BioStem Technologies has acquired the BioTissue surgical and wound care business for $15 million.
Through this transaction, BioStem acquired the full portfolio of assets associated with BioTissue’s surgical and wound care business, including the Neox and Clarix product lines. This acquisition includes the commercial infrastructure associated with the surgical and wound care business, consisting of a nationwide network of direct sales representatives and independent sales agents and the assignment of prominent GPO contracts.
BioTissue’s surgical and wound care offerings will be integrated into BioStem’s portfolio. The company specializes in using human birth tissue to facilitate regenerative healing for acute and chronic ocular surface conditions.
“This acquisition is a natural strategic fit that underscores BioStem’s commitment to leading the field of advanced wound care. It provides an immediate foothold in hospital-based applications and expands our technology portfolio with an additional platform designed to optimize the preservation of both placental and umbilical tissue allografts,” said BioStem CEO Jason Matuszewski in a statement. “This acquired technology opens meaningful entry into high-value adjacent market segments, from acute surgical wounds to burns and soft-tissue repair, while creating synergies that enhance our entire product suite and diversify our revenue streams. BioTissue’s broad and innovative surgical portfolio, robust pipeline, and highly skilled sales force, combined with BioStem’s reach and operational strengths, uniquely position us to address patient needs across the spectrum of acute and chronic wound care. I am excited to welcome the impressive team of BioTissue employees to further our mission of delivering the most advanced wound healing technologies in the world.”
In addition to the upfront cash payment of $15 million, there's potential for an additional regulatory milestone payment of up to $10 million for achieving 510(k) clearance for a new product, and potential commercial royalty milestone payments of up to $15 million.
