Cambrex Acquires Cutanogen Corporation
Cambrex Bio Science Walkersville, Inc., a subsidiary of Cambrex Corporation, announced it has entered into a purchase agreement for all of the stock of Cutanogen Corporation, a privately-held biotechnology company that is focused on products used to treat patients with severe burns. The Company believes that the lead Cutanogen product PermaDerm(TM) cultured skin is the first multi-layered product that combines autologous epidermal and dermal layers of the skin in a product for severe burns that is pliable and grows with the patient. The purchase is expected to close within thirty days, subject to the completion of customary closing conditions.
The purchase price consists of $1.5 million to be fully paid at closing with additional purchase price payments of up to $4.8 million subject to the achievement of certain regulatory and commercial milestones. The Company expects to expense all purchase price payments prior to regulatory approval of the product as in-process R&D. The transaction is projected to be dilutive by approximately $0.15 per share in 2006 primarily due to the purchase price payments and accretive in 2007 and thereafter.
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