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C. R. Bard, Inc.
today announced that it has entered into a
definitive agreement to acquire privately-held Medafor, Inc., a leading
developer and supplier of plant based hemostatic agents for the purchase price
of $200 million paid at closing, expected to occur later this year, and future
contingent payments up to an additional $80 million based on specific
revenue-based milestones through June 30, 2015. 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.
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 existing global market for surgical hemostats is over $1.4 billion and
this acquisition will provide Bard with a proprietary technology platform to
expand its participation in this dynamic market.
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.”
The company expects this acquisition to add approximately 1% to revenue growth
in 2014, and be a few cents dilutive to adjusted earnings per share in 2013
and neutral to 2014.
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