Angiotech Pharmaceuticals, Inc has entered into a definitive agreement to acquire privately held Quill Medical, Inc., a provider of specialized, minimally invasive aesthetic surgery and wound closure technology, for US $40 million in cash, plus certain future contingent payments based on product revenues.
Through this transaction, Angiotech will acquire all of Quill's technology and intellectual property, including the Contour Threads product line, which under its current license agreement is marketed and sold by Angiotech's Surgical Specialties division for use in aesthetic and cosmetic surgery.
"This acquisition allows us to capitalize on all of the exciting potential applications of Quill's technology across all fields, which will benefit our growing aesthetic surgery and wound closure franchises," said Pete Molinaro, president of the Surgical Specialties division. "We look forward to rapidly developing these applications and getting them quickly into the hands of our growing sales and distribution network."
"The acquisition of Quill gives us an immediate ability to expand our product sales in two substantial and growing market opportunities - one in aesthetics and one in wound closure," said Dr. William L. Hunter, president and CEO of Angiotech. "This acquisition will deliver immediate financial benefits, a portion of which we will reinvest to expand the Contour aesthetic and wound closure product offerings and to further expand the sales and commercialization resources of our Surgical Specialties division," added Dr. Hunter.
Unlike conventional sutures which are smooth, Quill's pioneering products have tiny teeth-like barbs or cogs that are spaced evenly apart. Once inserted under the skin, these self-anchoring sutures are fixated with tension that creates a suspension effect that gently lifts sagging tissues. To date, approximately 2,400 physicians have been trained or have performed procedures using Contour Threads.
Currently, as approved by the FDA, the Contour Threads product line enables plastic surgeons and dermatologists to offer a minimally invasive "face lift" through an office-based procedure performed under local anaesthesia. This is in contrast to a traditional face lift procedure, which is done under general anaesthesia in the operating room and involves dissecting and reconnecting multiple tissue planes. Angiotech believes the Quill technology may also be useful in a variety of other important cosmetic and aesthetic procedures such as breast, neck, and other body contouring indications.
Looking beyond aesthetic applications, this acquisition also allows Angiotech to develop, market and sell Quill's pioneering technologies for all medical applications where sutures are commonly used, including general surgery, wound closure, and specialty tissue repair applications.
The acquisition of Quill is subject to customary closing conditions, including the final approval of the shareholders of Quill, and is expected to close by the third quarter of 2006.