Matria sell diabetes companies

The diabetes industry – the companies and corporations involved in treating the disease – is in a time of flux. Huge emerging global markets are sending entrepreneurs and investors into a spi, and major financial deals are underway. Novel diabetes products that either approach treatment in a new way (Exubera – inhaleable insulin) or provide new benefits (Byetta – weight loss diabetes drug) can literally be worth 100s of millions of dollars .
The company Matria Healthcare Inc. announced yesterday that they would sell their diabetes product subsidiary Facet Technologies to the large private-equity firm Water Street Capital Partners LLC.
The deal is rumoured to be worth approximately $122 million, and will close towards the end of August. The move from Matria was expected, following an announcement by the company that they would release two of its businesses, Facet Technologies and Dia Real, earlier this year. Facet will now be sold, and Matria report that ‘excellent progress’ is being made in the divestiture of Dia Real.
Matria are putting all of their resources together, and are expected to reduce debt by about $175 million by the end of the year.
The deal highlights the enormity of the stakes involved in the pharmaceutical and drug research industry, stakes that can only become higher as the diabetic population of the globe continues to increase.