Integra LifeSciences (IART), of Plainsboro, NJ, has announced plans to acquire Irvine, CA-based IsoTis (ISOT) in a $51 million deal that would create one of the largest orthobiologics companies in the world.
Upon closing, IsoTis will become a wholly owned subsidiary of Integra. The combined company will operate in North America and Europe with more than 2,000 employees, including about 300 sales and service professionals.
IsoTis currently distributes its products through a network of independent distributors in the U.S. and internationally, as well as through private-label partners. Integra has direct sales organizations focused on neurosurgery, extremity reconstruction, spinal surgery and general surgery, with over 250 direct reps in the U.S. and over 50 in Europe. The combined entity will have one of the largest orthobiologics sales forces in the U.S.
IsoTis recently announced its intention to wind down its European operations, a move that’s expected to deliver pre-tax savings of approximately $3-$5 million per year. Despite this decision, the companies said the increased scope and scale created by a merger would grow international revenues.
A merger also would create a comprehensive product portfolio:
Integra will bring to the table the following: Integra Dermal Regeneration Template, a tissue-engineered product for burn and reconstructive surgery; DuraGen Dural Graft Matrix, a collagen matrix for dural closure; Integra Mozaik, an osteoconductive scaffold designed to create an environment favorable for the binding, migration, and growth of cells; and NeuraGen Nerve Guide, an absorbable collagen tube designed to be an interface between the nerve and the surrounding tissue and to create a conduit for axonal growth across a nerve gap.
IsoTis will contribute its demineralized bone matrix products, DynaGraft II and OrthoBlast II.
The deal, unanimously approved by IsoTis’ board, is expected to close in the fourth quarter of this year.