At NextBeam, we closely follow the North American sterilization market. Our goal is to track changes in technology, regulation, and pricing so we can share relevant insights with customers, partners, and the broader community.
1. The Cost Burden of EO Litigation
We have not published externally about EO lawsuits for several months, but we continue to track them closely. Since our last update, one of the largest settlements to date—a 20 million dollar payout involving a former CR Bard facility in Georgia—has been announced.
This brings the total announced EO-related verdicts and settlements to roughly $874 million. When factoring in legal fees that likely exceed $100 million, and the EPA’s estimated $300 million in compliance costs, total EO-related expenses will well exceed $1 billion. These costs are ultimately absorbed by the EO industry and its customers, which means higher pricing over time.
2. Industry Momentum Toward EO Alternatives
A recent BoneZone article titled “Trump Gifted You Two Years to Find EtO Alternatives” captured the growing urgency around this issue. Politics aside, the message is clear—it is time to replace EO.
Mature radiation technologies like E-Beam and X-ray are ready to handle much of the current demand, especially in industries such as orthopedics. Alternative gas modalities, including vaporized hydrogen peroxide and chlorine dioxide, will likely play a future role as they continue to mature, but they are not as proven or scalable as radiation today.
3. Big Sterilization’s Strong Quarter
Both Steris and Sterigenics reported strong financial results for Q2 2025, with double-digit year-over-year growth. When combined, their revenues jumped nearly 8 percent from Q1 to Q2, which is well above the usual quarterly growth rate of one to two percent.
Because the market did not see a corresponding increase in capacity, we expect this growth is driven primarily by price increases rather than additional throughput.
We have also heard that some large customers are facing higher prices for gamma sterilization services, signaling broader pricing momentum across traditional modalities.
Key Takeaways
EO prices will continue to rise. Litigation settlements, compliance expenses, and legal defense costs are significant and ongoing. Many medical devices can transition to radiation. With proper engineering and testing, E-Beam and X-ray sterilization can be validated quickly and economically.
Material compatibility continues to improve. New radiation-compatible surface coatings and polymer technologies are expanding the range of radiation-ready products. Big Sterilization remains profitable but limited. The industry’s revenue growth is being driven more by pricing than by capacity or innovation.
Preparing for the Transition
NextBeam continues to provide radiation sterilization services that emphasize speed, scalability, and technical depth. Our focus is on helping customers move new products from validation to routine processing in weeks, not months.
Whether or not you are a NextBeam customer, this is an ideal time to explore whether your products can move from EO to radiation.
We offer free expert consultations, typically scheduled within a few days. During a consultation, our technical team can provide a high-confidence assessment of whether your product is already compatible or identify the engineering steps required to make it so.
For those ready to test, we offer fast and affordable feasibility studies, typically completed within two weeks for under $2,000. Our goal is to make the process of exploring radiation sterilization as efficient and accessible as possible.
Unlike typical large EO facilities, we can help customers validate their products in weeks, not months. All testing and production is performed at our high-volume, cost-efficient, and sustainable facility near Sioux City, Iowa. The site operates a 10 MeV linear accelerator and meets the highest global standards through multiple accreditations, registrations, and audits.
NextBeam stands ready to assist manufacturers seeking a sustainable and reliable alternative to EO. Schedule a meeting with a sterilization expert today.
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