Integra LifeSciences Holding Corporation has entered into an agreement with Covidien plc to acquire its Confluent Surgical product lines, surgical sealants, adhesion barrier and DuraSeal. Covidien will receive an initial cash payment of $235 million from Integra when the closing takes place, presumably by the end of the first quarter of 2014. In addition, Covidien may receive up to $30 million upon the achievement of certain performance measures.
Integra LifeSciences Buys Covidien’s DuraSeal
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Confluent Surgical products include: DuraSeal Exact/Xact, VascuSeal and SprayShield. These products generated approximately $65 million in revenue during 2012 and had gross margins comparable to Integra’s regenerative medicine product portfolio. Bryan Hanson, group president, Medical Devices & U.S., Covidien, said, “This transaction allows Covidien to better focus on its global strategic priorities. 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.”
“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.”
Analysts expect the acquisition to add $57 million to $60 million to Integra’s revenue in the first full year of the combination, and to then grow 3% to 5% longer term.
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This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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