When surgeons need to stock up on tools, Ethicon Endo-Surgery (EES) has an endless supply on hand. A subsidiary of Johnson & Johnson, the company makes surgical devices and equipment for open surgeries and minimally invasive procedures in the areas of bariatrics, gastrointestinal health, gynecology, and surgical oncology. Its products include endoscopic and laparoscopic tools, adjustable gastric bands, EnSeal bipolar tissue sealing systems, and the Harmonic Scalpel, which simultaneously cuts and cauterizes tissue using ultrasonic technology to minimize damage during surgery. EES markets its products in more than 50 countries worldwide.
Sales and Marketing
The company has manufacturing facilities in the US and Mexico. It distributes its products to wholesalers, hospitals, and retailers directly and through surgical supply companies and other dealers. For example EES often forms marketing and distribution agreements with other key medical device manufacturers, such as Neoprobe, a maker of oncology and cardiovascular surgical and diagnostic products.
EES is a key part of J&J's Medical Devices and Diagnostics segment and contributes more than 5% of its parent's yearly revenue. Revenue in 2011 was up 7% to $5.1 billion on the strength of its advanced sterilization product lines and its energy devices, which include the Harmonic ultrasonic surgery tools. The company's 2011 purchase of SterilMed also added to sales. Revenue at EES has been rising steadily for the past decade.
Mergers and Acquisitions
The rise in energy device sales can partly be attributed to EES's expansion efforts. For instance the company added the EnSeal product line through the 2008 acquisition of SurgRx, which complemented Ethicon Endo-Surgery's existing line of Harmonic ultrasonic instruments. It has also added new items to the Harmonic line, such as the Harmonic Focus long curved shears, designed to give surgeons easier access to the internal organs of obese patients, added in 2010. Late the next year EES acquired Minnesota-based SterilMed, a private company that reprocesses and remanufactures medical devices. Terms of the deal were not disclosed. – less