DSM recently announced that it will merge with PTG Corporation, Berkeley, Calif., a private company that produces biomedical polymers.
With the approval of the relevant authorities, the transaction is expected to be completed in the second quarter of this year. DSM stated that after the completion of the merger transaction, Bob, the founder of PTG. Hodder will continue to serve as the president of this business unit. DSM did not disclose the specific purchase price, but said that the transaction price is about 10 times the annual income of PTG. PTG said its sales in 2008 will reach 40 million U.S. dollars, and it is expected that the average annual growth rate will reach 20% in the next 3-5 years.
Since 1989, PTG has supplied customers with biomedical materials for the manufacture of medical devices. It currently employs 100 people. PTG's block polyurethane products can be used as a diaphragm in artificial hearts. DSM believes that the market for biomedical materials has great potential for growth. Since last year, the company has supplied this material to the market. After the merger of PTG, DSM hopes that by 2012, sales of its biomedical materials business will reach more than US$150 million.
DSM is not the only company that is optimistic about the biomedical material market. Solvay, FMC and other smaller specialty materials companies have begun to set foot in this field. With the development of the aging population, biomedical materials are currently used in pacemakers, contact lenses, orthopedics in some developed countries. The use of materials, catheters, and in-vivo sensors is expanding.
With the approval of the relevant authorities, the transaction is expected to be completed in the second quarter of this year. DSM stated that after the completion of the merger transaction, Bob, the founder of PTG. Hodder will continue to serve as the president of this business unit. DSM did not disclose the specific purchase price, but said that the transaction price is about 10 times the annual income of PTG. PTG said its sales in 2008 will reach 40 million U.S. dollars, and it is expected that the average annual growth rate will reach 20% in the next 3-5 years.
Since 1989, PTG has supplied customers with biomedical materials for the manufacture of medical devices. It currently employs 100 people. PTG's block polyurethane products can be used as a diaphragm in artificial hearts. DSM believes that the market for biomedical materials has great potential for growth. Since last year, the company has supplied this material to the market. After the merger of PTG, DSM hopes that by 2012, sales of its biomedical materials business will reach more than US$150 million.
DSM is not the only company that is optimistic about the biomedical material market. Solvay, FMC and other smaller specialty materials companies have begun to set foot in this field. With the development of the aging population, biomedical materials are currently used in pacemakers, contact lenses, orthopedics in some developed countries. The use of materials, catheters, and in-vivo sensors is expanding.