Rival medtech firms merger confirmed ‘to create stronger, unified company’

MedTech company Paxman, which is headquartered in Huddersfield, and its rival Dignitana have today (8 May) confirmed their merger.

The deal is designed to leverage Paxman’s leading position in scalp cooling and combines strengths of both organisations to drive innovation and expand their global reach – particularly in the US where the mechanised scalp cooling footprint will grow from 600 to 900 sites.

Scalp cooling is a clinically proven treatment which helps manage and reduce hair loss during chemotherapy and support increased hair regrowth.

Paxman’s recent public offer to acquire its competitor Dignitana has been accepted, with Paxman explaining this heralds the start of a new chapter of working together to advance side effect management for cancer patients around the world.

Paxman and Dignitana will now combine, creating a company called Paxman AB.

For many years, Paxman and Dignitana have been active in the field of side effect management, specifically scalp cooling.

The unified company aims to provide consistent service levels with more resource and enhanced R&D capacity through greater investment.

Currently, Paxman and Dignitana’s scalp cooling devices treat only one per cent of applicable patients, signifying opportunities for growth.

Richard Paxman, CEO of Paxman, said: “This merger marks a pivotal point in the history of our two companies and the beginning of a brand-new chapter as we unite to form one stronger, unified team.

“I am truly looking forward to collaborating, connecting, and combining the best of our two organisations, with new perspectives and shared strengths as we move forward.

“The merger provides exciting growth opportunities, enabling further investment in market expansion and R&D for both companies.

“Merging the best parts of both Paxman and Dignitana brings not only commercial benefits, but also benefits to both the customer and, of course, ultimately our patients.”

The merger is also expected to create favourable conditions for the introduction of the Paxman device specifically designed to prevent Chemotherapy-Induced Peripheral Neuropathy (CIPN) in cancer patients.

Paxman says the “urgent and largely unmet” clinical need for effective CIPN prevention presents a significant opportunity to improve patient quality of life on a global scale.

In preparation for the proposed product launch and rollout in half two 2026, the expansion of the business’s US team will enhance operational capacity and strengthen its presence in this key market.

Paxman was founded in 1997 by Glenn Paxman when his wife Sue lost her hair during chemotherapy treatment.

FY 2023 revenue for the business, which was listed on Nasdaq First North Growth Market in 2017, was around £16m.

Dignitana is a Swedish medical technology company publicly traded on Nasdaq First North Growth Market.

Its company headquarters are in Lund, Sweden with operations based in Dallas, Texas. The company develops, produces and markets The DigniCap® Scalp Cooling System for the prevention of chemotherapy-induced hair loss.