07.22.14
$4.55 Billion
Key Executives:
Koji Nakao, Chairman, Terumo Group
Yutaro Shintaku, President, Terumo Group
Hideo Arase, President and CEO of Terumo Americas Holding Inc.
Hiroshi Matsumura, President, General Hospital Division
Shinjiro Sato, President, Cardiac & Vascular
David Perez, President and CEO, Terumo BCT, and Chairman, Blood Management Business, 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, Terumo Interventional Systems
Steve Omiecinski, Vice President & General Manager, Terumo Medical Products
No. of Employees: 20,000
Global Headquarters: Tokyo, Japan
For a company that started 93 years ago providing just thermometers, Terumo Corp. has come a long way. Today, 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 (IV catheters, infusion sets, syringe pumps, blood glucose monitoring systems, lancing devices for blood collection, blood pressure monitors, peritoneal dialysis systems).
Oh, in case you were wondering… the company still makes thermometers—they’re digital.
All of these product categories add up to a significant sum for the company that claims it’s Japan’s largest medical device firm.
Net sales for the company in FY13 (ended March 31 this year) grew 16 percent year over year to 467.4 billion yen ($4.55 billion). Growth was 4 percent excluding foreign exchange. Operating income grew 23 percent to 65.3 billion yen ($635 million). Net income, however, declined year over year by 27 percent to 34.1 billion yen ($330.6 million).
The company’s General Hospital sector increases sales 6 percent (2 percent growth excluding the impact of foreign currency) to 164.1 billion yen ($1.6 billion). Operating profit for the division decreased 12 percent (down 16 percent, including impact of foreign currency) to 20.8 billion yen ($202 million). The company attributed the drop in earnings to “delay in new product expansion” and lower productivity at overseas manufacturing sites. The pre-filled syringe market grew by double digits, officials reported. Glucose monitoring sales also grew in Japan.
Cardiac & Vascular product sales rose 24 percent year year (up 7 percent excluding currency fluctuations) to 210.5 billion yen ($2 billion). Sector profit grew 51 percent (14 percent minus currency exchange) to 43.9 billion yen ($427 million). Access device sales grew, in the United States, in particular. Lower costs were achieved by transferring some manufacturing to a new factory in Vietnam.
The firm’s Blood Management businesses also expanded revenues by 24 percent (5 percent without currency impact) to 92.7 billion yen ($902 million). Profit jumped 35 percent to 18.6 billion yen ($181 million). The growth rate was only 4 percent when currency exchange impact is taken into account. Terumo bigwigs claim that sales of “highly value-added products” such as automated blood component processing (in the European Union) and therapeutic apheresis systems (in the United States and Japan) helped the sector’s bottom line. Increased production at factories in India and Vietnam helped to reduce costs. Asia and Latin America saw double-digit growth in sales.
Sales outside Japan were approximately $2.71 billion, up 29 percent year over year (in yen, and 6 percent if you exclude the impact of favorable foreign currency exchange rates). China—excluding the impact of currency—grew the most (13 percent). By comparison, sales in Europe and the Americas grew at 3 and 5 percent, respectively.
Research and development (R&D) expenses for the year were approximately $292 million—up 11 percent in yen.
Building on ongoing R&D investments, the company introduced many new products in FY13, including the following:
In January this year, Terumo signed a deal for San Diego, Calif.-based CareFusion Corp. (see it’s Top Company Report profile on page 125) to co-brand, market and distribute Terumo’s SurFlash line of safety peripheral IV catheters for the acute care segment across the United States. The agreement—for which financial details were not disclosed—includes both SurFlash and SurFlash Plus Safety IV catheters, which Terumo claims improve the success of catheter placement on the first attempt by an average of 20 percent. The higher success rate for first placement can potentially enhance the patient experience, reduce wasted catheters and save clinician time, all of which reduce costs for the hospital.
“This agreement broadens our vascular access portfolio and adds a critical link to enable CareFusion to provide an expanded range of products,” said Vivek Jain, president of Procedural Solutions for CareFusion. “From skin preparation to needle-free connectors and IV sets, the SurFlash brand builds on our established leadership of clinically differentiated products for vascular access procedures. We are proud to collaborate with a global medical technology leader like Terumo.”
Terumo’s agreement with CareFusion will focus solely on the U.S. acute care hospital market.
“CareFusion’s world-class clinical and commercial presence in acute care infusion will accelerate the U.S. market impact of these safety products faster than Terumo might otherwise achieve,” said Hideo Arase, president and CEO of Terumo Medical Corporation and Terumo Americas Holding Inc. “The synergies are clear.”
