Italy's Sorin is expecting a big turnaround in 2013 as it shakes off the effects of 2012's earthquake and prepares for an uptick in the cardiopulmonary market.
Sorin is projecting net profit between $71.8 million and $78.3 million this year, as much as a 30% jump over 2012's $54.7 million. Last year, profits lagged almost 60%, but now the company is counting on expanding its market share in each business through new products, M&A and ramped-up marketing.
Driving that growth is a projected leap for its cardiopulmonary unit, which Sorin expects to grow 10% over last year's $417.1 million in sales. Last year, the unit dropped 7.4% due to $81 million in lost sales Sorin blames on May's crippling earthquake in the biomedical hub of Mirandola.
Even Sorin's troubled cardiac rhythm management unit, which dropped 3.1% last year thanks to pricing pressures and reimbursement struggles, is tabbed for 3% to 5% growth this year.
|CEO André-Michel Ballester|
"In 2012 Sorin Group demonstrated the strength of its foundations in successfully recovering from the consequences of the earthquakes in Mirandola and in gaining shares in the CRM and heart valves markets, despite challenging industry dynamics," CEO André-Michel Ballester said in a statement. "In 2013 we are committed to continue executing on our longer-term growth strategy as confirmed by our recent acquisition of Alcard in Brazil and the further investment with option-to-buy in Enopace Biomedical."
The latter deal is especially promising, as Sorin has a chance to expand its presence in the heart-failure market by getting in early on Enopace's neuromodulation treatment.
- read Sorin's results