Teleflex inks $650m deal with Nordic pharma firm
Swedish company’s products treat urologic disorders and colorectal conditions | Portfolio includes unique treatment for prostate cancer radiation therapy.
US healthcare technology company Teleflex has bought Stockholm-based Palette Life Sciences for an upfront cash payment of $600 million, it was announced on Wednesday, July 26.
The deal will generate a further $50 million upon the achievement of certain commercial milestones, and is expected to be completed in the fourth quarter of 2023, said the statement released by Palette Life Sciences.
The Swedish company’s products treat those with urologic disorders and colorectal conditions, as well as patients who have undergone radiotherapy and interventional oncology procedures.
The acquisition is aimed at the global commercial expansion of the Swedish firm’s portfolio of Non-Animal Stabilsed Hyaluronic Acid (NASHA)-based products, including Barrigel, Deflux and Solesta.
Barrigel, which is the first and only hyaluronic acid rectal spacer that significantly reduces radiation delivered to the rectum during prostate cancer radiation therapy, received US Food and Drug Administration clearance in 2022. The treatment is also cleared for marketing in the US, Australia, and is CE marked.
It has achieved substantial growth in many global markets because of its control over placement and visibility during injection procedures, said the statement.
Deflux and Solesta, which are also NASHA-based products, are tissue bulking agents designed to treat paediatric vesicoureteral reflux and incontinence, respectively.
“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,” said Travis Gay, chief commercial officer and co-founder of Palette Life Sciences.
“As a result, Palette would achieve strong market growth and expansion, creating high value for patients and shareholders alike. Entering into the agreement with Teleflex serves as an important milestone in achieving our vision.”
With radiation treatment trends increasing, the market for Barrigel is expected to continue to grow, noted the statement.
“We are extremely excited to add Palette Life Sciences products into Teleflex’s Interventional Urology portfolio,” said James Leech, chief business officer of Palette Life Sciences.
Per Langoe, chief executive officer and co-founder of Palette Life Sciences added:
“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.
“The two companies have a shared view of the importance of medical education and training as well as continued clinical development that can lead towards best-in-class patient care.”
Also commenting, Ole Mikkelsen, chief operating officer at Palette Life Sciences, said:
“The rapid commercial growth of products like Barrigel is the direct result of the distinct culture that has defined Palette Life Sciences.
“Recognising the tremendous contributions from every corner of this organisation, we are excited to deliver solutions to patients globally.”
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