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| The once-popular Lap-Band--Courtesy of Allergan |
Austin, TX's Apollo Endosurgery traded $90 million for Allergan's ($AGN) under-performing Lap-Band technology last year, and now the company is rolling out a marketing effort of its own, looking to succeed where its forebear struggled.
Through TV ads, a new logo and the catchphrase "it fits," Apollo is touting the adjustable gastric banding system as a minimally invasive solution for obese patients. Lap-Band remains the only device FDA-approved for weight loss in people with a BMI above 30 and at least one weight-related health problem, Apollo said, and the company is now making its case to physicians and patients.
Apollo acquired the device, on the market for more than 18 years, from Allergan in December, signing a deal worth $90 million in cash and equity up front plus another $20 million tied to milestones down the line. The acquisition also included the Allergan's Orbera intragastric balloon system, which is yet to receive FDA approval.
Apollo's commercial effort is designed to give new life to a technology that has long since peaked on the market. Lap-Band's halcyon days came in 2009, when Allergan's obesity business brought in $296 million. That figure gradually slumped to $159.5 million by 2012, and the company lumped its Lap-Band sales under "discontinued operations" throughout 2013.
"With the increasing prevalence of obesity in the United States, the Apollo Endosurgery team decided that it was time to refresh the brand and inspire people who have tirelessly tried everything else to lose weight, with little to no success, to finally conquer their weight issue with the Lap-Band system," CEO Dennis McWilliams said.
Apollo, a privately held company, doesn't disclose its sales figures, but McWilliams has said he expects the addition of Lap-Band to bring in well over $100 million in annual revenue.
Beyond its Allergan-bought gains, Apollo has commercialized a fleet of endoscopic surgical products, including OverStitch, a minimally invasive suturing device.
- read the statement
Special Report: FierceMedicalDevices' 2012 Fierce 15 - Apollo Endosurgery