Full Press Release Details
MedTech Inc. Announces the Acquisition of Certain Assets Related to its Collagen Products Business
WORTH, TX / GlobeNewswire / August 2, 2023 / Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. ("Sanara,"
the "Company," "we," "our" or "us") (NASDAQ: SMTI), a medical technology company focused
on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the
surgical, chronic wound and skincare markets, announced today the acquisition of certain assets related to its collagen products business.
acquisition of proprietary assets (the "Asset Acquisition") from Applied Nutritionals, LLC, The Hymed Group Corporation,
and Dr. George Petito (collectively, the "Sellers") is a major milestone for Sanara's strategy to own the intellectual
property, including trade secrets, for its hydrolyzed collagen products. In addition, the Company believes controlling its manufacturing
will reduce costs as well as help it to expand research and development efforts related to hydrolyzed collagen products.
Fleming, Sanara's Chief Executive Officer, stated, "We believe that this transaction furthers our goals by eliminating the
royalties we pay to the Sellers on CellerateRX Surgical Powder and Gel ("CellerateRX") and HYCOL
Hydrolyzed Collagen ("Hycol"), giving Sanara control of the manufacturing process for CellerateRX and Hycol, and giving
us full rights to develop new collagen products for human wound care uses based on the acquired technology. I would also add that Sanara
has an outstanding relationship with the Applied Nutritionals team and we look forward to continuing to work with them on new innovative
products under the terms of the agreement."
assets that Sanara acquired include the following:
| All rights and ownership (for human wound care uses) for four 510(k) cleared collagen-based wound care products including CellerateRX and Hycol. | ||
| All rights and ownership (for human wound care uses) for three new collagen-based products currently under development. | ||
| All patents, patents pending, trademarks and regulatory approvals related to collagen human wound care products owned by the Sellers. This includes nine patents and all of the Sellers' patents pending for collagen products for human wound care uses, five trademarks, and four 510(k)s. |
initial purchase price for the assets that were acquired by the Company is $15.25 million, consisting of $9.75 million in cash paid at
closing, shares of the Company's common stock with an agreed upon value of $3.0 million, and four equal annual installments of
$625,000 in cash. The Sellers are also entitled to earnout payments of up to $10.0 million based on future sales of a collagen-based
product currently under development, as well as certain royalties and incentive payments on future products that are developed. Cash
at closing is being funded through a loan provided by Cadence Bank.
a focus on improving patient outcomes through evidence-based healing solutions, Sanara MedTech Inc. markets, distributes and develops
surgical, wound and skincare products for use by physicians and clinicians in hospitals, clinics and all post-acute care settings and
offers wound care and dermatology virtual consultation services via telemedicine. Sanara's products are primarily sold in the North
American advanced wound care and surgical tissue repair markets. Sanara markets and distributes CellerateRX Surgical
Activated Collagen , FORTIFY TRG Tissue Repair Graft and FORTIFY FLOWABLE Extracellular
Matrix as well as a portfolio of advanced biologic products focusing on AMPLIFY Verified Inductive Bone Matrix, ALLOCYTE
Advanced Cellular Bone Matrix, BiFORM Bioactive Moldable Matrix and TEXAGEN Amniotic Membrane Allograft
to the surgical market. In addition, the following products are sold in the wound care market: BIAK S Antimicrobial
Skin and Wound Cleanser, BIAK S Antimicrobial Wound Gel, BIAK S Antimicrobial Skin and
Wound Irrigation Solution and HYCOL Hydrolyzed Collagen. Sanara's pipeline also contains potentially transformative
product candidates for mitigation of opportunistic pathogens and biofilm, wound re-epithelialization and closure, necrotic tissue debridement
and cell compatible substrates. The Company believes it has the ability to drive its pipeline from concept to preclinical and clinical
development while meeting quality and regulatory requirements. Sanara is constantly seeking long-term strategic partnerships with a focus
on products that improve outcomes at a lower overall cost. In addition, Sanara is actively seeking to expand within its six focus areas
of wound and skin care for the acute, post-acute, and surgical markets. The focus areas are debridement, biofilm removal, hydrolyzed
collagen, advanced biologics, negative pressure wound therapy products and the oxygen delivery system segment of the wound and skincare
about Forward-Looking Statements
statements in this press release that do not constitute historical facts are "forward-looking statements," within the meaning
of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These statements may be identified
by terms such as "aims," "anticipates," "believes," "contemplates," "continue,"
"could," "estimates," "expect," "forecast," "guidance," "intend,"
"may," "plan," "possible," "potential," "predicts," "preliminary,"
"projects," "seeks," "should," "targets," "will" or "would,"
or the negatives of these terms, variations of these terms or other similar expressions. These forward-looking statements include, among
others, statements regarding the potential benefits created by the Asset Acquisition, the anticipated impact of the Asset Acquisition
on Sanara's business and future financial and operating results, Sanara's ability to develop and commercialize the new collagen-based
products currently under development, including the manufacturing, distribution, marketing and sale of such products; Sanara's
ability to maintain or replace the Sellers' manufacturing and distribution process, including relationships with vendors, the development
of new products, the timing of commercialization of our products, the regulatory approval process and expansion of the Company's
business in telehealth and wound care. These items involve risks, contingencies and uncertainties such as the extent of product demand,
market and customer acceptance, the effect of economic conditions, competition, pricing, uncertainties associated with the development
and process for obtaining regulatory approval for new products, the ability to consummate and integrate acquisitions, and other risks,
contingencies and uncertainties detailed in the Company's SEC filings, which could cause the Company's actual operating results,
performance or business plans or prospects to differ materially from those expressed in, or implied by these statements.
forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to revise any of
these statements to reflect the future circumstances or the occurrence of unanticipated events, except as required by applicable securities