Aastrom Biosciences To Buy Sanofi's CTRM Business For $6.5 Mln - Quick Facts

(RTTNews) - Aastrom Biosciences Inc. (ASTM) said Monday that it reached a definitive agreement to acquire Sanofi's (SNY) Cell Therapy and Regenerative Medicine or CTRM business for a purchase price of $6.5 million, with $4 million payable in cash at closing and $2.5 million payable in the form of a promissory note.

The acquisition is subject to customary closing conditions and is scheduled to close in approximately three weeks.

Through the CTRM acquisition, Aastrom is acquiring global commercial rights to three marketed autologous cell therapy products. Carticel (autologous cultured chondrocytes) is an autologous chondrocyte implant (ACI) currently marketed in the United States for the treatment of articular cartilage defects. Epicel (cultured epidermal autografts) is a permanent skin replacement for full thickness burns greater than or equal to 30% of total body surface area, and is marketed in countries around the world.

MACI (matrix-induced autologous chondrocyte implant) is a third-generation ACI product currently marketed in the European Union. Revenues of those three products were $44 million in 2013. Aastrom will also acquire global manufacturing and production centers located in the United States and Denmark.

Sanofi acquired the CTRM business in 2011 through the acquisition of Genzyme Corporation.