Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced wound care specialist company, today announces that it has acquired French company Biomatlante SA (“Biomatlante”), a well-established international developer and manufacturer of innovative surgical biomaterial technologies for €8 million (approximately £7 million) in cash, with a potential further up to €0.3m due over the next two years
Acquisition rationale and benefits
The acquisition will strengthen AMS’s product portfolio, R&D pipeline, and market access. It provides the Group with a range of revenue-generating surgical products and an R&D pipeline of complementary biosurgical technologies and offers significant growth potential in additional surgical markets estimated to be worth $0.5 billion. The Acquisition is expected to be marginally earnings enhancing in the first full year of ownership.
Biomatlante’s biosurgical products, which are sold mainly in Europe, are complementary to AMS’s surgical product portfolio and generated sales of more than €4 million in 2018. AMS anticipates increasing the sales of these products in other jurisdictions through its existing global commercial infrastructure, as well as leveraging Biomatlante’s established presence in France for the Group’s existing surgical product portfolio.
The R&D pipeline and platform technologies which AMS acquired will broaden the Group’s biosurgical technology offering while also offering multiple synergies across the sales, marketing, regulatory, operational divisions and R&D.
Terms of the transaction
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
The Acquisition is for an initial consideration of €8 million (approximately £7 million) in cash, on a debt-free and cash-free basis, to be funded from AMS’s existing cash resources, which were £64 million at 30 June 2019. A potential further up to €0.3m is due over the next two years subject to the achievement of certain new product approval milestones. The founder of Biomatlante, Doctor Guy Daculsi, has entered into a consultancy agreement with AMS to provide ongoing R&D and regulatory support until 31 December 2021.
Overview of Biomatlante
Biomatlante has a patent-protected technology platform with a wide range of biomaterial products used in orthopaedic, spinal, dental and sports surgery and a development pipeline of next-generation products. The company’s commercialised products, which are approved for sale in over 50 countries worldwide, include synthetic bone substitutes, collagen membranes and bioabsorbable screws. In addition to the marketed products.
For its financial year ended 31 December 2018, Biomatlante reported revenue of more than €4 million and a net profit of approximately €0.2 million. As at 31 December 2018, Biomatlante reported gross assets of approximately €2.4 million.
Biomatlante employs 36 full time staff and operates two fully-equipped modern facilities close to Nantes in France, which include manufacturing, innovation and administration over 1,330 square metres with eight dedicated clean rooms.
Biomatlante is ISO 13485 and MDSAP accredited with extensive clinical evidence and is well prepared for the new European Medical Device Regulation.
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 and allow us to leverage our global routes to market. The acquisition grants AMS access to multiple new markets, including the synthetic bone substitutes market which is estimated at $0.5 billion. We are excited to welcome the Biomatlante team to AMS and look forward to working together with them to accelerate the commercial success internationally and to continue to develop the Biomatlante technology in a wide range of potential applications and indications.”
Commenting this acquisition, Chantal GOBIN-DACULSI, Co-founder and President of Biomatlante said: “This is an important stragecic step for Biomatlante and we are excited to become part of the AMS group. AMS is a high quality global Company with the scale, expertise and track record of realising the value of scienitific innovation and rapidly growing the sales of marketed products. Our product portfolios, product pipelines and geographic footprints are highly complementary, and, as part of the AMS family, the know-how of our team can be fully realised, allowing our pipeline of synthetic bone substitutes to be commercialised on a global scale.”
Source: BioSpace