 |
| DermaPure decellularized human dermis product--Courtesy of Tissue Regenix |
British regenerative-medicine company Tissue Regenix ($TRX) told Bloomberg that it is an attractive acquisition target given its tax and structural advantages. The small cap recently launched its DermaPure decellularized dermis product in the U.S.
Trying to take advantage of the media attention on the Medtronic ($MDT) acquisition of Covidien ($COV), Tissue Regenix points to its tax-advantaged status. The company is split into three units--orthopedic, wound care and cardiac products--which it argues would make them easier to sell individually while still retaining tax benefits for a potential acquirer.
"If a wound-care company approaches us and says we want your wound-care business, we can sell it with all the tax benefits that go with that as a unit," CEO Antony Odell told Bloomberg. "Generally within wound care, it's been quite an acquisitive area." The company isn't currently in any acquisition talks, however.
The U.K.'s a corporate tax rate of 21% is dropping to 20% next year, compared with the 35% U.S. corporate tax rate, Bloomberg noted.
DermaPure is made by taking human donor skin and removing the DNA and cells to leave a biological scaffold to aid wound healing. In a U.K. trial, patients who had chronic wounds for an average of 4.5 years experienced an average 87% reduction in the size of all wounds, with 60% of patients healed. DermaPure is designed to be administered in a hospital or clinic; it can be stored at room temperature and does not require rehydration.
- here is the press release about the DermaPure U.S. launch
- and here is the Bloomberg story on the company's acquisition aspirations