Apollo Endosurgery, a developer of medical devices and endoscopic surgical procedures, has entered into a definitive agreement to purchase the obesity intervention division of Allergan for up to $110 million. The total includes an upfront cash payment of $75 million, minority equity interest of $15 million, and up to $20 million in additional contingent consideration to be paid upon achievement of certain regulatory and sales milestones. The obesity intervention division is responsible for manufacturing and marketing the LAP-BAND adjustable gastric band system and the ORBERA intra-gastric balloon system.
"The acquisition of the LAP-BAND and ORBERA technologies will provide Apollo Endosurgery with a strong revenue stream that will enable us to expand our investment in innovative solutions that focus on improving patient outcomes in both the bariatric and endoscopic spaces," said Dennis McWilliams, President and CEO of Apollo Endosurgery. "The addition of these devices will complement Apollo's portfolio to include less invasive bariatric product offerings while expanding our domestic sales channel and increasing our global reach into more than 40 countries."