SurModics paid $3 million in cash at closing and may pay up to an additional $6 million in cash upon the successful achievement of certain milestones. The acquisition is expected to be accretive to SurModics’s fiscal 2009 earnings, excluding any one-time charges related to the acquisition.
The proprietary technologies acquired from PR Pharmaceuticals have broad applicability and address key needs, enabling the delivery of injectable drugs, including proteins, using biodegradable microparticles through smaller diameter needles compared to competing technologies.
In addition to the intellectual property being acquired, SurModics will be assuming responsibility for several customer-paid development projects currently in progress with pharmaceutical and biotechnology companies, including Jerini Ophthalmic.
Finally, SurModics will be the paid development partner for PR Pharmaceuticals’s proprietary product called InsuLAR, a once-a-week sustained release formulation of basal insulin for the diabetes marketplace.
Bruce Barclay, president and CEO of SurModics, said: “The proprietary technologies and existing business we are acquiring from PR Pharmaceuticals are a perfect fit for SurModics. The proprietary technologies complement and enhance the existing portfolio of drug delivery capabilities available from SurModics and Brookwood. Further, with the addition of these new technologies, SurModics is poised to drive customer programs and long-term revenue even more effectively.”