FORT WORTH, Texas—Global medical technology firm Smith &Nephew has announced the signing of an agreement with HealthpointBiotherapeutics, under which it will acquire substantially all of thebiopharmaceutical company's assets for $782 million in cash. The transaction,which is expected to be complete in December of this year, is subject toregulatory approval.
"This acquisition makes a lot of sense for both companies,"Travis Baugh, president and chief operating officer of HealthpointBiotherapeutics, said in a press release. "It will enable us to acceleratemany of the initiatives we wanted to pursue and will provide development andpromotional opportunities to our employees that would not have been availableto them had we stayed an independent company. It also gives Smith & Nephewa new engine for growth for the next decade and beyond."
Healthpoint Biotherapeutics is focused on being a leader inthe field of acute, chronic and burn-related wound care, with a number of drugsand devices in its pipeline in varying stages of development. Two of its drugcandidates are preclinical, indicated for debridement and diabetic foot ulcers,while the third is in Phase II development as a treatment for venous stasisulcers. Of the two devices in development, Healthpoint Biotherapeutics has apreclinical candidate indicated for antimicrobial, and another approachingPhase III development to aid in wound management.
"The acquisition of Healthpoint is an important step forSmith & Nephew, and for our Advanced Wound Management division.Strategically, it gives us a strong position in the fastest growing area ofadvanced wound management bioactives," Olivier Bohuon, CEO of Smith &Nephew, said in a statement. "And it does this bringing material revenues froma fast-growing product range, an attractive pipeline and the commercial andR&D capabilities upon which we can build. The combination creates a trulyunique wound care business having leadership positions across exudate andinfection management, negative pressure and bioactives to offer to ourcustomers."
The company has seen impressive commercial growth, drivenlargely by sales of its Collagenase Santyl ointment, a prescription medicineindiacted for wounds including chronic dermal ulcers (such as pressure, diabeticand venous stasis ulcers) or severely burned areas. It is also pursuingdevelopment of a novel cell therapy, HP802-247, which completed a Phase IIbstudy last year and for which a Phase III trial was announced in September. Thecompound is an investigational allogeneic living human cell suspension made upof two components: "a fibrinogen solution and a cell preparation containing amixture of growth-arrested, living, allogeneic epidermal keratinocytes anddermal fibroblasts." Based on in-vitro studies,the compound is thought to release growth factors and cytokines into the woundmicro-environment, stimulating wound healing.
"Healthpoint and Smith & Nephew have much in common,"Paul Dorman, founder, chairman and CEO of Healthpoint Biotherapeutics, said ina press release. "We share a commitment to innovation, the desire to servehealthcare professionals and a fundamental dedication to improve the quality oflife for patients. We are very proud of our employees and the business we havebuilt and believe now is the right time to allow it to grow to the next levelby joining a global organization like Smith & Nephew."
Deutsche Bank was brought on as Smith & Nephew'sfinancial advisor for this transaction, with Bank of America Merrill Lynch andJP Morgan serving as Healthpoint Biotherapeutics' financial advisors under thedeal.
SOURCE: Healthpoint Biotherapeutics press release
