Getinge, a Swedish public limited company, announced on September 11, 2024 that it completed acquisition of Paragonix Technologies, Inc., a U.S. company specializing in organ transport products and services. According to Getinge’s press release, the total purchase price was $477 million.
According to its press release, Getinge paid approximately USD 253 million in cash upon completion of the acquisition, on a cash and debt free basis. Getinge plans to pay earn-out payments between 2024 and 2026 if agreed upon regulatory and financial performance milestones are achieved. The earn-out payments may exceed USD 224 million in aggregate.
According to Getinge, the total market for transplants has been growing rapidly in recent years and is expected to continue to experience double digit growth and exceed USD 10 billion in 2034.
Increases in demand and the transitions from traditional methods are expected to drive growth in the organ transport industry. Paragonix reports that its devices provide digital monitoring and tracking, temperature monitoring, and other capabilities. Paragonix offers FDA-cleared and CE-marked devices such as the Paragonix SherpaPak, the LUNGguard for transport of lungs, the LIVERguard for transport of the liver, and the BAROguard which, according to Paragonix, offers automated pressure regulation.
Getinge states that it can use its global commercial infrastructure to help Paragonix expand its market globally. Getinge reports that Paragonix’s market is currently concentrated almost entirely in the United States.
Please review Getinge’s press release for more details about this acquisition, or visit Paragonix directly for more information about its products.
A team from Knobbe Martens served as IP counsel to Paragonix on the deal. The team included Sabing Lee, co-chair of the firm’s medical devices and procedures practice, David Schmidt, Ph.D., Catherine Holland and James Raleigh.
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