ROCK HILL, South Carolina, May 6, 2021 – 3D Systems (NYSE:DDD) today announced targeted investments to address rapidly expanding application opportunities for additive manufacturing (AM) in medical and high-reliability industrial applications. These investments are another important step in the company’s aggressive, four-phase initiative to reorganize, restructure, divest non-core assets, and invest for accelerated growth, which was announced in August of 2020.
Investment for Growth in Regenerative Medicine through Acquisition of Allevi
In January of this year, following three years of intense development efforts, 3D Systems announced a significant breakthrough in its regenerative medicine program, targeted toward the printing of solid human organs (e.g., lungs) through a partnership with United Therapeutics. Referencing this progress, the company also announced plans to expand its regenerative medicine efforts to capitalize on this breakthrough technology, applying it in parallel to nearer-term, non-organ human applications.
With the company’s continuing progress toward in vivo regenerative medicine applications, there exists a further opportunity to extend this technology to meet the growing near-term demand for advanced bioprinting solutions in medical and pharmaceutical research & development laboratories. These labs increasingly use 3D bioprinting to create three-dimensional cellular structures that imitate natural tissues, bones, and blood vessels in the body, facilitating the in vitro study of regenerative medicine and the development of new drug therapies. To accelerate this laboratory focus, the company is pleased to announce the acquisition of Allevi, a Philadelphia, Pennsylvania-based developer of bioprinting solutions, comprising 3D bioprinters, biomaterials (also known as bioinks), and specialized laboratory software. Founded in 2014, Allevi has established a strong technology base, brand, and distribution network for this rapidly emerging market, with a presence today in over 380 medical and pharmaceutical laboratories in more than 40 countries. As a complete solutions provider, Allevi’s business model aligns well with 3D Systems, and they are well-positioned to leverage the technology that the company has developed for in vivo applications to meet laboratory needs on an expanded scale.
This acquisition positions 3D Systems to effectively address a broad spectrum of applications in the rapidly evolving field of regenerative medicine which is projected to grow by more than 15% per year by multiple research houses, including Medgadget, Research and Markets, and Allied Market Research, and could surpass $18 billion by 2025. Through the addition of Allevi’s technologies and expertise, 3D Systems plans to develop laboratory and human applications in the near-term and medium-term, and enable the development of human organs in the long term. With these building blocks in place, and the pace of development activities toward specific, high-impact applications rapidly accelerating, the company is uniquely positioned to be a leader in this emerging medical market.
Accelerating the Adoption of Industrial-Scale Additive Manufacturing through the Acquisition of Additive Works
Industrialization of additive manufacturing has been enabled by the maturing of metal and polymer printing technologies, and the rapid expansion of printable materials that are well suited for use in industrial equipment and high-reliability systems, as well as the human body. Moving forward, a pacing item for AM growth is software that can support widespread industrial adoption by those that are generalists in manufacturing. For these individuals, software that is easy to use and can rapidly optimize the printing process for new component designs is central to increasing productivity and improving the as-printed product yield and performance.
As a pioneer in the industry and a leader in the industrialization of additive manufacturing, 3D Systems introduced 3DXpert® in 2016. This market-leading software package addresses each step of the AM workflow from part design to post-process finishing. In subsequent releases, 3DXpert has refined each step of the process to both optimize workflows and encompass more sophisticated printing technology and materials systems. Building upon this software foundation, 3D Systems is pleased to announce it has signed an agreement to acquire Additive Works, subject to regulatory approval. Since its founding in 2015, this Bremen, Germany-based software company has focused upon simulation-based optimization and automation of the AM print preparation and workflow. Using sophisticated algorithms, accessed through a user-friendly interface, Additive Works’ software allows a manufacturing engineer to rapidly determine optimum print set up, such as part orientation and support structures as well as directly adapt the process set up for effective thermal management and distortion compensation. This highly automated simulation software, which interfaces seamlessly with leading CAD systems as well as 3DXpert and other print platforms, increases productivity by reducing set-up time while improving product yield, throughput, and component performance. The result is a faster, more reliable manufacturing process, reduced part cost, and improved component performance.
Integrating Additive Works’ simulation expertise into 3D Systems’ software team will enhance the company’s AM software portfolio and innovation capacity, driving accelerated additive manufacturing adoption across the industrial and healthcare markets that the company serves. This includes Additive Works’ Amphyon for experts as well as the Amphyon plugin for CAD users – both of which will continue to be sold and supported to customers as a standalone offering.
Commenting on these two acquisitions, 3D Systems’ President and CEO, Dr. Jeffrey Graves stated, “We continue to deliver on our four-phase plan with an increasing focus on investing for accelerated growth and profitability. I’m excited by the expertise, capabilities and technologies we are adding to the 3D Systems portfolio with Allevi and Additive Works. Through these investments, we are enriching our solutions portfolio to address a much broader healthcare market, including the extremely exciting market for regenerative medicine, while accelerating the adoption rate for AM across industrial applications. These investments will bring added value to our customers, open new markets for our technology, and result in accelerated growth and profitability that will allow 3D Systems to thrive in the exciting years ahead.”
3D Systems will comment further on these and other recently announced growth investments in its upcoming earnings call, scheduled for Tuesday, May 11, 2021, at 8:30 a.m. Eastern Daylight Time. For more information, please visit the company’s website.
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward-looking statements can be identified by terms such as "believes," "belief," "expects," "may," "will," "estimates," "intends," "anticipates" or "plans" or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions, and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as of the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.
About 3D Systems
More than 30 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction - empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials, and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace & defense, automotive, and durable goods. More information on the company is available at www.3dsystems.com.