Date: 2011-05-17
Type of information: Company acquisition
Acquired company: Advanced BioHealing (USA)
Acquiring company: Shire (UK - USA)
Amount: $750 million in cash
Terms: The purchase price of $750 million in cash will be financed from Shire’s existing cash resources.
Details: Shire plc has signed an agreement to acquire Advanced BioHealing, Inc. This operation will be used to build a new strategic platform based on tissue regeneration using cell-based therapies that complements Shire's existing specialty focus and biologics manufacturing capability. The acquisition adds Dermagraft® to Shire portfolio. This regenerative bio-engineered skin substitute is indicated for use in the treatment of diabetic foot ulcers greater than six weeks in duration. It has already achieved 5% patient share of the potential $3 billion slow healing diabetic foot ulcer market; $146 million in US sales in 2010. Further growth prospects are also expected through potential expanded indication for Venous Leg Ulcers. Acquiring Advanced BioHealing brings both a US marketed product with opportunity for further growth and world-class expertise in regenerative medicine, enabling Shire to establish a new strategic business unit.
With the acquisition Shire will own the global rights for Dermagraft® and will continue to invest in the development of new indications and new geographies, pending regulatory approvals. Advanced BioHealing has fully enrolled multi-national trials (in US, Germany, Poland, Sweden, UK, Estonia and South Africa) to investigate Dermagraft® for the treatment of Venous Leg Ulcers (VLUs); data is due in Q4 this year with anticipated US filing in Q1 2012. In the U.S., VLUs account for the loss of 2 million working days and nearly $3 billion in treatment costs each year. Duration of treatment can last over a year in many cases, and frequently involves the use of significant healthcare resources, resulting in substantial costs for the U.S. healthcare system. Dermagraft® is approved but not yet marketed for DFU in Israel, S. Africa, and Singapore. An application was filed in Canada for DFU in March, 2011; undergoing dual review by both the biologics and medical device divisions. Advanced BioHealing’s ongoing or planned submissions for DFU include Mexico, Saudi Arabia, United Arab Emirates and Malaysia.
Related: Regenerative medicine
