Hot Growth Special Report 2006 >



LifeCell (LIFC)

It's been a bit of a roller coaster for LifeCell. The biotech company has been riding high in recent years--with sales up an average 41% a year over the past three years and profits up 72% annually--thanks to its human tissue product AlloDerm. LifeCell takes donated human tissue and strips out the cells that would cause recipients to reject it as foreign. It is then used to perform surgical procedures including complex hernia repairs. But last fall, LifeCell got caught up in a gruesome scandal involving a tissue bank that allegedly harvested tissue from deceased individuals who had never consented to be donors. A resulting investigation by the Brooklyn District Attorney resulted in the indictment of four individuals. While not implicated in the alleged conspiracy, LifeCell obtained cadaver material from the tissue bank in question and has now been named in a number of lawsuits. The company says it will defend itself against the lawsuits and also says it has not received reports of disease transmission.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

41.1 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

72.3 %

Return on Inv. Capital (3-yr.)

20.0 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

13.7 %

P/E Ratio


No. of Employees


Industry Health Care Supplies


Location Branchburg, N.J.
Phone 908 947-1100
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

LifeCell Corporation engages in the development and marketing of human-derived tissue-based products for use in reconstructive, orthopedic, and urogynecologic surgical procedures to repair soft tissue defects. It produces a regenerative human tissue matrix, a three-dimensional structure that contains vascular channels, proteins, and growth factor binding sites, that provide a template for the regeneration of normal human tissue. The company's products include AlloDerm, which is used for plastic reconstructive, general surgical, burn, and periodontal procedures; Cymetra, a particulate form of AlloDerm suitable for injection; GraftJacket and GraftJacket Xpress for orthopedic applications and lower extremity wounds; AlloCraftDBM for bone grafting procedures; and Repliform for urogynecologic surgical procedures. The company sells its products primarily to plastic surgeons, general surgeons, burn surgeons, as well as ear, nose, and throat surgeons. It operates primarily in the U.S. The company sells its products through sales and marketing agents, and distributors. It has strategic sales and marketing partnerships with Boston Scientific for Repliform; Wright Medical Group for GraftJacket and GraftJacket Xpress; Stryker Corporation for AlloCraft; and BioHorizons for periodontal applications of AlloDerm. LifeCell was founded in 1986 and is based in Branchburg, N.J.

Data provided by Capital IQ
Paul G. Thomas

Paul G. Thomas, 50

Chairman, Chief Executive Officer and President

Total Compensation*

$ 1,052,160

Total Options Value*

$ 12,889,888

* Fiscal Year 2005

Saint Michael's College - Other Education, Columbia Business School - MBA, Saint Michael's College - BS, University of Georgia Graduate School of Arts and Science - Master's Degree

Executive Bio

Paul Thomas has been president and chief executive of LifeCell since October, 1998, and has been its chairman since June, 1999. Prior to joining LifeCell, Thomas served as the president of the pharmaceutical products division of Ohmeda, a world leader in inhalation anesthetics and acute care pharmaceuticals. Thomas was responsible for the overall operations of Ohmeda's pharmaceutical division, which had worldwide sales of approximately $200 million in 1997. He has been a director of LifeCell since October, 1998. He has been an independent outside director of Avanir Pharmaceuticals since March, 2005. Thomas received his MBA from the Columbia University Graduate School of Business and completed his postgraduate studies in chemistry at the University of Georgia Graduate School of Arts & Science. He received his BS in chemistry from St. Michael's College in Vermont, where he graduated cum laude.

Management Team

Key Executives

Paul G. Thomas; Young C. McGuinn; Lisa N. Colleran; Steven T. Sobieski; Bruce Lamb

Board Directors

Robert P. Roche; Michael R. Minogue; David F. Fitzgerald; Martin P. Sutter; Paul G. Thomas; Michael E. Cahr; James G. Foster

Executive Data provided by Capital IQ