07.24.12
23. Terumo Medical
$4 Billion
KEY EXECUTIVES:
Koji Nakao, Chairman, Terumo Group
Utaro Shintaku, President, Terumo Group
Hiroshi Matsumura, Group President, General Hospital Business Group
Hideo Arase, President & CEO, Terumo Americas Holding Inc.
Toshiaki Takagi, General Manager of R&D, Intellectual Property Dept.
James Rushworth, President, Terumo Interventional Systems
Mark Sutter, President Terumo Cardiovascular Systems
Adrian Gilmore, President, Terumo Medical Products
NO. OF EMPLOYEES: 14,761
GLOBAL HEADQUARTERS: Tokyo, Japan
In 1921, a group of medical scientists founded Terumo Corporation based on a corporate philosophy of “contributing to society through healthcare.” It is still the company’s mantra. Ninety years ago (the company celebrated its anniversary in September 2011) the company began making thermometers, which, incidentally, is how the firm’s name was derived. It comes from the German pronunciation of word thermometer.
The basic temperature-gaging devices are still on Terumo’s list of products, along with 21st century technology in different areas of medical technology including medical devices for cardiothoracic surgery, left-ventricular assist system for end-stage heart failure, minimally invasive coronary and endovascular interventional and neuro-interventional technologies of cerebral aneurysms, transfusion technology, and an array of syringe and hypodermic needle products for hospital and physician office use.
In August last year, Forbes magazine ranked Terumo Corp. 14th on its list of top 100 innovative companies. According to editors at the financial magazine, the ranking was based on findings from an eight-year study led by a team of independent industry researchers who assessed companies based on an “innovation premium,” a measure of investor expectation for future innovation such as new product development services and market development.
For the 2011 fiscal year (ended March 31), the overall company’s sales were approximately $4 billion, an increase of 3.3 percent (in yen). Net income increased 10 percent to $390 million. By product segment, the company’s General Hospital business recorded $1.8 billion in sales, up 2 percent; the Cardiac & Vascular division totaled sales of $1.7 billion, up 6.5 percent; Blood Management had sales of $296 million, up 2.5 percent; and Consumer Healthcare division revenue fell 32 percent to $52 million.
Japan is the largest market for the company, responsible for approximately $2 billion in sales, which grew marginally at 1.9 percent. The Americas made up the second-largest segment at $687 million in revenue, up 6 percent compared to the prior period. Europe followed close behind with sales of $683 million, up 16 percent. Though not a revenue leader, other Asian markets outside Japan showed the most significant sales growth, increasing 18 percent to about $452 million.
The company’s executives have vowed to aggressively pursue growth opportunities, and acquisition has been one of the clear paths to that goal. The company’s blockbuster deal of the year was its deal in March 2011 to buy CaridianBCT from Sweden-based Gambro AB for $2.6 billion, including debt. The purchase price was about 15 times CaridianBCT’s 2010 earnings before interest, taxes, depreciation and amortization. CaridianBCT, based in Lakewood, Colo., makes machines that collect blood components and filter pathogens, and are used by blood banks and hospitals. Buying the unit will boost annual sales by about $851 million and add customers in North America, Terumo officials said. Terumo’s transfusion division sells mainly low-tech products such as blood bags, blood filters and aphaeresis systems that are used to separate blood components.
“The increasing number of cancer patients in the aging populations of the developed world will increase the demand for platelet transfusion,” officials said in a statement released on the company website. Terumo is aiming for at least 10 percent annual growth in sales from its blood business, Koji Nakao, an executive vice president, told reporters at a press conference in Tokyo following the announcement.
A strong yen bolstered the buying power of Japanese companies looking for U.S. and European companies to buy in 2011. The acquisition made Terumo the world’s biggest maker of blood transfusion equipment, overtaking Haemonetics Corp. of Braintree, Mass., Terumo officials claimed in an interview with Bloomberg.
The company continued to make strategic buys throughout 2011.
In May last year, Terumo announced a deal to purchase Plymouth, Mass.-based Harvest Technologies Corp., a biotechnology company working to commercialize the world’s first point-of-care technology that allows physicians to derive highly concentrated autologous, adult stem cells from their patients in just 15 minutes. The acquisition for $70 million provides Terumo access to Harvest Technologies’ two medical device therapies that show promising benefits in optimizing the body’s natural healing process. The SmartPrep 2 APC+ system allows physicians to rapidly prepare highly concentrated, autologous platelet rich plasma (PRP) enriched with growth factors to naturally stimulate the body’s healing process for bone and soft-tissue wounds, according to Terumo. Harvest Technologies’ SmartPReP 2 BMAC is considered a potential breakthrough technology because it can process and concentrate the cellular components from autologous bone marrow, including adult stem cells, within 15 minutes, while some concentration techniques require hours, or in some cases days, to prepare.
