Baxter International Inc. (NYSE: BAX) is having a busy 2019. After acquiring Cheetah Medical in September for $190 million in cash, it announced last week it was taking Seprafilm off of Sanofi‘s (NYSE: SNY) hands. Sanofi will get $350 million for the portfolio, which includes Seprafilm Adhesion Barrier and related assets. The product is indicated for use in patients undergoing abdominal or pelvic laparotomy as an adjunct intended to reduce adhesions between the abdominal wall and the underlying viscera.
Seprafilm had global sales of $100 million in the past 12 months, including in markets such as the United States, Japan, China, South Korea and France. This acquisition builds Baxter’s surgical device portfolio. Approximately 20% of abdominal surgery patients return for adhesion-related complications, with annual surgical costs of more than $2 billion in the U.S. alone. The deal is expected to close in Q1 2020.
Sanofi initially acquired Seprafilm in its $20.1 billion acquisition of Genzyme Corporation way back in 2010.