07.01.06
$1.8 Billion ($41.3B Total)
Key Executives:
Takashi Wachi, Chairman and CEO
Akira Takahashi, President and COO
Tsuneo Taida, Senior marketing Executive Officer
Takahiro Kugo, Senior Managing Executive Officer
No. of Employees: 9,624
World Headquarters: Tokyo, Japan
In light of broad healthcare reform recently enacted by the Japanese government, Terumo Corporation was able to post its 11th successive year of increased corporate sales. For the year ended March 31, 2005, medical device sales reached $1.8 billion, a 6% increase from the prior year. Already, 2006 numbers indicate the company’s progression is steady if not remarkable, as FY 2006 closed with 7.4% gain.
Terumo’s consistent growth is attributable to the company’s Cardiac and Vascular Business, comprised of Catheter, Cardiovascular and Vascular Grafts segments.
Net sales in the Cardiac and Vascular Business division grew 14% to $688 million, with the Catheter Systems segment producing an astounding 19% increase in net sales. Among the core sellers were the Tsunami coronary stent and the Interpass V, a CTO catheter. Sales were also bolstered by the launch of the Ryujin OTW-1 and RX-2 catheters.
The Cardiovascular Systems segment came in second with a 10% increase to $254 million. Sales of Speedpack, a combination oxygenator and blood circuit, grew in Japan and overseas. Further, with the acquisition of the cardiopulmonary business from Edwards Lifesciences Corp. in January 2005, Terumo occupies the top global share of the Cardiovascular market.
The Vascular Grafts segment and General Hospital Business division also grew, albeit by smaller single-digit percentages.
The Home Health Care Business division has been booming for the company as the number of Japanese citizens with diabetes keeps climbing. The company is poised to keep capitalizing on this trend.
While Japan is still a profitable area for the company, with $1.3 million in sales from that country, areas outside of Japan contributed $810 million to the bottom line, in large part because of increased demand for catheter systems and cardiopulmonary systems. Europe and the United States are on similar footing in terms of sales.
In 2006, Terumo has been continuing its upward momentum with numerous product launches and acquisitions. In February, Terumo entered into a definitive agreement to acquire Aliso Viejo, CA-based MicroVention Inc., a medical device company focused on endovascular coils and related products. With the worldwide market for endovascular treatment of cerebral aneurysms currently estimated at more than $200 million, Terumo is expecting to step up its growth in this segment over the next several years.
“As Terumo continues to expand its cardiac and vascular businesses, we believe that the acquisition of MicroVention provides a great strategic opportunity for Terumo to further strengthen our intervention business by entering the high growth area of endovascular coiling,” said Takashi Wachi, Terumo CEO. “The experience and capabilities Terumo expects to gain from this transaction can significantly contribute to Terumo’s sustained success in this key market segment.”
A key alliance created in April 2001 between Olympus Medical Systems Corporation and Terumo also resulted in the January 2005 launch of the VirtuoSaph endoscopic vein harvesting system in North America, Thailand, Singapore and Malaysia, with eventual planned introductions in Europe and Asia. In light of the successful alliance, the two companies formed a task force that spring to explore further opportunities for collaboration.
In November, Terumo launched Heartrail II, a PTCA guiding catheter used to treat angina and myocardial infarction, in Japan. The company has set a sales target of $13 million for the first year after launch.
In more recent activity, Terumo announced in March that it would establish a new production plant in Vietnam to meet increasing demand growth anticipated in mid- and long-term operations. Terumo plans to start production operations of disposable medical devices including closed infusion systems and infusion sets in mid-2007 for Japan and Asia.
Key Executives:
Takashi Wachi, Chairman and CEO
Akira Takahashi, President and COO
Tsuneo Taida, Senior marketing Executive Officer
Takahiro Kugo, Senior Managing Executive Officer
No. of Employees: 9,624
World Headquarters: Tokyo, Japan
In light of broad healthcare reform recently enacted by the Japanese government, Terumo Corporation was able to post its 11th successive year of increased corporate sales. For the year ended March 31, 2005, medical device sales reached $1.8 billion, a 6% increase from the prior year. Already, 2006 numbers indicate the company’s progression is steady if not remarkable, as FY 2006 closed with 7.4% gain.
Terumo’s consistent growth is attributable to the company’s Cardiac and Vascular Business, comprised of Catheter, Cardiovascular and Vascular Grafts segments.
Net sales in the Cardiac and Vascular Business division grew 14% to $688 million, with the Catheter Systems segment producing an astounding 19% increase in net sales. Among the core sellers were the Tsunami coronary stent and the Interpass V, a CTO catheter. Sales were also bolstered by the launch of the Ryujin OTW-1 and RX-2 catheters.
The Cardiovascular Systems segment came in second with a 10% increase to $254 million. Sales of Speedpack, a combination oxygenator and blood circuit, grew in Japan and overseas. Further, with the acquisition of the cardiopulmonary business from Edwards Lifesciences Corp. in January 2005, Terumo occupies the top global share of the Cardiovascular market.
The Vascular Grafts segment and General Hospital Business division also grew, albeit by smaller single-digit percentages.
The Home Health Care Business division has been booming for the company as the number of Japanese citizens with diabetes keeps climbing. The company is poised to keep capitalizing on this trend.
While Japan is still a profitable area for the company, with $1.3 million in sales from that country, areas outside of Japan contributed $810 million to the bottom line, in large part because of increased demand for catheter systems and cardiopulmonary systems. Europe and the United States are on similar footing in terms of sales.
In 2006, Terumo has been continuing its upward momentum with numerous product launches and acquisitions. In February, Terumo entered into a definitive agreement to acquire Aliso Viejo, CA-based MicroVention Inc., a medical device company focused on endovascular coils and related products. With the worldwide market for endovascular treatment of cerebral aneurysms currently estimated at more than $200 million, Terumo is expecting to step up its growth in this segment over the next several years.
“As Terumo continues to expand its cardiac and vascular businesses, we believe that the acquisition of MicroVention provides a great strategic opportunity for Terumo to further strengthen our intervention business by entering the high growth area of endovascular coiling,” said Takashi Wachi, Terumo CEO. “The experience and capabilities Terumo expects to gain from this transaction can significantly contribute to Terumo’s sustained success in this key market segment.”
A key alliance created in April 2001 between Olympus Medical Systems Corporation and Terumo also resulted in the January 2005 launch of the VirtuoSaph endoscopic vein harvesting system in North America, Thailand, Singapore and Malaysia, with eventual planned introductions in Europe and Asia. In light of the successful alliance, the two companies formed a task force that spring to explore further opportunities for collaboration.
In November, Terumo launched Heartrail II, a PTCA guiding catheter used to treat angina and myocardial infarction, in Japan. The company has set a sales target of $13 million for the first year after launch.
In more recent activity, Terumo announced in March that it would establish a new production plant in Vietnam to meet increasing demand growth anticipated in mid- and long-term operations. Terumo plans to start production operations of disposable medical devices including closed infusion systems and infusion sets in mid-2007 for Japan and Asia.