Convatec

The company was established as a division of E.R. Squibb & Sons, Inc. in 1978{{cite web |url=https://www.ft.com/content/ccc4d131-0e22-3e80-9785-6dc3b6eda27a |title=ConvaTec to raise $1.8bn through London IPO |date=3 October 2016 |publisher=Financial Times |access-date=3 December 2016}} and acquired by Nordic Capital and Avista Capital Partners in 2008.{{cite web |url = https://ec.europa.eu/competition/mergers/cases/decisions/m5190_20080715_20212_en.pdf |title = Case No COMP/M.5190 - NORDIC CAPITAL / CONVATEC |publisher = COMMISSION OF THE EUROPEAN COMMUNITIES |date = 15 July 2008}}{{cite web |url = https://www.avistacap.com/news_item/nordic-capital-and-avista-capital-partners-complete-acquisition-of-convatec/ |title = Nordic Capital and Avista Capital Partners Complete Acquisition of ConvaTec |website = avistacap.com |date = 1 August 2008}} During 2008, Convatec was integrated with the Danish-based single-use medical device manufacturer Unomedical.{{cite web |url = https://www.avistacap.com/news_item/nordic-capital-and-avista-capital-partners-announce-intention-to-combine-unomedical-with-convatec/ |title = Nordic Capital and Avista Capital Partners Announce Intention to Combine Unomedical With ConvaTec |website = avistacap.com |date = 27 June 2008}}{{cite web |url=https://www.biospace.com/convatec-completes-acquisition-of-unomedical |title=ConvaTec Completes Acquisition of Unomedical |date=3 September 2008 |publisher=Biospace |access-date=3 December 2016}} As a result of the deal, Convatec sold off the Unomedical Wound Care and Ophthalmics businesses to comply with the European Commission regulations.{{cite web |url = https://www.biospace.com/convatec-announces-divestiture-of-unomedical-wound-care-and-ophthalmics-business |title = ConvaTec Announces Divestiture of Unomedical Wound Care and Ophthalmics Business |publisher=Biospace |date = 27 February 2009}}

In 2012, the firm acquired 180 Medical, a US-based catheter manufacturer, for $321 million.{{cite web |url=http://www.fiercebiotech.com/medical-devices/convatec-snags-catheter-maker-for-321m |title=ConvaTec snags catheter maker for $321M |date=4 September 2012 |publisher=Fierce Biotech |access-date=3 December 2016}}{{cite web |url = https://avistacap.com/news_item/convatec-completes-acquisition-of-180-medical-leader-in-home-delivery-of-intermittent-catheters/ |title = ConvaTec Completes Acquisition of 180 Medical, Leader In Home Delivery of Intermittent Catheters |website = avistacap.com |date = 28 September 2012}}

In June 2015, Convatec won a Court of Appeal ruling that determined that, in the context of a patent, "between 1% and 25%" should be interpreted rounding to the nearest 1%, so that an attempt to circumvent a patent by using the value 0.9% failed.{{cite web |url=https://www.independent.co.uk/news/science/what-exactly-does-one-mean-court-of-appeal-passes-judgement-on-thorny-mathematical-issue-10350568.html |title=What exactly does 'one' mean? Court of Appeal passes judgement on thorny mathematical issue |first = Steve |last = Connor |date=27 June 2015 |work=The Independent |access-date=3 December 2016}}

In October 2016, the company was valued at £4.4 billion, thus achieving the largest initial public offering on the London Stock Exchange during that year.{{cite web |url=https://www.telegraph.co.uk/business/2016/10/26/convatec-valued-at-44bn-in-biggest-london-listing-this-year/ |title=ConvaTec valued at £4.4bn in biggest London listing this year |date=26 October 2016 |first = Julia |last = Bradshaw |work=The Independent |access-date=3 December 2016}} Two months later, it became a constituent of the FTSE 100 Index.{{cite web |url = https://www.theguardian.com/business/2016/dec/18/ftse-100-reshuffle-new-member-convatec |title = Flushing out name of new FTSE 100 player |work = The Guardian |first = Simon |last = Goodley |date = 18 December 2016}} In January 2017, Convatec bought the Dutch firm Eurotec Beheer for £21.3 million.{{cite web |url = https://www.telegraph.co.uk/business/2017/01/04/convatec-makes-first-acquisition-since-ipo-snapping-dutch-colostomy/ |title = ConvaTec makes first acquisition since IPO after snapping up Dutch manufacturer |publisher = The Telegraph |first = Julia |last = Bradshaw |date = 4 January 2017}} By May 2018, Nordic Capital had sold off its entire stake in Convatec.{{cite web |url = https://www.nordiccapital.com/news-views/press-releases/nordic-capital-sells-its-remaining-shares-in-global-medical-products-and-technology-company-convatec/ |title = Nordic Capital sells its remaining shares in global medical products and technology company ConvaTec |website = nordiccapital.com |date = 3 May 2018}}

