ConvaTec acquires Triad Life Sciences for Wound Biologics Foray
Medical products manufacturer ConvaTec, known primarily for its catheters, colostomy bags and various other medical supplies, recently made a move that will expand its portfolio to include biological wound healing therapies. Its acquisition of Tennessee-based Triad Life Sciences is part of the FDA-approved InnovaMatrix platform, which uses pig placenta to produce wound dressing sheets, which accelerate wound healing following surgery. , trauma and other injuries. The takeover puts the platform in the company of the many advanced therapy products and systems that ConvaTec is known for, and it will undoubtedly be a star performer.
Karim Bitar, CEO of ConvaTec, said, “Today’s announcement marks another successful step in our strategic intent to pivot to sustainable and profitable growth. This transaction will strengthen our wound care business and allow ConvaTec to enter the growing wound biologics segment. Triad Life Sciences offers innovative and differentiated products and an exciting pipeline that matches our vision: pioneering and trusted medical solutions to improve the lives we touch.
The total potential price of the deal of $450 million makes it by far the largest acquisition ConvaTec has secured in recent years. Although $125 million is being paid upfront to recover Triad, its new subsidiary status allows it to collect two short-term milestone payments of $25 million each. There’s also an additional $275 million up for grabs to meet two more financial performance goals at the end of the first and second years post-buyout.