Teleflex Completes Acquisition of Palette Life Sciences

Rhea-AI Summary

Teleflex completes acquisition of Palette Life Sciences, adding Barrigel® to its Interventional Urology portfolio.

Positive

• Teleflex acquires Palette Life Sciences for $600 million, with potential additional payment of up to $50 million.
• Palette's net revenue expected to be approximately $56 million for 2023.
• Transaction expected to deliver high-teens to low 20% revenue growth in 2024.

Negative

• None.

WAYNE, Pa., Oct. 10, 2023 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE:TFX), a leading global provider of medical technologies, today announced that it has completed the previously announced acquisition of Palette Life Sciences AB. The acquisition adds Barrigel®, a biodegradable sculptable rectal spacer, to Teleflex’s Interventional Urology portfolio. Barrigel® is a Non-Animal Stabilized Hyaluronic Acid (NASHA) spacer designed to reduce radiation delivered to the rectum during prostate cancer radiation therapy, while increasing tumor control and patient quality of life.¹ The Palette Life Sciences portfolio also includes Deflux^® and Solesta^®, which are NASHA based tissue bulking agents designed to treat pediatric vesicoureteral reflux and fecal incontinence, respectively.

On July 26, Teleflex announced its entry into a definitive agreement to acquire Palette. Under the terms of the agreement, Teleflex acquired Palette for an upfront cash payment of $600 million at closing, with additional consideration of up to $50 million upon the achievement of certain commercial milestones.

On a standalone basis, we continue to expect Palette net revenue to be approximately $56 million for 2023. The acquisition is expected to be approximately $0.25 dilutive to adjusted earnings per share (excluding non-recurring purchase accounting items and other acquisition and integration related costs) in 2023.

For 2024, the transaction is expected to deliver a high-teens to low 20% revenue growth profile and be approximately $0.35 dilutive to adjusted earnings per share (excluding non-recurring purchase accounting items and other acquisition and integration related costs). The transaction is expected to be increasingly accretive to adjusted EPS, thereafter.

The Company will provide an update to its 2023 financial outlook on its third quarter earnings conference call.

About Teleflex Incorporated
Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow^®, Deknatel^®, LMA^®, Pilling^®, QuikClot^®, Rüsch^®, UroLift^® and Weck^® – trusted brands united by a common sense of purpose.

Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Any forward-looking statements contained herein are based on our management's current beliefs and expectations, but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or company actions to differ materially from what is expressed or implied by these statements. These risks and uncertainties are identified and described in more detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

Teleflex, the Teleflex logo, Arrow, Deknatel, LMA, Pilling, QuikClot, Rüsch, UroLift, and Weck are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries.
© 2023 Teleflex Incorporated. All rights reserved.

Barrigel, Deflux and Solesta are trademarks or registered trademarks of Galderma Holding S.A.

References:

1. Mariados NF, Orio PF, Schiffman Z, et al. Hyaluronic acid spacer for hypofractionated prostate radiation therapy: a randomized clinical trial. JAMA Oncol. 2023; e1-e8.
   

Contacts:
Teleflex
Lawrence Keusch
Vice President, Investor Relations and Strategy Development
investor.relations@teleflex.com
610-948-2836

FAQ

What did Teleflex acquire from Palette Life Sciences?

Teleflex acquired Barrigel®, a biodegradable sculptable rectal spacer.

What are the other products in Palette Life Sciences portfolio?

The portfolio includes Deflux® and Solesta®, used to treat pediatric vesicoureteral reflux and fecal incontinence, respectively.

How much did Teleflex pay for the acquisition?

Teleflex paid $600 million upfront, with a potential additional payment of up to $50 million.

What is the expected revenue growth profile for the transaction in 2024?

The transaction is expected to deliver a high-teens to low 20% revenue growth profile in 2024.

Will the acquisition be dilutive to adjusted earnings per share?

Yes, the acquisition is expected to be dilutive to adjusted earnings per share in 2023 and 2024, but increasingly accretive thereafter.