SAN DIEGO--(BUSINESS WIRE)--Dec. 15, 2003-- Transaction Allows for MacroPore to Receive up to an Additional $13 Million
MacroPore Biosurgery, Inc. (Frankfurt Stock Exchange: XMP) (MacroPore) announced today it has agreed to sell the thin film product line, which includes SurgiWrap(TM), CardioWrap(TM) and HerniaMesh(TM), for $12 million to privately held Medicis Ventures Management GmbH (Medicis Ventures). A syndicate of international investors led by Medicis Ventures will establish a privately held medical device company to further develop and market these products internationally and in the United States. The transaction is expected to close before January 23, 2004.
Under the terms of the agreement, MacroPore will receive an upfront payment of $7 million at the January closing and a $5 million payment before year-end 2004, with additional revenues from a back-up supply commitment to Medicis Ventures. Over the next three to five years, MacroPore could receive up to $13 million or more in additional milestone payments, royalties and revenues for collaborating with Medicis Ventures on regulatory and distribution of SurgiWrap in Japan, the world's second largest market for anti-adhesion barriers. Further, MacroPore will retain an exclusive, royalty-free license for applications of the thin film technology for spinal surgeries and a non-exclusive, royalty-free license for delivery of regenerative applications.
"The sale of the thin film product line strengthens our balance sheet and will allow the company to focus its efforts on our two core regenerative medicine business units, spine & orthopedics and cardiovascular cell therapy," said Chris Calhoun, MacroPore's President and Chief Executive Officer. "We believe both business units uniquely complement each other and our company's fundamental strengths as both aim to discover, develop and commercialize innovative regenerative medicine products."
A group of international investors led by Medicis Ventures, a private equity firm specialized on investments in the life science sector, and Ari Bizimis, former director and chief financial officer of MacroPore, will establish the privately held medical device company to develop and market the thin film surgical implants. The new company will be based in Europe, and will have a subsidiary in San Diego, CA. It will assume leased space within MacroPore's San Diego campus that is currently dedicated to the development and marketing of SurgiWrap. The privately held medical device company will be co-led by Kai Deusch, Managing Director and founder of Medicis Ventures, and Mr. Bizimis.
"There is a significant and rapidly growing market opportunity utilizing the 'thin film technology' of the SurgiWrap product family," said Dr. Deusch. "Based on our recent market experience and growing body of pre-clinical and clinical evidence, we believe that the SurgiWrap product offers a safe, effective and elegant solution to minimize the attachment of soft tissues after surgery. We expect to accelerate the adoption of this technology in the marketplace by focusing our new company's efforts exclusively on this product and its derivatives."
2004 Revenue Guidance Update
As a result of the transaction, MacroPore is revising its 2004 revenue guidance from $19 to $22 million to $17.5 to $19.5 million. Projected spine & orthopedics implant product revenues and revenue from other sources remain unchanged at $15 to $16 million and up to $1 million respectively, while projected thin film revenues have been lowered to $1.5 to $2.5 million, under the back-up supply agreement.
About MacroPore Biosurgery
MacroPore Biosurgery, Inc. is a leader in the design, development, and production of bioresorbable polymer implants for use in a variety of surgical applications and is pioneering advancement of medicine for surgical therapies using regenerative cells derived from a patient's own adipose (fat) tissue. The company's products are designed for use in spine, neurosurgical, and musculoskeletal surgeries and are distributed by Medtronic. MacroPore Biosurgery is traded on the Frankfurt Stock Exchange in Germany under the symbol 'XMP'. For further information please visit our web site at www.macropore.com.
About Medicis Ventures
Medicis Ventures Management GmbH is a private equity firm specialized on investment opportunities in the life science sector. In the past it has led or co-led various investments in companies active in the Pharma, Biotech and Medtech sector. Medicis Ventures has put its emphasis on providing active managerial support in its portfolio companies. Its team consists of highly experienced life science sector specialists and financial experts that support the commercialization of products and the development of research approaches to marketable products. www.medicis.de
MacroPore's Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain 'forward-looking statements.' All statements, other than statements of historical fact, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this press release are also subject to a number of material risks and uncertainties, including but not limited to the risks described under "Risk Factors" in the Management's Discussion and Analysis of Financial Conditions and Results of Operations in our annual report filed with the United States Securities and Exchange Commission on Form 10-K in March 2003. These risks include, but are not limited to, our status as an emerging company, our history of losses, our reliance on Medtronic to distribute our products, our recent strategic decisions which change our risk profile, and difficulties maintaining trade secrets and obtaining patent protection for our products. We encourage you to read those descriptions carefully. We caution investors not to place undue reliance on the forward-looking statements contained in this press release. These statements, like all statements in this press release, speak only as of the date of this release (unless another date is indicated) and we undertake no obligation to update or revise the statements except as required by law. Such forward-looking statements are not guarantees of future performance and actual results will likely differ, perhaps materially, from those suggested by such forward-looking statements.
MacroPore Biosurgery, San Diego Media and U.S. Investors: Tom Baker, 858-458-0900 email@example.com or
European Investors: Stefanie Bacher, 858-362-0365 firstname.lastname@example.org or
Medicis Ventures Dr. Kai Deusch, +49-89-5447920 email@example.com or
Ari E. Bizimis, +49 6174 2597-10 firstname.lastname@example.org