in
Plymouth, Minn.
In May last year, the company launched the Glideway Ureteral Access Sheath, adding to the company’s technology portfolio used in minimally invasive urologic procedures including ureteroscopy and percutaneous nephrolithotomy (PCNL). Conventional access sheaths currently used for urologic intervention have been tied to complications and injury including perforation and significant bleeding. The new family of Glideway sheaths has been designed to minimize trauma while ensuring maximum and efficient access.
Ureteroscopy and PCNL are current standards of care for minimally invasive urologic intervention especially for stone management in the urinary tract. One out of 11 people in the United States suffers from kidney stone disease, and the prevalence is growing driven by incidence of obesity and diabetes, which are common risk factors for stone disease. In 2013, more than 350,000 ureterosopy and PCNL procedures were performed in the United States, according to figures cited by Terumo, and that number is expected to grow consistently over the next decade with the need for less-invasive surgical procedures.
“Glideway Access Sheaths offer unique characteristics with the potential to reduce urothelial trauma and simplify access into the kidney,” said Duane Baldwin, M.D., professor at Loma Linda University in California, and one of the primary investigators in early studies of expanding sheath technologies. A study using a one-step balloon-expandable PCNL sheath demonstrated successful access and visualization in patients of different ages, body mass indexes, and renal stone locations without instances of collecting system injuries.
“The Glideway Access Sheath portfolio launch is an important milestone for Terumo in advancing our urology interventional platform,” Chris Pearson, vice president of marketing for Terumo Interventional Systems, said at the time of the system’s launch. “It builds on our proven performance in urologic access with the Glidewire Hydrophilic Guidewire and demonstrates our commitment to the urology space.”
KEY EXECUTIVES:
Koji Nakao, Chairman, Terumo Group
Yutaro Shintaku, President, Terumo Group
Hideo Arase, Managing Director, Terumo Asia Holdings Pte., Ltd.
Hiroshi Matsumura, President, General Hospital Company
Shinjiro Sato, President, Cardiac & Vascular Company
David Perez, President and CEO, Terumo BCT, and President, Blood Management Company, Terumo Corp.
Mark Sutter, Division President, CV Systems Division, Cardiac & Vascular, and President & CEO, Terumo Cardiovascular
Systems Corp.
Richard Cappetta, Division President, Neurovascular Division, Cardiac & Vascular, and President & CEO, MicroVention Inc.
James Rushworth, President and CEO, Terumo Medical Corp.
NO. OF EMPLOYEES: 19,934
GLOBAL HEADQUARTERS: Tokyo, Japan
Where profit is, loss is hidden near by.
— Japanese proverb
Words to live by in the highly regulated and fiercely competitive medical device sector (as if any professional in this business could forget). For venerable Japanese medical technology firm Terumo, the story of fiscal year 2014 (ended March 31, 2015) mostly was one of steady, modest growth—and profit. For the year, the 94-year-old company posted sales and profit gains, both through increased organic sales but also through favorable currency exchange rates.
Sales for the 2014 fiscal year were 489.5 billion yen, up 5 percent ($4.09 billion). Net income was 38.5 billion yen ($321 million), up 13 percent.
Net sales outside Japan (which made up 63 percent of the company’s revenue) grew 10 percent (which takes into account the impact foreign currency exchange rates, as do the following international figures). Sales in Japan, 37 percent of the company’s annual take, slipped 3 percent. The Americas showed the largest growth at 13 percent to 125.3 billion yen ($1.05 billion). Sales in Europe grew 8 percent to 104.6 billion yen ($874 million). The sector the company calls “Asia and Others” grew 12 percent to 51.9 billion yen ($434 million). The Chinese market grew 2 percent to 24.5 billion yen ($205 million).
The company separates into three sectors: Cardiac & Vascular (intravascular ultrasound systems, catheters for the treatment of coronary artery disease, drug-eluting stents, angiographic catheters, abdominal and peripheral endovascular coils, heart-lung machines, oxygenators with integrated arterial filter, and artificial vascular grafts); Blood Management (automated blood collection systems, automated blood component processing devices, blood bag systems, pathogen reduction technology systems, therapeutic apheresis systems, and cell expansion systems); and General Hospital (intravenous catheters, infusion sets, syringe pumps, blood glucose monitoring systems, lancing devices for blood collection, blood pressure monitors, peritoneal dialysis systems).
By business segment, the Cardiac & Vascular division was responsible for 47 percent of sales, and grew 10 percent to 229.2 billion yen ($1.92 billion). General Hospital sales, 33 percent of revenues, shrank 2 percent to 161.5 billion yen ($1.35 billion). Sales for the Blood Management division grew 4 percent to 98.9 billion yen ($827 million).
Notable Fiscal-Year Mile Markers
The company launched 13 new products across all three divisions and in diverse markets globally.
In February this year, Terumo execs announced that the company would establish a research and development (R&D) center in Southern California to enhance the R&D capability of the coronary and peripheral interventional therapeutic area. The company will invest approximately 10 billion yen (roughly $83.5 million based on exchange rates when the project was announced) in the center. The target start date will be within fiscal 2017. MicroVention Inc., a Terumo subsidiary in Tustin, Calif., has served as an innovation center for Terumo.
“The region is one of the leading medtech business clusters in the U.S. and offers access to a pool of medtech experts,” officials noted in a statement at the time. Terumo bigwigs decided to build the new R&D center for the development of cutting-edge interventional systems products by leveraging MicroVention’s capability and networking resources in a high-technology area such as Southern California. The initiative, according to officials, “will accelerate the growth of the company’s interventional business growth in the United States.” The facility also will drive neurovascular device development by MicroVention.
