ICU Medical, Inc. and Otsuka Pharmaceutical Factory, Inc. (OPF) announced on May 1, 2025, the successful completion of their joint venture, forming Otsuka ICU Medical LLC. This new entity is established to strengthen IV solutions supply chain resiliency and drive innovation within the North American market.
The joint venture combines OPF's extensive global manufacturing scale, which includes 16 IV solutions production sites across Asia, with ICU Medical's existing North American production facilities in Austin, Texas. ICU Medical will continue to provide commercial services for the joint venture, ensuring seamless operations for customers.
This strategic partnership is expected to bring additional stability and choice to the North American IV solutions market by enhancing global supply redundancy and introducing new PVC-free technologies. The transaction is anticipated to be EPS neutral for ICU Medical due to interest expense savings from debt reduction, and it is expected to immediately improve the company's consolidated adjusted gross margin by 3-4 percentage points.
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