C. R. Bard, Inc. (NYSE: BCR) today announced that it has entered into a definitive agreement to acquire privately-held Neomend, Inc., a leading developer and supplier of sprayable surgical sealants and anti-adhesion products for a purchase price of $140 million paid at closing and future contingent payments up to an additional $25 million based on specific revenue-based milestones through 2016. The transaction is structured as a merger and upon completion this acquisition will significantly expand the business opportunities for Bard surgical specialties in the Davol subsidiary.
Neomend markets the Progel ® Air Leak Sealant, which is the only FDA-approved product available for intraoperative sealing of air leaks following lung resection and has a CE mark for lung sealing and as an anti-adhesion barrier. This technology has a robust pipeline of potential future clinical indications that are designed to reduce costly post-operative complications across a variety of surgical specialties. The existing global market for surgical sealants and adhesion barrier products is over $1 billion and this acquisition will provide Bard a leading technology platform to begin its participation in this dynamic market segment.
Air leaks are one of the most common complications following lung surgery and they can lead to prolonged hospitalization. The Progel ® Pleural Air Leak Sealant has compelling clinical results that show a significant reduction in post-operative air leaks and inpatient length of stay. Lung surgery is most commonly used as part of treatment for cancer that is confined to the chest. 1 World-wide there are approximately 1.6 million new cases of lung cancer reported each year. 2 In the United States alone, 373,489 Americans are living with lung cancer 3 and during 2012, an estimated 226,160 new cases of lung cancer were expected to be diagnosed, representing almost 14 percent of all cancer diagnoses. 4 Approximately 220,000 lung surgeries are performed annually in the United States. 5
Timothy M. Ring, Bard’s chairman and CEO, commented, “With its unique and proprietary technology, Neomend is the market leader in thoracic sealing. This merger represents a great strategic fit for us as this technology platform is an important building block for our surgical specialty product offering and is synergistic with our call point and global reach.”