Apollo Endosurgery closed its $110 million purchase of Allergan's ($AGN) obesity intervention business this month and has raised $90 million in debt and equity funding to help finance the deal.
Dennis McWilliams, president and CEO of the Austin, TX, medical device company and 2012 Fierce 15 winner, told FierceMedicalDevices that the company has raised $40 million in equity financing from existing investors and also secured a $50 million round of debt financing from a group including Oxford Finance, MidCap Financial and East West Bancorp.
When the agreement was first announced, Apollo agreed to pay Allergan $75 million up front, plus a minority equity interest of $15 million. Allergan stands to gain up to $20 million more over time based on certain regulatory and sales milestones.
McWilliams said the acquisition has progressed smoothly so far, transforming a company that employed 45 people into a much larger enterprise with more than 100 employees and $100 million in revenue.
"We're in the midst of integration and it has gone very well," McWilliams said.
For example, Apollo has officially begun selling the Lap-Band adjustable gastric banding device, a product on the market for 18 years that was a strong seller for Allergan before peaking a few years back. Also, Apollo has taken over final U.S. clinical work regarding the Orbera intragastric balloon system, with plans to make a PMA approval submission with the FDA in early 2014, McWilliams told us.
Apollo has plenty more devices to market, adding the former Allergan obesity intervention products to its own endoscopic surgical tool roster, including its OverStitch endoscopic suturing system.
When the sale was first announced, McWilliams said he saw the move as a logical step for Apollo that extended its focus on less-invasive medical devices for a variety of procedures.
- read the Oxford release
- here's the Austin Business Journal's take
Special Report: FierceMedicalDevices' 2012 Fierce 15 - Apollo Endosurgery