Teleflex Completes acquisition of Palette Life Sciences

Teleflex Incorporated 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.
MB Bureau