07.23.08
$4 Billion ($24.5B total)
George W. Buckley, Chairman, President and CEO
Patrick D. Campbell, Sr. VP and CFO
Robert D. MacDonald, Sr. VP, Marketing and Sales
Brad T. Sauer, Exec. VP, Healthcare Business
Just after World War II, in 1948, the story of 3M Healthcare began with just one product—a surgical drape. The company still makes drapes and dressings, and much more.
In the medical and surgical areas, 3M manufactures medical tapes, dressings, wound closure products, orthopedic casting materials, electrodes and stethoscopes. In infection prevention, 3M produces surgical drapes, masks and preps, as well as sterilization assurance equipment. Other products include drug delivery systems such as inhalers, transdermal skin patches as well as dental and orthodontic products. In health information systems, the company produces computer software for hospital coding and data classification, as well as provides related consulting services.
In April 2007, 3M announced the creation of a new Medical Diagnostics business unit that is focused on developing and commercializing rapid diagnostic products for the detection of infectious pathogens, including methicillin-resistant Staphylococcus aureus and other treatment-resistant microbes.
“We see many market trends pointing to the need for rapid, easy-to-use microbial diagnostics that will aid in the prevention and control of infections in hospitals in the United States and abroad,” Angela Dillow, global business manager of 3M Medical Diagnostics, said in a news release at the time.
The company steadily has been building the base of its diagnostic capabilities. In February 2007, it acquired Acolyte Biomedica Ltd., a United Kingdom-based company that manufactures automated microbial screening technology for the rapid detection, diagnosis and treatment of infectious disease. In April 2008, the company rolled out its first US product based on its Medical Diagnostics platform, the Rapid Detection Flu A+B Test. It is expected to be available prior to the 2008-2009 flu season.
“This is the first of several rapid diagnostic solutions we plan to bring to the marketplace that help hospitals improve patient outcomes, reduce costs and reduce the impact of resistant microbes,” said Chuck Kummeth, vice president and general manager, 3M Medical Division.
The company’s growth strategy seems to be working. 3M Healthcare is the second-largest revenue driver for its parent company, behind the conglomerate’s Industrial and Transportation division ($7.27 billion). Healthcare led all segments with local-currency sales growth of 18.3% (excluding divestitures). This includes a 4.4% benefit from acquisitions and 4.5% benefit due to the pharmaceuticals supply agreements. The sale of 3M’s global branded pharmaceuticals business reduced the Healthcare division’s sales growth by 23.7%, the company said.
Year-end revenue inched down negligibly, primarily due to the sale of the company’s pharmaceutical businesses. Sales for the fiscal year (ended Dec. 31) were $3.97 billion, compared with $4 billion in 2006, a decrease of 1.1%. Income increased slightly to $1.88 billion in 2007 from $1.85 billion in 2007, roughly 2%.
In 2007, sales growth was broad-based across all platforms, led by infection prevention solutions and skin and wound care therapy products in medical, inhalers in drug delivery as well as healthcare funding and performance management solutions for the hospital market in health information systems, company officials said.
Growth also was the result of strategic purchases by the company, including:
• Lingualcare Inc., a Dallas, TX-based orthodontic technology and services company that offers the iBraces system, a customized, “invisible” lingual orthodontic solution
• Abzil Industria e Comercio Ltda., a manufacturer of orthodontic products based in Sao Jose do Rio Preto, Sao Paulo, Brazil
• Neoplast Co. Ltd., a manufacturer and distributor of surgical tapes and dressings and first-aid bandages for both the professional and consumer markets across the Asia Pacific region
• Articulos de Papel DMS Chile, a Santiago, Chile-based manufacturer of disposable surgical packs, drapes, gowns and kits
Terms of the deals were not disclosed.
Getting off to a good start in 2008, 3M Healthcare posted double-digit profit growth for the first quarter (ended March 31). Sales rose 12% to $1.1 billion. The strongest sales growth came from the medical, dental and orthodontics businesses, the company reported. Operating income increased 19.6% to $321 million, with margins of nearly 30%, excluding special items in the first quarter of 2007. During the quarter, the Medical division launched its Tegaderm infection prevention product for intravenous sites.
