Minnesota medical device giant Medtronic (NYSE:MDT) penned a couple of new distribution deals, giving it a controlling stake in a Turkish distributor and expanded access to a Missouri surgical instruments supplier.
Medtronic announced today that it nabbed a majority share of Biostar, which the company now owns jointly with Medicall Biomedikal A.S.
Biostar is taking over Turkish distribution of Medtronic products, formerly the responsibility of Medicall Biomedikal, according to a press release. Medtronic hopes the new strategy will help it "get even closer to the customer" and open new doors in Turkey.
"In key emerging markets like Turkey, creative collaborative ventures like these can help us address the barriers to treatment that patients face today," Medtronic Middle East, Turkey & Africa managing director and vice president Majid Kaddoumi said in prepared remarks. "We believe this new relationship will bring us closer to the healthcare system in Turkey and will help increase access to available therapies, improve outcomes through our Academia programs, and optimize cost and efficiency for hospitals, physicians, patients and payers."
Medicall Biomedikal plans to transfer about 85 employees over to Biostar to help smooth the transition of distribution duties. Former Medicall Biomedikal CEO Ayhan Öztürk was named managing director of Medtronic Turkey, and former Medicall Biomedikal sales & marketing vice president will lead the cardiovascular group. Both will also oversee activities at Biostar.
Medtronic also signed a new deal putting it on the other side of a distribution agreement with Kogent Surgical. Medtronic’s worldwide team will take over sales & marketing for Kogent’s surgical coagulation products for use in neurosurgery, according to a separate announcement.
Kogent estimated that as much as 50% of its future revenues will rely on international sales and that the distribution deal will allow the company to create new "high-paid manufacturing and engineering positions" at its Missouri headquarters.
"This contract is a milestone moment for Kogent and will provide the sales and marketing horsepower that we need to grow the company and put more Missourians back to work in an exciting, high-growth industry," Kogent co-founder Gregg Scheller said in prepared remarks.