Allergan plc shares slumped 1.4% in morning trade Tuesday after the company announced a $2.9 billion cash deal to buy Acelity’s regenerative medicine company LifeCell. The company said that its portfolio, combined with LifeCell’s regenerative medicines business, would provide “significant opportunity to enhance the overall product offering for plastic and geenral surgery customers globally.” Allergan said it expects LifeCell, which sells various products used for breast reconstruction and soft tissue repair, to generate about $450 million in revenue next year. As part of the acquisition Allergan will also get LifeCell’s New Jersey manufacturing space and R&D operations. The purchase is “both strategically and financially compelling to Allergan,” said CEO Brent Saunders, with the company citing statistics about the growing number of reconstructive breast surgeries and breast cancer’s prevalence. Allergan shares have dropped 39.2% year-to-date, compared with a 11.0% rise in the S&P 500 .
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