Pharma Firm in New Jersey to Buy Exton-Based Biotechnology Company for $63.3 Million
Castle Creek Pharmaceuticals in New Jersey has reached an agreement to acquire Fibrocell Science, the Exton-based biotechnology company, for $63.3 million, writes John George for the Philadelphia Business Journal.
As part of the deal, Fibrocell stockholders will be paid $3 for each share. Castle Creek will also assume around $33 million of the company’s debt. The purchase price represents a 63 percent premium compared to the Fibrocell’s average trading levels during the past month.
Prior to this deal, which still needs to be approved by the shareholders, the two companies entered into a licensing and collaboration agreement in April. As part of that, Fibrocell was to receive $7.5 million and a maximum of $135 million in additional payments if product development milestones were achieved.
“Our experience working together on rare dermatological conditions caused us to quickly realize that Castle Creek and Fibrocell could achieve even greater synergies by combining the companies into one,” said Greg Wujek, CEO of Castle Creek Pharmaceuticals.
He said that with Castle Creek’s resources, Fibrocell’s gene therapy platform will be able to advance into additional areas of high unmet needs and potentially develop multiple promising new therapies.
Read more about Fibrocell Science in the Philadelphia Business Journal here.
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