Wound Management Technologies, a Fort Worth, Texas-based company seeking to commercialize its innovative products for the $5 billion worldwide advanced wound care market, was recently acquired by Atlanta-based medical device company Brookhaven Medical, Inc. The announcement followed a letter of intent for the primary terms of a merger of the two companies, which have been approved by both companies’ board of directors. A formal merger agreement is expected to close in the first half of 2014.
In addition to offering products related to dialysis, Brookhaven Medical, Inc. also has an interest in the advanced wound care, sector, and will seek to support Wound Management Technologies’ effort to further distribute its unique, patented collagen product, CellerateRX, which is FDA-cleared and reimbursable under Medicare Part B. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in the late stages of development.
John Feltman, chairman and CEO of Brookhaven, elaborated on how Would Management promises to expand Brookhaven’s offerings: “I am pleased to enter this agreement with Wound Management,” adding that, “Wound Management is an ideal match for Brookhaven’s synergistic approach to building our leading medical technology and products, and I believe it will be an integral part of our success in ushering Brookhaven into the advanced wound care industry.”
By all accounts, the merger will allow Wound Management to continue work towards its commercialization and distribution goals for its products. Robert Lutz, Jr., chairman and CEO of Wound Management, Inc., commented that the company “is excited to execute this LOI and move forward with Brookhaven toward a definitive merger agreement. By merging with Brookhaven, Wound Management will be better able to implement our strategic plan and should also be welcome news to our shareholders in maximizing their return on investment as we become part of Brookhaven.”
From Mr. Lutz’ comments, it would appear that CellerateRX will continue to be a driving force for both companies: “By working with Brookhaven, we have the best opportunity for our CellerateRX® wound care and surgical products to achieve substantial growth and to expeditiously take our emerging resorbable bone wax technology to market,” he said.
Wound Management has already made significant steps toward distributing CellerateRX into the healthcare marketplace, having recently entered into a three-year marketing and distribution agreement for for the product with WellDyne, Inc., a leading privately-held health services company that provides pharmacy benefit management, mail order pharmacy and specialty drug fulfillment, in addition to online access to a broad range of information on health, disease, pharmaceuticals and wellness.