Coloplast

Based in Humlebaek, Denmark, Coloplast sells what it refers to as “intimate healthcare products” such as ostomy care, wound and therapeutic skin care, and urology care. It has its U.S. headquarters in Minneapolis and employees more than 10,000 people worldwide.

Coloplast Logo

Established: 1954

Headquarters: Humlebaek, Denmark

U.S. Headquarters: Minneapolis, MN

Founder: Elise Sorensen

Size: 10,000+ employees

Popular Products: SenSura ostomy (waste) pouches, SpeediCath catheters, antibacterial creams, pelvic meshes

2016 Revenue: $2.2 billion

With $2.2 billion in annual sales, Coloplast touts itself of “one of the world’s most profitable med-tech companies.” The company earned a ranking of 22 on Forbes’ list of the world’s most innovative companies. Forbes places the company at 1,430 on its Global 2000 list with $16.3 billion in outstanding market shares. The publication ranked it number 1,230 in profit worldwide and number 761 in market value.

Coloplast continues to grow through innovation, even as it confronts some legal problems in the U.S.

Coloplast HQ Minneapolis, MN
Coloplast North American Headquarters in Minneapolis, MN

 

According to its annual report, Coloplast’s net profits in 2016 were about $476 million.

“Innovation is in Coloplast’s DNA,” says the company’s U.S. Senior Vice President Edmond Veome. “Our entire organization is focused on developing our products to make life easier for users with intimate healthcare needs.”

The company said in its 2016 annual report that its newest ostomy care products “will eliminate the burden of leakage.” In continence care, “Coloplast aims to reduce the burden of bladder management.” And in wound care, the company wants to “help users have fewer days with wounds.”

The Ethisphere Institute — a think tank dedicated to ethics practices in business — named it one of the “World’s Most Ethical Companies” in 2012 and 2013, though some have questioned the independence of the institute. Coloplast didn’t make the list in more recent years.

Coloplast’s History

Coloplast started in Denmark in 1954 by nurse Elise Sorensen, who had an idea when her younger sister, Thora, then 32, had her colon removed after a cancer diagnosis. The operation saved her life but left her embarrassed and afraid to leave her house.

Newly invented plastic bags gave Elise an idea for a bag that would seal around the opening known as the stoma. She found a manufacturer to help, and distributed 1,000 ostomy bags to hospitals. Two years later, they were exporting two-thirds of the bags, and Coloplast was born.

“Every day at Coloplast, we find new inspiration in the story of Elise Sorenson — her passion, skills and love for her sister,” CEO Lars Rasmussen said in a video on the company’s website. “Our mission is to make life easier for people with intimate health care needs. We focus on easing the challenges of deeply private and personal medical conditions.”


"Our mission is to make life easier for people with intimate health care needs. We focus on easing the challenges of deeply private and personal medical conditions."

- Lars Rasumussen, Coloplast CEO


Ostomy care is Coloplast’s largest business area, followed by continence care and then urology and finally skin and wound care. Europe is its largest market.

Coloplast Acquisitions

Coloplast bought the urology division of Mentor Corp. in 2006 for $463 million and relocated its North American headquarters operations from Atlanta and Santa Barbara, California, to Minneapolis — home of Mentor Urology.

In November 2016, it acquired Comfort Medical for $160 million. Comfort sells catheters and ostomy supplies directly to consumers. Its annual sales were $38 million before the acquisition.

In announcing the purchase, CEO Lars Rasmussen said the acquisition “fits very well into our overall consumer ambition for Coloplast in the U.S., securing continued access to innovative technology for end users. Comfort Medical has a strong patient acquisition model and an efficient and scalable setup in addition to a strong management team with a good culture fit to Coloplast.”

Did You Know

The purchase of Comfort Medical fit in with Coloplast’s focus on direct advertising to patients.

About six months before that purchase was made public, Rasmussen explained the company’s direct-to-patient strategy to a reporter. Rasmussen told the Star Tribune that Coloplast was emphasizing consumer marketing of its products because people might be using the same product for 20 years after surgery and not know there were different, better options available. He said Coloplast is an innovator that brings more new products to the market than any other company in the field. “We miss an opportunity if we don’t present this to people who would like to use it if they knew it was there.”

He denied the newer products have a higher profit margin, saying often they are priced the same as older options.

The purchase of Comfort Medical fit in with that Coloplast focus, with Comfort Medical’s business model centered on direct advertising to patients, along with physician referrals. “I am excited about the future prospects of our U.S. business and view this acquisition as an additional building block in the implementation of our U.S. strategy,” Rasmussen said in the acquisition announcement.

The company today has production facilities in Denmark, Hungary, France, China and the U.S., with the vast majority of its sales in Europe. It is traded on the Danish Stock Exchange.

Author

Elaine Silvestrini is a career journalist with a strong desire to learn, explain, and help people. At Drugwatch, Elaine has reported about trials over whether talcum powder caused ovarian cancer and allegations that Androgel causes heart problems in patients who use it. She has chronicled the billions of dollars generated for big pharmaceutical companies by certain drugs and efforts to warn consumers about the dangers of specific medical problems. Elaine has received six health literacy certificates for completing courses offered by the Centers for Disease Control and Prevention. She brings more than 20 years of experience covering state and federal court systems, learning the intricacies of criminal and civil law, developing investigative pieces about how the law affects people’s lives and digging through and digesting reams of court records on a daily basis.


Hide Sources

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  5. Reuters. (2017, January 25). New Orleans Federal Judge Tosses Suit Claiming Penile Prosthesis Defect. Retrieved http://blog.legalsolutions.thomsonreuters.com/current-awareness-2/new-orleans-federal-judge-tosses-suit-claiming-penile-prosthesis-defect/
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