C. R. Bard, Inc. has announced that it has entered into a definitive agreement to acquire privately-held Neomend, Inc., a leading developer and supplier of sprayable surgical sealants and anti-adhesion products.
The existing global market for surgical sealants and adhesion barrier products is over $1 billion, although attaching value to some of the niches within what is a very diffuse application base is akin to knitting fog. The anti-adhesion barrier market, for example has been everything from the biggest opportunity out there to the least easy to develop. Just ask Genzyme.
Neomend markets the Progel® Air Leak Sealant, which is the only currently FDA-approved product available for intraoperative sealing of air leaks following lung resection. It has a CE mark for lung sealing as well as its indication as an anti-adhesion barrier.
The company’s technology supposedly has a robust pipeline of potential future clinical indications that are designed to reduce costly post-operative complications across a variety of surgical specialties.
Air leaks are one of the most common complications following lung surgery and they can lead to prolonged hospitalization. The Progel® Pleural Air Leak Sealant has compelling clinical results that show a significant reduction in post-operative air leaks and inpatient length of stay.
Bard is paying a reported purchase price of $140 million at the closing of the deal, together with future contingent payments up to an additional $25 million based on specific revenue-based milestones through 2016.
The transaction is structured as a merger and upon completion this acquisition will significantly expand the business opportunities for Bard surgical specialties in the Davol subsidiary.
Timothy M. Ring, Bard’s chairman and CEO, commented, “With its unique and proprietary technology, Neomend is the market leader in thoracic sealing. This merger represents a great strategic fit for us as this technology platform is an important building block for our surgical specialty product offering and is synergistic with our call point and global reach.”
Source: C R Bard, Inc.