KEY EXECUTIVES:
George W. Buckley, Chairman, President and CEO
Patrick D. Campbell, Sr. VP and CFO
Robert D. MacDonald, Sr. VP, Marketing and Sales
Brad T. Sauer, Exec. VP, Healthcare Business
NO. OF EMPLOYEES:
76,239GLOBAL HEADQUARTERS:
St. Paul, MNJust after World War II, in 1948, the story of 3M Healthcare began with just one product—a surgical drape. The company still makes drapes and dressings, and much more.
In the medical and surgical areas, 3M manufactures medical tapes, dressings, wound closure products, orthopedic casting materials, electrodes and stethoscopes. In infection prevention, 3M produces surgical drapes, masks and preps, as well as sterilization assurance equipment. Other products include drug delivery systems such as inhalers, transdermal skin patches as well as dental and orthodontic products. In health information systems, the company produces computer software for hospital coding and data classification, as well as provides related consulting services.
In April 2007, 3M announced the creation of a new Medical Diagnostics business unit that is focused on developing and commercializing rapid diagnostic products for the detection of infectious pathogens, including methicillin-resistant Staphylococcus aureus and other treatment-resistant microbes.
“We see many market trends pointing to the need for rapid, easy-to-use microbial diagnostics that will aid in the prevention and control of infections in hospitals in the United States and abroad,” Angela Dillow, global business manager of 3M Medical Diagnostics, said in a news release at the time.
The company steadily has been building the base of its diagnostic capabilities. In February 2007, it acquired Acolyte Biomedica Ltd., a United Kingdom-based company that manufactures automated microbial screening technology for the rapid detection, diagnosis and treatment of infectious disease. In April 2008, the company rolled out its first US product based on its Medical Diagnostics platform, the Rapid Detection Flu A+B Test. It is expected to be available prior to the 2008-2009 flu season.
“This is the first of several rapid diagnostic solutions we plan to bring to the marketplace that help hospitals improve patient outcomes, reduce costs and reduce the impact of resistant microbes,” said Chuck Kummeth, vice president and general manager, 3M Medical Division.
The company’s growth strategy seems to be working. 3M Healthcare is the second-largest revenue driver for its parent company, behind the conglomerate’s Industrial and Transportation division ($7.27 billion). Healthcare led all segments with local-currency sales growth of 18.3% (excluding divestitures). This includes a 4.4% benefit from acquisitions and 4.5% benefit due to the pharmaceuticals supply agreements. The sale of 3M’s global branded pharmaceuticals business reduced the Healthcare division’s sales growth by 23.7%, the company said.
Year-end revenue inched down negligibly, primarily due to the sale of the company’s pharmaceutical businesses. Sales for the fiscal year (ended Dec. 31) were $3.97 billion, compared with $4 billion in 2006, a decrease of 1.1%. Income increased slightly to $1.88 billion in 2007 from $1.85 billion in 2007, roughly 2%.
In 2007, sales growth was broad-based across all platforms, led by infection prevention solutions and skin and wound care therapy products in medical, inhalers in drug delivery as well as healthcare funding and performance management solutions for the hospital market in health information systems, company officials said.
Growth also was the result of strategic purchases by the company, including:
• Lingualcare Inc., a Dallas, TX-based orthodontic technology and services company that offers the iBraces system, a customized, “invisible” lingual orthodontic solution
• Abzil Industria e Comercio Ltda., a manufacturer of orthodontic products based in Sao Jose do Rio Preto, Sao Paulo, Brazil
• Neoplast Co. Ltd., a manufacturer and distributor of surgical tapes and dressings and first-aid bandages for both the professional and consumer markets across the Asia Pacific region
• Articulos de Papel DMS Chile, a Santiago, Chile-based manufacturer of disposable surgical packs, drapes, gowns and kits
Terms of the deals were not disclosed.
Getting off to a good start in 2008, 3M Healthcare posted double-digit profit growth for the first quarter (ended March 31). Sales rose 12% to $1.1 billion. The strongest sales growth came from the medical, dental and orthodontics businesses, the company reported. Operating income increased 19.6% to $321 million, with margins of nearly 30%, excluding special items in the first quarter of 2007. During the quarter, the Medical division launched its Tegaderm infection prevention product for intravenous sites.