Biotech company snaps up US firm in £23m deal

Leeds’ Tissue Regenix Group has acquired a US regenerative medicine business, CellRight, in a £23m ($30m) deal.

Texas-based CellRight specialises on the development and commercialisation of human tissue products, including bone processing and products involved in spine, dental, sports medicine and general surgery. It is registered with the US Food and Drink Administration, and operates from a 13,650 sq ft facility in Universal City.

Tissue Regenix also announced its intention to raise £40m through a placing of 400m shares with both new and existing institutional investors

The proceeds from the offer will be used to finance the initial consideration of $25.9 m (£19.9m) for the acquisition, with an additional up to $4.1 m (£3.1m) earn-out subject to revenue performance targets.

The remaining funds will be used to accelerate the growth of the enlarged group, to support the on-going commercialisation of the group’s existing programmes, as it targets profitability in 2020.

Tissue Regenix announced plans to expand into the US sports medicine market in June this year, after seeing revenues jump 77%, boosted by demand for its skin graft technology.

Antony Odell, CEO of Tissue Regenix, said: “”The acquisition of CellRight Technologies provides a transformational opportunity for Tissue Regenix and accelerates the Group’s trajectory to break even through the creation of an innovative, regenerative medical devices company.

“CellRight bring a synergistic regenerative technology focused on bone, which will complement our own dCELL® soft tissue platform. Furthermore, a broad development pipeline of innovative products, multiple established distribution channels and a state of the art US-based manufacturing facility will enable us to increase our growth and market penetration, cementing our presence in the key US market, as well as providing an opportunity to enter new geographies.

“Building on our material progress over the last two years, the additional resources will enable Tissue Regenix to invest in advancing our organic product pipeline and commercial strategy. We would like to thank our existing and new shareholders for their support as we realise our vision of becoming a market leader in the multibillion dollar global regenerative medicine market.”

Click here to sign up to receive our new South West business news...
Close