Transfer of Non-Core Products to Focus on Neonatal
Inspiration Healthcare Group plc has entered into a framework agreement with Micrel Medical Devices SA to transfer the distribution of Micrel's infusion products in the UK, effective January 31, 2027. These products generated £9.7 million in revenue with a 25% contribution margin for the year ended January 31, 2026. The transition will involve employee transfers under TUPE from July 1, 2026, and a compensation payment from Micrel for an orderly business transition. The company expects these savings and the payment to reduce net debt by approximately 20% in FY27, with no impact on current financial year revenue and gross profit estimates. This strategic move allows Inspiration Healthcare to focus on its core neonatal business.
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Inspiration Healthcare Group plc (AIM: IHC), the global medical technology company, announces that on 1 June 2026 it entered into a framework agreement with Micrel Medical Devices SA ("Micrel") for the transfer of the distribution of Micrel's infusion products to an entity controlled by Micrel effective from 31 January 2027.
The Group has been the exclusive distributor of Micrel's ambulatory infusion pumps and related consumables in the United Kingdom since 2011. During this time Inspiration Healthcare has built a market leading position in the homecare market for parenteral nutrition and a growing presence in the NHS. The infusion products generated revenue of £9.7million (unaudited) at a contribution margin of approximately 25% for the Group in the year ended 31 January 2026.
Under the terms of the framework agreement, the existing distribution agreement will expire on 31 January 2027 with Micrel taking full control for the sale and distribution of the products in the UK. The Inspiration Healthcare employees responsible for the infusion products will transfer to Micrel under TUPE from 1 July 2026. In addition, Micrel will buy back unsold inventory on the final transfer date and make a compensation payment to Inspiration Healthcare in exchange for the orderly transition of the business and reflecting the goodwill generated during Inspiration's tenure as UK distributor.
Inspiration Healthcare will continue to manage and sell the products during a transition period until 31 January 2027 meaning there will be no impact on the Group's revenue and gross profit estimates for the current financial year. The transfer of employees to Micrel on 1 July will generate savings in operating expenses in the second half. The Board expects these savings, combined with the compensation payment, to contribute to reducing net debt by approximately 20% during FY27*.
Raffi Stepanian, CEO of Inspiration Healthcare commented: "This separation of the infusion products allows the Group to focus on its core business of neonatology and neonatal ventilation in particular. The Group has identified opportunities to grow its product portfolio and footprint in this segment through organic means as well as third party distribution opportunities and continues to assess further opportunities."
*As at 31 January 2026, net debt (excluding IFRS16 lease liabilities) stood at £5.1m
596/2014.
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