Teleflex to expand in life sciences with $600m Palette Life Sciences acquisition
Palette Life Sciences, a global life sciences company dedicated to enhancing patient outcomes, has announced its acquisition by Teleflex Incorporated (NYSE:TFX) for an upfront cash payment of $600 million, with a potential additional $50 million upon reaching certain commercial milestones.
This acquisition, subject to customary closing conditions including certain regulatory approvals, is slated for completion in the fourth quarter of 2023.
This acquisition signals Teleflex’s intention for global commercial expansion of Palette Life Sciences’ portfolio of Non-Animal Stabilized Hyaluronic Acid (NASHA)-based products, including Barrigel, Deflux and Solesta. Barrigel, a unique hyaluronic acid rectal spacer that significantly reduces radiation during prostate cancer radiation therapy, received U.S. Food and Drug Administration (FDA) 510(k) clearance in 2022. It has seen substantial growth globally due to its unique control over placement and visibility during injection procedures. Deflux and Solesta, also NASHA-based products, are designed as tissue bulking agents to treat pediatric vesicoureteral reflux and incontinence, respectively.
Travis Gay, Chief Commercial Officer and co-Founder of Palette Life Sciences, said, “The original founding vision for Palette Life Sciences was to disrupt the rectal spacing market with a new product innovation that would serve as a better option for doctors and their patients.” He added that this agreement with Teleflex marks an important milestone towards their vision.
With radiation treatment trends on the rise, the market for Barrigel is expected to continue growing. The product is cleared for marketing in the US and Australia, and has received CE Marking.
James Leech, Chief Business Officer of Palette Life Sciences, expressed his excitement about adding Palette Life Sciences products into Teleflex’s Interventional Urology portfolio. Echoing this sentiment, Per Langoe, Chief Executive Officer and co-Founder of Palette Life Sciences, said, “Teleflex is an excellent fit for our products and team. The synergies between the companies’ portfolios, specifically within the urology call point, create an exciting opportunity for continued high growth and market access expansion.”
Chief Operating Officer at Palette Life Sciences, Ole Mikkelsen, emphasized the significance of the distinct culture of Palette Life Sciences in contributing to the rapid commercial growth of products like Barrigel. He expressed optimism about delivering solutions to patients globally.