07.01.06
$1.8 Billion ($41.3B Total)
Key Executives:
Timothy M. Ring, Chairman and CEO
John H. Weiland, President and COO
Todd C. Schermerhorn, Senior VP and CFO
Brian P. Kelly, Group VP
Amy S. Paul, Group VP
Brian R. Barry, VP—Regulatory and Clinical Affairs
No. of Employees: 8,900
World Headquarters: Murray Hill, NJ
Although net sales for C.R. Bard didn’t match its double-digit gains seen in 2004, the company still managed to push ahead growth by 7% in 2005. The specialist in vascular, urology, oncology and surgical products only increased sales from $1.7 billion to $1.8 billion.
Since 2003, the company has nearly doubled its net income, however, achieving $337 million in 2005. That’s not the only doubling occurring, either. C.R. Bard has more than doubled its R&D investments in the past four years to almost $115 million. Nearly 100 patent applications are pending in the United States, and the company is focusing heavily on product development. To ensure manufacturing of all these new initiatives goes smoothly, Bard executives have been focusing on honing Lean manufacturing concepts and hope to have all of Bard’s plants operating under this system by 2008.
In keeping with these strategies, the company has invested heavily in its Global Product Launch initiative, which was hatched in late 2004. Since 2003, the company has added more than 150 new sales reps, with another 55 sales professionals brought on board in 2005.
Other personnel additions have occurred as well. The company’s board of directors added former US Secretary of Health and Human Services Tommy Thompson to its roster in August 2005, and Bard President and COO John Weiland was named a director.
As various opportunities emerged in Bard’s areas of experience, the company seized them by introducing an array of new products. The urology market, comprising 30% of Bard’s net sales, increased 6% last year, thanks to some new products. In particular, the pelvic floor reconstruction market was aided by Bard’s launch of its Pelvicol, PelviSoft and Pelvitex products. In late 2005, the Avaulta biosynthetic support system line of pelvic floor prolapse repair devices was unveiled as well.
Building on its vascular business, which grew 11% in 2005, Bard also released the first peripherally inserted central catheter (PICC) indicated for power injection, called the PowerPICC. A newer power version of the 5 French dual lumen PICC was also released and will be followed by a triple lumen PowerPICC catheter this year.
C.R. Bard has also steadily kept its pulse on the hernia market, which is currently worth more than $600 million globally and growing at 10% annually. To stake a share in this market, the company had acquired the Salute fixation system in 2004 and is putting the finishing touches on the next-generation Salute II disposable version. The company also introduced Soft Mesh in early 2006, and is seeking FDA approval for Collamend mesh.
Bard’s surgical division didn’t share in all the good news, though. In January 2006, the company voluntarily recalled its Composix Kugel Mesh X-Large Patch for ventral hernia repair. The recall was reported upon discovery that the device’s plastic coil ring, designed to aid in deployment, may not withstand increased stress associated with certain surgical placement techniques. At the time of the announced recall, the company had received 24 reports of broken rings out of approximately 32,000 units sold since 2002. The product codes involved generated sales of approximately $11 million in 2005, and the company has since noted that it would have to readjust reported sales and revenue numbers.
Other divisions had better results. The oncology market, which includes implantable ports, various catheters and enteral feeding devices, posted 18% gains. The surgical market, spanning soft tissue reconstruction, performance irrigation and hemostasis (among other) products, also reaped a 6% gain.
Based on first-quarter 2006 results, the company will continue its winning streak. Already, sales were up 9%, to $467.5 million.
Timothy M. Ring, chairman and CEO, commented, “Bard is off to a solid start for 2006. Our first quarter operating results were strong and we continue to be pleased with the direction of the company. We were especially productive in the business development area, entering into five transactions this quarter. We remain focused on our long-term growth strategy to enhance shareholder value.”
This year, the company also completed its $166 million acquisition of Venetec International (San Diego, CA) in April, which should increase Bard’s overall 2006 sales with the addition of the StatLock line of catheter securement products. Bard also acquired self-expanding nitinol stent technology from PST, LLC in Gainesville, FL for an undisclosed amount.
Looking ahead, Bard concluded enrollment a few months ago for a clinical trial of its respiratory infection control endotracheal tube, which the company hopes to launch in the first half of 2007.
