TIDMAMS
RNS Number : 6213O
Advanced Medical Solutions Grp PLC
01 February 2023
1 February 2023
Advanced Medical Solutions Group plc
("AMS" or the "Group")
Acquisition of Connexicon Medical
- Initial consideration of EUR7 million for tissue adhesive technology specialist
- Complementary strategic fit strengthens ability to develop and launch new technologies
Winsford, UK : Advanced Medical Solutions Group plc (AIM: AMS),
the world-leading specialist in tissue-healing technologies,
announces it has acquired Connexicon Medical Limited
("Connexicon"), a tissue adhesive technology specialist.
Consideration consists of an initial, up-front payment of EUR7
million with further deferred payments dependent on the delivery of
certain research & development, regulatory and commercial
milestones between 2023 and 2027. The acquisition further
strengthens AMS's position in the $300 million global tissue
adhesive market, expands its product portfolio and significantly
enhances its technical and R&D capabilities in cyanoacrylate
technology.
Overview of Connexicon
Connexicon is a Dublin based specialist in medical tissue
adhesives that originated from a carve-out of management,
technology and expertise from Henkel AG & Co. KGaA. It has a
technology platform currently commercialised in Europe under the
brand name Indermil(R) Flexifuze(TM) and an exciting pipeline of
new products targeting US approval by early 2024. Based on
unaudited management accounts, in the year ended 31 December 2022
Connexicon is expected to report revenues of EUR1.6 million, EBITDA
of EUR0.3 million and gross assets of approximately EUR4.9
million.
Acquisition rationale and benefits
The acquisition builds on AMS's leading position in the global
tissue adhesive market, adding Connexicon's brands, products,
chemistries, expertise and R&D capabilities to the Group's
established commercial partnerships, regulatory experience and
manufacturing infrastructure . By combining the R&D, chemistry
and cyanoacrylate know-how of both companies the Group further
strengthens its ability to develop and launch innovative adhesive
and sealant technologies in the coming years.
Operational and commercial synergies
Over time, increasing sales volumes of Connexicon's products
will provide significant operational synergies by increasing the
leverage of the Group's existing brands and assets. Expanding the
commercialisation of the Indermil(R) portfolio and pipeline
products through AMS's established, global distribution network
will also provide additional commercial opportunities, particularly
when regulatory approvals are granted in the $260 million US
market. Connexicon's novel formulations, applicators and brands
complements AMS's established range of sealants, providing
increased commercial flexibility and enabling the Group to extend
the combined distribution network of both companies and increase
its penetration of this growing market.
Terms of the transaction
AMS is acquiring Connexicon for an initial consideration of EUR7
million to be funded from existing cash resources, which were
GBP75.3 million at 30 June 2022. In addition, dependent on the
achievement of specific R&D, regulatory and commercial
milestones between 2023 and 2027 which would be triggered
predominantly by progress towards and achievement of FDA approvals,
AMS could make further deferred consideration payments in cash of
up to EUR18 million. The acquisition is expected to be earnings
neutral in 2023.
Chris Meredith, Chief Executive Officer of AMS, commented: "I am
very pleased to be able to announce the acquisition of Connexicon
and to welcome its experienced team to the AMS Group. This
transaction builds on our strategy to acquire technologies that are
complementary to our surgical portfolio and that leverage our
manufacturing base and global routes to market. The acquisition
will unlock significant commercial, R&D, regulatory, marketing
and operational synergies that we are confident will enhance the
scope of both companies. We are excited to add more tissue sealant
expertise, products and brands to the AMS franchise ensuring that
we remain at the forefront of this expanding market."
Padraig Leamy, Founder and Chief Executive Officer of
Connexicon, commented: "Today's announcement is highly exciting for
the Connexicon team, and we look forward to joining the AMS family.
As a world-leading specialist in tissue healing technologies, with
R&D, regulatory, marketing and commercial expertise, AMS is the
perfect new home for us to fully realise the value of our
technology platform Indermil(R) Flexifuze(TM) , as well as our
exciting pipeline of future products."
- End -
For further information, please contact:
Advanced Medical Solutions Group plc Tel: +44 (0) 1606
545508
Chris Meredith, Chief Executive Officer
Eddie Johnson, Chief Financial Officer
Michael King, Investor Relations
Consilium Strategic Communications Tel: +44 (0) 20 3709
5700
Matthew Neal/ Lucy Featherstone
Investec Bank PLC (NOMAD & Broker) Tel: +44 (0) 20 7597
5970
Gary Clarence/ David Anderson
HSBC Bank PLC (Broker) Tel: +44 (0) 20 7991
8888
Sam McLennan / Joe Weaving / Stephanie
Cornish
About Advanced Medical Solutions Group plc
AMS is a world-leading independent developer and manufacturer of
innovative tissue-healing technology, focused on quality outcomes
for patients and value for payers. AMS has a wide range of surgical
products including tissue adhesives, sutures, haemostats, internal
fixation devices and internal sealants, which it markets under its
brands LiquiBand(R) , RESORBA(R) , LiquiBandFix8(R) and Seal-G(R) .
AMS also supplies wound care dressings such as silver alginates,
alginates and foams through its ActivHeal(R) brand as well as under
white label. Since 2019, the Group has made four acquisitions:
Sealantis, an Israeli medical device company with a
patent-protected sealant technology platform; Biomatlante, an
established French developer and manufacturer of innovative
surgical biomaterial technologies, Raleigh, a UK leading coater and
converter of materials predominately for woundcare and
bio-diagnostics products and AFS Medical, an Austrian a specialist
surgical business with a focus on minimally invasive
procedures.
AMS's products, manufactured in the UK, Germany, France, the
Netherlands, the Czech Republic and Israel, are sold globally via a
network of multinational or regional partners and distributors, as
well as via AMS's own direct sales forces in the UK, Germany,
Austria, the Czech Republic and Russia. The Group has R&D
innovation hubs in the UK, Germany, France and Israel. Established
in 1991, the Group has more than 700 employees. For more
information, please see www.admedsol.com .
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END
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