C. R. Bard, Inc. is to acquire privately-held Medafor, Inc., a leading developer and supplier of plant based hemostatic agents. The purchase price of $200 million will be paid at closing, expected to occur later this year, and future contingent payments up to an additional $80 million are based on specific revenue-based milestones through June 30, 2015.
Bard’s acquisition of Medafor will provide it with a proprietary technology platform to expand its participation in this dynamic $1.4Bn surgical hemostat market.
Medafor markets the Arista® MPH Hemostat, which is indicated as an adjunctive hemostatic agent to control bleeding when conventional means are ineffective or impractical. The Arista platform is a plant-based Microporous Polysaccharide Hemospheres technology that has been shown to be safe, effective and easy to use in a variety of surgical procedures. In addition, Medafor has a robust pipeline of potential future products that we expect will expand the use of this clinically proven and effective hemostat to control bleeding. Surgical hemostats are used in a wide variety of procedures to control bleeding intraoperatively in order to reduce hemorrhage. In addition, these products help provide greater visibility of the surgical site and help reduce postoperative complications and the potential for costly transfusions.
The transaction is structured as a merger and has been approved by both companies’ boards of directors, and is subject to an approval by Medafor’s shareholders and customary regulatory review. This acquisition is expected to expand the business opportunities for Bard surgical specialties in its Davol subsidiary.
Timothy M. Ring, Bard’s chairman and CEO, commented, “With the acquisition of Medafor, we continue to shift the mix of the portfolio to improve the organic growth profile of the business for the longer term. With its safety and ease of use profile, the Arista® hemostat provides a great alternative to other commercially available hemostats while providing strong synergy with our Progel® Sealant technology and sales channel. This technology platform represents an important building block for our surgical specialty product offering and provides a global footprint for continued expansion.”
Source: C. R. Bard, Inc., Business Wire