He said that in recent years has become the preferred treatment srna Hkfnografih means (of Care Sta

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Oridion focuses on the production systems that measure concentrations of carbon dioxide in patients under anesthesia to help explore srna the nature of breath Kovidein produces, among other things, monitoring systems srna and treatment of respiratory problems 5.4.2012, TheMarker, Yoram Gavison, Ronit Domke, Dror Reich
Another srna huge exit biotech industry: Kovidein, Ireland medical equipment manufacturer, continues its acquisition spree in the domestic market and acquire the Israeli srna company srna Oridion Systems, a provider of medical systems to monitor breathing, for 346 million in cash.
A joint statement issued today the two companies, it was reported that the deal is worth US $ 346 million, and net of cash available to Oridion, the transaction value is $ 300 million. Oridion has agreed to be acquired by a Kovidein Irish under $ 23 per share. The transaction reflects a price of $ 23 per share - a premium srna of 76% over the closing price of Oridion Swiss stock exchange on Wednesday, and a premium srna of 91% over the average share price (weighting of trading volumes) srna in 60 trading days.
The boards of directors of both companies have approved the terms of the deal if regulatory approvals will, is to be completed during the second quarter. Covidien plans to integrate Oridion srna division involved ventilation srna and monitoring patients and make Oridion center of knowledge and excellence srna on the subject Hkfnografih. The deal between Kovidein Oridion signed three weeks after Skovidein, which specializes in monitoring patients and soul products, acquired SuperDimension for $ 350 million.
Oridion srna founded in '87 develops medical devices and consumables based Microstream technology. The technology monitors the level of carbon dioxide (Kfnografih) Women patient, thereby increasing the safety procedures and various srna medical environments. The premium paid Kovidein slightly lower given that Oridion's coffers have $ 27 million in cash, and it has no financial liability short or long term. Oridion's net income in 2011 totaled $ 6.4 million and operating income cash flow (EBITDA) reached 8.8 million - so Oridion allegedly acquired net income multiplier of 50 and an EBITDA multiple of 36. But Oridion grew by 19% in 2011 compared to 2010 to 64 million.
Review of the board was attached to the financial srna reports for 2011 estimated Oridion Chairman and CEO, Alan Adler, the company will grow by 20% in 2012, and its operating profit rate will rise from 10.5% to 13% to 15% - that operating profit will be 10.1 to 11.6 million on a turnover of 77.4 million in 2012. All these will vary with the transfer of ownership in Lkovidein, you can leverage the technology of Oridion and increase its sales, as well as taking advantage of economies of scale in marketing. This compares to the current state of Oridion , invests 24.4% of its revenue in sales and marketing in an effort to educate the market. Therefore its profit potential srna is limited as a small company and has a small product portfolio.
Oridion growth riding on the increasing recognition of the importance Hkfnografih medical. The company competes with companies such as Respironics (a subsidiary of Philips), Phase in Sweden, Nonin and Mindray Chinese, Nasdaq valued at $ 3.8 billion.
Oridion Chief Financial Officer, Walter Tabachnik, explains srna why the company estimates that the last two years there has been an inflection point in the attitude of the medical technology company: srna "Kfnografih is the first indicator and immediate change in the condition of the respiratory system. In recent srna years, doctors prefer the Hkfnografih on the measurement of the oxygen level in the blood, which is slower - and therefore provides a measure in real time on the patient.
He said that in recent years has become the preferred treatment srna Hkfnografih means (of Care Standard), for example, following the recommendation of the American Heart medicine use Bkfnografih, whenever the patient on a respirator through a tube into the esophagus. However after it was revealed that 23% of artificially ventilated by ambulance following a cardiac event arrive dead in intensive care because of problems breathing tube or putting his shift.
Another recommendation was the Association of Anesthesiologists srna monitor overall department patients, patients using powerful painkillers like morphine after complex surgery. This is because Slmscci pain affects the respiratory muscles srna weaken, and after it was revealed that the probability of a patient srna treated srna with analgesics are dying 10 times from a patient anywhere else.
Tabachnik says there is a perfect strategic fit between Kovidein Oridion. This is because Skovidein leader in measuring the blood oxygen level (Pulse Oximetry), while Oridion is the leader (with a share of 60% of the global market) Bkfnografih - so that the combination of the two provides a complete product in the field of measurement of the respiratory system.
According to Tabachnik, the company recently developed respiratory Composite Index (Integrated Pulmonary Index), srna which includes the respiratory rate and the level of carbon dioxide on the one hand, and blood oxygen level and heart rate on the other - that in any case the technology needed for measuring blood oxygen level which Kovidein leads.
According to him, the connection between the two companies would provide the Oridion the company's marketing network will introduce huge Hkfnografih technology much more rapidly. He mentioned the Kovidein turnover is 11.6 billion a year in 165 countries, two-thirds of that in medical devices, 55% of the total sales in the US, 24% in Europe and 21% in the rest of the world. Kovidein, which is traded on the New York fair $ 26 billion, employs 41 thousand people, 6,000 of them in the field of respiratory products. In addition, it owns production facilities around the world, so that you can take advantage of economies of scale in purchasing and production, and improve gross profit margins, due to the fact Skovidein sells directly, while Oridion recognized through distributors.
According Tabachnik, talks between the two companies began in June 2011, but the Board of Oridion rejected the appeal of Kovidein - because the price offered was too low. Kobe has increased