Johan Malmquist, President and CEO
Heinz Jacqui, Exec. VP, Medical Systems
Anders Grahn, Exec. VP, Infection Control
Alex Myers, Exec. VP, Extended Care
Raoul Quintero, President and CEO North America, Maquet U.S.
No. of Employees: 14,919
Global Headquarters: Getinge, Sweden
The Getinge Group may not be a household brand such as Johnson & Johnson or as recognizable in medtech circles as Medtronic Inc., but the Sweden-based multinational certainly is recognizable by healthcare providers across the globe. Its Maquet brand (the company’s largest subsidiary and part of the company’s Medical Systems division), for example, holds significant market share in the hospital setting, with products ranging from intensive care equipment, highly advanced surgical instruments and operating room equipment, anesthesia devices and ventilators. The company’s ArjoHuntleigh brand (under the Extended Care division) focuses on patient mobility and wound management solutions, while products marketed under the Getinge brand (the firm’s Infection Control segment) are geared toward infection control and contamination prevention in healthcare.
Though the company’s product offerings are diverse, the fact that it sells directly to the hospital market makes it particularly sensitive to pricing pressures and the ups and downs (mostly downs recently) of the traditional healthcare markets. That said, in 2012, the company’s total sales grew by 11 percent (percentages are based on Swedish krona) to approximately $3.72 billion (organic growth was 2.8 percent). Profit before tax was roughly $527.8 million, down slightly by 0.2 percent. United States and Canada comprised 32 percent of the company’s sales, while Western Europe makes up 37 percent and emerging markets 31 percent. Medical systems are the bulk of the company’s sales at 52 percent, while the remainder is composed of extended care and infection control at 25 and 21 percent, respectively. The Extended Care division had sales of $920.2 million, which grew 4.2 percent. The Infection Control business had sales of approximately $794.2 million, growing 1.9 percent. The Medical Systems division—the largest slice of the Getinge pie—reported that sales increased by 19 percent to nearly $2.01 billion. Organic growth for the division amounted to a healthy 6.6 percent.
Part of the company’s growth was due, in part, to a few key acquisitions during the year.
In November, Getinge completed the purchase of Therapeutic Support Systems from San Antonio, Texas-based Kinetic Concepts Inc. The TSS business includes a portfolio of specialty therapeutic beds, mattress replacement systems and patient mobility devices. TSS also included products for use in the therapeutic wound care, bariatric care and critical care settings. In 2011, the company generated sales of $247 million and employed nearly 1,300 people worldwide. In 2011, the United States accounted for 60 percent of TSS’ revenues, while Europe accounted for about 30 percent. The purchase price was $275 million.
In June last year, Getinge purchased Acare Medical Science Ltd., a Chinese company that mainly manufacturers hospital beds. The acquisition was part of Getinge’s continued strategy—like that of so many other medical technology companies—to increase its presence in emerging markets and to offer a product range focused in price-sensitive customer segments. Acare Medical was founded in 1999 and is headquartered in ZhuHai, China. Its 2012 sales were approximately $20 million. Acare Medical sells through a proprietary sales organization in southern China and through distributors in other regions of China. Customers outside China account for about 30 percent of sales. The sale price for Acare Medical, which was incorporated into Getinge’s Extended Care business, was approximately $27 million. At the time of its purchase, Acare Medical had about 250 employees.
New sales also were generated by key product launches throughout the year. One of the largest for the company’s Medical Systems division was the Cardiohelp PALP (pump-assisted lung protection) for use in the operating room or intensive care units. PALP is designed for patients with severe pulmonary conditions, such as chronic obstructive pulmonary disease. Company officials claim the technology has the potential to generate $150 million in sales over a five- to 10-year period. By combining the dialysis of blood with advanced ventilation options, a “gentle treatment method,” according to company officials, was created. The device allows clinicians to maintain protective ventilation, even in severe cases of acute respiratory distress syndrome, by eliminating carbon dioxide to achieve optimal level of blood gases. Medical Systems also launched updated versions of the Servo-I ventilator and the FLOW-i anesthesia system. The Cardiovascular division launched a host of new products, including the new MEGA 30cc and MEGA 40cc cardiac-support products.
Also during fiscal 2012—in April—the company named a new chief for its largest division. Heinz Jacqui was named executive vice president of the Medical Systems business. Heribert Ballhaus, who headed the division since 2001, retired. Jacqui has worked in the medtech sector since the late 1980s, and as president of Olympus Medicals’ surgical endoscope business for the past eight years. He also has extensive experience in the intensive care field, having served has head of respiratory operations for Dräger Medical.