Coloplast expands into biologics wound care segment 

MINNEAPOLIS – Coloplast has signed an agreement to buy Kerecis, a biotech company based in Iceland that is pioneering the use of fish skin in the regenerative medicine market, for up to $1.3 billion. 

Coloplast will pay $1.2 billion upfront on a cash and debt-free basis and will pay up to a $100 million earnout dependent on financial performance in fiscal year 2023-24. 

“The advanced wound care market holds significant untapped potential, and today Coloplast is only present in the advanced dressings segment and mostly outside of the U.S.,” said Kristian Villumsen, president & CEO of Coloplast. “Chronic, surgical, burn, and other hard-to-heal wounds are a major area of unmet clinical need and a growing social and economic challenge. With the acquisition of Kerecis, we obtain a differentiated product offering and strong commercial U.S. infrastructure, allowing us to expand into the fast-growing biologics wound care segment and at the same time expand our position in the U.S. We believe that Kerecis is an emerging category leader, well positioned to continue outgrowing the market over the long-term. I am excited to welcome Kerecis into the family and together build a truly global wound care franchise with a unique offering, to the benefit of the many patients in need of wound treatment.” 

Kerecis, which has an office in Arlington, Va., launched its product in 2016 and has since become, according to a press release, the fastest-growing company in the biologics wound care segment, earning DKK 510 million in revenues and reaching break even in fiscal year 2021-22. The company is expected to grow about 50% in fiscal year 2022-23. 

Following the acquisition, Kerecis will operate as a standalone business unit with its own identity and brand, with integration focused on business support and other selected areas to support its growth and continued expansion. 

The total advanced wound care market is estimated at around DKK 55 billion, of which up to DKK 26 billion is in the advanced dressings segment, around DKK 15 billion in the biologics segment, and around DKK 13 billion in the external devices segment, according to the release.