Integra Seals Duraseal™ Deal

Integra LifeSciences Holdings Corporation is to acquire Covidien’s Confluent Surgical product lines, including surgical sealants, adhesion barrier, and, most significantly, DuraSeal™. The companies expect to complete this transaction by the end of the first calendar quarter of 2014, subject to receipt of regulatory approvals.


The addition of a dural sealant technology to Integra’s line is completely sensible for the New Jersey outfit. After all, the company supplies the leading dural substitute in its Duragen® line. Duraseal fits well, enabling the surgeon to adopt a one stop shop approach to closing the Dura Mater following neurosurgical procedures.

Quite why Covidien would want to dispense with its line of sealants is another matter, but one senses things haven’t been quite the same since it’s thoracic sealant, Pleuraseal, failed to gain its PMA and was subsequently withdrawn from markets globally.

Covidien will receive an initial cash payment of $235 million from Integra upon the closing of the transaction. with up to $30 million, contingent upon the achievement of certain performance measures related to the transition.

Confluent Surgical products include: DuraSeal™, DuraSeal™ Exact/Xact, VascuSeal™ and SprayShield™. These products generated approximately $65 million in revenue (unaudited) during 2012 and gross margin comparable to Integra’s regenerative medicine product portfolio. Integra expects to provide detailed guidance regarding the financial impacts of this transaction upon closing. Preliminarily, Integra would expect the acquisition to add $57 million to $60 million in revenue in the first full year of the combination, and to then grow 3% to 5% longer term.

Company comments

for Integra

“The addition of the DuraSeal™ product lines enables our sales force and distributor partners to provide their customers with a best-in-class dural sealant as they seek to support surgeon’s efforts to minimize cerebrospinal fluid leaks upon completion of the surgical procedure,” said Robert Davis, President of Integra’s U.S. Neurosurgery division. “This acquisition perfectly complements our global Neurosurgery growth strategy aimed at providing a broader set of solutions for surgical procedures in the head. Together with our broad DuraGen® product line we are fortunate to have even more options to serve our customers and the individual needs of their patients.”

“This transaction adds scale to our business, leverages one of our strongest customer call points, and drives accretion to our gross margins,” said Jack Henneman, Integra’s Chief Financial Officer. “Upon completion of the transaction, we expect this deal to be accretive to both GAAP and adjusted earnings per share in the first year after considering the financing costs of the transaction.”

for Covidien

“This transaction allows Covidien to better focus on its global strategic priorities,” said Bryan Hanson, Group President, Medical Devices & U.S., Covidien. “Based on Integra’s presence in neurosurgery and spine surgery combined with a strong portfolio of clinical evidence, we believe these products will thrive under Integra’s ownership. We express our sincere gratitude to our dedicated employees and the clinicians who have partnered with us throughout the years.”

Source: Integra LifeSciences Holdings Corp., Globe Newswire