With roots as a provider of infusion consumables, ICU Medical enhanced its product offering through the transformative acquisition of Hospira Infusion Systems from Pfizer in 2017 by integrating infusion pumps, a broader offering of consumables and the manufacturing of intravenous solutions. The company became a more comprehensive provider with the acquisition of Smiths Medical (various products related to IVs and other medical supplies) in 2022. In our view, ICU’s focus on creating a more comprehensive portfolio helps long-term stability of its income. mix thanks to long-term contracts and a characteristic razor and blade model in its systems business. We believe unmatched scale in consumables could help it generate excess returns over time, even if its portfolio has lost differentiation. In the infusion systems space, while we believe ICU faces an uphill battle to compete with leader Becton Dickson, we believe the sector offers an attractive opportunity to exploit high switching costs. In our opinion, consumables and infusion systems are expected to be the key growth drivers in critical care.