Unique investment by Swedish pharmaceutical company
ABIGO Medical is the only company manufacturing advanced wound care products in Sweden. The company has substantial international presence with strong growth. Products are sold to 70 countries, with turnover of approximately 300 MSEK. Now ABIGO gears up further. By investing 30 MSEK in their production facility, they expect an annual production increase by 15-20 %.
ABIGO Medical’s strictly organic growth strategy and their self-financed R&D-operation has resulted in a great international success, with an ever increasing demand. In order to meet this, ABIGO has invested heavily in the expansion of the production facility in Askersund. While many pharmaceutical companies nowadays choose to move production abroad, ABIGO sees the advantages of maintaining both headquarters, R&D and production in Sweden.
“In recent years, we’ve seen a steady growth and the trend seems to continue. At the end of 2016, we expect to be approximately 60 employees”, says Fredrik Stenbäcker, Plant Manager at ABIGO’s production facility in Askersund, recently expanded to a total of 5000 sqm.
Swedish innovation in the fight against antibiotic resistance
In 1989, the brothers and entrepreneurs Jan G. Smith and Leif Smith founded ABIGO Medical AB, with a focus on delivering innovative methods of infection control and to reduce the use of antibiotics. The infection preventive dressing Sorbact® eventually became the flagship of the business and is also the main reason behind the new investment.
“Sorbact® offers fantastic opportunities, particularly in view of the global challenges of infections and antimicrobial resistance”, Jan G. Smith, CEO at ABIGO Medical explains.
Sorbact® prevents and treats infections by binding bacteria to the surface of the dressing, without releasing any chemical agents into the wound. The bacteria are removed when the dressing is changed. By preventing infections, Sorbact® also helps to reduce the need of antibiotics, hence lessening the risk of spreading multi-resistant bacteria. The Sorbact® method is an innovation, based on Swedish research. In a recently published international and controlled clinical study1, Sorbact® was compared to a standard dressing among women undergoing cesarean section. The result confirmed the efficacy and cost-effectiveness of Sorbact®. Excellent results in international studies combined with many years of clinical experience, has led to a sharp increase in the use of the Sorbact® For example, all French University Hospitals use Sorbact®.
ABIGO Medical is an entrepreneurial company with financial stamina and long-term perspective as core values. The company has also reinvested its profits in the business over the years.
“To be financially independent and not having to rely on venture capital is one of our incentives,” says Leif Smith, President at ABIGO Group.
Leif owns and actively manages the company together with his brother Jan.
“We do not like the quarterly economy hysteria. It’s neither good for business nor for Sweden.”“We have seen many good products and innovations succumbing to the venture capital’s lack of patience”, Jan adds.
According to the brothers, the fight against multi-resistant bacteria is the most exciting area and this is where ABIGO has a unique competence. The prevention of infections in itself is an incredibly large area and there are a multitude of applications for the innovations owned by ABIGO.
“We have barely scratched the surface,” Leif Smith says.
For more information,
contact Björn Larsson, firstname.lastname@example.org, phone: +46 766 201 725
1. Stanirowski PJ et al. Surgical Infections 2016; [ahead of print]. DOI: 10.1089/sur.2015.223. The full study is available here: http://online.liebertpub.com/doi/pdfplus/10.1089/sur.2015.223
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