Medtronic plc, one of the world's largest medical technology players, has acquired Bellco, an Italian player that was a pioneer in hemodialysis solutions. The company touted to improve and expand therapy access in end stage renal diseases (ESRD).
ESRD is a last stage chronic kidney disease that results in kidney malfunctioning. This can be treated with a treatment that can help to stimulate the key aspects of healthy kidneys-dialysis.
Bellco created dialyzers and machines for treating renal failure in adult, pediatric, and neonatal ESRD patients. Bellco's renal solutions are available in more than 50 countries and the company had offered blood purification solutions for acute and chronic kidney damage.
"ESRD patients require dialysis for the remainder of their lives, or until a viable kidney transplant becomes available. We believe Medtronic's Renal Care Solutions can offer better, more accessible and affordable solutions to the growing population of people living with ESRD," said Ven Manda, president of Renal Care Solutions, Medtronic. "The integration of Bellco's portfolio of solutions will help further advance Medtronic's efforts to provide comprehensive care for dialysis patients worldwide," according to Fierce Medical Devices.
This M&A can be a hope for about approximately three million patients suffering from ESRD worldwide as Medtronic is better positioned to offer quality healthcare products and services to many people at the best affordable cost.
"I believe Medtronic is an excellent opportunity for the Bellco team and ESRD patients worldwide. In four years, we created the ideal conditions to attract a global industry leader that is positioned to support Bellco's long-term growth strategy," said Matteo di Montezemolo, founder and managing partner of the Charme Funds.
StreetInsider reported that Medtronic predicts its earnings to be neutral in fiscal year 2016 from this transaction with Bellco and anticipates an accretion thereafter. It is expected that Medtronic will report revenue from its new Renal Care Solutions business as part of its Minimally Invasive Technologies Group's Patient Monitoring & Recovery division.