In the years immediately following the floatation, the company was perceived to have underperformed, such as a series of successive profit warnings, stagnating revenues, and limited investment prior to going public all being referenced.{{cite web |url = https://www.investorschronicle.co.uk/content/5ab931c6-433d-568b-94e3-0c9fb87b52f0 |title = ConvaTec's recovery remains on track |website = investorschronicle.co.uk |date = 5 January 2023 |first = Jennifer |last = Johnson}}{{cite web |url = https://www.ft.com/content/08dbc664-303f-11e9-ba00-0251022932c8 |title = Stocks to watch: AstraZeneca, Micro Focus, ConvaTec, Motif Bio |first = Bryce |last = Elder |publisher = Financial Times |date = 14 February 2019}} This poor performance was a contributing factor in the departure of multiple executives in the late 2010s.{{cite web |url= https://www.massdevice.com/convatec-ceo-steps-down-amid-lowered-outlook/ |title=ConvaTec CEO steps down amid lowered outlook |publisher=Mass Device |date=15 October 2018 |access-date=13 February 2023}}{{cite web |url=https://www.reuters.com/article/convatec-group-ceo-idUSL8N21B0SC |title=ConvaTec to appoint Karim Bitar from Genus as CEO |date=24 March 2019 |publisher=Reuters |access-date=13 February 2023}}{{cite web |url=https://www.proactiveinvestors.com.au/companies/news/901008/convatec-appoints-seasoned-transformation-guru-as-chairman-901008.html |title=ConvaTec appoints seasoned transformation guru as chairman |date=19 August 2019 |publisher=Proactive Investors |access-date=2 August 2022}} During early 2019, the Swedish publication Dagens Industri reported that multiple investors were considering making an offer to purchase Convatec following a recent stock downturn; the Swedish private equity firm EQT was allegedly one of these parties.{{cite web |url = https://www.reuters.com/article/business/convatec-shares-jump-on-report-of-potential-takeover-interest-idUSKCN1R70QA/ |title = Convatec shares jump on report of potential takeover interest |publisher = Reuters |date = 26 March 2019}}{{cite web |url = https://www.telegraph.co.uk/business/2019/03/26/market-report-convatec-buoyed-takeover-chatter/ |title = Market report: ConvaTec buoyed by takeover chatter |publisher = The Telegraph |first = Tom |last = Rees |date = 26 March 2019}}

During the late 2010s, a new business strategy was adopted in which Convatec reoriented itself towards the chronic diseases sector and reduced its presence within low margin product lines; under this strategy, throughout the early 2020s, the company engaged in a spree of divestments, which included its skincare and lower-margin hospital care businesses. By 2023, 97% of Convatec’s revenues were reportedly being generated from sales of products, such as insulin pumps and colostomy bags, for chronic conditions; as these products are continuously required for ongoing treatment, they produce reliable revenue streams. Furthermore, Convatec has placed a far greater emphasis on innovation and the pursuit of new products by this point, having set a target for it to earn 30 per cent of all sales from products that are less than five years old by 2025. Spending on research and development was increased from 2.7 per cent of sales in 2018 to 4.6 per cent in 2023.

The firm also undertook several acquisitions and purchased during the 2020s. In early 2022, it acquired the US-based wound care company Triad Life Sciences Inc. in exchange for $125 million, after which the unit was rebranded as Convatec Advanced Tissue Technology.{{cite web |url = https://www.morningstar.co.uk/uk/news/AN_1647253083971083100/in-brief-convatec-completes-acquisition-of-wound-care-business-triad.aspx |title = IN BRIEF: ConvaTec completes acquisition of wound care business Triad |website = morningstar.co.uk |date = 14 March 2022}}{{cite web |url = https://www.fiercebiotech.com/medtech/convatec-breaks-into-wound-biologics-market-450m-bid-for-triad-life-sciences |title = ConvaTec breaks into wound biologics market with $450M bid for Triad Life Sciences |website = fiercebiotech.com |first = Andrea |last = Park 28 January 2022|date = 28 January 2022 }} One year later, it bought the anti-infective nitric oxide technology platform of 30 Technology Ltd; Convatec also became a constituent of the FTSE 100 Index.{{cite web |url = https://www.morningstar.co.uk/uk/news/AN_1681889052715647800/convatec-buys-technology-platform-in-deal-worth-up-to-gbp176-million.aspx |title = NewsConvatec buys technology platform in deal worth up to GBP176 million |website = morningstar.co.uk |date = 19 April 2023 }}{{cite web |url = https://www.directorstalkinterviews.com/convatec-acquires-anti-infective-nitric-oxide-technology-platform/4121115524 |title = Convatec acquires anti-infective nitric oxide technology platform |website = directorstalkinterviews.com |date = 19 April 2023}} In August 2024, the firm publicly raised its concerns that Britain's regulatory approval process could dissuade innovation and investment in the future.{{cite web |url = https://www.thetimes.com/business-money/economics/article/convatec-warns-of-uk-investment-risk-if-wound-product-rejected-8bcldv8g5 |title = Convatec warns of UK investment risk if wound product rejected |work = The Times |first = Alex |last = Ralph |date = 5 August 2024}}

The company has 10,000 employees and operates in more than 100 countries.

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• {{Official website|http://www.convatec.com}}

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{{FTSE 100 Index constituents}}

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Category:Medical equipment

Category:Health care companies established in 1978

Category:1978 establishments in England

Category:Companies based in Reading, Berkshire

Category:Companies listed on the London Stock Exchange

Category:Medical technology companies of the United Kingdom

Category:Companies in the FTSE 100 Index