The merger agreement provides for additional contingent payments of about $5m in stock or cash, under certain circumstances, if stated revenue thresholds are reached over the next three years ending 30 April 2017.

According to Alliqua, the acquisition is expected to be accretive to its earnings during the next 12 months.

Under the deal, Alliqua has acquired Choice Therapeutics’ wound care portfolio, its technology platform and its sales and marketing team.

Alliqua chief executive officer David Johnson said the acquisition of Choice Therapeutics provides the company with an exciting product portfolio and technology that has proven to be clinically and economically efficacious in the marketplace.

"Choice Therapeutics’ product suite, which incorporates its TheraBond 3D Antimicrobial Barrier Systems technology, is in wide use, including at key burn centers nationwide," Johnson said.

"Adding these products to our portfolio is consistent with our vision of building a world-class technology platform for wound care practitioners who use our products to manage the challenges of chronic and acute wounds."

Choice Therapeutics CEO Jim Hutchens said, "We believe that Alliqua is ideally positioned to accelerate the process of making TheraBond 3D available to a greater number of clinicians and patients."

Alliqua chief marketing officer Lori Toner said the powerful TheraBond 3D platform-with its excellent antimicrobial activity, management of fluid and exudate, comfort and cost-effectiveness-adds considerably to the company’s growing portfolio of products.

"The brand equity that TheraBond 3D has developed in burns, surgical site infections and chronic wounds should allow Alliqua to leverage its current portfolio into these areas," Toner said.

"Our newly hired team of 20 direct sales representatives as well as our existing network of independent sales representatives will immediately integrate Choice Therapeutics’ products into their sales initiatives."

With its 3D spacer technology, the company believes that TheraBond 3D is a new dimension in advanced wound care and it uses silver ions to provide sustained antimicrobial activity against a wide range of the most frequently seen pathogens.