Derriston Capital Plc has been created to consider opportunities within the global medical technology industry. In particular, the initial focus will be to acquire one or more companies operating in the medical products and devices sector, as the directors believe that a number of dynamics have combined in the last decade or so to create significant change and opportunity within the global medical device market.
By way of general overview:
- medical technology and knowledge for both corrective and preventative treatments has significantly improved, thus greatly increasing the market size for products and devices;
- improving global standards of living, education and increasing incomes have created more demand for and given greater access to public and private health care; and
- an ageing population has put tremendous strain on public and private health care services.
Target customers of potential acquisition targets will typically be hospitals, patients, doctors, distributors, medical professionals and veterinarian product companies. It is common for companies in the medical device sector to outsource the manufacture of their products. It is the directors' intention to mitigate fixed costs and capital outlays by outsourcing all non-core business functions that are required to manufacture and sell products. This will allow the leverage of best-in-class manufacturing expertise without carrying the cost of capital equipment, facilities and employee costs.
Given the healthcare manufacturing market is price sensitive, Derriston Capital Plc's aim is to seek acquisitions that have the lowest cost manufacturing possible. This will allow a competitively priced product to drive increased sales and further reduce cost by volume expansion.
More information available at London Stock Exchange.