Getinge to enter organ transplantation market with $477m acquisition of Paragonix Technologies

Getinge, a prominent Swedish medical technology company, has announced its acquisition of Paragonix Technologies, Inc., a U.S.-based leader in organ preservation and transportation products. The deal, valued at approximately USD 477 million, marks a significant strategic expansion for Getinge, enabling it to enter the fast-growing organ transplantation market.

A Strategic Expansion into Organ Transplantation

Paragonix Technologies, headquartered in Waltham, Massachusetts, has quickly become a key player in the organ transplantation sector. The company specializes in innovative organ preservation devices that significantly improve the standard of care in organ transport. These devices incorporate advanced cooling techniques and digital monitoring, ensuring that organs remain in optimal condition from donor to recipient. Paragonix’s technology has been shown to reduce complications and improve post-transplant outcomes, positioning the company as a leader in this critical area of healthcare.

Getinge’s $477 million acquisition of Paragonix Technologies marks a strategic expansion into the growing organ transplantation market, enhancing its global healthcare portfolio.

The acquisition aligns with Getinge’s broader strategy to diversify its product offerings and expand into high-growth markets. By integrating Paragonix’s cutting-edge technology with its existing capabilities in acute heart and lung support, Getinge is poised to offer comprehensive solutions across the entire transplant workflow. This includes not only heart and lung transplants but also extending into kidney, liver, and pancreas markets.

Market Growth and Global Potential

The global organ transplantation market is experiencing rapid growth, driven by an increasing number of transplants and technological advancements. In the United States alone, reforms initiated in 2019 have been instrumental in transforming the transplantation system, leading to higher utilization rates of organs and expanding the donor pool. With over 100,000 patients on the organ waiting list in the U.S., the market is projected to surpass USD 10 billion by 2033, maintaining a double-digit growth trajectory.

This acquisition will enable Getinge and Paragonix to capitalize on this market expansion. Paragonix has primarily operated within the U.S., where it has established itself as the leading provider of cardiothoracic organ preservation technology. The partnership with Getinge, which has a robust global distribution network, will facilitate the introduction of Paragonix’s innovative products to new markets, particularly in Europe and Asia, where the demand for organ transplantation solutions is also on the rise.

Financial Impact and Future Outlook

The acquisition involves an upfront payment of USD 253 million, with additional earn-out payments contingent on achieving specific regulatory and financial milestones. These payments are expected to be made between 2024 and 2026. While the acquisition is anticipated to have a slight negative impact on Getinge’s adjusted earnings per share in 2024, the company expects a positive contribution from the acquisition starting in 2028. The deal will be financed through a bridge loan provided by SEB, and the transaction is expected to close by late Q3 or early Q4 of 2024, pending regulatory approvals.

Executive Insights and Strategic Vision

Elin Frostehav, President of Acute Care Therapies at Getinge, highlighted that the acquisition of Paragonix Technologies is more than just a strategic fit—it is a catalyst for innovation in the organ transplant market. The collaboration is expected to redefine the standards of care in organ preservation and transportation, combining Paragonix’s expertise in organ preservation with Getinge’s strengths in acute care.

Dr. Lisa Anderson, CEO and President of Paragonix Technologies, expressed excitement about the merger, emphasizing the potential to improve patient outcomes globally and extend their technologies to underserved populations. Together, the companies aim to lead the way in developing new solutions for organ transplantation, ensuring that life-saving technologies are accessible to more patients worldwide.

This acquisition solidifies Getinge’s position as a leader in the medical technology industry, particularly in the rapidly growing organ transplantation market. As the industry continues to evolve, the combined expertise of Getinge and Paragonix Technologies is expected to drive significant advancements in transplant care, ultimately saving more lives.