Key Executives:
Timothy M. Ring, Chairman and CEO
John H. Weiland, President and COO
Todd C. Schermerhorn, Senior VP and CFO
Brian P. Kelly, Group VP
Amy S. Paul, Group VP
Brian R. Barry, VP—Regulatory and Clinical Affairs
No. of Employees: 8,900
World Headquarters: Murray Hill, NJ
Although net sales for C.R. Bard didn’t match its double-digit gains seen in 2004, the company still managed to push ahead growth by 7% in 2005. The specialist in vascular, urology, oncology and surgical products only increased sales from $1.7 billion to $1.8 billion.
Since 2003, the company has nearly doubled its net income, however, achieving $337 million in 2005. That’s not the only doubling occurring, either. C.R. Bard has more than doubled its R&D investments in the past four years to almost $115 million. Nearly 100 patent applications are pending in the United States, and the company is focusing heavily on product development. To ensure manufacturing of all these new initiatives goes smoothly, Bard executives have been focusing on honing Lean manufacturing concepts and hope to have all of Bard’s plants operating under this system by 2008.
In keeping with these strategies, the company has invested heavily in its Global Product Launch initiative, which was hatched in late 2004. Since 2003, the company has added more than 150 new sales reps, with another 55 sales professionals brought on board in 2005.
Other personnel additions have occurred as well. The company’s board of directors added former US Secretary of Health and Human Services Tommy Thompson to its roster in August 2005, and Bard President and COO John Weiland was named a director.
As various opportunities emerged in Bard’s areas of experience, the company seized them by introducing an array of new products. The urology market, comprising 30% of Bard’s net sales, increased 6% last year, thanks to some new products. In particular, the pelvic floor reconstruction market was aided by Bard’s launch of its Pelvicol, PelviSoft and Pelvitex products. In late 2005, the Avaulta biosynthetic support system line of pelvic floor prolapse repair devices was unveiled as well.
Building on its vascular business, which grew 11% in 2005, Bard also released the first peripherally inserted central catheter (PICC) indicated for power injection, called the PowerPICC. A newer power version of the 5 French dual lumen PICC was also released and will be followed by a triple lumen PowerPICC catheter this year.
C.R. Bard has also steadily kept its pulse on the hernia market, which is currently worth more than $600 million globally and growing at 10% annually. To stake a share in this market, the company had acquired the Salute fixation system in 2004 and is putting the finishing touches on the next-generation Salute II disposable version. The company also introduced Soft Mesh in early 2006, and is seeking FDA approval for Collamend mesh.
Bard’s surgical division didn’t share in all the good news, though. In January 2006, the company voluntarily recalled its Composix Kugel Mesh X-Large Patch for ventral hernia repair. The recall was reported upon discovery that the device’s plastic coil ring, designed to aid in deployment, may not withstand increased stress associated with certain surgical placement techniques. At the time of the announced recall, the company had received 24 reports of broken rings out of approximately 32,000 units sold since 2002. The product codes involved generated sales of approximately $11 million in 2005, and the company has since noted that it would have to readjust reported sales and revenue numbers.
Other divisions had better results. The oncology market, which includes implantable ports, various catheters and enteral feeding devices, posted 18% gains. The surgical market, spanning soft tissue reconstruction, performance irrigation and hemostasis (among other) products, also reaped a 6% gain.
Based on first-quarter 2006 results, the company will continue its winning streak. Already, sales were up 9%, to $467.5 million.
Timothy M. Ring, chairman and CEO, commented, “Bard is off to a solid start for 2006. Our first quarter operating results were strong and we continue to be pleased with the direction of the company. We were especially productive in the business development area, entering into five transactions this quarter. We remain focused on our long-term growth strategy to enhance shareholder value.”
This year, the company also completed its $166 million acquisition of Venetec International (San Diego, CA) in April, which should increase Bard’s overall 2006 sales with the addition of the StatLock line of catheter securement products. Bard also acquired self-expanding nitinol stent technology from PST, LLC in Gainesville, FL for an undisclosed amount.
Looking ahead, Bard concluded enrollment a few months ago for a clinical trial of its respiratory infection control endotracheal tube, which the company hopes to launch in the first half of 2007.