Pacira to Invest up to $25M in Surgical Reconstruction Company TELA Bio
New Jersey-based Pacira Pharmaceuticals has now announced an investment of up to $25 million in TELA Bio, a privately-held surgical reconstruction company that markets its proprietary OviTex™ portfolio of products for ventral hernia repair and abdominal wall reconstruction.
Pennsylvania-based Tela Bio has a portfolio of reinforced bioscaffold products, called OviTex, which combine biologic and synthetic materials in an embroidered implant that allows fluid and cells to move freely through the device. The implants are designed for ventral hernia repair and abdominal wall reconstruction.
The vitex portfolio is supported by high-quality, data-driven science and extensive pre-clinical research that has consistently demonstrated the advantages of an RBS over commercially available products.
OviTex Reinforced BioScaffolds (RBSs) are intended for use as a surgical mesh to reinforce and/or repair soft tissue where weakness exists. Indications for use include the repair of hernias and/or abdominal wall defects that require the use of reinforcing or bridging material to obtain the desired surgical outcome.
Under the terms of the agreement, Pacira will make an initial investment of $15M with the
potential for an additional investment of up to $10M under certain performance scenarios. Pacira is entitled to one seat on the TELA board. The agreement also includes a standstill provision precluding a change of control in TELA Bio for at least 12 months.“We are thrilled with this Pacira investment given its complementary commercial experience and success in driving innovation within the surgical community,” said Antony Koblish, president and chief executive officer of TELA Bio. “This investment will provide us with additional resources to scale-up our clinical and commercial efforts for hernia repair and abdominal wall reconstruction. We also look forward to developing new OviTex products purposely designed for additional soft tissue procedures such as breast reconstruction.”
“We believe the OviTex platform is a highly innovative and differentiated solution that is positioned to emerge as a leading surgical mesh that synergistically blends the strength of a synthetic with the regenerative properties of a biologic,” said Dave Stack, chairman and chief executive officer of Pacira Pharmaceuticals. “Given the strong commercial overlap in soft tissue procedures between our two organizations, we look forward to identifying ways to further collaborate with TELA Bio over time.”