Prior Fiscal: $5.41 Billion
Percentage Change: +4.9%
No. of Employees: 26,438
Global Headquarters: Shibuya-ku, Tokyo, Japan
Shinjiro Sato, President and CEO
Takayoshi Mimura, Chairman of the Board
Naoki Muto, Chief Accounting and Financial Officer
Hikaru Samejima, President, General Hospital Company
Toshihiko Osada, President, Cardiac and Vascular Company
Antoinette Gawin, President, Blood and Cell Technologies Company; President and CEO, Terumo BCT Holding Corp.
Kazuaki Kitabatake, President and CEO, MicroVention Inc.
James Rushworth, President and CEO, Terumo Medical Corp.
Paul Holbrook, President and CEO, Vascutek Ltd.
Many companies take various actions to ensure future health. Some invest heavily in R&D while others have an aggressive M&A strategy to grow through acquisition. In 2019, however, Terumo embarked on a slightly different approach. The company invested $50 million into two U.S.-based venture capital funds—Strategic Healthcare Investment Partners and Catalyst Health Ventures. Each received $25 million from the firm.
The strategy has been successful for the organization in the past as an opportunity to complement internal R&D with new technology, expanded strategy, and further complement business development and acquisition.
As a limited partner of Emergent Medical Partners, Terumo has reviewed more than 2,000 startups over the last six years based on its network built through this relationship. While investing in the fund, Terumo also directly invested in multiple startups.
With the latest pair of investments, the company is positioned to be involved in more geographically and technically diversified deals.
Perhaps a result of this type of investment, in November 2019, Terumo announced it was acquiring Aortica Corporation, a U.S.-based company dedicated to advancing the science of personalized vascular therapy. At the time of the deal, the firm had several products either on the market or in development.
Its primary offering, AortaFit, is an automated case planning software designed to precisely match fenestrations on an endograft with the unique locations of each individual patient’s branch arteries during fenestrated endovascular aortic repair (FEVAR). The solution is intended to improve graft anchoring while minimizing the potential for endoleaks and migration. The first 30 FEVAR cases incorporating AortaFit were reported as successful, including 16 which used the TREO AAA stent-graft from Terumo Aortic.
The company was also developing the BoulEVARd covered stent graft built specifically for FEVAR. The balloon expandable device is designed to enable reliable engagement into the main body graft while improving conformability to the native artery.
Although the price of the acquisition was not revealed, Teurmo did state the transaction would be funded with cash on hand. The organization also said it planned to continue the development of Aortica’s products and launch into markets around the globe.
Aortica joined a company that enjoyed success in terms of growth of revenue over the prior year. By the end of its latest fiscal (ended March 31, 2020), the firm reported a revenue increase of 4.9 percent over the previous period. That translated into 628.9 billion yen, compared to the 599.5 billion yen it saw during the prior 12 months.
All three of Terumo’s segments saw increases in sales compared to the previous fiscal. The largest gains were enjoyed by the firm’s largest business—Cardiac and Vascular Company—which encompasses Interventional Systems, Neurovascular, Cardiovascular, and Vascular Graft. The revenue from sales rose from 328.5 billion yen to 350.6 billion yen.
While less substantial, the growth observed in the other two segments—General Hospital Company and Blood and Cell Technologies Company—were still noteworthy. General Hospital, which is divided into Hospital Systems—infusion/syringe pumps, solution sets, pain management products, adhesion barriers, blood glucose monitoring systems, and more—and Alliance—contract manufacturing of prefilled syringes and devices to pharmaceutical companies for use in drug kits—bumped up to 170 billion yen from 165.8 billion yen. Blood and Cell Technologies, which provides blood bags, automated blood collection systems, automated blood component processing systems, pathogen reduction technology, and other solutions, went from 105 billion yen to 107.2 billion yen during its latest fiscal term.
As a way to ensure the momentum in terms of sales growth continues, Terumo made a couple of moves and launched several products toward that effort. For example, in June 2019, the organization announced it had secured exclusive global development and commercialization rights to Virtue Sirolimus-Eluting Balloon (SEB) as a result of a strategic partnership with Orchestra BioMed. Per the agreement, Terumo would provide a one-time $30 million payment, an equity commitment of $5 million, and future clinical and regulatory milestone payments to Orchestra. Terumo also committed to finance and execute a global clinical program in collaboration with Orchestra BioMed to gain regulatory approval of the Virtue SEB. The Virtue SEB is a non-coated drug-eluting angioplasty balloon that delivers a proprietary bioabsorbable, sustained-release formulation of sirolimus.
Terumo also announced it was embarking on a joint research effort with Kikuna Memorial Hospital, located in Kanagawa, Japan, to develop artificial intelligence for percutaneous coronary intervention (PCI). The partners have targeted 2023 for development of the solution, which will assist physicians to improve PCI accuracy and efficiency.
As mentioned, Terumo also sought answers to the challenge of ensuring long-term growth by looking within their own facilities—through new product developments and launches.
- Expanded its footprint for AQUABRID—a surgical sealant especially developed for aortic procedures—into the EU as well as Eastern Europe, Middle East, and Africa.
- U.S subsidiary MicroVention gained FDA premarket approval of the FRED (flow re-direction endoluminal device) for the treatment of brain aneurysms.
- Received manufacturing and marketing approval of its Woven EndoBridge Device for the treatment of intracranial wide neck bifurcation aneurysms in Japan. It gained approval in the U.S. at the start of 2019.
- A new osteoporosis medication, Teribone 28.2 µg subcutaneous autoinjector, has launched in the Japanese market for patients with a high risk of fractures.
- As part of a partnership between Mallinckrodt and Terumo BCT, UVADEX received regulatory approval in Australia for extracorporeal administration with the THERAKOS CELLEX Photopheresis System.
- Terumo BCT launched its latest cell therapy technology, the Finia Fill and Finish System—a device developed to help bring reproducibility and control to cell therapy manufacturing to get therapies to more patients who need them.
- At the 31st Transcatheter Cardiovascular Therapeutics Conference in September, Terumo Medical introduced the R2P MISAGO RX Self-expanding Peripheral Stent, providing physicians with a radial access approach to patients with peripheral artery disease.