The concentrate produced by this system has been documented to generate more total nucleated cells with enhanced viability that affect a desired outcome in animal models compared to concentrations obtained by using the most common laboratory methods described in successful clinical studies—while being significantly easier to implement and requiring half the amount of aspirate of bone marrow from the patient.
Both applications have shown promising results in the treatment of cardiovascular and peripheral artery disease, according to analysts.
Harvest Technologies focused its initial sales efforts in Europe to support clinical research for the treatment of end-stage critical limb ischemia (CLI), a result of peripheral artery disease, which often leads to lower-limb amputation and increased patient morbidity and mortality rates. Harvest also is conducting a 42-patient pilot, randomized, controlled, safety cardiac study of its BMAC system in three U.S. medical centers. The BMAC product is injected into the patient’s heart muscle during bypass surgery to study its safety and effectiveness in this patient population. Previous studies using similar techniques have shown clinical promise.
On the new product front, the company gained 510(k) clearance from the U.S. Food & Drug Administration to market its new K-Pack Surshield hypodermic needle featuring integrated, passive sharps protection for use with pre-filled syringes for intramuscular and subcutaneous pharmaceutical applications. The K-Pack Surshield comes individually packaged and sterile in a rigid container with a tamper-evident and color-coded label. Initially, U.S. customers will have access to the K-Pack Surshield with Terumo’s 25-gauge needle designed for minimal patient trauma. Terumo also applied for 510(k) clearance of its smaller 27-gauge needle. The K-Pack Surshield 25-gauge needle has CE Mark approval outside the United States as well. Company officials noted that unique packaging distinguishes the device from similar devices.
Like many Japanese companies, Terumo Corp. was impacted by the earthquake and tsunami disasters in early March 2011. The company donated approximately $1.2 million in supplies and money to support disaster relief in Japan. In addition, the company, in cooperation with the American Red Cross, enacted an internal dollar-for-dollar matching contribution program to raise additional funds. The initial disaster caused no damage or casualties at the company’s headquarters or at any other Japan-based manufacturing plants. An aftershock created minor damage to one Terumo plant, but it didn’t affect manufacturing operations. As a result of the devastation, however, Terumo initiated a program to assess all of its Japanese suppliers who provide raw materials for the production of products at all its global plants.
Though Terumo has facilities throughout the United States, The fiscal year included the expansion of a lab and manufacturing facility in Elkton, Md. The company’s U.S. headquarters are in Somerset, N.J.
$4 Billion
KEY EXECUTIVES:
Koji Nakao, Chairman, Terumo Group
Utaro Shintaku, President, Terumo Group
Hiroshi Matsumura, Group President, General Hospital Business Group
Hideo Arase, President & CEO, Terumo Americas Holding Inc.
Toshiaki Takagi, General Manager of R&D, Intellectual Property Dept.
James Rushworth, President, Terumo Interventional Systems
Mark Sutter, President Terumo Cardiovascular Systems
Adrian Gilmore, President, Terumo Medical Products
NO. OF EMPLOYEES: 14,761
GLOBAL HEADQUARTERS: Tokyo, Japan
In 1921, a group of medical scientists founded Terumo Corporation based on a corporate philosophy of “contributing to society through healthcare.” It is still the company’s mantra. Ninety years ago (the company celebrated its anniversary in September 2011) the company began making thermometers, which, incidentally, is how the firm’s name was derived. It comes from the German pronunciation of word thermometer.
The basic temperature-gaging devices are still on Terumo’s list of products, along with 21st century technology in different areas of medical technology including medical devices for cardiothoracic surgery, left-ventricular assist system for end-stage heart failure, minimally invasive coronary and endovascular interventional and neuro-interventional technologies of cerebral aneurysms, transfusion technology, and an array of syringe and hypodermic needle products for hospital and physician office use.
In August last year, Forbes magazine ranked Terumo Corp. 14th on its list of top 100 innovative companies. According to editors at the financial magazine, the ranking was based on findings from an eight-year study led by a team of independent industry researchers who assessed companies based on an “innovation premium,” a measure of investor expectation for future innovation such as new product development services and market development.
For the 2011 fiscal year (ended March 31), the overall company’s sales were approximately $4 billion, an increase of 3.3 percent (in yen). Net income increased 10 percent to $390 million. By product segment, the company’s General Hospital business recorded $1.8 billion in sales, up 2 percent; the Cardiac & Vascular division totaled sales of $1.7 billion, up 6.5 percent; Blood Management had sales of $296 million, up 2.5 percent; and Consumer Healthcare division revenue fell 32 percent to $52 million.
Japan is the largest market for the company, responsible for approximately $2 billion in sales, which grew marginally at 1.9 percent. The Americas made up the second-largest segment at $687 million in revenue, up 6 percent compared to the prior period. Europe followed close behind with sales of $683 million, up 16 percent. Though not a revenue leader, other Asian markets outside Japan showed the most significant sales growth, increasing 18 percent to about $452 million.