SurFlash and SurFlash Plus Safety IV catheters have a passive safety technology that completely encapsulates the needle reducing the risk of needle stick injuries and exposure to blood borne pathogens. The automatic engagement of this safety feature requires no intentional effort from the clinician, allowing for minimal technique change and faster adoption. These products are also the only catheters with the double-flash SurFlash feature that gives visual confirmation of when both the needle and catheter gain entry into a vessel, minimizing the risk for failed attempts.
The SurFlash Plus Safety IV catheter also incorporates a proprietary blood control safety valve designed to minimize the risk of blood exposure between the removal of the needle and the attachment of the IV set. This helps create a cleaner access site and IV hub area to reduce the risk of physical and visual exposure to blood.
Legal Win
In May last year, Terumo came out on top following a patent squabble with Vascular Solutions. Minneapolis, Minn.-based Vascular Solutions will stop manufacturing and selling a device—R-Band Radial Hemostasis Device—Terumo charged infringed on its intellectual property.
The R-Band Radial Hemostasis Device is designed to wrap around a patient’s wrist and stop access-point bleeding after an arterial access procedure. In February, Terumo filed suit, claiming Vascular Solutions’ device infringed on the patents for its TR Band Radial Compression Device, seeking an injunction on production and distribution. Vascular Solutions elected to voluntarily discontinue the device, not admitting any infringement in the process.
“We are thankful for the opportunity to successfully defend our TR Band device, which is a critical part of our trans-radial solutions portfolio,” said James Rushworth, president, Terumo Interventional Systems. “As a market leader, Terumo is committed to doing what is right for our business and, when appropriate, we will vigorously protect our investments, assets and intellectual property.”
Key Acquisition
In November last year, Terumo BCT (Terumo’s blood component, therapeutic apheresis and cellular technologies division) acquired GADA Turkey, a supplier and distributor of blood bank components and equipment to Turkish public and private healthcare facilities. GADA Turkey has been a Terumo BCT distributor to blood banks and hospitals since 2009. The acquisition provides Terumo BCT with a direct relationship with Turkish blood banks and the ability to drive further adoption of critical blood transfusion technologies that can improve the safety and quality of blood in Turkey. The acquisition will also enable hospitals to have expanded access to Terumo BCT’s therapeutic aphaeresis technologies. Prior to the acquisition, GADA Turkey was a subsidiary of The GADA Group Holding, a United Kingdom-based distributor of specialized medical technology devices and equipment and a provider of health care services supplies and integrated project to public and private facilities. GADA Turkey is active in two major segments: blood technologies and general hospital. The blood technologies segment is composed of three different areas: blood banking, transfusion and therapeutics. The general hospital segment focuses on high-technology single-use devices and disposables.
Key Executives:
Koji Nakao, Chairman, Terumo Group
Yutaro Shintaku, President, Terumo Group
Hideo Arase, President and CEO of Terumo Americas Holding Inc.
Hiroshi Matsumura, President, General Hospital Division
Shinjiro Sato, President, Cardiac & Vascular
David Perez, President and CEO, Terumo BCT, and Chairman, Blood Management Business, 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, Terumo Interventional Systems
Steve Omiecinski, Vice President & General Manager, Terumo Medical Products
No. of Employees: 20,000
Global Headquarters: Tokyo, Japan
For a company that started 93 years ago providing just thermometers, Terumo Corp. has come a long way. Today, 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 (IV catheters, infusion sets, syringe pumps, blood glucose monitoring systems, lancing devices for blood collection, blood pressure monitors, peritoneal dialysis systems).
Oh, in case you were wondering… the company still makes thermometers—they’re digital.
All of these product categories add up to a significant sum for the company that claims it’s Japan’s largest medical device firm.
Net sales for the company in FY13 (ended March 31 this year) grew 16 percent year over year to 467.4 billion yen ($4.55 billion). Growth was 4 percent excluding foreign exchange. Operating income grew 23 percent to 65.3 billion yen ($635 million). Net income, however, declined year over year by 27 percent to 34.1 billion yen ($330.6 million).
The company’s General Hospital sector increases sales 6 percent (2 percent growth excluding the impact of foreign currency) to 164.1 billion yen ($1.6 billion). Operating profit for the division decreased 12 percent (down 16 percent, including impact of foreign currency) to 20.8 billion yen ($202 million). The company attributed the drop in earnings to “delay in new product expansion” and lower productivity at overseas manufacturing sites. The pre-filled syringe market grew by double digits, officials reported. Glucose monitoring sales also grew in Japan.
Cardiac & Vascular product sales rose 24 percent year year (up 7 percent excluding currency fluctuations) to 210.5 billion yen ($2 billion). Sector profit grew 51 percent (14 percent minus currency exchange) to 43.9 billion yen ($427 million). Access device sales grew, in the United States, in particular. Lower costs were achieved by transferring some manufacturing to a new factory in Vietnam.
