Sam Brusco, Associate Editor08.22.22
Teleflex has begun a deal to acquire Standard Bariatrics, a firm that provides powered stapling technology for bariatric surgery. Teleflex will pay $170 million cash upfront at closing with $130 million payable upon commercial milestone achievement.
Standard Bariatrics’ Titan SGS, according to the company1,2, touts the longest continual staple cutline of 23 cm. The stapler can help to achieve more consistent, symmetrical sleeve pouch anatomy. Staples can be planned and placed in one firing to minimize variations and the devie’s design can result in a more secure staple line with fewer chances of leaks.
“Teleflex’s strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications, and lower the overall cost of care,” chairman, president, and CEO Liam Kelly told the press. “The acquisition of Standard Bariatrics adds an exciting and differentiated product serving the large and growing sleeve gastrectomy market, which we estimate to be approximately 120,000 procedures3 annually in the U.S. In addition, the deal enables Teleflex to leverage our strength in our existing bariatric surgeon call point, with a differentiated product that complements many of our key surgical products, including our ligation portfolio, MiniLap Percutaneous Surgical System and Weck EFx Fascial Closure Portfolio.”
Kelly added, “We are excited to enter into this transaction, which we expect to be immediately accretive to Teleflex’s revenue growth and also enhance our gross margin profile over time. We also expect that the acquisition will exceed our cost of capital by the end of the fourth year following the completion of the acquisition.”
Titan SGS launched in Q1 2021 and Standard Bariatrics’ 2022 revenues are expected to be about $15 million. Teleflex expects $35 million in revenue gains for its fiscal year from Standard Bariatrics in 2023.
References
1 https://bit.ly/3R6mNs5
2 https://bit.ly/3AF2o84
3 American Society for Metabolic and Bariatric Surgery, Estimate of Bariatric Surgery Numbers, 2011-2020, published June 2022.
Standard Bariatrics’ Titan SGS, according to the company1,2, touts the longest continual staple cutline of 23 cm. The stapler can help to achieve more consistent, symmetrical sleeve pouch anatomy. Staples can be planned and placed in one firing to minimize variations and the devie’s design can result in a more secure staple line with fewer chances of leaks.
“Teleflex’s strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications, and lower the overall cost of care,” chairman, president, and CEO Liam Kelly told the press. “The acquisition of Standard Bariatrics adds an exciting and differentiated product serving the large and growing sleeve gastrectomy market, which we estimate to be approximately 120,000 procedures3 annually in the U.S. In addition, the deal enables Teleflex to leverage our strength in our existing bariatric surgeon call point, with a differentiated product that complements many of our key surgical products, including our ligation portfolio, MiniLap Percutaneous Surgical System and Weck EFx Fascial Closure Portfolio.”
Kelly added, “We are excited to enter into this transaction, which we expect to be immediately accretive to Teleflex’s revenue growth and also enhance our gross margin profile over time. We also expect that the acquisition will exceed our cost of capital by the end of the fourth year following the completion of the acquisition.”
Titan SGS launched in Q1 2021 and Standard Bariatrics’ 2022 revenues are expected to be about $15 million. Teleflex expects $35 million in revenue gains for its fiscal year from Standard Bariatrics in 2023.
References
1 https://bit.ly/3R6mNs5
2 https://bit.ly/3AF2o84
3 American Society for Metabolic and Bariatric Surgery, Estimate of Bariatric Surgery Numbers, 2011-2020, published June 2022.