HepaLife Acquires Developer of Transdermal Patches

HepaLife Technologies Inc. has completed its acquisition of AquaMed HepaLife Technologies Inc., a manufacturer of hydrogels used for transdermal drug delivery.

The all-stock deal is valued at about $16 million, according to HepaLife news releases. InMay, HepaLife completed a private placement of common stock and warrants, raising $1.42 million.

Boston, Mass.-based HepaLife exchanged 84.8 million shares for AquaMed, which previously was known as Hydrogel Design Systems Inc. before its February 2009 recapitalization. In October 2009, the Langhorne, Pa.-based firm expanded production capacity for silver formulations to its roll and sheet hydrogels, adding antimicrobial properties to moist wound dressings.

HepaLife is developing a bioartificial liver device using a patented liver stem cell line. Officials said the acquisition will give the company enough cash to expand AquaMed’s core business and help bring its HepaMate product to market. “We anticipate that the revenue derived fromAquaMed’s current hydrogel business will not only provide us with enough cash flow to expand AquaMed’s core business, but also to pursue the continued development and ultimately the potential commercialization of HepaMate,” HepaLife President Richard Rosenblum said in a news release.

HepaMate is an extracorporeal cell-based bioartificial liver system. It is designed to combine blood detoxification with liver cell therapy to provide whole liver function in patients with the most severe forms of liver failure.

AquaMed’s top executive said the deal broadens HepaLife’s portfolio of liver care products and services. “HepaLife…is now positioned to address the full spectrum of liver care, from preventative to curative,” noted Matthew Harriton, AquaMed’s CEO.