Trendy respiratory care technology inspires CareFusion in new acquisition
A recent trend has surfaced due to the numerous acquisitions by healthcare technology companies lately, in attempts of taking companies to a new, more competitive global level. Through this spike in acquisitions and technology-purchasing, the suggestion remains that a new emphasis being placed on companies maintaining a well-rounded suite of technologies, and healthcare businesses around the globe are scrambling to keep up.
The desire to remain “desirable” so to speak, in the clinically dry world of healthcare technology, has pushed companies to re-evaluate their offered products and services, in hopes of realizing where said company is lacking and where progress is yet to be made. Upon perusing the available range of technology services provided by seemingly most healthcare companies, it seems as if respiratory care and anesthesiology manufacturing capabilities are in short supply. While this somewhat obviously important field seems to be a must-have for some organizations, others have shown up a bit late to the game, in terms of embracing and finding ways of channeling this technology to consumers.
CareFusion Corp., already a leader in global medical technology, has recently announced its decision to get ahead of this craze in order to expand its array of offered services by acquiring the Vital Signs division of GE Healthcare, for a whopping $500 million. Vital Signs is a leading manufacturer of single-patient-use consumables for respiratory care and anesthesiology; this company also markets products for temperature management and patient monitoring consumables. This acquisition is not only about the potential profit gain from the purchased technology, but will elevate CareFusion even further to re-establish its global market presence.
"The acquisition of Vital Signs is well-aligned to our long-term growth strategy, helping us create scale in our Procedural Solutions call points and increase our presence outside of the United States," said Kieran T. Gallahue, chairman and CEO of CareFusion. "Together, CareFusion and Vital Signs have the R&D, manufacturing and go-to-market resources to drive innovation, invest for growth and better support customers in major geographic markets."
The CEO of CareFusion obviously keeps the future in mind when assessing what to do next with his healthcare technology company changing the game for its competition, now setting his company up to better serve customers on a global scale. There will be significant growth to CareFusion’s Specialty Disposables business by branching more into the global arena like mentioned above, but also by now producing products it has not yet provided in terms of anesthesiology.
This move into embracing the well-rounded suite of services tactic has officially paid off, literally: with this recent purchase, it has established the company now as a leader in the more than $3 billion market for respiratory and anesthesia consumables. By moving into a territory that was not yet considered by the company, it has not only establish CareFusion as a industry-figurehead for its accrued monetary success, but now has set-up a competitive business model which its inter-industry competition is likely to follow.
Through a company’s ability to study market trends, evaluate arenas within one’s own business model that are lacking, companies are able to stay ahead of the game and profit in long-term ways by simply doing their homework. By practicing the age old philosophy of watching an investment pay off, CareFusion and others prove that those who embrace this idea that being ahead of the game makes for an up-to-date business model, as well as a financial pay off as well.
About the Author
Alyssa Clark is the Editor of Healthcare Global
Introducing Dosis - the AI powered dosing platform
Cloud-based platform Dosis uses AI to help patients and clinicians tailor their medication plans. Shivrat Chhabra, CEO and co-founder, tells us how it works.
When and why was Dosis founded?
Divya, my co-founder and I founded Dosis in 2017 with the purpose of creating a personalised dosing platform. We see personalisation in so many aspects of our lives, but not in the amount of medication we receive. We came across some research at the University of Louisville that personalised the dosing of a class of drugs called ESAs that are used to treat chronic anaemia. We thought, if commercialised, this could greatly benefit the healthcare industry by introducing precision medicine to drug dosing.
The research also showed that by taking this personalised approach, less drugs were needed to achieve the same or better outcomes. That meant that patients were exposed to less medication, so there was a lower likelihood of side effects. It also meant that the cost of care was reduced.
What is the Strategic Anemia Advisor?
Dosis’s flagship product, Strategic Anemia Advisor (SAA), personalises the dosing of Erythropoiesis Stimulating Agents (ESAs). ESAs are a class of drugs used to treat chronic anaemia, a common complication of chronic kidney disease.
SAA takes into account a patient’s previous ESA doses and lab levels, determines the patient’s unique response to the drug and outputs an ESA dose recommendation to keep the patient within a specified therapeutic target range. Healthcare providers use SAA as a clinical decision support tool.
What else is Dosis working on?
In the near term, we are working on releasing a personalised dosing module for IV iron, another drug that’s used in tandem with ESAs to treat chronic anaemia. We’re also working on personalising the dosing for the three drugs used to treat Mineral Bone Disorder. We’re very excited to expand our platform to these new drugs.
What are Dosis' strategic goals for the next 2-3 years?
We strongly believe that personalised dosing will be the standard of care within the next decade, and we’re honored to be a part of making that future a reality. In the next few years, we see Dosis entering partnerships with other companies that operate within value-based care environments, where tools like ours that help reduce cost while maintaining or improving outcomes are extremely useful.
What do you think AI's greatest benefits to healthcare are?
If designed well, AI in healthcare allows for a practical and usable way to deploy solutions that would not be feasible otherwise. For example, it’s possible for someone to manually solve the mathematical equations necessary to personalise drug dosing, but it is just not practical. AI in healthcare offers an exciting path forward for implementing solutions that for so long have appeared impractical or impossible.