A London-based health care firm that acquired the Pittsburgh-based assets and operations behind an innovative, minimally invasive medical ventilator product announced it would be terminating its local functions by the end of the year.
LivaNova PLC announced in a company press release that it has begun "an orderly wind down" of its Pittsburgh-based Advanced Circulatory Support business unit as it shifts to focus on its cardiopulmonary (CP) and neuromodulation divisions by year's end. The company said its ACS unit accounted for about 4% of its $286 million in net revenue for the nine months ended Sept. 30, 2023.
According to a Worker Adjustment and Retraining Notification filed by LivaNova with the Pennsylvania Department of Labor & Industry, up to 137 people in Pittsburgh will be laid off between Jan. 31 and the end of the year.
LivaNova took over the South Side offices of Pittsburgh-based ALung Technologies Inc. following its purchasing of the local firm for $10 million in May 2022. Just before the acquisition, ALung, known for its innovative Hemolung product that helps patients with acute respiratory distress, had obtained U.S. Food and Drug Administration approval following years of development in Pittsburgh and after clinical trials in the U.S. and U.K.
But as a result of this ACS business unit termination, LivaNova announced it would be ending operations, service and scheduled support for Hemolung before 2025 as part of a discontinuation effort, which also includes its LifeSPARC product.
“LivaNova is committed to managing our portfolio and resources toward the highest growth and return opportunities for shareholders," William Kozy, interim CEO and the company's board chair, said in a release. "We have worked steadily to generate enhanced value from the ACS business. After careful consideration, we determined that exiting ACS and focusing resources on our CP and Neuromodulation businesses creates greater innovation opportunities for our customers, their patients and shareholders."
Kozy continued: "We value the ACS team’s efforts and commitment to helping improve the condition of patients and are grateful to have served customers who used the LifeSPARC platform to support their patients over the years. We will aim to make this transition as seamless as possible for our customers and employees."
A request for comment from LivaNova was not immediately returned.
