CareFusion cares about eliminating confusion and infection in hospital settings. The company's Pyxis brand automated medication dispensing units cut down on clinician error when dealing with patients in critical care settings. Its Alaris brand of infusion products includes software to reduce IV medication errors. The company also makes AVEA respiratory ventilation devices, SensorMedics pulmonary care products, and V. Mueller surgical instruments. CareFusion's ChloraPrep and MedMined products and software help prevent the spread of hospital-acquired infections. Former parent Cardinal Health spun off CareFusion into a separate, publicly traded company in 2009.
A top US distributor of pharmaceuticals and medical supplies, Cardinal Health distributed 81% of CareFusion's stock to its existing shareholders in mid-2009. It then sold the remaining 19% stake in CareFusion to Morgan Stanley for $706 million in 2010. By spinning off the medical equipment manufacturing business Cardinal Health allowed each company to focus on independent goals for growth and delivered shareholder value.
CareFusion's growth plans are built upon new product introductions and enhancements and acquisitions. While two-thirds of its sales are made in the US, the company hopes to enter new international markets including Australia, Europe, and South Africa. Its first acquisition following independence was the purchase of Medegen in 2010. The $225 million deal helped to expand its range of needleless IV disposable products with valve technology to help prevent bloodstream infections.
CareFusion has grouped its holdings into two segments: Critical Care Technologies and Medical Technologies and Services. The Critical Care businesses develop, manufacture and sell big-ticket, durable equipment systems and the disposable supplies used with them. These products are sold through a direct sales team in the US and through distributors internationally. The Medical Technologies and Services businesses make single-use, disposable products for infection prevention and reusable surgical instruments. Their products are sold through sales representatives and distributors. Customers for both segments are hospitals, surgical centers, long-term care facilities, and physicians' offices.
After its first year of independence, CareFusion set to tidying up with a bit of cost reduction and restructuring efforts. To better focus on equipment manufacturing it sold off its research services division to eResearchTechnology in 2010 for about $81 million. The division provided respiratory diagnostic services for electronically gathered cardiac-safety and patient-reported data.
CareFusion has shed a handful of businesses of late. Sales in 2011 included its OnSite Services unit, which provided surgical instrument repair and equipment management services, to investment group Frazier Healthcare.The company also sold its international surgical products distribution unit to Medline Industries for $130 million. Through the deal, Medline continues to distribute CareFusion products in certain European and Asian markets, allowing CareFusion to focus on expanding sales of its core medical technologies and disposables in international markets. In 2012 the company sold its neurodiagnostic and monitoring products business, Nicolet, to Natus Medical for $58 million.
Also in 2011 the company made further moves increase its presence overseas, as well as bolster its Pyxis holdings by acquiring German company Rowa for about $150 million. Rowa makes robotic drug storage and retrieval systems used in pharmacies (both retail and hospital) for high-speed, automated medicine management. Rowa has more than 3,500 systems installed in 30 countries. In 2012 CareFusion strengthened its presence in the UK by acquiring medical products distributor U.K. Medical Limited for an undisclosed amount. The acquisition is expected to bolster its procedural solutions business in the region.
In 2012 CareFusion and Fisher & Paykel Healthcare renewed CareFusion's exclusive right to distribute Fisher & Paykel Healthcare's respiratory and acute care products and systems for treating obstructive sleep apnea into the US hospital market for three years. Also that year, CareFusion purchased Seattle-based PHACTS, LLC for an undisclosed amount. The acquisition complements its Pyxis dispensing technologies portfolio by adding PHACTS' pharmacy inventory management software and automation solutions, allowing the company to offer its clients improved control of inventory and costs. – less