The firm’s Blood Management businesses also expanded revenues by 24 percent (5 percent without currency impact) to 92.7 billion yen ($902 million). Profit jumped 35 percent to 18.6 billion yen ($181 million). The growth rate was only 4 percent when currency exchange impact is taken into account. Terumo bigwigs claim that sales of “highly value-added products” such as automated blood component processing (in the European Union) and therapeutic apheresis systems (in the United States and Japan) helped the sector’s bottom line. Increased production at factories in India and Vietnam helped to reduce costs. Asia and Latin America saw double-digit growth in sales.
Sales outside Japan were approximately $2.71 billion, up 29 percent year over year (in yen, and 6 percent if you exclude the impact of favorable foreign currency exchange rates). China—excluding the impact of currency—grew the most (13 percent). By comparison, sales in Europe and the Americas grew at 3 and 5 percent, respectively.
Research and development (R&D) expenses for the year were approximately $292 million—up 11 percent in yen.
Building on ongoing R&D investments, the company introduced many new products in FY13, including the following:
- Early in 2014, toward the end of the FY13, the company received CE mark approval for its Ultimaster drug-eluting stent. Ultimaster employs bioresorbable polymer as its drug coating material. In addition, polymer and drug are applied only to the surface to contact vessel tissues. These features are expected to reduce the rate of very late stent thrombosis, according to the company. Ultimaster is based on unique stent design with a cobalt chromium alloy. These features are designed to enable the physicians to navigate the stent in difficult anatomy and facilitate placement of the stent conformable to vessel curvature, further reducing stress on vessel wall.
- Terumo Medical Corp., the Somerset, N.J.-based U.S. subsidiary of Terumo, introduced the SurGuard 3 safety hypodermic needle featuring three modes of activation—thumb, finger or hard surface. The needle will be available in sizes ranging from 18 gauge to 30 gauge and incorporate Terumo’s proprietary T-sharp technology. Terumo Medical Products shifted its business direction to discontinue many of its conventional hypodermic products to focus on satisfying the growing demand in the alternate care setting for Sharps with Engineered Sharps Injury Protections (SESIPS). Exposure to blood-borne pathogens from accidental sharps injuries in healthcare and other occupational settings continues to be a serious problem. Each year, there are approximately 400,000 needle-stick injuries among healthcare workers in the United States, according to figures cited by the company. To help reduce the risk, the Occupational Safety and Health Administration has implemented guidelines for employers to identify, evaluate, and implement safer medical devices. “The acute care market already embraces safety device technology, while a disproportionate amount of primary care customers still have not converted to safety devices. As the physician marketplace continues to consolidate, we expect increased demand for safety hypodermic devices,” Steve Omiecinski, vice president and general manager, Terumo Medical Products. “This decision allows us to redirect production capacity and increase our commitment to satisfying the growing safety market in the United States.”
- Terumo Medical’s Interventional Systems division released the AZUR CX peripheral coil system, which the company says is the first and only peripheral embolization coil designed to provide cross-sectional coverage incorporating the benefits of Terumo’s patented hydrogel technology. The AZUR CX is an expansion of Terumo’s AZUR family of embolization coils for endovascular occlusion of peripheral vessels. It has a unique coil construction with hydrogel on the inside for a soft, flexible design. The hydrogel technology creates a scaffold for neointimal growth formation and allows mechanical occlusion of the vessel with less reliance on thrombus for embolization. The system creates a complex shape that enhances cross-sectional coverage by filling the vessel, leaving no gap in the center. It can be deployed with minimal catheter manipulation. “Placing embolic coils in high-flow vessels is always a challenge, because of the possibility the coil will move after placement. Maintaining control is critical. From the first loop, the AZUR CX with hydrogel technology instills confidence, because it creates a stable anchor in the vessel,” said Frank R. Arko III, M.D., Sanger Heart and Vascular Institute, Carolinas Medical Center, Charlotte, N.C. “The coil has minimal preparation time and with the AZUR detachment controller I can achieve precise placement.” The U.S. market for peripheral vascular embolization coil procedures is expected to grow by approximately 5.8 percent annually through 2016, according to figures cited by Terumo. The increase primarily is driven by innovation in detachable coil technology and access devices, which allow physicians to treat a wider variety of patient conditions. Compared to traditional pushable embolic coils, detachable coils offer enhanced clinical benefits, including more precise positioning, that allow physicians to extend further into more tortuous anatomy, where distal embolization is a concern.
