Iceland WestFjords

Danish Healthcare Giant Coloplast Acquires Icelandic Medical Company Kerecis in Landmark Deal Worth 175 Billion Icelandic Krona

Danish healthcare giant Coloplast has acquired Icelandic Kerecis for approximately 175 billion Icelandic Krona. The deal, valued at around 1.3 billion US dollars, will be financed through a share offering.

Insurance companies Sjóvá and VÍS approved the sale of their stakes in Kerecis yesterday, and the companies announced that Kerecis had received a takeover bid. Rumours of such a sale have been circulating in recent days. With the value of the transaction, the company’s worth has nearly doubled overnight, and Iceland has undoubtedly positioned itself as a hot spot for healthcare industry development.

Kerecis specializes in developing and producing medical products using fish skin and fatty acids, which protect body tissue and promote healing, with a focus on wound care.

The company has experienced tremendous growth, currently employing about 500 people. Its headquarters are in Ísafjörður (Westfjords of Iceland), where the company’s products are manufactured, while research and development occur in Reykjavik.

Kerecis’ groundbreaking technology utilizes intact fish skin that is rich in naturally occurring Omega-3 polyunsaturated fatty acids. When applied to damaged human tissue, such as burns or diabetic wounds, the material triggers the body’s own cells to regenerate and ultimately convert into living tissue.

Compared to other skin substitutes derived from mammals, Kerecis offers several advantages. It provides improved economics and clinical performance, reduces the risk of disease transmission, and eliminates cultural constraints on usage.

Other tissue-transplant products are typically sourced from human or porcine tissues, which require extensive processing to eliminate the risk of disease transmission. This intensive anti-viral treatment removes most of the natural components from the material, making it dissimilar to human skin.

The acquisition of Kerecis by Coloplast represents a significant development in the healthcare industry, as it brings together the innovative fish-skin technology of Kerecis with the global reach and expertise of Coloplast. This partnership holds great promise for advancing wound care and tissue regeneration, benefiting patients worldwide.

News release about the purchase can be read here.