SAN FRANCISCO, CA--(Marketwire - February 21, 2012) -
Aldagen, Inc., a leading developer of regenerative therapies, has been acquired by Cytomedix, Inc. for up to $40 million in upfront and milestone payments. Burrill & Company's Merchant Banking Group acted as advisor to Aldagen in the agreement.
Aldagen is a clinical-stage biopharmaceutical company developing patent-protected autologous cell-based therapeutics for tissue repair and regeneration. Aldagen has a deep product pipeline and data generated in a number of disease states including:
- ALD-301 for the treatment of peripheral arterial disease and critical limb ischemia
- ALD-201 for the treatment of ischemic heart failure
- ALD-401 for the treatment of ischemic stroke
"This combination with Cytomedix combines our deep pipeline of clinical opportunities with Cytomedix's commercial products and growing revenue stream," said Lyle Hohnke, former CEO of Algaden and who is joining the Cytomedix board as part of the transaction. "The team at Burrill & Company was critical in identifying the opportunity with Cytomedix, negotiating, and closing this transaction."
"This transaction demonstrates how Burrill & Company's merchant bank leverages its global network to bring together two leading companies in regenerative medicine," says Stephen Hurly, CEO of Burrill Merchant Banking. "With a team of dedicated life sciences bankers with significant experience in both drug development and deal making, we are uniquely positioned to help our clients capitalize on opportunities such as this. We simply get deals done."
Under the terms of the transaction, Aldagen shareholders received Cytomedix preferred shares valued at $16 million and have the potential to receive up to 20.3 million additional shares of Cytomedix common stock contingent upon achieving certain milestones related to its current mid-stage trial of ALD-401, a regenerative therapy being developed for the treatment of ischemic stroke. As part of the transaction, certain Aldagen investors purchased $5.0 million of Cytomedix common stock in a private placement concurrent with the closing of this acquisition.
"Our group worked diligently to understand Aldagen's technology and match it to the right strategic partner," says G. Steven Burrill, CEO of Burrill & Company. "Cell therapies, and broadly next-generation regenerative therapies, are a core focus of our firm. These technologies hold great promise and we see them as one of the leading frontiers in life sciences moving forward."
About Burrill & Company
Founded in 1994, Burrill & Company is a diversified global financial services firm focused on the life sciences industry. With more than $1 billion in assets under management, the firm's businesses include venture capital, private equity, merchant banking, and media. By leveraging the scientific and business networks of its investment team, Burrill & Company has established unrivaled access and visibility in the life sciences industry. This unique combination of resources and capabilities enables the company to provide life sciences companies with capital, management expertise, insight, market intelligence, and analysis through its investments, conferences, and publications. Headquartered in San Francisco, the company oversees a global network of offices throughout the United States, Latin America, Europe, and Asia. For more information visit: www.burrillandco.com.