12/12/2013 - 12:24

Biotech company buys manufacturing facility

12/12/2013 - 12:24

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Admedus, formerly Allied Healthcare, has struck a deal to acquire a manufacturing site that pharmaceutical giant Sanofi built in Malaga in 2009.

Biotech company buys manufacturing facility

Admedus, formerly Allied Healthcare, has struck a deal to buy a manufacturing site in Malaga built by pharmaceutical giant Sanofi in 2009.

The site will be used to facilitate scaled-up production of Admedus’s regenerative tissue product CardioCel and support the development and manufacture of additional regenerative tissue products.

Admedus said the purchase price of the manufacturing facility was nominal and included all existing equipment at the site.

“This established site is an important acquisition for us as it allows Admedus to accelerate its manufacturing capabilities in anticipation of growing CardioCel sales over the next 12 months and beyond,” Melbourne-based chief executive Lee Rodne said.

He said the company was attracted to the Malaga site because it was incorporated in Perth and many of its research staff were still based here.

Admedus could have up to 30 staff at the site.

As a part of the acquisition, Admedus will retain the necessary staff to run the facility.

“The acquisition represents an important step forward for Admedus, as it gives us immediate access to a fully functional facility, the necessary equipment and trained, experienced staff,” Mr Rodne said.

“As a result this will accelerate our ability to increase the manufacturing of CardioCel as market demand grows.”

In September, the company raised $10.4 million to launch CardioCel across Europe.

The raising was backed by Fortescue Metals Group chairman Andrew Forrest, who holds a 15.8 per cent stake through his company Minderoo Group Pty Ltd.

Shares in Admedus are up 8 per cent, trading at 15.7 cents per share, as of 12pm, WST.

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