Contact
Kirkham Young Ltd.
7 Watch Oak Business Centre, Chain Lane, Battle, East Sussex
TN33 0GB
- T
- +44 (0)1424 777745
- F
- +44 (0)1424 777746
- E
- info@kirkhamyoung.co.uk
Covidien to focus all attention on medical device arm
20/12/2011
US healthcare giant, Covidien, is to spin-off its pharmaceutical arm as a separate business as part of its efforts to focus on its international medical equipment footprint and increase medical sales jobs.
The company's drug arm is one of the world's largest producers of the over-the-counter painkiller, acetaminophen, and is a leading generics business. The spin-off has been announced just months after the former head of Covidien’s device business, José Almeida, was made overall chief executive.
The medical equipment part of the company is particularly successful and established as a leading provider of diagnostic equipment across the globe. Its medical sales revenues last year totalled more than $9.6 billion.
Mr Almeida said that the splitting of the company would ensure greater efficiency for both arms, as the pharmaceutical and device sectors have an enormous gulf of differences between them.
"We've evaluated whether to separate these businesses for several years, due to the major differences between the medical products and pharmaceutical industries," Mr Almeida said. "We believe that now is the right time to do so because we have significantly improved the operations, performance and pipeline of our pharmaceuticals business."
He added that the shareholders of the spin-off would be able to help the drug business achieve faster growth in the non-US markets.
The company's drug arm is one of the world's largest producers of the over-the-counter painkiller, acetaminophen, and is a leading generics business. The spin-off has been announced just months after the former head of Covidien’s device business, José Almeida, was made overall chief executive.
The medical equipment part of the company is particularly successful and established as a leading provider of diagnostic equipment across the globe. Its medical sales revenues last year totalled more than $9.6 billion.
Mr Almeida said that the splitting of the company would ensure greater efficiency for both arms, as the pharmaceutical and device sectors have an enormous gulf of differences between them.
"We've evaluated whether to separate these businesses for several years, due to the major differences between the medical products and pharmaceutical industries," Mr Almeida said. "We believe that now is the right time to do so because we have significantly improved the operations, performance and pipeline of our pharmaceuticals business."
He added that the shareholders of the spin-off would be able to help the drug business achieve faster growth in the non-US markets.
RSS
