(MENAFN - ProactiveInvestors - Australia) Medical tech company Smith & Nephew (LON:SN) (NYSE:SNN) has agreed to buy Healthpoint Biotherapeutics for 782 million in cash in a bid to expand its wound management division.
The deal, which still needs regulatory approval, is expected to close in December.
Healthpoint Biotherapeutics is focused on acute, chronic, and burn-related wound care, led by sales of Collagenase Santyl ointment. It has also developed a new cell therapy, HP802-247, which completed a successful phase 2b study in 2011 and for which a North American phase 3 trial was initiated this past September.
The therapy consists of two components that are sprayed sequentially on the wound bed at the time of treatment: a fibrinogen solution and a cell preparation containing a mixture of growth arrested, living, allogeneic epidermal keratinocytes and dermal fibroblasts.
These living cells are expected to interact with the patient's own cells to stimulate wound healing. The double-blind phase 2b study involved 228 subjects enrolled across 35 centers in the US. Overall, the company said HP802-247 achieved "statistical significance", as compared with control plus standard care, in both the primary and secondary endpoints.
"The acquisition of Healthpoint is an important step for Smith & Nephew, and for our Advanced Wound Management division," said CEO Olivier Bohuon.
"Strategically, it gives us a strong position in the fastest growing area of advanced wound management " bioactives. And it does this bringing material revenues from a fast growing product range, an attractive pipeline, and the commercial and R&D capabilities upon which we can build.
"The combination creates a truly unique wound care business " having leadership positions across exudate and infection management, negative pressure and bioactives to offer to our customers."