TAGS: Natural-based Adhesives Sealants
Advanced Medical Solutions Group plc, has announced that it has acquired Sealantis Limited for USD 25m (approximately £19m) in cash with royalties due until December 2027 on sales of any of its products that are currently in development.
Sealantis: A Medical Device Company
Sealantis is an Israeli-based medical device company with a patent-protected alga-mimetic sealants technology platform with a wide range of potential surgical indications under development. Its two most advanced surgical sealant products are:
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Seal-G, an open surgery device already CE marked for reinforcement of the staple / suture line to minimize anastomotic leaks following gastrointestinal surgery
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Seal-G MIST (Minimally Invasive Spray Technology) the equivalent laparoscopic device for the same indication but performed through keyhole surgery.
For the year ended 31 December 2017, Sealantis reported gross assets of approximately £0.5m (ILS 2.1 m) and a net loss of approximately £1.5m (ILS 6.6m).
A Technology Platform and Significant Delivery Systems
As well as a world class extension of our longer-term product development capability, strategically, the acquisition provides AMS 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 USD 1 billion internal sealant market.
These include the existing CE marked product to reinforce and protect gastrointestinal anastomoses, of which there are more than 6 million procedures performed annually worldwide, with additional significant potential in Neuro, Orthopaedic, and Cardiovascular surgery indications. Being alginate based, the technology and products have significant competitive advantages over existing market leading products in this space.
Importantly, the products do not need refrigerated transport or storage, can be delivered by spreading or spraying, do not require advanced preparation and do not contain proteins so carry lower risk of infection or adverse reaction.
AMS Strengthens Product Portfolio for Internal Sealants
The Sealantis technology platform has multiple synergies with AMS, most notably within the sales, marketing, regulatory and operational areas, and the acquisition significantly strengthens the Company's product portfolio for internal sealants and fixation devices sitting alongside AMS's LiquiBandFix8® laparoscopic and LiquiBandFix8® open fixation devices.
The addition of the Sealantis products and indications will open up much larger parts of the surgery market for AMS to exploit commercially and significant sales synergies are anticipated once commercialization commences from H1 2021.
Maximizing Value with Continuing Investments
AMS plans to rapidly maximize the value of the investment by continuing to invest in the existing Sealantis innovation center and accelerate the commercialization of the laparoscopic and open variants of Seal-G by running clinical trials for anastomotic leak prevention as well as obtaining approval for new indications.
The Company expects to make a total investment of approximately £8m in R&D, regulatory and clinical costs which will be fairly evenly spread over the next three years, depending on clinical trial progress. Seal G will initially be targeted within Europe using AMS's existing regulatory expertise and the Group's extensive commercial footprint.
Investing in Significant and High-margin Market in Internal Surgery
Commenting on the acquisition, Chris Meredith, CEO of AMS, 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 $1 billion. 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. AMS continues to actively monitor and evaluate other acquisition opportunities to capitalise on its strong financial and strategic position."
Source: Sealantis