Medtronic Adds Life-Extending Dialysis Portfolio to Recently Formed Renal Care Solutions Business with Acquisition of Bellco
February 01 2016 - 8:00AM
DUBLIN - February 1, 2016 -
Furthering its commitment to improve outcomes, expand therapy
access, and optimize costs and efficiencies in end stage renal
disease (ESRD), Medtronic plc (NYSE: MDT) today announced it
acquired privately-held Bellco, a pioneer in hemodialysis treatment
solutions. Bellco's portfolio bolsters Medtronic's legacy
renal access business and will be a foundational component of the
company's recently formed Renal Care Solutions business.
Bellco has created therapies and systems for the
treatment of renal failure, multiple organ failure and sepsis.
Bellco's full line of dialyzers and chronic and acute dialysis
machines perform dialysis for adult, pediatric and neonatal ESRD
patients. For more than 40 years, Bellco has offered advanced blood
purification treatments for ESRD patients with chronic and acute
kidney injury. The company's solutions are available in more than
50 countries.
"ESRD patients require dialysis for the remainder
of their lives, or until a viable kidney transplant becomes
available. We believe Medtronic's Renal Care Solutions can offer
better, more accessible and affordable solutions to the growing
population of people living with ESRD," said Ven Manda, president
of Renal Care Solutions, Medtronic. "The integration of Bellco's
portfolio of solutions will help further advance Medtronic's
efforts to provide comprehensive care for dialysis patients
worldwide."
Medtronic acquired Bellco, an Italian-based
company, from Charme Capital Partners, manager of the pan-European
Charme Funds. Terms of the acquisition were not disclosed.
"I believe Medtronic is an excellent opportunity
for the Bellco team and ESRD patients worldwide. In four years, we
created the ideal conditions to attract a global industry leader
that is positioned to support Bellco's long-term growth strategy,"
said Matteo di Montezemolo, founder and managing partner of the
Charme Funds.
About End Stage Renal Disease:
- The last stage of chronic kidney disease, ESRD is
a condition resulting in kidneys that are functioning below what is
required to meet the needs of daily life.
- When kidneys fail, dialysis - a treatment that
simulates key aspects of healthy kidneys - is necessary.
- There are approximately three million patients
suffering from ESRD worldwide. This number is expected to more than
double over the next 10 years.1
- The global dialysis market is greater than $75
billion.2
The formation of the Renal Care Solutions business
combined with the Bellco acquisition supports Medtronic's economic
value strategy. Partnering with stakeholders in healthcare,
Medtronic is better positioned to offer products and services that
deliver clinical and economic value to the healthcare system.
Medtronic is focused on leading the shift to value based
healthcare, which rewards those who can deliver quality healthcare
to more people at the most affordable cost.
The Bellco transaction is expected to meet
Medtronic's long-term financial metrics for acquisitions. Medtronic
expects the net impact from the transaction to be earnings neutral
in fiscal year 2016 and neutral to accretive to earnings
thereafter. Medtronic will report revenue from Bellco and its Renal
Care Solutions business as part of the Minimally Invasive
Technologies Group's Patient Monitoring & Recovery
division.
Bellco, headquartered in Mirandola, Italy, is a
pioneer in blood purification treatments. It has created
therapies and systems for the treatment of renal failure, multiple
organ failure and sepsis. Bellco's full line of dialyzers and
chronic and acute dialysis machines perform dialysis for adult,
pediatric and neonatal End Stage Renal Disease (ESRD) patients. In
2012, Bellco was added as a portfolio company by Charme Capital
Partners to its Charme II fund, which was founded by Luca and
Matteo di Montezemolo.
About Medtronic
Medtronic plc (www.medtronic.com), headquartered in Dublin,
Ireland, is among the world's largest medical technology, services
and solutions companies - alleviating pain, restoring health and
extending life for millions of people around the world. Medtronic
employs more than 85,000 people worldwide, serving physicians,
hospitals and patients in approximately 160 countries. The company
is focused on collaborating with stakeholders around the world to
take healthcare Further, Together.
This press release contains
forward-looking statements that involve risks and uncertainties.
Such forward-looking statements include Medtronic's intended
business strategy and expectations regarding benefits to
Medtronic's operations as a result of the closing of the Bellco
acquisition. The statements in this release are based upon current
expectations and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements, including risks
related to the integration of Bellco's operations into Medtronic's,
delays or obstacles in realizing the anticipated future benefits
(including cost savings and other synergies) resulting from the
acquisition of Bellco, difficulties and delays inherent in the
development, manufacturing, marketing and sale of medical products
and services, government regulation, general economic conditions
and other risks and uncertainties set forth in Medtronic's periodic
reports on file with the Securities and Exchange Commission. Actual
results may differ materially from anticipated results. Medtronic
does not undertake to update its forward- looking
statements.
-end-
1 Liyanage T,
Ninomiya T, Jha V, et al. Worldwide access to treatment for
end-stage kidney disease: a systematic review. Lancet.
2015;385(9981):1975-82.
2 Elder M. The
Worldwide Market for Dialysis Equipment, Supplies and Services. A
Kalorama Information Market Intelligence Report. 2015: 156.
Contacts:
John Jordan
Public Relations
+1-508-452-4891
Ryan Weispfenning
Investor Relations
+1-763-505-4626
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medtronic plc via Globenewswire
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