IRELAND — Medtronic and DaVita have launched Mozarc Medical, a new venture aimed at developing innovative kidney care technologies with a particular focus on at-home treatments.
The company is co-owned by Medtronic and DaVita, each with equal equity stakes, and was announced about a year ago.
Mozarc will be overseen by a six-person board of directors, including two selected from each company and two independent directors.
Chronic kidney disease affects 15% of adults in the US, and nearly 810,000 patients in the US are living with kidney failure.
The companies will leverage their expertise to scale up dialysis delivery systems and other technologies to treat the latest stages of kidney disease.
Medtronic spun out its existing renal care solutions (RCS) business, along with its product pipeline, global manufacturing and R&D teams, and facilities in the renal care solutions sector to form Mozarc Medical, its new joint venture with DaVita.
According to the company’s fiscal year 2023 reports, the RCS business earned US$64 million, US$63 million, and US$70 million in the first three quarters.
The new venture will have about 1,700 team members worldwide and will be led by the former RCS leadership team.
Ven Manda, CEO of Mozarc Medical, clarified that the company is focused on growth and does not anticipate major layoffs but may withdraw from smaller markets as it transitions to a more focused country footprint.
Medtronic, which is headquartered in Dublin, develops medical devices and therapies for 70 health conditions such as cardiac devices, surgical robotics, and insulin pumps.
The company plans to spin off its patient monitoring and hospital ventilator businesses, allowing it to concentrate more on its cardiovascular, diabetes, and surgery business units, as reported by Fierce Medtech.
Baxter, another medical device company, also intends to spin off its global kidney care operations into a new publicly traded enterprise.
Executives have stated that the new venture will focus on creating innovative and meaningful solutions for patients with kidney disease.
Mozarc’s primary focus will be on developing products for at-home treatments to make dialysis more accessible, reducing the need for in-clinic sessions three times a week.
Research has shown that dialysis sessions at home, in the right environment, can improve clinical outcomes, provide better quality of life, more independence for patients, and decrease the time and burden of traveling to and from facilities.
Mozarc aims to use technology to help patients remain on home therapy for longer while enhancing the patient experience and simplifying kidney therapy for an older, more vulnerable patient group.
The executives claim that there is a need for innovation and new technology to improve patient outcomes and that dialysis is a rather harsh treatment that involves accessing the blood supply using large needles.
There is an opportunity to make the treatment more convenient and comfortable for patients.
Additionally, Mozarc aims to link the patient’s dialysis requirements to their overall health, potentially allowing patients on dialysis to live longer.
The kidney care industry is expanding at a rapid pace, making it a highly sought-after market.
Although the size of the market is somewhat ambiguous, one prominent research firm, Next Move Strategy Consulting, estimates that the global dialysis market was worth US$96 billion in 2019 and is expected to reach US$146 billion by 2030.
This sizeable market opportunity is attracting the attention of new players, such as Outset Medical, which has developed a portable dialysis machine for at-home use, offering patients more flexibility and convenience.
Recognizing the potential in the early stages of kidney disease, Fresenius Health Partners, Cricket Health, and InterWell Health recently joined forces to establish a new value-based care company that focuses on this area.
These companies’ aim is to modernize the management of chronic kidney disease and end-stage renal disease, and their efforts are already making an impact.
Several other startups have also entered the market, including Monogram Health, Strive Health, Healthmap Solutions, and Somatus.
These companies are working to develop innovative solutions and services to improve patient outcomes and experience.
The market’s growth potential is not without challenges, as there are unmet needs that require innovation and new technology to improve patient outcomes.
However, the companies involved are committed to meeting these challenges and making a positive impact on patients’ lives.
With new players entering the market and existing companies striving to improve their offerings, the future of kidney care looks promising.
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