Three M, a company known for its manufacturing of biopharmaceuticals, announced its intention to seek strategic alternatives for its global branded pharmaceutical business. It enlisted Goldman Sachs to help it in the process. Three M has agreed to sell this business for $2.1 billion, which is about $600.0 million less than analysts’ consensus expectations. The company’s decision to pursue a sale has generated considerable interest from investors.
3m Filtration Business
Currently, 3m branded pharmaceutical business is exploring strategic alternatives for its global branded pharmaceutical business and its immune response modifier platform. The company’s Pharmaceuticals Division develops, manufactures, and sells branded drug products in areas such as dermatology, cardiology, and respiratory medicine. The company has approximately 1,500 employees worldwide and an established branded pharmaceuticals business. While 3M’s overall business model has been very successful, it needs a more diverse pipeline of new drugs and a more long-term risk-reward business model.
In December, 3M hired George Buckley as its new chief executive. McNerney had left the company to join the Boeing Co. BA.N, and analysts expected Buckley to restructure 3M’s business. The company has not disclosed the deal’s structure, but the debt-to-equity ratio is about average for private equity deals. The deal is expected to close within the first half of this year.
3m Purification
If you’re in the pharmaceutical industry, then you’ve no doubt heard of 3M Purification. Formerly known as CUNO Incorporated, this company offers total filtration solutions for pharmaceutical, biopharmaceutical, industrial, residential, and air filtration applications. Their technology is designed to help you lower your total cost of filtration, improve the quality of your products, and reduce production downtime, energy consumption, and waste.
The main focus of 3M Purification’s filtration solutions is to meet the stringent requirements of the pharmaceutical industry. From lab to pilot to manufacturing scale, the company’s products offer optimized results to meet regulatory agency demands around the world. They also offer select grades of fine chemicals, enabling customers to ensure the highest-quality products. They can help you reduce your cost of production and improve your bottom line with the best filtration products on the market.
The final product processing segment is further divided into protein filtration, vaccine & antibody processing, formulation & filling solution filtration, and viral clearance. Each segment is further divided by region and country. These three segments comprise the core of 3M’s pharmaceutical business. While each segment has its own unique set of needs, all are important for the success of your business. In addition to these services, the 3M team is focused on providing the best customer service possible.
3m Bioprocessing
The 3M Bioprocessing for Branded Pharmaceutical Business offers innovative filtration technologies that improve the process of producing a wide range of drugs. 3M Separation and Purification Sciences (SPSD) products are designed for biopharmaceutical, industrial and environmental applications. The Zeta Plus depth filters provide pharmaceutical-grade filtration and reliable particle reduction. A new product, 3M Emphaze AEX Hybrid Purifier, contains all-synthetic, highly functionalized media to drastically reduce bioburden and turbidity.
The bioprocessing market is segmented into five main regions: bags and mixers, bioreactors and fermenters, filtration devices, sampling systems, and others. Of these, the bags and mixers segment accounts for the largest share of the market, which is used in the formulation of media, buffer preparation, and dissolution of powder and viral inactivation. The single-use bioprocessing bag and mixers segment has gained popularity as a result.
The SDi report provides extensive information on bioprocessing and the distribution of demand. This report includes results from a 38-question online survey of 200 bioprocessing end-users. The research also provides in-depth analysis of vendor shares in the market. The report is the most accurate source for market information available. The SDi report includes an executive summary of key findings from three industry experts. The report contains an exhaustive review of bioprocessing and filtration technology for the branded pharmaceutical business.
3m Sterile Filters
The global sterile filter market is highly fragmented, owing to the presence of major players. Some of the leading companies in the market are Sterlitech Corporation, B. Braun Melsungen AG, Merck KGaA, and Porvair Filtration Group. The report also examines the growth trends of micro markets. It also projects the revenue of the industry in four key regions.
Increasing prevalence of chronic diseases has prompted the development of pharmaceutical products. According to Cancer Research U.K., there were 55,122 new cases of breast cancer in 2015. These statistics reflect the growing importance of early diagnosis and treatment. Furthermore, the development of novel medicines is further increasing the demand for pharmaceutical products. The advancements in the pharmaceutical industry are driving the growth of the sterile filtration market. The industry is also experiencing growth in the biotechnology and pharmaceutical industries.
The company was founded in 1902 and has since been a leading innovator in advanced depth filtration systems. Its Healthcare segment develops a range of sterile filtration products. Products such as Zeta Plus depth filter, Emphaze AEX hybrid purifier, and LifeASSURE filter are available from 3M. Apart from 3M, Pall Corporation is another major player in the market. The company provides biotech and pharmaceutical solutions and has over 400 sterile filters.
3m Health Care Service Center
The 3m branded pharmaceutical business Health Care service center is home to nearly 300 employees focused on providing healthcare solutions. The company provides solutions in dental care, food safety, medical solutions, and drug delivery systems, and its technology is used across industries. This global reach allows it to offer trusted products and services that improve the quality of care and save lives. To stay ahead of competitors, 3M is focused on providing innovative solutions. But there is one thing it does well: it does it in-house.
Despite this shaky state, the company has been able to grow its health care sector with consistent low single digit revenue growth. The company continues to invest in R&D, and it will be interesting to see whether that investment will pay off. For now, however, 3M is positioned for continued growth, so it will likely need to seek out M&A in order to improve its healthcare business.
3m Devices
The sale of its branded pharmaceutical business is the latest chapter in the company’s long history of making a name for itself. In the 1970s, the company focused more on technology advances and product innovation, and its sales soared. Corporate leadership changed over the years as well, with Harry Heltzer becoming chairman of the board in 1970 and Raymond H. Herzog becoming CEO in 1974. In 1979, Lewis W. Lehr became 3M’s chairman of the board. By the 1980s, the company had grown into a strong and dependable company, and its sales had passed $5 billion.
