Stryker Medical Device Company Intelligence Report

Summary

The Sorin Group (Sorin), headquartered in Milan, Italy, is a leader in the development of medical technologies for cardiac surgery and offers therapies for cardiac rhythm dysfunctions, interventional cardiology and the treatment of chronic kidney diseases. The Sorin Group was created through the demerger of Snia's biomedical operations and was listed separately on the Online Stock Market of Borsa Italiana as of 5th January 2004.

The companies of the Sorin Group are: Carbomedics, Cobe Cardiovascular, Dideco, Ela Medical, Mitroflow, Sorin Biomedica, Stckert, Bellco and Soludia. Sorin Group has about 4,800 employees in more than 80 countries worldwide, serving over 5,000 public and private treatment centres. The company's products are organised within four business units: Cardiac Surgery, Cardiac Rhythm Management, Vascular Therapy & New Businesses, and Renal Care.

Sorin is currently focused on restructuring its organisation with the goal of increasing centre specialisation and exploiting intra-group synergies through integrated projects that involve different business units and leveraging the specific competencies of each unit, while avoiding duplications. The following restructuring projects are under way:

• Simplification of the group's structure; accomplished through mergers and a significant reduction in the number of Sorin Group companies;
• Consolidation of mechanical valve manufacturing at the Saluggia factory in Italy and transformation of the Austin plant in Texas, USA, from a manufacturing location to an assembly facility for the American market;
• Consolidation of the manufacture of haemodialysis therapy products at the Mirandola facility in Italy;
• Streamlining of the group's logistics to optimise the use of working capital;
• Reallocation of company resources to businesses that generate greatest value added.

In 2005, the group expects to increase both unit sales and market share at a faster pace than it has in recent years. According to the company, this will be especially true during the second half of the year. The programmes that are already being implemented to improve the organisation and develop and launch innovative products should produce significant growth for the Cardiac Rhythm Management and Vascular Therapy Business Units. Because these businesses have the highest expected profit margins, any increase in their unit sales will have a positive impact on the group's overall profitability.

Medical Device Company Intelligence Reports provide a full review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis. An introduction to each report and a full table of contents is provided for review. More than 60 Medical Device Company Intelligence Reports are currently available.

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