Bankruptcy and divestment, breathing giant achieves rebirth

October 18, 2024  Source: drugdu 104

"/
Recently, Zoll announced that it has completed the previously announced acquisition of some assets of Vyaire Medical's ventilator business.

In August of this year, these two companies announced this transaction after Vyaire initiated Chapter 11 bankruptcy proceedings. Now that the dust has settled on the acquisition, Zoll will launch Vyaire's Bellavista, Fabian, LTV, and 3100 HFOV series of ventilators, further expanding its respiratory care product line.

It is worth mentioning that Vyaire was an important force in the supply of ventilators during the early stages of the COVID-19 pandemic, but applied for bankruptcy protection due to operational difficulties. And Medtronic also chose to withdraw due to the fact that its ventilator business is no longer profitable. Zoll's acquisition undoubtedly brings new vitality and hope to the market.

01. The rise and fall of rising stars in ventilators
Zoll stated that the acquired product line of ventilators and their related consumables, service parts, accessories, and service items will continue to be sold through existing sales channels. Meanwhile, during the transition period, customers can still continue to use Vyaire's existing communication channels.

Jon Rennert, CEO of Zoll, said, "This acquisition of Vyaire's carefully selected ventilator product line is an exciting opportunity for both our customers and our company. Now, we can serve more patients and customers, further fulfilling our mission to improve patient outcomes and help save lives

In recent years, as the aging of the population intensifies and the incidence rate of chronic respiratory diseases such as chronic obstructive pulmonary disease (COPD) rises, the demand of the global medical ventilator market continues to grow. However, in this context, Vyaire Medical, once hailed as a respiratory giant, has encountered unprecedented difficulties, and its bankruptcy protection application has attracted widespread attention in the industry.

Vyaire Medical, This company, jointly established by BD and Apax Partners in 2016, focuses on the production of ventilators and respiratory diagnostic equipment. Its product portfolio covers multiple fields such as respiratory diagnostic equipment, ventilation equipment, and consumables, including Bellavista ™ Series ventilators, Vyntus lung function testing system, and AirLife ™ Oxygen therapy products are widely used in various medical fields such as acute care, long-term care, neonatal care, and transportation.

At the beginning of the COVID-19 epidemic, the demand for Vyaire Medical's products surged, becoming one of the three major ventilator cooperation enterprises of the U.S. Department of Health and Human Services (HHS). With its efficient, reliable, and intelligent product features, Vyaire Medical's ventilators and related equipment meet strict medical standards and demands, winning widespread recognition in the market. However, with the gradual improvement of the epidemic situation, the demand for ventilators in the market has also declined. In September 2020, HHS terminated its $407.9 million contract with Vyaire early due to sufficient supply of ventilators in its strategic national inventory, which had a significant impact on the company's financial condition.

In order to alleviate financial pressure, Vyaire Medical announced in May 2023 that it would sell its consumables business to SunMed for approximately $310 million. Although this transaction brought some cash flow to the company, it did not fundamentally improve its financial situation. At the beginning of this year, Vyaire Medical encountered financial difficulties and was unable to continue operating normally. In June, the company announced that it had difficulty refinancing due to lower than expected performance in the first half of the fiscal year, and had filed for Chapter 11 bankruptcy protection in the United States, with plans to sell some of its business.
The bankruptcy filing documents show that Vyaire Medical's total assets are currently between $100 million and $500 million, while its total liabilities are between $500 million and $1 billion. Although the company emphasized that the bankruptcy filing only affects its business within the United States and a non operational international holding company, and plans to continue operating during the bankruptcy protection period, this news still sparked widespread attention and concerns in the industry.

02. Strategic layout of global leaders in emergency recovery field
While Vyaire Medical is struggling, another global leader in emergency resuscitation, Zoll Medical, has shown strong interest in acquiring it.

Zoll Medical was founded by Professor Paul M. Zoll from Harvard Medical School in 1980 and is a pioneer in global defibrillation technology. After decades of development, Zoll Medical has established a full line of products around emergency services, including ventilators, monitors, defibrillators, and other fields, covering multiple tracks such as defibrillation, sleep apnea, cardiac resuscitation, and therapeutic temperature management.

In recent years, Zoll Medical has been more inclined to expand its product line through acquisitions. In 2019, Zall completed multiple acquisitions, including:
In August, Zall announced the acquisition of Cardiac Science, and Cardiac joined Zall's recovery care division located in Massachusetts, USA. Cardiac mainly develops, manufactures, and sells AEDs (Automatic External Defibrillators) and related components. This acquisition expands the composition of Zall's AED product line.
.
Zall acquires TherOx, a company that offers supersaturated oxygen (SSO2) therapy for the treatment of acute myocardial infarction patients, which has received pre-market (PMA) approval from the FDA.

In 2021, Zall made multiple acquisitions: in April, Zall acquired Respicardia, a company dedicated to developing implantable neural stimulation therapies that can improve respiratory rhythm and cardiovascular health to enhance the lives of heart failure patients. Respicardia's implantable neural stimulation therapy device, the remed ē System, is used to treat central sleep apnea and is the only FDA approved implantable device.

In September, ZOLL Medical (the parent company brand of Zall Medical) signed the final agreement to acquire Itamar Medical. Itamar Medical focuses on the development and commercialization of non-invasive medical devices and solutions to help diagnose respiratory and sleep disorders. According to the agreement, ZOLL Medical will acquire all common outstanding shares of Itamar Medical for a total value of approximately $538 million.

Regarding the acquisition of Vyaire Medical, Jon Rennert, CEO of Zoll Medical, stated, "Respiratory care has been at the core of Zoll's business strategy for many years. If the acquisition is successfully completed, adding Vyaire's ventilators to Zoll's product portfolio will enhance our ability to serve a wider range of clinicians and patients." This acquisition intention not only reflects Zoll Medical's emphasis on the respiratory care field, but also demonstrates its strategic intention to enhance market competitiveness through the acquisition. It can be foreseen that if the acquisition is successful, Zoll Medical will be able to further expand its product line, enhance its market share and competitiveness in the field of respiratory care.

03. Current situation and future prospects of the global ventilator market
According to data from Shangpu Consulting Group, the global market size of medical ventilators is expected to be around 5.45 billion US dollars in 2022, with an average annual growth rate of 15.8% from 2022 to 2027. Among them, invasive ventilators occupy 60% of the market share, while non-invasive ventilators occupy about 40% of the market share.

From a regional perspective, the North American market currently holds the largest market share of approximately 40%, while the market growth rate in the Asia Pacific region is higher than the global average. This is mainly due to the large population size, rapid economic development, and increasing demand for healthcare in the Asia Pacific region. As the aging of the population intensifies and the incidence rate of chronic respiratory diseases rises, the demand for medical ventilators in the Asia Pacific region will continue to grow.

However, despite the bright prospects of the global medical ventilator market, companies such as Vyaire Medical have been greatly impacted by the decline in demand in the post pandemic era. On the one hand, with the improvement of the epidemic situation, the demand for ventilators in the market is gradually declining; On the other hand, companies are also at a disadvantage in competition with other giants. These factors collectively led to the deterioration of the financial situation of companies such as Vyaire Medical, ultimately resulting in bankruptcy protection.

Source: http://qixieke.com/Font/index/detailPage.html?id=3218-142

By editor
Share: 

your submission has already been received.

OK

Subscribe

Please enter a valid Email address!

Submit

The most relevant industry news & insight will be sent to you every two weeks.