Allergan has acquired the regenerative medicine company LifeCell for $2.9 billion in cash.
The acquisition combines LifeCell’s novel, regenerative medicines business, including its high-quality and durable portfolio of dermal matrix products with Allergan’s leading portfolio of medical aesthetics, breast implants and tissue expanders. Allergan said that it anticipates the LifeCell assets will generate approximately$450 million in 2016 revenue, growing at a mid-single digit rate, approximately 75% gross margin and approximately 40% operating margin in 2016.
LifeCell’s commercial portfolio features Acellular Dermal Matrices, commonly used in breast reconstruction procedures and complex hernia surgeries to provide soft tissue support. Key products include Alloderm, a human allograft tissue matrix which allows for a strong, intact repair in challenging procedures and is intended to be used for repair or replacement of damaged or inadequate soft tissue, including breast reconstruction post-mastectomy; and Revolve, 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. Strattice is considered the industry standard for challenging hernia repair. LifeCell has also developed Artia, a porcine based tissue matrix which is approved and launched in some European markets.
In addition to its commercial products, upon close Allergan will also acquire LifeCell’s innovative manufacturing capabilities and its R&D operations, based in New Jersey.
“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. LifeCell’s regenerative medicine unit is a strong fit with our existing business and can be significantly strengthened with our infrastructure and global reach,” said Brent Saunders, Chairman and CEO of Allergan. “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.”, Saunders added.
Joe Woody, Acelity President and Chief Executive Officer commented: “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.”
Allergan currently anticipates closing the transaction during the first half of 2017.