- Terumo’s Interventional Systems business also launched its 0.018-inch Glidewire Advantage peripheral guidewire in the United States and Canada. According to the company, the Glidewire Advantage incorporates Terumo’s DuoCore technology that fuses the original hydrophilic-coated Glidewire guidewire construction with a stiffer nitinol core encapsulated by a spiral, polytetrafluoroethylene coating. This design eliminates the need for multiple wire exchanges, which may reduce the risk of patient complications, noted Terumo. With the addition of a new size, the Glidewire Advantage line of specialty guidewires can now be used in a broader range of procedures including visceral, above- and below-the-knee applications. The guidewire enables physicians to cross the lesion, deliver the interventional device, and maintain access throughout the procedure using a single wire, according to Terumo.
In January this year, Terumo signed a deal for San Diego, Calif.-based CareFusion Corp. (see it’s Top Company Report profile on page 125) to co-brand, market and distribute Terumo’s SurFlash line of safety peripheral IV catheters for the acute care segment across the United States. The agreement—for which financial details were not disclosed—includes both SurFlash and SurFlash Plus Safety IV catheters, which Terumo claims improve the success of catheter placement on the first attempt by an average of 20 percent. The higher success rate for first placement can potentially enhance the patient experience, reduce wasted catheters and save clinician time, all of which reduce costs for the hospital.
“This agreement broadens our vascular access portfolio and adds a critical link to enable CareFusion to provide an expanded range of products,” said Vivek Jain, president of Procedural Solutions for CareFusion. “From skin preparation to needle-free connectors and IV sets, the SurFlash brand builds on our established leadership of clinically differentiated products for vascular access procedures. We are proud to collaborate with a global medical technology leader like Terumo.”
Terumo’s agreement with CareFusion will focus solely on the U.S. acute care hospital market.
“CareFusion’s world-class clinical and commercial presence in acute care infusion will accelerate the U.S. market impact of these safety products faster than Terumo might otherwise achieve,” said Hideo Arase, president and CEO of Terumo Medical Corporation and Terumo Americas Holding Inc. “The synergies are clear.”
SurFlash and SurFlash Plus Safety IV catheters have a passive safety technology that completely encapsulates the needle reducing the risk of needle stick injuries and exposure to blood borne pathogens. The automatic engagement of this safety feature requires no intentional effort from the clinician, allowing for minimal technique change and faster adoption. These products are also the only catheters with the double-flash SurFlash feature that gives visual confirmation of when both the needle and catheter gain entry into a vessel, minimizing the risk for failed attempts.
The SurFlash Plus Safety IV catheter also incorporates a proprietary blood control safety valve designed to minimize the risk of blood exposure between the removal of the needle and the attachment of the IV set. This helps create a cleaner access site and IV hub area to reduce the risk of physical and visual exposure to blood.
Legal Win
In May last year, Terumo came out on top following a patent squabble with Vascular Solutions. Minneapolis, Minn.-based Vascular Solutions will stop manufacturing and selling a device—R-Band Radial Hemostasis Device—Terumo charged infringed on its intellectual property.
The R-Band Radial Hemostasis Device is designed to wrap around a patient’s wrist and stop access-point bleeding after an arterial access procedure. In February, Terumo filed suit, claiming Vascular Solutions’ device infringed on the patents for its TR Band Radial Compression Device, seeking an injunction on production and distribution. Vascular Solutions elected to voluntarily discontinue the device, not admitting any infringement in the process.
“We are thankful for the opportunity to successfully defend our TR Band device, which is a critical part of our trans-radial solutions portfolio,” said James Rushworth, president, Terumo Interventional Systems. “As a market leader, Terumo is committed to doing what is right for our business and, when appropriate, we will vigorously protect our investments, assets and intellectual property.”
Key Acquisition
In November last year, Terumo BCT (Terumo’s blood component, therapeutic apheresis and cellular technologies division) acquired GADA Turkey, a supplier and distributor of blood bank components and equipment to Turkish public and private healthcare facilities. GADA Turkey has been a Terumo BCT distributor to blood banks and hospitals since 2009. The acquisition provides Terumo BCT with a direct relationship with Turkish blood banks and the ability to drive further adoption of critical blood transfusion technologies that can improve the safety and quality of blood in Turkey. The acquisition will also enable hospitals to have expanded access to Terumo BCT’s therapeutic aphaeresis technologies. Prior to the acquisition, GADA Turkey was a subsidiary of The GADA Group Holding, a United Kingdom-based distributor of specialized medical technology devices and equipment and a provider of health care services supplies and integrated project to public and private facilities. GADA Turkey is active in two major segments: blood technologies and general hospital. The blood technologies segment is composed of three different areas: blood banking, transfusion and therapeutics. The general hospital segment focuses on high-technology single-use devices and disposables.