ICU Medical and Otsuka Pharmaceutical Factory (OPF) announced the formation of a new joint venture to strengthen supply chain resiliency.
In this joint venture, the companies say they formed Otsuka ICU Medical LLC. It aims to strengthen IV solutions supply chains and drive innovation in the North American market.
The need for a more resilient IV products supply chain became painfully apparent last year after the remnants of Hurricane Helene temporarily knocked a major Baxter plant offline, raising worries about shortages in sterile intravenous fluids used in everything from intravenous dialysis care to some surgeries.
The joint venture follows last year’s agreement that saw ICU Medical aid Otsuka in entering the U.S. IV market. That deal saw Otsuka agree to make an upfront payment of $200 million as part of their joint venture.
“We are pleased to have successfully completed the formation of this joint venture with ICU Medical,” said Shuichi Takagi, president and representative director of OPF. “Together, we look forward to bringing innovative IV solutions technologies to the North American market.”
Otsuka ICU Medical LLC aims to utilize OPF’s expertise and global manufacturing scale. Its reach spans 16 separate IV solutions production sites across Asia. By combining this with ICU Medical’s strong North American production footprint in Austin, Texas, the joint venture can create a valuable offering for customers in North America. The companies say their joint venture enhances global supply resiliency and introduces new PVC-free technologies to the market.
Under the terms of their agreement, ICU agreed to provide commercial services for the joint venture to ensure seamless operations for North American customers.
Vivek Jain, CEO at ICU added: “This partnership will bring additional stability and choice to the North American IV solutions market and we look forward to providing customers increased economic and clinical value.”
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