Getinge’s decision to leave the surgical perfusion market will benefit LivaNova, an already dominant player in the sector that is set to capture market share, according to GlobalData experts.
GlobalData medical analyst Aidan Robertson says: “GlobalData expects LivaNova to maintain its dominance in the steadily expanding cardiopulmonary bypass equipment (CPBE) market and take advantage of the opportunity created by Getinge’s exit.”
Go deeper with GlobalData
Getinge unveiled plans in late January to phase out its surgical business, the company’s unit responsible for manufacturing cardiopulmonary bypass devices.
Getinge lost ground in the CPBE market in the wake of a US Food and Drug Administration (FDA) consent decree. In place since 2015, the agreement has barred the company from distributing certain devices in the US.
“It has been a struggling category since then. So, small market share. It is a loss-making category for us as well. So, we don’t feel that we are good owners of this anymore,” said Getinge’s CEO Mattias Perjos in an earnings call last month.
Roberston comments that: “Getinge’s decision to let go of the CPBE market appears to be the proper choice based on its past performance.”
GlobalData analysis calculates that Getinge occupies a 1.9% share of the CPBE market, whilst UK-headquartered LivaNova accounted for more than a 50% share in 2024.
LivaNova received FDA clearance for its new heart-lung perfusion machine Essenz in March 2023, a move that is set to see the company gain even more ground in the market. Compounded by Getinge’s withdrawal, LivaNova is set for a positive near-term future in a market that is expected to grow in light of ageing populations and the resulting increase in cardiovascular diseases. A GlobalData report forecasts that the market will grow from $508m in 2024 to $584m in 2034.
Getinge said it would reallocate resources and focus on investing in more lucrative areas that show higher growth potential, like extracorporeal membrane oxygenation (ECMO).
Roberston said that Getinge’s pivot is “unlikely to significantly impact the CPBE market”, and “may prove to be a beneficial strategy for the company, considering its struggles and low market share in this sector”.
Getinge had a strong 2024, posting profit of Skr17.4bn for the full year. Net sales increased organically by 4.9%, driven by particularly strong growth in ventilators. The company took a big step in consolidating the US sterile processing market in 2023 after acquiring Healthmark Industries for $320m.
