Eitan Group, a developer of infusion therapy medical devices and related technologies that set up its North American base in Aliso Viejo a few months ago, has inked a deal with a Michigan firm that promises to help get one of its core drug delivery products to hospitals and pharmacies in the U.S. and Canada faster and more reliably.
The Israeli-based company at the end of last month said that it will be working with Madison Heights, Mich.-based InfuSystem Holdings Inc. (NYSE: INFU), a supplier of infusion pumps and related services for the healthcare industry in the U.S. and Canada.
Under the deal, InfuSystem will provide repair services on Eitan’s fleet of Sapphire infusion pumps, devices that are used to deliver a variety of drugs to patients.
InfuSystem, which is valued at about $100 million, said its plans to offer flat and a la carte options for Sapphire service and repair, and cited a three-business-day turnaround goal on repairs.
“Our partnership with Eitan Group will create savings and improve satisfaction for hospitals and home-care pharmacies,” InfuSystem Chief Executive Rich Dilorio said in a statement. The Michigan company does about $80 million in business annually. The expected size of its contract work with Eitan was undisclosed.
Local Base
The deal comes about two months after Eitan opened its North American headquarters in Aliso Viejo, citing the area as the “fastest-growing medtech community in the U.S.”
The company is in the early stages of ramping up its domestic operations, along with sales of its infusion delivery products to customers in the U.S. and Canada.
Eitan has three subsidiaries: Q Core provides its Sapphire system to the hospital and home-care markets; Sorrel Medical offers pharma partners a flexible wearable platform for new biologic drugs; and Avoset Health provides infusion solutions for the home-care market.Â
New Area Boss
Eitan in March appointed Roger Massengale as chief executive of its North American unit.
Massengale has more than 20 years of industry experience, including more than 100 patents and having co-wrote the ISO standard for disposable infusion pumps.
Massengale was previously the vice president and general manager of Avanos Medical Inc. and Halyard Health, where he led large sales and marketing teams in pain management and infusion therapy. He was also previously the VP of business development and R&D at I-Flow Corp.
“Infusion therapy in both the hospital and home requires an upgrade,” Massengale said at the time of his hiring. “We are in the midst of a shift to value-based care, in which improving patient outcomes while reducing costs are a major part of the healthcare equation.”
Eitan Group’s pumps can handle many different types of infusion modes such as epidural infusion, total parenteral nutrition and enteral infusion.
The pumps can also be used in oncology, nutrition, pain control, and drug delivery environments. And while they can be used for opioid alternative medications, that is not the company’s focus.
It also prides itself on customer service, one reason for the new partnership with InfuSystem.
“We are always searching for ways to streamline service options for our customers,” Massengale said. “Our new partnership with InfuSystem will result in a lower total cost of ownership for our devices, which translates into savings for our customers.”
