The $750 million (£461 million) deal also includes Advance BioHealing’s Dermagraft product, a regenerative bio-engineered skin substitute for the treatment of diabetic foot ulcers.
Ireland-headquartered Shire says the acquisition is a ‘strong strategic fit’ for the business. The company’s strategic goal is to become the leading specialty biopharmaceutical business that focuses on ‘meeting the needs of the specialist physician’.
President of Shire’s Speciality Pharmaceuticals business, Mike Cola, comments: ‘We will invest in the strengths of Advanced BioHealing’s specialist commercial team, its manufacturing and its product development.
‘We believe there’s an opportunity to create more value from Dermagraft and Advanced BioHealing’s proprietary technology and that with Advanced BioHealing’s team joining Shire, we can build Advanced BioHealing into an exciting new business providing regenerative medicine for patients’ unmet needs.’
As part of the deal, CEO of Advanced BioHealing, Kevin Rakin, will continue to lead the business within the Shire organisation.
Rakin adds: ‘This is a very exciting opportunity for all of us at Advanced BioHealing to develop the business and deliver continued growth within a new environment that is highly complementary and will provide great leverage for us.’
According to a statement from the company, the World Health Organisation estimates an increase in incidence of diabetes of 43 per cent in North America and 55 per cent around the world from 2007-2025.
Shire recently released first quarter figures which show a 19 per cent increase in revenue to $972 million.
Privately held Advanced BioHealing has 400 employees based in the US with sites in California, Tennessee and Connecticut.