Solventum

History

2023: Creation of Solventum based on 3M medical assets

On November 16, 2023, the American industrial conglomerate 3M announced the allocation of the medical business to a new company, which was named Solventum. This structure will manage the assets of 3M Health Care.

It is noted that the name Solventum comes from two words - "solving" (solution) and "momentum" (momentum; driving force). The first part of the name reflects the company's desire to look for breakthrough solutions: the organization intends to carefully listen to medical professionals, as well as take into account the interests of patients around the world. In turn, "momentum" symbolizes the desire to accelerate innovation. Overall, the new name reflects that an independent healthcare company intends to "focus on addressing serious health issues." Solventum also introduced a new logo in the form of a transformed "S," reminiscent of the infinity symbol that the company itself associates with limitlessness. According to Solventum, this logo reflects the comprehensive approach that the company will take in addressing the concerns of patients and healthcare professionals.

3M Health Care renamed Solventum

This is another major milestone towards the creation of two world-class companies - 3M and Solventum. We continue to prepare for the spin-off and are committed to providing long-term benefits to shareholders, "said Mike Roman, 3M Chairman and CEO.

The new name and branding will take effect after the final separation of the medical structure into an independent company. This is expected to happen in the first half of 2024 - after receiving approval from 3M's board and meeting other necessary conditions. Until this process is completed, Health will continue to be part of 3M and will be governed by 3M corporate policies and procedures.^[1]

2022

Stopping the supply of dental products to Russia

3M stopped supplying dental products to Russia, which distributors notified dental clinics in August 2022. This happened some after the American company officially announced the curtailment of business in the Russian Federation.

As the chief physician of the private children's dental clinic "Zubariki" Andrei Oparin told "Medvestnik," the range of purchased products of the 3M primarily included adhesive materials, various adhesives for bracket systems and retailers. According to him, as an alternative, suppliers offered products to the American company ORMCO.

3M stopped supplying dental products to Russia

By mid-August 2022, 3M products remain in warehouses, dental clinics receive them, but there are no plans to resume stocks. The absence will be felt for the first few months, until the clinic switches to products of other brands, there are a lot of high-quality European analogues. The difference in prices is insignificant, so the clinic will not change prices, the medical institution said.

{{quote '3M is really gone. But there is no catastrophe in this, since most of the positions can be replaced by analogues - European, Chinese, Korean, etc. Prices may change due to additional logistics costs, but in general the market is quite stable now, - said Andrei Yaremenko, president of the Association of Dentists of Russia, chief freelance dentist of St. Petersburg. }} According to AlphaRM, in the first half of 2022, the volume of sales of 3M products in Russia (public procurement plus retail) amounted to 7.6 thousand packages in the amount of 28.4 million rubles against 29.3 thousand packages for 85.3 million rubles for the whole of 2021.

By August 2022, 3M is one of the three world leaders in the development and production of materials and equipment for therapeutic, orthopedic and aesthetic dentistry. These are adhesive systems, polishing discs and strips, sealing materials, gasket elements, cements, crowns, temporary orthopedic structures, impression masses, adhesives, sealants, anesthetics and several lines of restoration composite materials.^[2]

Defective 3M earplugs caused hearing loss in 200,000 people

On August 16, 2022, it became known that 3M faces billions in fines for selling supposedly defective earplugs to the US military. About 200 thousand former military officers filed a lawsuit against the company, stating that they had hearing damage due to the use of military earplugs. Read more here.

3M Announces Medical Business Branch

On July 26, 2022, 3M announced the spin-off of its healthcare business into a separate public company, 3M Healthcare.

We are preparing 3M for the future to create more opportunities and more confidence. These will be two world-class public companies with a good cap, "CEO Mike Roman said on a conference call, explaining the decision.

3M creates a new company for the medical business

3M says its health care activities, including wound and oral health care products, information technology for healthcare facilities and production of biopharmaceutical filters, accounted for about a quarter of its annual revenue in 2021, exceeding $35 billion 3M will also retain almost 19.9% of the shares of the new company, producing these products, which are expected to be valued at three times the annual revenue.

The company's healthcare products also include the Bair Hugger surgical heating system, which is the subject of almost 6,000 lawsuits. The company 3M claims that this product has nothing to do with infections on the operating table.

The company also said Aearo Technologies, its subsidiary that makes Combat Arms Earplugs earplugs, filed for Chapter 11 bankruptcy to create a trust to settle all product-related lawsuits. 3M said it believes earplugs are safe and effective when used correctly, but the company is facing a growing number of lawsuits nonetheless.

3M also spun off its food safety business at the same time. This division will be merged with Neogen and is expected to be removed from the company by September 2022.^[3]

2019: $650 million sale of drug administration devices business

In mid-December 2019, 3M entered into an agreement to sell most of its drug injection devices business to investment firm Altaris Capital Partners for $650 million.

3M will retain its transdermal drug administration device components business, according to a press release. The annual global sales volume sold by the division is about $380 million.

3M entered into an agreement to sell most of its drug injection devices business to investment firm Altaris Capital Partners for $650 million

Taking into account the approval of the transaction by the regulatory authorities and other adjustments, 3M expects to receive $650 million in the form of a combination of cash, interest securities and 17% of shares in the form of a non-controlling stake in the new company. Morgan Stanley acted as a financial adviser during the transaction, and Cleary Gottlieb Steen & Hamilton acted as legal counsel.

The Drug Administration Devices 3M division produces transdermal patches, microneedle-based drug delivery systems, intranasal devices, oral inhalers, and drug packaging films. 3M is also developing a smart inhaler and looking for pharmaceutical partners for this project.

3M expects the deal to close in the first half of 2020. About 900 employees plan to join the new company once the sale is complete.

Our drug administration device business is a leading provider of transdermal and inhalation delivery technologies, "said 3M Chairman and CEO Michael Roman in a release. - This deal will allow us to focus more resources on our core healthcare business as well as maintain our stake in the value of the device manufacturing business in the coming years.[4]

Notes