Getinge Navigates Shifting Sands: Phasing Out Perfusion, Embracing ECMO and Transplant Care

Summary

Getinge is phasing out its surgical perfusion business to focus on higher-growth areas like ECMO and transplant care. This strategic shift comes after a decade of struggles in the perfusion market, following a consent decree that forced Getinge out of the U.S. market. The company aims to reallocate resources to more profitable ventures, marking a significant transition in its business strategy.

Secure patient data with ease. See how TrueNAS offers self-healing data protection.

Main Story

Getinge, a prominent name in medical technology, has announced a strategic shift in its business focus, opting to phase out its surgical perfusion business. This decision comes as the company sets its sights on higher-growth sectors, specifically extracorporeal membrane oxygenation (ECMO) and transplant care. This transition represents a significant reallocation of resources, driven by the challenges Getinge has faced in the surgical perfusion market over the past decade.

A Decade of Challenges in Perfusion:

Getinge’s struggles in the perfusion market can be traced back to a 2015 consent decree with the U.S. Food and Drug Administration (FDA). This decree mandated a temporary suspension of production for certain devices at its New Hampshire facility while the company worked to bolster its quality management system. However, ten years later, these devices have not re-entered the U.S. market. This prolonged absence has significantly impacted Getinge’s market share and profitability within the surgical perfusion sector.

CEO Mattias Perjos acknowledged the impact of the consent decree, stating that the low market share and continued losses in the category were key factors in the decision to withdraw. This strategic move allows Getinge to free up resources and expertise to focus on more promising and profitable areas.

The Rise of ECMO and Transplant Care:

The increasing focus on ECMO and transplant care reflects a broader trend in healthcare, where innovative technologies are transforming patient care. ECMO, a life-support technique that provides respiratory and cardiac support to patients whose heart and lungs are unable to function adequately, has witnessed remarkable growth in recent years. Similarly, advancements in transplant care, including organ preservation technologies, are revolutionizing the field and offering hope to countless patients.

Getinge’s acquisition of Paragonix Technologies, a company specializing in transplant organ preservation technology, further underscores its commitment to this burgeoning field. The Paragonix acquisition, along with the FDA clearance of the KidneyVault portable renal perfusion system, provides a substantial boost to Getinge’s transplant care portfolio, covering all major organ categories.

Strategic Implications for Getinge and the Market:

This strategic shift has been met with positive reactions from industry analysts, who see it as a pragmatic move that will allow Getinge to concentrate on its core strengths. The decision is also expected to create opportunities for competitors in the surgical perfusion market, such as Livanova, who stand to gain from Getinge’s exit.

This restructuring will involve a gradual phase-out of the surgical perfusion business, with Getinge adhering to local labor regulations and engaging with employee representation bodies throughout the process. While the exact number of employees affected remains undisclosed, the company has emphasized its commitment to supporting its workforce through this transition.

A New Era for Getinge:

Getinge’s decision to phase out its surgical perfusion business marks a pivotal moment in the company’s trajectory. This strategic shift, driven by a decade of market challenges and a renewed focus on high-growth sectors, reflects Getinge’s commitment to adapting to the evolving landscape of medical technology. By reallocating resources to ECMO and transplant care, Getinge aims to position itself at the forefront of innovation, driving growth and ultimately enhancing patient care. The move is a testament to the company’s resilience and its dedication to advancing healthcare through technological innovation. As Getinge closes the chapter on surgical perfusion, it opens a new one, poised to make significant contributions to the future of ECMO and transplant care.