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Alliqua buys Choice Therapeutics for $4 million

Staff writer ▼ | May 7, 2014
Alliqua, Inc. has acquired Choice Therapeutics, Inc. for approximately $4 million in stock and cash. The acquisition is expected to be accretive to Alliqua's earnings during the next 12 months.
Alliqua
AlliquaAlliqua, Inc. has acquired Choice Therapeutics, Inc. for approximately $4 million in stock and cash. The acquisition is expected to be accretive to Alliqua's earnings during the next 12 months.


The merger agreement, which became effective May 5, 2014, provides for additional contingent payments of up to $5 million in stock or cash, under certain circumstances, if stated revenue thresholds are reached over the next three years ending April 30, 2017.

As part of the agreement, Alliqua has acquired Choice Therapeutics' wound care portfolio, its technology platform and its sales and marketing team.

"The acquisition of Choice Therapeutics provides Alliqua with an exciting product portfolio and technology that has proven to be clinically and economically efficacious in the marketplace," said David Johnson, chief executive officer of Alliqua.

"Choice Therapeutics' product suite, which incorporates its TheraBond 3D Antimicrobial Barrier Systems technology, is in wide use, including at key burn centers nationwide. Adding these products to our portfolio is consistent with our vision of building a world-class technology platform for wound care practitioners who use our products to manage the challenges of chronic and acute wounds."

Jim Hutchens, CEO of Choice Therapeutics, said, "We could not be more excited about Alliqua's acquisition of our company. We believe that Alliqua is ideally positioned to accelerate the process of making TheraBond 3D available to a greater number of clinicians and patients."

Mr. Hutchens resigned from Choice Therapeutics upon the completion of the acquisition.

TheraBond 3D is sold in three wound market segments: burn management, chronic wounds (eg. diabetic foot ulcers and venous leg ulcers), and surgery. The TheraBond 3D product line consists of contact dressings, wraps, and island dressings. TheraBond 3D dressings provide antimicrobial protection for up to 14 days and are available in many shapes and sizes to accommodate a wide variety of clinical needs.


 

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