Samsung Electronics Denies Takeover Of Israeli Medical Device Maker OrSense
This article was originally published in PharmAsia News
Executive Summary
SEOUL - Samsung Electronics denied a local newspaper report June 2 that it is seeking to buy Israeli medical device maker OrSense Ltd.
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SEOUL - Samsung Electronics denied a local newspaper report June 2 that it is seeking to buy Israeli medical device maker OrSense Ltd. "The report is not true," Samsung Electronics spokesman James Jung told PharmAsia News in a response to a MoneyToday report. "There is no reason we have to buy the company." Noting that Samsung hired Evercore as an adviser to bid for OrSense, the paper, on its front-page main story, said Samsung is pushing to take over OrSense because of the equity ownership Medison holds in the Israeli company. The Samsung spokesman, however, said Medison does not hold any equity in OrSense. Medison was South Korea's leading medical equipment maker, which Samsung Electronics acquired from a private equity fund in December 2010 (Also see "Samsung Electronics Takes Over Leading Medical Device Maker Medison" - Scrip, 17 Dec, 2010.). While Samsung denied the report, the Korean newspaper maintained the report was based on information received directly from Samsung. It wasn't immediately known whether a negotiation was stopped in the course of a potential takeover or never initiated as Samsung notes. Israel Health Care Ventures and STAR Ventures own OrSense, which develops patient monitoring systems for noninvasive continuous measurement of hemoglobin, oxygen saturation, glucose and other blood parameters. Orsense, the maker of NBM 200 MP blood oximetry monitors for hospital use, raised $18 million last month in a private placement led by Israel Healthcare Ventures. The funds will be used to accelerate commercialization activities of the company's products, the Israeli company said (Also see "Financings In Brief" - Medtech Insight, 16 May, 2011.). High Expectations For Device Company Takeovers The report coincides with expectations in South Korea that Samsung would seek aggressive measures to build its presence in the medical device industry. The company hopes to grow its medical equipment business to a scale to compete with General Electric, Philips, Siemens and Toshiba. Samsung Electronics is the key affiliate of Samsung Group, which has ramped up efforts to establish itself in both the medical equipment and biosimilars sectors. The move into these sectors was prompted by the return of Group Chairman Lee Kun-hee in March 2010, less than two years after he stepped down to face charges for financial wrongdoing. Following Lee's return, Samsung Electronics bought a controlling stake in Ray Co., a small X-ray company. Last week, Quintiles-invested Samsung Biologics, another unit of Samsung Group, broke ground on a biologics manufacturing plant near Seoul to begin operations as a global contract manufacturer (Also see "Samsung Biologics Takes First Step In The CMO Business While Targeting Innovative Compounds By 2017" - Scrip, 30 May, 2011.). Samsung Electronics and two other Samsung Group affiliates hold 90% of Samsung Biologics while 10% is held by Durham, North Carolina-based Quintiles. Samsung Group, known as South Korea's largest family-controlled business group, is engaged in a wide range of businesses segments, including electronics, shipbuilding, finance, construction and hotels. - Peter Chang ([email protected]) |