Local medical device makers are expanding headcount again after reporting the first decrease in three years last year.
The 30 largest companies in the region increased employment 2.2% to 24,230, compared to a year ago when they posted a less than 1% decrease. Companywide, headcount decreased less than 1% to 660,957.
Johnson & Johnson MedTech, which has a 15,000-square-feet campus in Irvine, increased local employee count by 19% to 1,900 and has 130,000 across the whole organization based in New Brunswick, New Jersey.
“We’ve been part of the community for a long time, and we’re continuing to grow here, expanding our capabilities and bringing in new talent,” Michael Bodner, company group chair of Electrophysiology & Neurovascular, told the Business Journal.
J&J MedTech’s Irvine operations include its Surgical Vision and Aesthetics & Reconstruction businesses, which are part of its broader Vision and Surgery portfolios. For more on J&J MedTech, see page 1.
Masimo Companywide Employees Down After Sound United Sale
Masimo Corp.’s OC employee count is up again 1.2% to 789 after laying off 75 employees in Irvine last year.
Companywide, however, it fell 27% to 6,957 due to the sale of its Sound United consumer audio business to Harman International for $350 million last year, as it shifts focus back to its main healthcare business, which sells to hospitals.
After a turbulent four years of proxy battles and restructuring that resulted in founder Joe Kiani stepping down as CEO, Masimo may join the recent wave of OC medtech acquisitions with Washington-based Danaher Corp. emerging as a possible suitor.
Masimo is set to be acquired by Danaher for $9.9 billion and operate as a standalone business unit within its diagnostic segment while remaining in Irvine. The deal, announced in February, is anticipated to close in the second half of this year.
“I am happy to see Masimo in Danaher’s hands, which is founder-run, and does things for the long term,” Kiani told the Business Journal at the time of the announcement.
Medtronic to Acquire CathWorks for $585M
Despite a 9% decrease in employees to 1,058, Medtronic Orange County could soon boost its local workforce through its proposed acquisition of Newport Beach-based CathWorks.
Medtronic in February announced that it was exercising its option to acquire CathWorks, whose headcount doubled to 40, for $585 million that was included in a co-promotion agreement four years ago. The deal is expected to close by the end of Medtronic’s fiscal year in April, pending clearance from the U.S. Federal Trade Commission.
The decrease in headcount this year was due to “sharpening its focus” on high-growth areas to invest in.
“This includes reducing some roles globally while increasing investment in other areas that support long-term growth, like research and development or in new strategic partnerships,” a spokesperson for Medtronic told the Business Journal.
In Orange County, the company said that it’s continuing to advance structural heart innovation with a focus on improving procedural performance and patient access.
Medtronic also announced its intent to acquire Salt Lake City, Utah-based Scientia Vascular for $550 million to add to its neurovascular portfolio, which is based in Irvine and has an estimated 2,000 employees, overseen by President Brett Wall.
New Additions
This year’s Business Journal list features five new medical device companies, including Renata Medical with 20 employees in Newport Beach.
The company, founded by former Edwards R&D engineers Dustin Armer and Eason Abbott, developed an expandable heart valve for pediatric patients. Armer and Abbott received the Business Journal’s Innovator of the Year Award last year.
Other new additions were French medical device maker Balt, which has its U.S. business based in Irvine, and BioPhotas Inc. in Tustin.
Emily Santiago-Molina contributed to this report.
