Japanese medical device company Terumo has acquired OrganOx, a UK-based company that manufactures organ preservation devices, for around $1.5bn.
Established in 2008, OrganOx specialises in advanced organ preservation through Normothermic Machine Perfusion (NMP).
The strategic move allows Terumo to enter the organ transplantation sector to enhance its capabilities in the organ transplantation-related field.
Under the terms of the agreement, the Japanese medical device company will purchase all outstanding shares of OrganOx.
OrganOx MD and executive chairman Oern Stuge said: “Today’s announced transaction is expected to expand the adoption of our transplantation technology platform by leveraging Terumo’s global infrastructure to benefit more patients around the globe.”
OrganOx CEO Craig Marshall said: “This transaction represents an important milestone for OrganOx and its shareholders.
“We look forward to continuing our rich history of collaboration with Terumo to continue harnessing our collective innovations to improve patient care.”
The acquisition builds existing relationship between Terumo and OrganOx.
The relationship is further solidified by Terumo’s strategic investment in March this year, through its corporate venture capital arm, Terumo Ventures.
Also, the acquisition highlights Terumo’s strategic interest in organ transplantation, a sector with unmet medical needs and growth potential.
By merging its medical device expertise with OrganOx’s NMP technology, the company seeks to improve global access to transplants.
The integration would address organ utilisation challenges and enhance post-transplant outcomes while reducing healthcare professionals’ workload.
Perella Weinberg Partners and Piper Sandler served as advisors, while Latham & Watkins served as legal counsel to OrganOx on the transaction.
OrganOx CFO Steve Deitsch said: “Our NMP technology uniquely addresses the quadruple aim of healthcare by benefiting patients, healthcare providers, population health, and the cost of care.
“Thank you to our top tier group of investors, including among others Business Growth Fund (BGF), Lauxera Capital, HealthQuest Capital, Sofina, Oxford University, Longwall Ventures, Technikos, Oxford Investment Consultants, and Intuitive Ventures who provided both the capital and leadership to enable the value creation inherent in today’s announced $1.5bn transaction.”
