Coloplast
Danish medical company specializing in catheters and advanced wound care, including fish skin-based treatments
Coloplast
Overview
Coloplast is a Danish medical company that specializes in catheters (tubes inserted into the human body) and advanced wound care products. The company is known for innovative products including those using cod skin for wound healing — leveraging the fact that cold-water fish have never transmitted infections to humans.
Fundsmith's Investment Experience
Why It's a Detractor
Terry Smith noted at the 2026 AGM:
"Coloplast, which is also one of our detractors, is a Danish medical company. It makes catheters, tubes that go into the human body. Then it made a couple of acquisitions — one that provides devices for the aftermath of throat surgery, throat cancer in particular, and wound care. They acquired a company that uses cod skin, believe it or not, for advanced wound care."
The innovation:
"They really do use it for a variety of reasons, not least that there's never been a case of any transmission of any infection between a cold-water fish and a human being, so you don't have to irradiate it before you use it. Very clever."
The Problem
"Nothing wrong with the two acquisitions. They forgot to apply for US approval for one of the products, which is pretty silly, but that was it. What it does mean is they took their eye off the ball with the original business, and the operational performance of the original business has suffered."
They fired the CEO and will wait for the new one to address the issues.
Danish Water Observation
Smith quipped:
"There must be something in the water in Denmark" — noting both Novo Nordisk and Coloplast are Danish companies that have caused Fundsmith problems.
Key Points
- Products: Catheters, wound care devices
- Innovation: Cod skin for advanced wound care (no infection transmission risk)
- Problem: Acquisitions distracted from core business; missed US regulatory approval
- Leadership change: Fired CEO, seeking turnaround
Related Companies
- novo-nordisk — Also a Danish company and Fundsmith detractor
- fundsmith — The fund that owns Coloplast
Related Concepts
- quality-investing — The importance of management focus
- competitive-advantage — Why operational excellence matters