Allergan Dives Deep into $2.9 Billion Cash Deal With New Jersey Biotech
December 20, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Dublin-based Allergan announced today that it is buying Acelity’s LifeCell for $2.9 billion in cash.
The deal brings in LifeCell’s regenerative medicines business, as well as its portfolio of dermal matrix products, which meshes well with Allergan’s medical aesthetics, breast implants and tissue expanders. Allergan projects that the LifeCell deal will create about $450 million in 2016 revenue, which it expects to grow at a mid-single digit rate.
LifeCell’s portfolio includes Acellular Dermal Matrices used in breast reconstruction and complex hernia surgeries, Alloderm, a human allograft tissue matrix used in soft tissue reconstruction, and Revolve, a high-volume fat grafting device. It also markets Strattice, a porcine-based tissue matrix used in abdominal wall repair and surgical repair of damaged soft tissue.
Allergan also picked up the company’s manufacturing capabilities and New Jersey-based research-and-development operations.
“The acquisition of LifeCell is both strategically and financially compelling to Allergan and serves as our entry point into regenerative medicine as we create a world-class aesthetic and regenerative medicine business in plastic surgery,” said Brent Saunders, Allergan’s chairman and chief executive officer, in a statement. “LifeCell’s regenerative medicine unit is a strong fit with our existing business and can be significantly strengthened with our infrastructure and global reach. This acquisition is an immediately accretive investment that enhances our near-term and long-term growth profile with products that enjoy strong sales and are the leading choices for surgeons who rely on them for successful surgical procedures.”
Allergan has been on a buying spree ever since its merger deal with Pfizer collapsed. The most recent deal was for Chase Pharmaceutical Corp. for $125 million. It also acquired Vitae Pharmaceuticals for $639 million, and Tobira Therapeutics for $595 million up front. In April, only a day after the Pfizer deal fell apart, it entered a deal with Heptares Therapeutics, a wholly-owned subsidiary of Sosei Group Corporation. Allergan paid $125 million upfront for exclusive global rights to a portfolio of novel subtype-selective muscarinic receptor agonist to treat several neurological disorders, including Alzheimer’s disease.
Other deals this year included buying Oculeve and Retrosense Therapeutics.
“The LifeCell brand leads the industry for safety, efficacy and superior clinical results, and we are pleased to have found the perfect partner for LifeCell in Allergan,” said Joe Woody, Acelity president and chief executive officer, in a statement. “This transaction not only sets LifeCell up for continued success, but it also allows Acelity the ability to continue our own transformation with increased momentum and investments that focus on developing and commercializing advanced wound therapies and dressings in markets around the world.”
Acelity is a privately held medical device company. It is a non-operating holding company, whose wholly owned subsidiaries focus on wound therapeutics and regenerative medicine products. Acelity is headquartered in San Antonio, Texas. Acelity acquired LifeCell for $1.7 billion in 2008.
The deal is expected to close in the first half of 2017. Acelity also owns Kinetic Concepts and Systagenix Wound Management, both wound-care companies. Acelity employs about 5,800 people.