Organ preservation and transport company Paragonix Technologies has agreed to be acquired through a $477 million deal offered by Getinge—which expects the international transplant market to continue growing by double digits and top $10 billion by 2033.
Since its founding in 2010, Paragonix has worked to reshape how clinicians shepherd donor organs to the patients that need them by offering a major upgrade over the traditional methods of relying on simple, consumer-grade coolers and ice.
The company’s GPS-tracked systems employ temperature- and pressure-controlled containers that transport heart and lung tissue without causing excess cellular damage—as a result, the safeguarded organs have demonstrated fewer severe complications among patients after implantation.
More recently, Paragonix began rolling out the first FDA-approved hardware for protecting pancreas donations, and it also launched its own transplant logistics network.
“Paragonix, as a developer, manufacturer, and service provider in the organ transplant industry has established itself as a pioneer in organ transplantation, providing a novel approach to organ preservation, transport and procurement,” Elin Frostehav, Getinge’s president of acute care therapies, said in a statement.
“Teaming up with Paragonix’s talented team and proven technology is not just a strategic fit for Getinge, it is a catalyst to redefine the market standard in transplantation,” Frostehav added. “By leveraging our expertise in the acute heart and lung support segment and providing access to our existing global sales network, we hope to expand the reach of this technology.”
Specifically, that includes marketing Paragonix’s products overseas; Getinge said that nearly 100% of the company’s current sales are conducted within the U.S., and it hopes to pull its products up through its international commercial arms.
According to Getinge, Paragonix posted $43.1 million in 2023 revenue, up 136% over the prior year. The acquisition deal, set to close in the coming weeks, includes $253 million in upfront cash.
Milestone payments of at least $244 million are slated through 2026, based on regulatory and financial performance as the companies aim to expand the use of Paragonix’s devices for pancreas, kidney and liver transplants.
“This strategic move positions us to innovate within the transplant space, and ultimately, confirms our purpose to make life-saving solutions accessible for more people and our objective to double the lives saved,” Frostehav said.