J&J's Ethicon Expands Energy Device Offerings With Megadyne Purchase
Johnson & Johnson (J&J) subsidiary Ethicon has broadened its suite of electrosurgical devices and accessories with the acquisition of Megadyne for an undisclosed amount. The combined companies expect greater innovation capabilities in the electrosurgical field, and are positioned to market Megadyne’s innovative portfolio to a broader global market.
Last year, J&J launched a massive restructuring strategy that drastically trimmed its medical device portfolio, freeing capital for heavy investment in high-growth categories. Ethicon acquired NeuWave and its minimally invasive soft tissue microwave ablation technology, and signed a partnership with Verily to develop a robotic surgery solution.
Electrosurgical systems or energy solutions — surgical tools that use radio frequency (RF) electric current to cut and coagulate tissue — are part of a fast-growing segment of minimally invasive surgical tools. According to Reportbuyer, growth is being driven by pressure to increase efficiency and reduce spending in healthcare, as well as an aging population of patients who are considered high-risk for traditional surgical techniques.
Megadyne, established in 1985, specializes in “start-to-finish” electrosurgical equipment and accessories, including non-stick electrosurgical electrodes. Megadyne CEO Rob Farnsworth commented on the company’s history of innovation and noted that working with Ethicon would “bring more elegant electrosurgical tools to a broader market through Ethicon’s extended global network.”
Ethicon current portfolio of energy solutions includes monopolar and bipolar electrodes, patient return electrodes, generators, and smoke evacuation systems. By acquiring Megadyne, Ethicon is positioned to offer a more comprehensive suite of energy solutions and expand innovation in its existing portfolio, according to Michael del Prado, company group chairman of Ethicon, in a press release.
“We are committed to meeting the evolving needs of surgeons and hospitals systems, and the addition of Megadyne’s state-of-the-art portfolio gives us a comprehensive suite of energy devices to improve patient care in surgeries across all specialties,” said del Prado. “This acquisition will help accelerate and expand innovation across the entire energy portfolio, broadening our surgical and energy solutions to provide clinical and economic value to customers worldwide.”
Ethicon recently launched the high-precision ultrasonic device Harmonic HD 1000i Shears, considered the company’s flagship energy device. Because the device is multi-functional, the company claims the system could reduce the number of instruments needed during complex procedures.
The electrosurgical market currently is dominated by just a few major players, including Olympus, Medtronic, Ethicon, and Bovie Medical. With recent government investments in the technology and new entrants in the field, the market is poised to steadily expand and reach $6.2 billion by 2023, according to a report by Research and Markets (RM). Long-term success in the market, said RM analysts, depends on the protection of intellectual property rights.
FDA recently released two final guidance documents to assist sponsors in applying for premarket notification submissions for electrosurgical devices, which included recommendations for premarket nonclinical testing of all major components of the electrosurgical equipment and clear explanation of risk mitigation, especially concerning associated software. Under advisement from the Advanced Medical Technology Association (AdvaMed), the agency considers software to present a “major” safety concern that sponsors must address in their application.