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Stryker Corporation will acquire privately held Ascent Healthcare Solutions, Inc., the market leader in reprocessing and remanufacturing of medical devices in the U.S., in a $525 million cash transaction, the company announced.

The deal adds an important core capability to Stryker's portfolio of medical technologies as hospitals strive to contain costs. The company's move into the reprocessing and remanufacturing market underscores its commitment to reducing healthcare costs and preserving the environment, Stryker Corporation reported to DOTmed News.

"Joining forces with Stryker, a global medical technology leader, creates an ideal situation," said Rick Ferreira, COO of Ascent Healthcare Solutions. "Together, Stryker Corporation and Ascent Healthcare Solutions will be in a position to offer multiple ways to serve a sector that is under increased pressure to control costs and reduce its environmental footprint while maintaining the highest possible quality in patient care."

Reprocessing and remanufacturing saves hospitals money and reduces medical waste. Reprocessing certain Single Use Devices (SUDs) can significantly reduce supply chain costs, enabling many hospitals to save more than $500,000 annually in unnecessary costs and redirect critical funds to patient care initiatives. Also, reprocessing certain SUDs can eliminate hundreds of tons of waste annually in local communities.

It's good for business, too. The U.S. disposable medical devices market is roughly $32 billion, of which it's estimated that 3.6 billion consists of devices that can be safely reprocessed, Stryker told DOTmed. Because reprocessed products are approximately 50% the cost of OEM products, the target market for reprocessing and remanufacturing is approximately $1.8 billion.

Ascent's Market Dominance
Ascent Healthcare Solutions is the clear industry leader in all segments, and offers products in 35 medical device families including Cardiovascular, Endoscopic/Laparoscopic, Gastroenterology, General Surgery/Respiratory, Ophthalmology and Orthopedic/Arthroscopic--more than twice as many categories as its closest competitor.

Ascent has a presence in 1,800 hospital sites across the U.S. and possesses the most technical competence and industry knowledge of any reprocessing and remanufacturing organization. As a result, purchasing Ascent gives Stryker significant "first mover" advantage--an important consideration given that hospitals prefer sole source reprocessing and remanufacturing; physicians prefer branded products and they resist frequent change in suppliers.

Meeting Regulatory Scrutiny
The reprocessing and remanufacturing of medical devices is a widely adopted practice that is stringently regulated by FDA. Reprocessors must comply with, among other things, FDA's 510(k) and Quality System Regulation (QSR) requirements. For reprocessed devices that are subject to the 510(k) requirement, reprocessors must demonstrate that these devices are as safe and effective as original devices.

To this end, Ascent provides:
-Only devices that meet FDA's 510(k) and QSR requirements
-Products that are substantially equivalent to new devices, with no evidence of added risk to patients.
-ISO 13485-2003 certification

A Trio of Stryker Acquisitions
As recently reported in DOTmed News, Kalamazoo, Mich.-based Stryker also picked up OtisMed, a company that makes software to help surgeons determine how best to fit total knee replacements. Stryker also purchased global rights to build and sell Sonopet's Ultrasonic Aspirators, tools used to pulverize and remove tumorous tissue. Stryker hopes its agreement with Mutoh Co., Ltd., a Japanese business that manufactures the device, and Synergetics USA, Inc., the U.S. sellers, will go into effect before the end of the year.

Read additional coverage in DOTmed News:
Stryker to Acquire Ascent Healthcare Solutions
http://www.dotmed.com/news/story/10859/

Stryker to Spend Almost $100 Million in New Acquisitions
http://www.dotmed.com/news/story/10769/

DOTmed Industry Sector Report: Disposables
DOTmed Business News
http://www.dotmed.com/news/story/8561/