Massachusetts-based medical devices maker ZOLL Medical (ZOLL) has granted Tokyo-based Asahi Kasei Corporation exclusive rights to distribute, in Japan, its AED Plus devices for treating sudden cardiac arrest (“SCA”). Asahi Kasei, with annual sales of roughly $20 billion, is a Japanese company engaged in nine business segments including medical and drugs. The AED Plus will be marketed in Japan by its subsidiary ADMIS Inc.
SCA, an abrupt loss of cardiac function, is one of the major causes of unexpected deaths claiming more than 1 million lives annually worldwide. Roughly 63,000 people in Japan succumb to SCA annually. Early defibrillation raises the chances of survival from just 5% to more than 50%. The availability of automated external defibrillators (AEDs) within the first few minutes of the onset of SCA may considerably improve survival rates.
The AED Plus devices were cleared for import and distribution by Japan’s Ministry of Health, Labor and Welfare (“MHLW”) in July 2010. Japan is the second-largest market (after the U.S) for AED with roughly 70,000-80,000 units sold annually.
The Japanese government, in 2004, passed a law allowing common people to use AEDs, leading to rapid growth in AED installations in that country. Earlier, AEDs were only operated by medical professionals.
The agreement with Asahi Kasei represents a major achievement for ZOLL Medical as it will unlock additional opportunities for growth in the key and lucrative Japanese market. The companies plan to expand their liaison through potential marketing and R&D collaborations in other medical devices and health care related areas.
The AED Plus devices provide the “Real CPR Help”, a feedback technology which helps rescuers deliver cardiopulmonary resuscitation (“CPR”) with real-time visual and audio feedback, guiding them to achieve the proper depth and rate of chest compressions. It will be the sole AED in Japan with the CPR feedback capability.
ZOLL Medical, in April 2011, began shipping a new version of its AED Plus devices which is fully compliant with the new American Heart Association (“AHA”) and European Resuscitation Council (“ERC”) guidelines issued in October 2010.
ZOLL Medical develops and markets non-invasive resuscitation devices and related software solutions both in the U.S. and overseas markets. It is a leading player in the global market for external defibrillators, which is worth more than $1 billion. To boost growth, ZOLL Medical is expanding its footprint in the international markets, which contribute more than 25% of its annual sales.
ZOLL Medical is the innovator of a wide range of product features that have become the standard of care in the external defibrillator industry. It remains committed to expanding its product range to sustain growth in this market. ZOLL Medical competes with Physio-Control, a wholly-owned unit of Medtronic (MDT) and Philips (PHG). We currently have a Neutral recommendation on the stock.
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