Allergan to buy regenerative medicine specialist LifeCell for $2.9 bn
21 December 2016
Irish botox maker Allergan Plc yesterday struck a deal to buy regenerative medicine specialist LifeCell from privately-held medical device company Acelity LP Inc, for $2.9 billion in cash.
LifeCell has a commercial portfolio that includes Acellular Dermal Matrices, commonly used in breast reconstruction procedures and complex hernia surgeries to provide soft tissue support.
The Texas-based company's key products include Alloderm, a human allograft tissue matrix which allows for a strong, intact repair in challenging procedures and is used for repair or replacement of damaged or inadequate soft tissue, including breast reconstruction post-mastectomy.
Its other product Revolve, is a single use high-volume fat grafting device that uses patients' own fat to enhance volume in plastic and reconstructive procedures.
Additionally, LifeCell markets Strattice, a porcine based tissue matrix used in complex abdominal wall repair and for the surgical repair of damaged or ruptured soft tissue.
LifeCell has also developed Artia, a porcine based tissue matrix which is approved and launched in some European markets.
Allergan, best known for its Botox product, said Lifecell's 2016 sales are expected to be $450 million.
"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, chairman and CEO of Allergan.
"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 CEO. "
Founded about 60 years ago, the Dublin-based Allergan is a global specialty pharmaceutical company whose product range includes the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.
Allergan, which spends about 17 per cent or about $1 billion a year of its revenue on research and development of new drugs, has 15,000 employees and 30 manufacturing and distribution facilities around the world, including in China, India, Indonesia and Singapore.
It has recently made 17 deals, including buying Tobira Therapeutics Inc for $1.7 billion, and psoriasis experimental drug maker Vitae for $639 million.
Earlier this year, it sold its generics business to Israel's Teva Pharmaceutical Industries for $40.5 billion in cash.