Palette Life Sciences announced it has entered into a definitive agreement to be acquired by Teleflex Incorporated for an upfront cash payment of $600 million at closing, and up to an additional $50 million upon the achievement of certain commercial milestones. The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed in the fourth quarter of 2023.
The acquisition solidifies plans for the global commercial expansion of the Palette Life Sciences portfolio of Non-Animal Stabilised Hyaluronic Acid (NASHA)-based products, including Barrigel, Deflux and Solesta. Barrigel, the first and only hyaluronic acid rectal spacer that significantly reduces radiation delivered to the rectum during prostate cancer radiation therapy, received U.S. Food and Drug Administration (FDA) 510(k) clearance in 2022.
Barrigel has achieved substantial growth in many global markets because of its unique control over placement and visibility during injection procedures. Deflux and Solesta, which are also NASHA-based products, are tissue bulking agents designed to treat pediatric vesicoureteral reflux and incontinence, respectively.
“The original founding vision for Palette Life Sciences was to disrupt the rectal spacing market with a new product innovation that would serve as a better option for doctors and their patients,” said Travis Gay, Chief Commercial Officer and co-Founder of Palette Life Sciences. “As a result, Palette would achieve strong market growth and expansion, creating high value for patients and shareholders alike. Entering into the agreement with Teleflex serves as an important milestone in achieving our vision.”
With radiation treatment trends increasing, the market for Barrigel is expected to continue to grow. Barrigel is cleared for marketing in the US, Australia, and is CE Marked.