Australian company pSivida has completed its acquisition of US drug delivery firm, Control Delivery Systems (CDS), as part of its strategy to expand its presence in the US biotech industry.
The deal, valued at AU$114 m (€71m), will allow >pSivida, now one of the world's first bionanotech companies, to tap into the biotechnology hub around Boston on the US east coast and increase the company's access to the US scientific and investment communities.
pSivida now also owns the only two Food and Drug Administration (FDA) approved sustained release drug delivery systems for the back of the eye, Vitrasert and Retisert.
The company believes that the ophthalmology market is experiencing a period of strong growth, particularly in developing drugs for age related macular degeneration and diabetic retinopathy, spurred on by the escalating ageing and diabetes population.
The acquisition also brings pSivida two commercial partnerships with eyecare companies Bausch & Lomb and Alimera Sciences, as well as another sustained release drug delivery system in phase III trials, Medidur, and a raft of other delivery technologies.
pSivida has funded the deal by issuing 16 million shares to CDS stockholders, giving them about 41.5 per cent of the combined company. CDS has been renamed pSivida Inc.
Australian publication Bioshares recently announced pSivida's acquisition of CDS as the 'Biotech M&A Deal of the Year', citing pSivida's increased presence in the US, current revenue stream and synergies for combining the two companies' technologies and expertise.
pSivida has already attracted considerable attention of late with its BioSilicon drug delivery platform, a new and unique material produced from elemental silicon for use in controlled-release drug delivery; and its potential new treatment for liver and pancreatic cancer, Brachysil (32-phosphorus BioSilicon), currently in Phase II trials.