Lengthening its recent string of acquisitions to rapidly expand in specialty health markets, medical technology developer C. R. Bard Inc., in the Murray Hill section of New Providence, agreed Tuesday to acquire Neomend Inc. and its pipeline of surgical sealants for $140 million.
Through its lone manufacturing site in Irvine, Calif., Neomend produces and markets the Progel Air Leak Sealant, currently the only product approved by the U.S. Food and Drug Administration for sealing air leaks in lungs after surgery.
As air leaks are common post-operative complications, often leading to extended hospital stays, Bard said in a statement the existing global market for surgical sealants like Neomend's sprayable Progel device is currently valued at more than $1 billion, and the firm's acquisition of the technology will "provide Bard a leading platform to begin its participation in this dynamic market segment."
Scott Lowry, vice president and treasurer for Bard, said Neomend's sealant is "a new technology for us, but it will expand and complement our specialty products."
"This is a relatively small company, but it has tremendous growth opportunity," Lowry said. "We're really focused on growth right now, and we'll continue to look to develop products demanded by customers and supplement our internal developments with more acquisitions in different markets."
Upon completion, the transaction will mark Bard's fourth acquisition since last year, when the firm bought Medivance Inc., Lutonix Inc. and ClearStream Technologies Ltd.
Following the deal, Lowry said, the company will maintain Neomend's manufacturing and R&D facility in Irvine, where Bard already operates a plant focused on developing minimally invasive devices for breast cancer treatment through its SenoRx Inc. subsidiary, which it acquired for $200 million in cash in 2010.
While Lowry said acquiring other firms has been "driving top-line growth" for Bard, he said the company will continue to invest in its own research and development arms, though he noted the company has "no plans to change anything in New Jersey right now."
Bard said the Neomend acquisition will expand business opportunities for its Rhode Island-based surgical specialties subsidiary, Davol Inc.