Terumo Completes Acquisition of China-based Essen Technology To Enter Drug-eluting Stent Market in China

TOKYO, JAPAN - January 7, 2019 - Terumo Corporation (TSE: 4543) today announced that it completed its acquisition of Essen Technology (Beijing) Co., Ltd., a Chinese medical device company, on December 29, 2018. Under the terms of the agreement, Terumo will pay 879 million Chinese Yuan upfront and milestone payment based on the future performance. It will be funded through cash on hand and Terumo does not regard the impact of the acquisition on Terumo's business performance of the fiscal year ending March 31, 2019 as significant.

Essen Technology is a specialized enterprise of drug-eluting stents (DES). Terumo has grown rapidly in China selling interventional products, such as guidewires and balloon catheters. However, it has not yet offered coronary stents in that market.

Terumo has expanded its DES sales coverage to include Japan, Europe, Asia, and Latin America, for a total of over 40 countries. This acquisition will add China, which is expected to become the biggest market in a few years, to Terumo's geographical DES portfolio. In China, there are more than 750,000 percutaneous coronary intervention cases, and they are projected to increase by over 10% annually.

Entering the Chinese market, where the importance of domestic products is increasing, with a domestically manufactured DES helps Terumo to expand its interventional systems business.

Notes: Terumo's regional strategy for China

Terumo has pursued its strategy in each region appropriately to the local market and its position there, while globalizing uniformly under business-led management. Terumo has moved to localize its business in China, entering into alliances with local players in selected fields, including peritoneal dialysis, renal denervation catheters and neuroendovascular therapy.