Cardinal Health is dropping its Cordis Medical Device division after six-year. They are the makers of cardiovascular catheters and diagnostic hardware. Cordis medical device division will be dropped in a $1 billion deal with private equity firm Hellman & Friedman. Previously, the healthcare services and distribution giant spent $1.9 billion to acquire Cordis from Johnson & Johnson in 2015.
Following months of rumors, it acquired the division with the hope of using it to grow its global footprint and deliver a broader device portfolio. The infrastructure needed to do so became more expensive than Cardinal Health had anticipated. The company ended up with large write-offs by 2018 due to the expiring product inventories and difficulties in optimizing the Cordis Medical Device plants.
Currently, Hellman & Friedman plan to transform the Cordis Medical Device division into a mainstay provider of minimally invasive cardiovascular devices. It is also enlisting two MedTech companies to invest and innovate: Zeus Health and Ajax Health. MedTech veteran entrepreneur Duke Rohlen heads both these firms.
Ajax’s expertise in business strategy is provided along with R&D, clinical development, and regulatory affairs. Zeus launched late last year with a $100 million partnership through KKR, an investment firm.
Rohlen said, “We at Ajax Health and Zeus Health are ecstatic about injecting growth into Cordis’ powerful platform, and will do so through investments in the core business and through an independent R&D engine—the ‘Cordis Accelerator’—to develop and commercialize a new pipeline of products exclusively for Cordis.”