Why LivaNova Is Unloading Its CRM Business

LivaNova, formerly known as Sorin Group, has decided to get out of the cardiac rhythm management (CRM) business and shift more focus to its areas of strength.  The London-based company plans to sell its CRM business to Shanghai-based MicroPort for $190 million in cash. The business, which makes high-voltage defibrillators, cardiac resynchronization therapy devices and low-voltage pacemakers, generated about $249 million in net sales in the fiscal year 2016. The business has roughly 900 employees with operations chiefly in Clamart, France; Saluggia, Italy; and Santo Domingo, Dominican Republic. The company said in September it was reviewing strategic options for its CRM business, including a potential divestiture. LivaNova and MicroPort founded a China-based joint venture called MicroPort Sorin CRM in 2014. The joint venture has achieved many milestones in the development, manufacture, and promotion of CRM products for the China market, LivaNova said. MicroPort Sorin CRM recently received approval from the China Food and Drug Administration for its Rega pacemaker family, the smallest sized pacemakers available on the Chinese market. LivaNova CEO Damien McDonald said the sale will enable the company to focus on its areas of strength, which includes its cardiac surgery and neuromodulation businesses. "With this divestiture, we are building the right foundation," he said. "We are focusing our portfolio on businesses that contribute to our growth and drive shareholder value." "W...
Source: MDDI - Category: Medical Devices Authors: Tags: Cardiovascular Medical Device Business Source Type: news