Sorin Biomedica completes the acquisition of Cobe CV

Mag, 18 1999

Sorin Biomedica completes the acquisition of Cobe CV


Sorin Biomedica SpA, an affiliate of SNIA SpA, has completed the acquisition from Gambro AB of COBE CV, Denver (CO), a US leader in Cardiopulmonary systems. The transaction obtained all related anti-trust approvals, including the US Federal Trade Commission clearance, after Sorin agreed to divest the COBE heart-lung machine (HLM) product line, while retaining the Stoeckert HLM acquired in 1992 from Pfizer Inc.

The COBE HLM, which accounted for approximately 8% of COBE CV overall revenues (totaling US $ 146,2 million in 1998), has been sold to Baxter Healthcare simultaneously with the acquisition of COBE CV by Sorin. As a result of the above transactions, Sorin's net total disbursement for the acquisition of COBE CV is approximately US $247 million.

Combined with COBE CV, Sorin's worldwide sales will exceed US $ 500 million (US $400 million Cardiovascular and US $100 million hemodialysis), out of which 26% in the US, 50% in the European Union and 24% in the rest of the world (Japan being one of the key markets).

The Sorin group, which also includes Dideco Spa, the European leader in this field, will supply about 40% of the world market in cardiopulmonary disposable systems. These systems will be manufactured in Denver, CO, where all Sorin's US activities will be located, and Mirandola, Italy.

Sorin's mission is to be a reliable, innovative, cost competitive developer and manufacturer of a broad range of medical devices for the treatment of the most severe cardiovascular diseases, including coronary artery occlusions and heart valve defects.

In coherence with its mission, Sorin's product offering includes a complete catalog of cardiopulmonary disposable and equipment, and a full range of artificial heart valves with an excellent safety record (mechanical, with over 200,000 implants, and tissue, with over 10.000 implants). After obtaining the CE mark at the end of 1998, Sorin has also successfully introduced a new PTCA catheters and stents product line, based on its proprietary pyrolytic carbon coating technology. Since January 1999, Sorin's coronary stents have been implanted in more than 100 hospitals in major European countries.

SNIA SpA, listed on the Milan stock exchange, owns 75% of Sorin Biomedica's capital (the remaining being floated on the Milan stock exchange). After the acquisition of COBE CV, Sorin will account for about 36% of SNIA's sales, totaling about US $ 1,4 billion, which also include chemical products and specialty textile filaments.