US-based Kinetic Concepts (KCI), LifeCell and Systagenix have joined forces to form a single entity that focuses on wound care, biologics and regenerative medicines.
The new company will be headed by KCI president and CEO Joe Woody, while LifeCell commercial operations chief Phil Croxford has been appointed as senior vice-president and permanent leader of LifeCell.
LifeCell/KCI board chairman Buddy Gumina said the combination of these businesses will form a leading medical technology company with more than $2bn in revenue.
"The new company, under the proven leadership of Joe Woody, will amplify existing capabilities, open the door for new growth opportunities and improve the lives of patients around the world," Gumina said.
While KCI and LifeCell will begin operating as single entity immediately, Systagenix will later be absorbed into the combined company after KCI closes its acquisition of Systagenix.
KCI's acquisition of Systagenix is expected to complete in the fourth quarter of 2013 following regulatory approvals.
KCI recently signed a definitive agreement to acquire Systagenix for $485m as part of its strategy to boost revenues and expand its geographic presence.
The new entity expects to lead the market in negative pressure wound therapy, regenerative tissue products for breast reconstruction and hernia repair and advanced wound therapy by leveraging the combined strengths of the three companies - core competencies, portfolio expertise and existing sales channels.
Woody said operating as one company will foster collaboration and increased innovation across platforms, leading to new products that will address unmet clinical needs.
"The combination of KCI, LifeCell and Systagenix will allow us to strengthen our customer relationships, while creating opportunities to cross-sell our products across the entire continuum of care, following the patient from the operating room to the home with a combined portfolio of best-in-class products and therapies," Woody added.