In addition, Terumo has been actively pumping money into Silicon Valley—investing in a venture capital fund since 2013, establishing its own venture subsidiary in 2014, and this year, setting up its own R&D center. The venture capital fund searches for cutting-edge technologies and new innovative ideas. The venture subsidiary is responsible for incubating innovation, while the R&D center pursues early-stage product development.
In December, the company began sales of the Tercross PTA (percutaneous transluminal angioplasty) balloon catheters in Europe. Tercross is designed for treating peripheral artery disease including ones below the knee. PTA is a procedure in which a small balloon, having a diameter around 1 millimeter, is at the end of thin catheter and inflated in the narrowed or occluded lesions of peripheral blood vessels in the arms and legs to restore blood flow. In addition to conventional drug-based treatment and surgery, peripheral intervention with PTA balloon catheters and stents is a minimally invasive therapy for the treatment of patients with peripheral artery disease. Accordingly, its application is expected to further expand. Tercross uses hydrophilic coating on part of its surface, which increases lubrication when it contacts blood, in order to enhance lesion crossability. Physicians can choose between two types of balloons. One is non-compliant balloon with high-pressure resistance, suitable for calcified lesions. Another is flexible semi-compliant balloon designed to enhance crossability in stenotic lesions. In addition, to accommodate the long lesions often found below the knee, Terumo offered a lineup of six balloons with different lengths ranging from 20 to 200 millimeters. Terumo also reinforced the catheter shaft with rigid materials in order to improve its pushability.
Going forward, Terumo executives said the company is planning to broaden the product lineup of its peripheral intervention business. The release of Tercross was part of that plan, executives said.
Also in December, the company continued to expand its cardiovascular portfolio with CE mark approval for a line extension of its Ultimaster drug-eluting stent (DES). The addition brought the product line up to 48 items, with diameters ranging from 2.25 millimeters to 4 millimeters and lengths from 9 millimeters to 38 millimeters.
A stent is an implant device used in the treatment of angina pectoris, myocardial infarction, and other coronary events caused by blood vessels around the heart (coronary artery) that are blocked. After expanding coronary artery with a balloon catheter, the stent is implanted in the vessel. However, since restenosis (re-blockage of the artery) may occur after implanting, drug-eluting stent often are used.
Drug-eluting stents reduce tissue proliferation that may cause restenosis by gradually releasing anti-blockage drugs into surrounding tissues.
In September 2014, Terumo’s Ann Arbor, Mich.-based Cardiovascular Group began distributing Nonin Medical Inc.’s SenSmart Model X-100 Universal Oximetry System to adult and pediatric cardiovascular hospitals in the United States. The agreement was an expansion of the distribution pact between Terumo and Nonin, which originally was signed in May 2013. The Nonin SenSmart Universal Oximetry System is a dedicated oximeter system that provides measurements of both regional oximetry (rSO2) and pulse oximetry (SpO2). The SenSmart system provides comprehensive monitoring of up to six-channels of rSO2 and SpO2 in a side-by-side view. At the time, the Nonin claimed, no other oximeter system provided more than four channels of monitoring. The signal processor is substantially smaller than previous versions, making the SenSmart system a good choice for use in a variety of settings where space is an issue, such as the cardiovascular operating room or intensive-care unit. The system allows anesthesiologists, perfusionists, cardiovascular surgeons and other clinicians to quickly identify tissue ischemia events before they become critical. Terumo Cardiovascular Group manufactures and markets medical devices for cardiac and vascular surgery with an emphasis on cardiopulmonary bypass, intra-operative monitoring and vascular grafting. Nonin Medical is headquartered in
Plymouth, Minn.
In May last year, the company launched the Glideway Ureteral Access Sheath, adding to the company’s technology portfolio used in minimally invasive urologic procedures including ureteroscopy and percutaneous nephrolithotomy (PCNL). Conventional access sheaths currently used for urologic intervention have been tied to complications and injury including perforation and significant bleeding. The new family of Glideway sheaths has been designed to minimize trauma while ensuring maximum and efficient access.
Ureteroscopy and PCNL are current standards of care for minimally invasive urologic intervention especially for stone management in the urinary tract. One out of 11 people in the United States suffers from kidney stone disease, and the prevalence is growing driven by incidence of obesity and diabetes, which are common risk factors for stone disease. In 2013, more than 350,000 ureterosopy and PCNL procedures were performed in the United States, according to figures cited by Terumo, and that number is expected to grow consistently over the next decade with the need for less-invasive surgical procedures.
“Glideway Access Sheaths offer unique characteristics with the potential to reduce urothelial trauma and simplify access into the kidney,” said Duane Baldwin, M.D., professor at Loma Linda University in California, and one of the primary investigators in early studies of expanding sheath technologies. A study using a one-step balloon-expandable PCNL sheath demonstrated successful access and visualization in patients of different ages, body mass indexes, and renal stone locations without instances of collecting system injuries.
“The Glideway Access Sheath portfolio launch is an important milestone for Terumo in advancing our urology interventional platform,” Chris Pearson, vice president of marketing for Terumo Interventional Systems, said at the time of the system’s launch. “It builds on our proven performance in urologic access with the Glidewire Hydrophilic Guidewire and demonstrates our commitment to the urology space.”