Laborie Acquires JADA System to Expand PPH Treatment Access, Streamline Women's Health Portfolio

November 7, 2024 – Laborie Medical Technologies has entered into a definitive agreement to acquire the JADA® System, a leading device for the treatment of postpartum hemorrhage (PPH), from Organon. The deal, valued at up to $465 million, positions Laborie to expand its obstetrics portfolio while allowing Organon to streamline its focus on core pharmaceutical offerings.

The acquisition addresses a significant clinical need: PPH remains a leading cause of maternal morbidity and mortality worldwide. According to the World Health Organization, hemorrhage is responsible for approximately 25% of all maternal deaths globally. The JADA System provides a minimally invasive option for controlling severe PPH when standard medical therapies prove insufficient.

Expanding Access to Critical PPH Treatment

The JADA System is a uterine compression device designed to quickly and effectively stop postpartum bleeding. Its widespread adoption in over 20 countries and use in more than 2,000 hospitals underscores its clinical value. Laborie plans to leverage its established distribution network to broaden access to the JADA System, particularly in underserved communities where PPH-related complications are often disproportionately high.

“We see a significant opportunity to build upon the already strong foundation of the JADA System,” said a Laborie spokesperson. “By combining our expertise in medical device development and distribution with the proven efficacy of the JADA System, we can make a real difference in the lives of mothers and healthcare providers.”

The deal aligns with Laborie’s broader strategy of focusing on innovative medical technologies that improve patient outcomes. The company has a history of successful acquisitions, including EndoPhotonics and Medical Measurement Systems, and a track record of seamlessly integrating acquired technologies into its existing operations.

Organon Doubles Down on Pharmaceutical Focus

For Organon, the sale of the JADA System represents a strategic move to refine its portfolio and concentrate on its core pharmaceutical strengths. Since becoming an independent company in 2021, Organon has focused on women’s health, encompassing areas like contraception, menopause therapies, and other specialized pharmaceutical products.

“This transaction allows us to sharpen our focus on our core pharmaceutical portfolio and allocate resources to areas where we see the greatest potential for growth,” explained a source familiar with Organon’s strategy. “While the JADA System is a valuable device, it doesn’t align with our long-term vision of being a leading provider of innovative pharmaceutical solutions for women.”

The decision reflects a broader trend in the healthcare industry, where pharmaceutical companies are increasingly divesting non-core assets to streamline operations and focus on areas of expertise. The proceeds from the sale will be reinvested in research and development, allowing Organon to expand its pharmaceutical pipeline and bring new therapies to market.

Market Dynamics and Competitive Landscape

The global postpartum hemorrhage treatment market is projected to reach approximately $1.8 billion by 2030, driven by rising awareness of maternal health issues and an increasing incidence of PPH due to factors like older maternal age and multiple pregnancies. Competition in this market is fierce, with several established players vying for market share.

Key competitors include Cook Medical, which offers the BAKRI Balloon Tamponade, and Hologic, which provides the GYNECARE CERVICAL RIPPER. Teleflex also holds a significant position with its RUMI System, a uterine compression system for PPH. Laborie’s acquisition of the JADA System is expected to intensify competition and drive innovation in this critical therapeutic area.

“The JADA System brings a differentiated approach to PPH control, and Laborie’s distribution capabilities will help it reach a wider audience,” commented a healthcare analyst specializing in women’s health. “This deal will likely put pressure on other market players to innovate and improve their offerings.”

Implications for Healthcare Providers and Patients

The acquisition of the JADA System is expected to have a positive impact on healthcare providers and patients alike. Increased access to a proven PPH treatment device will empower clinicians to effectively manage severe bleeding episodes and improve patient outcomes. The deal may also lead to a reduction in maternal mortality rates, particularly in resource-limited settings.

“Having access to a range of effective PPH treatments is crucial for providing optimal care to mothers,” said a practicing obstetrician. “The JADA System is a valuable tool, and I’m pleased to see that it will be more widely available.”

Patient advocacy groups have also welcomed the news, emphasizing the importance of addressing maternal health disparities and ensuring that all women have access to high-quality care. “Maternal health is a critical public health issue, and we applaud efforts to improve access to effective treatments for PPH,” said a representative from a leading maternal health organization.

The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions. Laborie and Organon are committed to a smooth transition and ensuring that patients continue to receive the highest level of care. The deal represents a significant step forward in addressing a critical clinical need and improving the health and well-being of mothers around the world. The integration process will be closely monitored by industry analysts to assess the impact on the competitive landscape and patient outcomes.