Woundcare specialist in £19m overseas acquisition

Chris Meredith

Cheshire woundcare specialist Advanced Medical Solutions Group (AMS) has acquired Israeli business Sealantis Limited for £19m in cash.

Sealantis is a developer of an alginate-based tissue adhesive technology platform.

It has a wide range of potential surgical indications under development.

Its two most advanced surgical sealant products are Seal-G, an open surgery device already CE marked for reinforcement of the staple/suture line to minimise anastomotic leaks following gastrointestinal surgery, and Seal-G MIST (Minimally Invasive Spray Technology) the equivalent laparoscopic device for the same indication but performed through keyhole surgery.

For the year ended December 31, 2017, Sealantis reported gross assets of approximately £500,000 and a net loss of approximately £1.5m.

AMS says that, as well as a world-class extension of its longer-term product development capability, strategically, the acquisition provides the Winsford group with a technology platform and delivery systems that have significant potential across a range of applications in the high-margin internal surgery market which includes the $1bn internal sealant market.

These include the existing CE marked product to reinforce and protect gastrointestinal anastomoses, of which there are more than six million procedures performed annually worldwide, with additional significant potential in neuro, orthopaedic, and cardiovascular surgery indications.

Chris Meredith, AMS chief executive, said: “This acquisition is in line with our strategy to acquire technologies that are complementary to our surgical portfolio as well as allowing us to leverage our global routes to market.

“The acquisition enhances our access to a significant and high-margin market in internal surgery, which includes areas of unmet need for effective and absorbable internal sealants, a market estimated at $1bn.

“We are particularly excited to welcome Sealantis’ innovation team of R&D experts to AMS and look forward to working alongside them to develop the technology in a wide range of potential applications and indications.

“As we work towards the commercialisation of Seal-G Surgical Sealant over the next 18 months, we expect to maximise the full value of the platform and this innovative technology.”

He added: “AMS continues to actively monitor and evaluate other acquisition opportunities to capitalise on its strong financial and strategic position.”

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