Pain Pump Manufacturer I-Flow Is Sold To Kimberly-Clark

Last week, Kimberly-Clark Corporation and I-Flow Corporation announced their agreement for the sale of I-Flow to Kimberly-Clark. News reports reveal that the transaction is valued at $276 million. I-Flow has net sales of over $1 billion and has always had the largest market share of the pain pump business. However, there have long been concerns about I-Flow’s financial viability, specifically regarding the shoulder pain pump litigation. It was disappointing that the press release did not mention the impact to pending litigation, or the degree to which that litigation affected the transaction. However, it appears that there is a shareholder lawsuit brewing over the expected sale.

For our money, the sale is a good thing. First, Kimberly-Clark, though having low medical device experience, is a reputable company that will hopefully steer I-Flow in the right direction (away from the mismanagement and dollar-focused predecessors). Second, it means that there may be some assets available so injured patients don’t end up being left with only I-Flow’s parking lot…