Increasing M&A activity in the ophthalmology market

Currently we are seeing an increase in M&A activity in the ophthalmology market, especially within the ophthalmic devices market. It is anticipated that the global ophthalmic devices market will reach a value of nearly $65bn (€58.4bn) by 2025, growing at a CAGR of approximately 4%1, with Asia Pacific expected to grow at an even higher rate.

One of the key factors driving growth in this market is the constant technological advancements; these can be seen in ophthalmic surgical technologies, ocular imaging and even lenses where new materials and designs continue to transform the sector. Many businesses are vying for the edge over their competitors and are spending on research and development (R&D), which is further example of the investment into advancements in this sector.

Interestingly the major growth segment of the ophthalmic devices market is intraocular lenses (IOLs), which are used to treat cataracts and myopia (near-sightedness). This segment is expected to be valued at $4.56bn (€4.1bn), whilst growing at a CAGR of 5.4% (2017-2022)2. Foldable IOLs are expected to achieve the highest rate of growth in the forecast period. The large players in this market include: Alcon, Bausch & Lomb, Hoya, Carl Zeiss, Ophtec BV, Johnson & Johnson, STAAR, Lenstec, and Rayner Surgical; these businesses continue to dominate the market. The growth is driven by ageing demographics and corresponding age related eye disorders, as well as the rising prevalence of diabetes and new government initiatives to control and treat blindness caused by cataracts.

The fragmented nature of this market suggests that we will continue to see high levels of M&A activity in the coming months and years.

1Medgadet: Ophthalmic Devices Market Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2019-2025

2PRNewswire: Intraocular Lens (IOL) Market to Soar at 5.4% CAGR to 2022

In recent years we have seen the ophthalmic products market become active in M&A. Below is selection of deals we have observed over the past 18 months:

AIME Supermax K.K., the Japan based distributor of contact lenses and other eye products has agreed to acquire Claytondynamics Inc, the Japan based manufacturer of contact lenses.

Glaukos Corporation, the US based ophthalmic technology company has agreed to acquire the IOP Sensor System of DOSE Medical Corporation, the US based ophthalmic medical device manufacturer for €49.0m.

Eurazeo Capital, the France based private equity firm has completed the acquisition of DORC Dutch Ophthalmic Research Center (International) BV, the Netherlands based manufacturer of ophthalmic surgery products for €430.0m.

Alcon Laboratories Inc, the US based manufacturer of medicines and devices for eye care needs has acquired PowerVision Inc, the US based provider of fluid-controlled intraocular lenses for €251.4m.

Johnson & Johnson, the US based diversified medical product manufacturer has acquired Innovalens B.V., the Netherlands based manufacturer of intraocular lenses.

Ophtecs Corporation, the Japan based manufacturer of contact lenses and other eye accessories has acquired OPHTECS Europe B.V., the Netherlands based manufacturer of contact lenses.

Beaver-Visitec International Inc, the US based manufacturer of ophthalmic surgical devices has acquired PhysIOL S.A., the Belgium based manufacturer of trifocal and monofocal intraocular lens products.

Carl Zeiss Meditec AG, the Germany based medical technology company has agreed to acquire Iantech Inc, the US based manufacturer of medical devices for cataract surgery.

Ergon Capital Partners, the Luxembourg based private equity firm has acquired Indo Optical S.L.U., the Spain based manufacturer of ophthalmic products.

Below is a summary of the deals that we have seen across all segments of the healthcare sector during Q2 2019:

Medical Equipment & Supplies

Arlington Capital Partners, the US based private equity firm has acquired Riverpoint Medical LLC, the US based manufacturer of medical devices for the veterinary and medical device markets.

Quanterix Corporation, the US based life sciences company has agreed to acquire UmanDiagnostics AB, the Sweden based provider of disease diagnostics products for €19.6m.

Cortec Group Inc, the US based private equity firm has acquired Aspen Medical Products Inc, the US based developer of spinal orthotic products.

Merit Medical Systems Inc, the US based manufacturer of disposable medical devices has acquired BrightWater Medical Inc, the US based developer of medical devices for interventional radiologists for €44.5m.

Fujifilm Corp, the Japan based manufacturer of electronic products has agreed to acquire Medwork GmbH, the Germany based manufacturer of instruments for therapeutic and diagnostic endoscopy.

Suzhou Secote Precision Electronic Co LTD, the China based automation solutions provider has agreed to acquire a majority stake in Optima Inc, the Japan based manufacturer of medical examination equipment for €32.5m.

Boston Scientific Corporation the US based medical devices manufacturer has acquired VertiFlex Inc, the US based developer of minimally invasive solutions for the treatment of lumbar spinal stenosis for €414.0m.

Pacira Pharmaceuticals Inc, the US based provider of non-opioid pain management and regenerative health solutions has acquired MyoScience Inc, the US based provider of medical devices for the treatments of pains and aesthetics for €194.7m.

Pharmaceuticals & Biotechnology

Triton, the Jersey based private equity firm has agreed to acquire Atnahs Pharma UK Limited, the UK based developer of pharmaceutical products.

Karo Pharma AB, the Sweden based speciality pharma company has agreed to acquire Trimb Healthcare AB, the Sweden based manufacturer of OTC products for €319.9m.

Object Pharma Inc, the US based provider of neurotoxin molecules for the development of pharmaceutical products has acquired Metabiologics Inc, the US based developer of neurotoxins for the pharmaceuticals industry.

Ampersands Capital Partners, the US based private equity firm has agreed to acquire Vibalogics GmbH, the Germany based Contract Development and Manufacturing Organisation (CDMO).

Amgen Inc, the US based manufacturer of human therapeutics has acquired Nuevolution AB, the Sweden based developer of drug treatments for oncology and chronic inflammatory diseases for €151.2m.

PerkinElmer Inc, the US based provider of a range of life sciences products has acquired Cisbio Bioassays, SAS the France based developer of assays and reagents to help generate medicines for €215.0m.

Intermediate Capital Partners, the UK based private equity firm has acquired Doc Generici S.r.l, the Italy based producer of medical products.

Nichi-Iko Pharmaceutical Co Ltd, the Japan based manufacturer of a variety of pharmaceutical products has completed the acquisition of Elmed Eisai Co Ltd, the Japan based manufacturer of generic drugs for €129.7m.

Health & Social Care

Garofalo Health Care S.p.A, the Italy based surgery centres operator has agreed to acquire Bimar S.r.l., the Italy based diagnostic healthcare centre for €51.2m.

Elysian Capital LLP, the UK based private equity firm has acquired Aspirations Care Limited, the UK based provider of specialist care services.

dermedis GmbH & Co. KG, the Germany based cosmetic product provider has acquired Clinique Matignon, Suisse SA the Switzerland based provider of cosmetic surgery services for €16.0m.

Cofinimmo SA, the Belgium based real estate investment firm has agreed to acquire Nebo, the Netherlands based healthcare centre for the elderly for €22.0m.

Brookfield Capital Partners, the Canada based private equity firm has completed the acquisition of Healthscope Ltd, the Australia based hospitals provider for €3.5bn.

Silverfleet Capital Partners, the UK based private equity firm has acquired CARE Fertility Limited, the UK based fertility services provider.

Sprout Health Group LLC, the US based healthcare management company has acquired Endeavor House Inc, the US based provider of drug addiction services.

G Square Capital, the UK based private equity firm has acquired Clacton Dental Ltd, the UK based provider of dental services.

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