Baxter Acquires Seprafilm Adhesion Barrier from Sanofi for $350 Million to Expand Advanced Surgical Portfolio

VCBeat (WeChat ID: vcbeat) learned from Business Wire that on December 2, 2019, Baxter International Inc., a global leader in medical products, announced that it had reached a final agreement with Sanofi to acquire the Seprafilm Adhesion Barrier device and related assets from Sanofi.

This agreement is the latest example of Baxter's continued focus on acquiring products and technologies that have a strong strategic fit with the company's leading portfolio across hospitals, including operating rooms. The transaction is expected to be completed for a cash purchase price of $350 million, with completion anticipated no later than the first quarter of 2020.

Anti-adhesion products, hemostats, and sealants are essential tools for surgeons to manage intraoperative bleeding and reduce adhesions. Adhesions can occur in any surgical procedure when scar tissue forms and binds with adjacent tissues. Adhesions are a leading cause of postoperative complications, often requiring revision or reoperation to remove them. Data show that up to 93% of patients develop adhesions after open abdominal surgery, and approximately 20% of patients who have undergone abdominal surgery are readmitted due to adhesion-related complications. In the United States alone, annual surgical costs related to adhesions exceed $2 billion.

Sanofi’s Seprafilm Adhesion Barrier is indicated for patients undergoing abdominal or pelvic open surgery. As an adjunct, this product is designed to reduce the incidence and severity of postoperative adhesions between the abdominal wall and underlying viscera (such as the omentum, small intestine, bladder, and stomach), as well as between the uterus and surrounding structures, the fallopian tubes and ovaries, and the large intestine and bladder.

Currently, Seprafilm’s business spans the globe, with its products sold in the United States, Japan, China, South Korea, and France. Within the 12 months following the closing of the transaction, the sales revenue of the acquired products is expected to be approximately $100 million.

Baxter, founded in 1931 and headquartered in Illinois, USA, is a global leader in the biotechnology industry. The company is primarily engaged in the research and development of medical devices, innovative technologies, and therapies, providing new treatment options for patients with hemophilia, immune system disorders, infectious diseases, kidney diseases, and other acute and chronic conditions. Baxter was listed on the New York Stock Exchange in January 1978, under the stock ticker symbol BAX.

Baxter operates three business segments: BioScience, Medication Delivery, and Renal, primarily manufacturing intravenous (IV) solutions, novel drug delivery devices, and hemodialysis products. Millions of patients and healthcare professionals worldwide rely on Baxter’s solutions for critical care, nutrition, kidney health, and surgical applications. Leveraging its specialized medical expertise and extensive experience in medical product research and development, Baxter is committed to driving innovation and transformation in the next generation of the healthcare industry.

Regarding this acquisition, Wil Boren, General Manager of Baxter’s Advanced Surgery business, stated: “Seprafilm will serve as a strong complement to our leading portfolio of hemostats and sealants, helping us continue to advance the refinement of recovery technologies by optimizing patient care in the operating room. Although Seprafilm has gained clinical recognition among surgeons globally, we plan to provide commercial support for this product through our dedicated surgical sales force and seek opportunities for expansion in certain countries/regions.”

Sanofi is a healthcare company engaged in the research, development, manufacturing, and marketing of innovative therapeutic solutions. Its portfolio spans diabetes care, human vaccines, innovative medicines, consumer health, emerging markets, animal health, and new enzyme technologies. Its products include prescription and over-the-counter medications for thrombosis, cardiovascular diseases, diabetes, central nervous system disorders, oncology, general internal medicine, as well as vaccines and other medical products.

(Compiled by Wang Fang)