Denmark's largest medico company Coloplast plans to increase its revenues sixfold in the US via acquisitions and organic growth, writes national daily newspaper Berlingske Tidende. Coloplast is currently generating 80% of its revenues in Europe and 14% in the US, according to the company's 2006/2007 annual report.
"Our growth opportunities in the US are a lot bigger than in Europe. So revenues in the USA ought to be at least as much as in Europe," group managing director of Coloplast Lars Rasmussen said to Berlingske. In 2006, Coloplast gained a strong foothold in urology on the US market through its acquisition of Mentor's urology business for DKK 2.9bn (USD 580m).
"Urology and continence are jointly a far bigger market than the colostomy market, and the main part of this market is in the US," commented Rasmussen. Coloplast estimates that the world market for ostomy products is around DKK 10bn (USD 2bn), while the rapidly growing market for urology and continence is already worth DKK 17bn (USD 3.4bn).
In the 2006/2007 fiscal year, Coloplast generated revenues of DKK 1.1bn (USD 220m) in the US, corresponding to 16% organic growth, while sales in Europe totalled DKK 6.4bn (USD 1.3bn).
Although Rasmussen is well pleased with the growth rate, he says it will be necessary to make acquisitions in order to achieve a sixfold increase in revenues in the US within the foreseeable future. "We consider Mentor to be integrated, and we have quite a significant potential to make acquisitions". Lars Rasmussen estimates Coloplast has around DKK 10bn (USD 2bn) for company acquisitions.
Coloplast was founded in 1957 and has been listed on Copenhagen Stock Exchange since 1983. The company is headquartered in Humlebæk north of Copenhagen and employs 7,000 people.