Shire announced that it will acquire Advanced BioHealing for $750 M to gain access to its Dermagraft skin-substitute as a means of establishing a foothold in regenerative medicine. Dermagraft had sales of $146 million in 2010 as a treatment for repair of diabetic foot ulcers.
Shire has designs to expand its presence in regenerative medicine in addition to its play in rare genetic diseases. It believes that it can establish additional indications for Dermagraft as well as improve on its sales in existing and emerging markets. Shire also indicated that it will likely acquire additiona regenerative medicine assets going forward. Shire will expand the existing advanced BioHealing manufacturing facility in La Jolla, CA.
Posted by Bruce Lehr May 18th 2011.