Introducing Consort Medical’s strategy
Consort Medical is a leading medical device business, with a fifty-year plus track record in delivering high volume, highly regulated medical devices to its customers. To put this in context we manufacture over five hundred million devices a year, over thousand people every second rely on a Bespak device to help them breathe. Consort is made up of two divisions, King Systems based in the US, focused on anaethesia and Bespak based in Kings Lynn in the UK.
I took over as CEO of Consort in December 2007 and we were facing some not inconsiderable head winds, the loss of a major product, an industry that was becoming very cost focused, a customer base, the pharma industry had a number of looming patent expiries. So we put an action plan in place to address this over the past few years, we’ve focused very heavily on our margins we’re investing in an automation program in King in the US, which is double digit millions of dollars and we’re investing in innovation, in R and D to deliver new products into our portfolio and we’ve diversified the business. An example of that would be the acquisition of Bespak injectbales, formerly The Medical House in November 2009, an autoinjector business, so still delivery but a different method of drug delivery.
So, looking forward how are we going to deliver the double-digit earnings growth that we’ve targeted. Well you’re going to see more diversification; an example being our recent investment in Atlas, this is a point of care diagnostics business, so still health care but outside of the drug delivery arena. You’ll see nine product launches by 2015 and you’ll see us continue to look at higher value business models. For example, the King Vision video laryngoscope, by far and away the most innovative product that King have ever launched. And other drug filling, drug handling opportunities that we see in Bespak. So to summarize we’ve rebased the business, revenues and profits are now growing and we’ve set the platform for sustainable growth.