Through its critical care subsidiary MicroPort Surgical B.V., MicroPort Scientific Corporation has acquired 100% of the equity held by existing shareholders of Hemovent GmbH for a total cash consideration of up to €123 million. Upon completion of the acquisition, Hemovent will become a wholly-owned subsidiary of MicroPort®.
Established in 2013 in Aachen, Germany, Hemovent is specializing in the development of ground-breaking Extracorporeal Life Support (ECLS) systems, a technology often referred to as Extracorporeal Membrane Oxygenation (ECMO). Hemovent’s flagship product, the MOBYBOX® system has already obtained its CE Mark and is commercially available in Europe. MOBYBOX® system is the first fully-integrated ECLS system to manage both perfusion and gas exchange in a single device. With no reliance on an external power supply, software, or motors, the MOBYBOX® is driven only by pneumatics (oxygen or compressed air). Weighing less than 2kg and able to fit in a backpack, MOBYBOX® has set a new standard for ECMO devices in terms of mobility and ease of use. The MOBYBOX® system is designed to extend device application from intensive care units (ICU) to such mobile medical scenarios as inter- and intra-hospital patient transfer and field rescue. The MOBYBOX® is able to provide timely extracorporeal life support application to a much higher number of critical patients in life-threatening situations, thus gaining valuable time for emergency treatment. Moreover, the fully integrated gas and pump management of the MOBYBOX® system is extremely easy to use and affordable, providing a much better solution for many primary hospitals in meeting their real-world care demands.
According to guidelines published by the Extracorporeal Life Support Organization (ELSO), ECMO machines are suitable for cardiac and respiratory arrest, acute severe heart failure and acute severe respiratory failure caused by various reasons. By providing patients with continuous extracorporeal respiratory and circulatory support, ECMO can reduce their cardiopulmonary burden and gain more time for professional medical treatment.
The global ECMO market size exceeded USD 500 million in 2020 and is anticipated to grow at a CAGR of over a low double-digit percentage between 2021 and 2027. The sudden surge in COVID-19 cases coupled with the rising number of critically ill patients requiring extra life support has escalated the demand for ECMO devices. It is estimated that on top of the significant international market growth the market potential for ECMO in China surpasses 100,000 cases per year based on the usual usage of ECMO per million population.
MicroPort® has established its foothold in the critical care sector with its subsidiary MicroPort® Surgery, which is committed to providing patients with comprehensive medical solutions for cardiac surgery, emergency, and critical care. The Hemovent acquisition will further MicroPort®’s strategy in emergency and critical care, through the combination of Cardiopulmonary Bypass (CPB) with the R&D, manufacturing, and commercialization of ECMO products. Synergies within both core technologies and material sciences are expected from the integration of MicroPort® Surgery and Hemovent. In addition, the partnership will jointly develop multiple pipeline products in the mechanically assisted circulation sector, in a bid to provide more systematic and integrated solutions in critical care.
Relying on years of expertise accumulated in cardiac systemic circulation, MicroPort® Surgery has been actively expanding its product portfolio into the intensive care field. The light, portable and easy to operate features of MOBYBOX® enable us to expand the application of this innovative ECMO technology to better meet the medical needs in the post-pandemic era. After the completion of the acquisition, MicroPort® Surgery will pursue device internationalization through a US FDA filing and the clinical registration of MOBYBOX® in China, which will provide systematic support centering on clinical needs, so that this innovative product can also benefit Chinese patients as soon as possible.Mr. Zhiguang Cheng, Senior Vice President of MicroPort® Surgery
Mr. Christof Lenz, CEO of Hemovent, said, “We are extremely happy with our new partner MicroPort® who can leverage Hemovent’s team efforts with its profound resources, industry expertise and global reach in order to raise our unique technology to the next level. We are looking forward to a significant scale-up of business activities in our current Aachen facility, as well as growing our international operations and distribution chains. We trust in our MOBYBOX® system to be an eventual game-changer for the application of ECLS, as it offers unrivaled mobility and ease of use in this area of critical care.”
Dr. Seung-Kyun Yue, Senior Vice President of MicroPort® Surgery stated, “The products and technologies of Hemovent will complement the current portfolio of critical care solutions of MicroPort®. The ‘European Triangle’ of R&D and production centers in France, Italy, and Germany, is a long-term strategic layout of MicroPort® to deeply explore the European market. After completion of the transaction, MicroPort® will focus on strengthening its technology innovation and large-scale industrialization capabilities in Germany, leveraging the synergy of global innovation resources to advance medical technology and save more patients’ lives worldwide.”
The transaction has received all the necessary and customary regulatory approvals. Completion of the transaction is expected in Q4 2021.