Histogenics Acquires ProChon Biotech in an All-Stock Transaction
BY LAUREN UZDIENSKI, MAY 18, 2011
Histogenics acquired ProChon Biotech in an all-stock exchange this week, with the companies declining to announce a dollar amount for the transaction. Both companies are developing autologous cartilage regeneration products. Histogenics has begun phase III studies of its NeoCart product following "very positive" phase II data, while ProChon has fibroblast growth factor technology they were developing into the BioCart system. The company said their immediate goal is completing the NeoCart phase III study and bringing the product to market in the United States, Europe and Israel.
Patrick O'Donnell, formerly CEO of ProChon Biotech, will assume the president and CEO position at Histogenics. Mass High Tech reports that previous Histogenics CEO, F. Ken Andrews, "is no longer employed at/by Histogenics." The combined companies have a strong stable of investors, including Histogenics backers Altima Partners, Boston Millennia Partners and Foundation Medical Partners, as well as ProChon Holdings BV. Boston Equity Advisors LLC served as the investment bank and was responsible for arranging the transaction.
The Histogenics acquisition follows another recent transaction in the ACI space. TiGenix and Cellerix merged in an all-stock deal earlier this year, and this week the company initiated a public rights offering valued at up to EUR 15 million. TiGenix is notable for receiving the first European approval for an advanced therapy medicinal product, the EU term for products derived from genes, cells or tissues, for ACI treatment ChondroCelect. The product has been on the market in Europe for over a year, though the company has faced reimbursement hurdles, including the recent announcement that a Dutch advisory panel recommended against reimbursing the technology, and regulatory setbacks. The FDA informed TiGenix last year that they would require a new study to approve ChondroCelect in the U.S., and the company said at in March 2011 that they were seeking development partners to support the study. Cellerix has a number of adipose-derived stem cell products in development, including a treatment for osteoarthritis. In conjunction with that transaction, Eduardo Bravo, Cellerix' former CEO, was appointed CEO of TiGenix, while Gil Beyen, former CEO and founder of TiGenix, assumed the role of Chief Business Officer.
