Medical product maker ConvaTec, known mainly for its catheters, colostomy bags, and various other medical supplies, has made a recent move that will augment its portfolio to include biologic wound-healing therapies. Its acquisition of Tennessee-based Triad Life Sciences comes part and parcel with the FDA-approved InnovaMatrix platform, which uses pig placenta to produce sheets of wound coverings—hastening healing of wounds from surgery, trauma, and additional injuries. The buyout puts the platform in the company of the many advanced products and therapy systems for which ConvaTec is known, and it will undoubtedly be a breakout star.
Karim Bitar, CEO of ConvaTec, said, “Today’s announcement marks another successful step in our strategic intent of pivoting to sustainable and profitable growth. This transaction will strengthen our wound care business and enable ConvaTec to enter the rapidly growing wound biologics segment. Triad Life Sciences has innovative and differentiated products and an exciting pipeline which is consistent with our vision: pioneering trusted medical solutions to improve the lives we touch.”
The deal's total potential price tag of $450 million makes this far and away the biggest acquisition ConvaTec has secured in the past few years. Though $125 million will be paid upfront to pick up Triad, its new status as a subsidiary makes it eligible to collect two short-term milestone payments of $25 million each. There's also an additional $275 million to be made for meeting two other financial performance goals at the ends of the first and second years following the buyout.