The company’s executives have vowed to aggressively pursue growth opportunities, and acquisition has been one of the clear paths to that goal. The company’s blockbuster deal of the year was its deal in March 2011 to buy CaridianBCT from Sweden-based Gambro AB for $2.6 billion, including debt. The purchase price was about 15 times CaridianBCT’s 2010 earnings before interest, taxes, depreciation and amortization. CaridianBCT, based in Lakewood, Colo., makes machines that collect blood components and filter pathogens, and are used by blood banks and hospitals. Buying the unit will boost annual sales by about $851 million and add customers in North America, Terumo officials said. Terumo’s transfusion division sells mainly low-tech products such as blood bags, blood filters and aphaeresis systems that are used to separate blood components.
“The increasing number of cancer patients in the aging populations of the developed world will increase the demand for platelet transfusion,” officials said in a statement released on the company website. Terumo is aiming for at least 10 percent annual growth in sales from its blood business, Koji Nakao, an executive vice president, told reporters at a press conference in Tokyo following the announcement.
A strong yen bolstered the buying power of Japanese companies looking for U.S. and European companies to buy in 2011. The acquisition made Terumo the world’s biggest maker of blood transfusion equipment, overtaking Haemonetics Corp. of Braintree, Mass., Terumo officials claimed in an interview with Bloomberg.
The company continued to make strategic buys throughout 2011.
In May last year, Terumo announced a deal to purchase Plymouth, Mass.-based Harvest Technologies Corp., a biotechnology company working to commercialize the world’s first point-of-care technology that allows physicians to derive highly concentrated autologous, adult stem cells from their patients in just 15 minutes. The acquisition for $70 million provides Terumo access to Harvest Technologies’ two medical device therapies that show promising benefits in optimizing the body’s natural healing process. The SmartPrep 2 APC+ system allows physicians to rapidly prepare highly concentrated, autologous platelet rich plasma (PRP) enriched with growth factors to naturally stimulate the body’s healing process for bone and soft-tissue wounds, according to Terumo. Harvest Technologies’ SmartPReP 2 BMAC is considered a potential breakthrough technology because it can process and concentrate the cellular components from autologous bone marrow, including adult stem cells, within 15 minutes, while some concentration techniques require hours, or in some cases days, to prepare.
The concentrate produced by this system has been documented to generate more total nucleated cells with enhanced viability that affect a desired outcome in animal models compared to concentrations obtained by using the most common laboratory methods described in successful clinical studies—while being significantly easier to implement and requiring half the amount of aspirate of bone marrow from the patient.
Both applications have shown promising results in the treatment of cardiovascular and peripheral artery disease, according to analysts.
Harvest Technologies focused its initial sales efforts in Europe to support clinical research for the treatment of end-stage critical limb ischemia (CLI), a result of peripheral artery disease, which often leads to lower-limb amputation and increased patient morbidity and mortality rates. Harvest also is conducting a 42-patient pilot, randomized, controlled, safety cardiac study of its BMAC system in three U.S. medical centers. The BMAC product is injected into the patient’s heart muscle during bypass surgery to study its safety and effectiveness in this patient population. Previous studies using similar techniques have shown clinical promise.
On the new product front, the company gained 510(k) clearance from the U.S. Food & Drug Administration to market its new K-Pack Surshield hypodermic needle featuring integrated, passive sharps protection for use with pre-filled syringes for intramuscular and subcutaneous pharmaceutical applications. The K-Pack Surshield comes individually packaged and sterile in a rigid container with a tamper-evident and color-coded label. Initially, U.S. customers will have access to the K-Pack Surshield with Terumo’s 25-gauge needle designed for minimal patient trauma. Terumo also applied for 510(k) clearance of its smaller 27-gauge needle. The K-Pack Surshield 25-gauge needle has CE Mark approval outside the United States as well. Company officials noted that unique packaging distinguishes the device from similar devices.
Like many Japanese companies, Terumo Corp. was impacted by the earthquake and tsunami disasters in early March 2011. The company donated approximately $1.2 million in supplies and money to support disaster relief in Japan. In addition, the company, in cooperation with the American Red Cross, enacted an internal dollar-for-dollar matching contribution program to raise additional funds. The initial disaster caused no damage or casualties at the company’s headquarters or at any other Japan-based manufacturing plants. An aftershock created minor damage to one Terumo plant, but it didn’t affect manufacturing operations. As a result of the devastation, however, Terumo initiated a program to assess all of its Japanese suppliers who provide raw materials for the production of products at all its global plants.
Though Terumo has facilities throughout the United States, The fiscal year included the expansion of a lab and manufacturing facility in Elkton, Md. The company’s U.S. headquarters are in Somerset, N.J.
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