Three weeks ago, 3D Systems expanded the scope of its activities to regenerative medicine. Immediately afterwards, it announced the acquisition of Allevi, a manufacturer of 3D bioprinters. Now, it has announced the sale of the previously purchased Simbionix medical simulation system to Surgical Science. This move will allow 3D Systems to focus on its core 3D printing business, including the 3D bioprinting industry.
The system was purchased in 2014 for $ 120 million. Through it, it was possible to simulate medical operations and train in VR. The Swedish supplier of virtual reality simulators for medical purposes purchased the Simbionix software for $ 350 million, which allowed 3D Systems to gain a lot. Revenues from the sale of the system will allow them to focus on the more profitable sectors of the company.
In the first half of 2020, Jeffrey Graves became the CEO of 3D Systems, who meticulously implements the company’s new strategy. The concept includes the sale of all low-income, previously acquired businesses that are not critical to the four core business areas. According to 3D Systems, the chosen strategy will allow to accelerate work in developing markets that require high-quality products, including healthcare, aviation and defense.
Simbionix, which will be included in Surgical Science, will allow the company to achieve a leading position in the market of programs simulating medical procedures and advanced robotic surgery. The Swedish company led by Ran Bronstein has built a strong foothold in the medical simulation, training and robotic surgery industry with sales of $ 40.8 million in 2020. The acquisition of Simbionix will allow Surgical Science to strengthen its position and expand the portfolio of simulator solutions available in general surgery, endovascular surgery, endoscopy, urology, orthopedics, ultrasound and robotic surgery. On the other hand, Simbionix works with medical technology companies and academic institutions that are responsible for developing innovative robotic surgery technologies and operating procedures.
The CEO of 3D Systems announced that Simbionix is the last asset sold as part of the company’s restructuring. Graves is changing direction and focuses on increasing revenues and increasing margins. One of the main sectors of the company’s activity has become the 3D bio-printing market and industry, as evidenced by the acquisition of Allevi and Additive Works, producers of 3D bio-printing and software.
As part of the new strategy, 3D Systems has announced the expansion of its Rock Hill and Littleton plants in the US to meet growing customer demand in the 3D printing market. Recently, the company has expanded its team of specialists by welcoming Dr. David Leigh as new chief technology officer for additive manufacturing. His employment was aimed at broadening and accelerating the development of applications and product innovations, including hardware, software and materials. Leigh’s presence in the 3D Systems team will increase the emphasis on the 3D bio-printing market by creating innovative solutions in the field of regenerative medicine.
After restructuring, 3D Systems expects an increase in efficiency and profitability, both at the EBITDA level and a positive result for 2021. By focusing on key business sectors, the company can remain one of the leaders in the 3D printing industry.
After the completion of the sale of Simbionix on July 28, 2021, the shares of 3D Systems increased by 5.3%. According to the multimedia financial services The Motley Fool, the shares of 3D Systems are so far the leader in the 2021 ranking (along with ExOne), their share has increased by 275%. This is a big advantage as the results for the second quarter will be published in August. Graves’ implementation of the new strategy will certainly attract new investors.