Under the deal, Derma will pay an upfront payment of cash and common stock of $21.3m, as well as potential product regulatory milestone payments of about 30m.
In addition, the deal includes earn out payment of about $26.5m, based on incremental net sales growth.
Based in Memphis of Tennessee, BioD is engaged in the development and commercialization of novel regenerative medicine products, which can be used in a range of clinical applications such as orthopedic, spine and ophthalmic channels.
BioD produces products such as BioDFactor viable tissue matrix, which is an allograft derived from the human placental tissues developed for use as a wound covering to treat localized tissue defects or areas of inflammation.
BioDRestore elemental tissue matrix is a morselized and flowable tissue allograft derived from amniotic tissues. It will be used in the soft tissue repair, reduce inflammation and minimize scar tissue formation.
BioDFence resorbable adhesion varrier is a sterile and resorbable adhesion barrier allograft derived from the human amnion that will be used to reduce scar tissue formation.
BioDOptix amniotic extracellular matrix is a dehydrated and extracellular membrane allograft derived from human amniotic tissue developed to be used as a scaffold for ocular tissue repair and regeneration.
Once the deal concludes, BioD will operate as a wholly owned subsidiary of Derma Sciences. It will continue to be headed by BioD’s president and CEO Russell Olsen.
Derma Sciences executive chairman and interim principal executive officer Stephen Wills said: “The acquisition of BioD is a powerful strategic business fit with Derma Sciences and furthers our commitment to being a leading provider of advanced wound care and regenerative medicine products."
Image: Derma Sciences to acquire BioD that develops allografts from placental tissue to aid in wound healing. Photo: courtesy of stockimages / FreeDigitalPhotos.net.
