Paxman: Leeds med-tech firm to merge with major Swedish rival to create ‘stronger, unified company’

The announcement comes after Paxman said in March that it had made an offer to buy Sweedish firm Dignitana for around 153m Swedish Krona, or around £11.6m.

The companies are now set to combine to create a new company titled Paxman AB.

Paxman described the move as a ”historical milestone” for the two companies, adding the the move heralded “the start of a brand-new chapter of working together to advance side effect management for cancer patients around the world”.

Richard Paxman OBE, 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 research and development 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 companies said that ongoing work in navigating the insurance reimbursement landscape in the US would remain a key priority.

Starting in 2026, scalp cooling treatment is set to be assigned permanent CPT Category I codes in the US, a move that will allow for broader insurance reimbursement for the treatment.

In addition, New York State recently became the first in the U.S. to pass a law requiring private insurers to cover scalp cooling, with further bills in progress in Louisiana, Maryland,

Massachusetts, New Jersey, Rhode Island and West Virginia.

Paxman described this as an “encouraging sign” that momentum is building nationwide.

Paxman and Dignitana’s scalp cooling devices currently treat only one per cent of applicable patients.

The firms said this figure signified a “huge opportunity for growth”, and that combining the firms would enable further investment in market expansion and research and development.

Paxman holds around 105 employees, principally in the UK and the US, while Dignitana has 26 employees, principally based in Sweden and the US.