Boston, MA 04/21/2014 (wallstreetpr) – The trading of Aastrom Biosciences Inc (NASDAQ:ASTM) came to a halt during the early morning trade after the developer of multicellular therapies skyrocketed more than 35% over its new acquisition.
Smart Acquisition
Aastrom Biosciences Inc (NASDAQ:ASTM) revealed today that it has entered into a definitive agreement to buy Sanofi’s Cell Therapy and Regenerative Medicine (CTRM) business. The company agreed on the takeover in consideration of total $6.5 million, where $4 million is payable in cash at the close of the transaction and the remaining $2.5 million to be paid in a mode of a promissory note. The transaction is expected to close in around three weeks and is subject to standard closing conditions.
Through reaching an agreement for CTRM takeover, Aastrom Biosciences Inc (NASDAQ:ASTM) that aims to treat chronic and severe cardiovascular diseases, will get worldwide commercial rights to three promoted autologous cell therapy products. The products include Carticel (R), a therapy for articular cartilage defects marketed in the United states, Epicel (R), marketed across the globe to treat full thickness burns and MACI (R), a third generation autologous chondrocyte implant (ACI) product marketed in the European Union. The revenues generated by the three products accounted for $44 million in 2013. Hence, post completion of the proposed acquisition, Aastrom will get hold of manufacturing and production centers situated in the Unites States and Denmark.
More About The Acquisition
The company’s president and chief executive officer, Nick Colangelo, sees the acquisition of CTRM business as transformational that places Aastrom as a reformative medicine company worldwide. The CTRM business will augment the production, commercialization and sales capabilities of the company across the globe, which is arranged to assist it in its current portfolio of commercialized products as well as shape the further plans of product development. Moreover, the acquisition will create a platform for the company to generate additional operating income in order to support its pipeline products and continued growth through strategic transactions.
Sanofi took over the CTRM business through its Genzyme Corporation acquisition in 2011. The business is a leading organization enriched with over 20 years of cell therapy and regenerative medicine experience. The segment was responsible for designing and marketing of some of the first regenerative products across the globe. It is evident that the company’s autologous products, Carticel (R), MACI (R) and Epicel(R), all hold a successful track record of treating patients since a long time.
