Advanced Medical Solutions Group, a surgical and advanced wound care company, said Thursday it had acquired Sealantis for $25m in cash.
Sealantis is a developer of an alginate-based tissue adhesive technology platform.
Under the terms of the deal, the company pledged to pay Sealantis royalties, in-line with market rates, on future sales of existing products in development until the end of 2027.
The company said it would maximise the value of the investment by injecting £8m in R&D, regulatory and clinical costs, which would be fairly evenly spread over the next three years, depending on clinical trial progress.
Until the commencement of product sales, which were expected to take place in first half of 2021, the acquisition was expected to be earnings dilutive owing to investment in R&D, regulatory costs, and clinical studies, the company said.
'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,' the company said.
At 10:14am: (LON:AMS) Advanced Medical Solutions Group PLC share price was +6p at 297p