ARTICLE | Company News

Organogenesis acquires Shire's Dermagraft

January 18, 2014 2:17 AM UTC

Regenerative medicine company Organogenesis Inc. (Canton, Mass.) purchased wound healing product Dermagraft from Shire plc (LSE:SHP; NASDAQ:SHPG). Shire will not receive an upfront payment but is eligible for up to $300 million in milestones through 2018. Dermagraft was the sole product in Shire's regenerative medicine unit, which will now cease to exist. The company gained the product through its 2011 acquisition of Advanced BioHealing Inc. for $750 million.

Shire said it made the decision to divest Dermagraft as part of a portfolio prioritization and focus on "operational discipline." The company reported $64.7 million in Dermagraft sales for the nine months ended Sept. 30, 2013, but also had a non-GAAP operating loss of $81 million for Dermagraft operations for the same period. The engineered skin substitute containing live human fibroblasts grown on an absorbable Vicryl mesh is approved in the U.S. and Canada to treat diabetic foot ulcers. ...