The company reported double-digit profits in its first quarter of 2008, with sales increasing 12% to $1.1 billion and operating income jumping 19% to $321 million. The company’s operating margins climbed to nearly 30%. It also introduced Tegaderm, an infection prevention product for intravenous sites. These products could lead to even more 3M growth. Ultimately, the sale of 3M’s branded pharmaceutical business could be an excellent way for the company to increase its sales and profits.
3m Harvest rc
The new chromatographic clarifier from 3M, called the 3M Harvest RC, is a single-stage solution for high-density Chinese hamster ovary cell culture extraction. The system replaces depth filtration and centrifugation with a single-stage chromatographic process. This reduces the amount of time required to separate small and large particles from cell culture effluent.
The new clarifier uses proprietary fibrous chromatography media and combines three separation steps into a single process step. By introducing chromatographic separation earlier in the process, the 3M Harvest RC clarifier has the ability to remove soluble impurities faster. The result is a cleaner effluent. With the 3M Harvest RC, the overall process time can be reduced by up to half.
3m Medical Device Sales
ThreeM is exploring a sale of its drug business. The company has been developing and selling branded drug products for more than a century. A dedicated pharmaceutical company would make a more sensible choice than a diversified company. Its drug portfolio includes Aldara, a popular genital wart treatment. Other products include Difflam, Tambocor, Metrogel-Vaginal, and Duromine. Revenue from the branded pharmaceutical business is estimated at $1.3 billion to $1.5 billion.
The company is steadily adding diagnostic capabilities. In February 2007, it acquired Acolyte Biomedica Ltd., a manufacturer of automated microbial screening technologies. It also plans to release its Rapid Detection Flu A+B test before the 2008-2009 flu season. “The rapid Detection Flu A+B test will help doctors catch the flu early,” says Chuck Kummeth, vice president and general manager of the 3M Medical Division.
Three Buyers Take Over 3M Branded Pharmaceutical Business
Three separate buyers will take over 3M’s global branded pharmaceutical business, for a total of $2.1 billion. The buyers include two private equity firms and three individual companies. Graceway Pharmaceuticals will purchase 3M’s U.S. and Canadian operations, while Meda will buy 3M’s European business. Ironbridge Capital will acquire 3M’s Asia-Pacific business. Both companies will focus on developing products for chronic diseases and pain.
Kindeva beat earnings expectations
The CDMO Kindeva focuses on developing transdermal patches, inhalers, and microneedles. Earlier this year, the company spun off from 3M and promised to add jobs and expand production sites. The company recently broke ground on a new operations center near St. Paul, Minnesota. The new facility will be 136,000 square feet and be funded by $1.34 million in state funding. The facility will feature a light industrial center and distribution warehouse.
The new name Kindeva is a nod to the acquisition of 3M’s transdermal offerings. 3M retained a 17% noncontrolling stake in the company, enabling the company to maintain its value in the drug delivery business. The acquisition of Kindeva came as investors grew increasingly skeptical of the pharma conglomerate’s growth prospects. But investors remained cautious and were encouraged by the new name.
Aldara is a 3M drug that changes the immune system's response to certain diseases
As a third-party investigator, I was appalled by the company’s reckless marketing and promotion of Aldara. The company knew that Aldara attacked mucous membrane tissue, yet they promoted the drug without warning or removing its label. The company argues that Aldara does not permanently alter the immune system, and in fact helps it fight off diseases. But the reality is quite different.
While Aldara is an approved prescription medication, it has numerous side effects and is not recommended for all patients. It may cause serious complications, including death. In addition to severe side effects, Aldara can cause a rash and even permanent injuries to the vagina and cervix. Because it affects the immune system, it may also cause cancer. Aldara side effects include weight loss, a weakened immune system, and damage to the mucous membranes of the cervix and vagina.
In one study, Aldara treatment stopped the infection overnight. In other cases, treatment may need to begin at least six hours before the disease begins. However, if applied for more than two days, the drug may cause severe nasal mucosa irritation. Regardless of the reason, Aldara is an important drug to consider for those suffering from cold symptoms.
Because Aldara affects the immune system, it should be used only under the supervision of a physician. As with any topical medication, Aldara is very sensitive and should not be applied on broken skin, wounds, or sunburned skin. Additionally, it should be kept out of reach of children and should only be used for the indication for which it was prescribed.
QUIK LINK is a 3M drug delivery system
A new alliance program between Abbott and 3m branded pharmaceutical business is making product deliveries easier and more efficient. Using the QUIK LINK order entry system, hospitals can place orders for products from both companies from a single site. The consolidated order entry program enables most products to be shipped from the same warehouse on the same truck. However, some products will still be shipped directly from the manufacturers, such as intraocular lenses, heart lung machines and highly perishable pharmaceuticals.
Founded in 1992, the drug delivery business at 3M produces transdermal patches and inhalers. The company plans to build a 136,000-square-foot facility in Woodbury, Minnesota, as a distribution warehouse and light-industrial facility. This facility is expected to create employment opportunities for 900 people. QUIK LINK is one of several 3M drug delivery systems. The company is a global contract development organization (CDMO) firm that partners with pharmaceutical companies and manufactures complex pharmaceutical products using differentiated drug delivery technologies.
Abbott and 3M "Corporate Alliance"
The two companies have a long history in specialty adhesives and labels, and they have had a low profile in the pharmaceutical industry until now. In 2009, however, 3M announced that it had completed a phase of beta testing for an RFID solution. Together with Abbott Laboratories, 3M is actively promoting the use of RFID in the pharmaceutical industry. The alliance will allow hospitals to order products in bulk and have them shipped in the same box.
