Synovis Life Technologies Finishes Pegasus Biologics Assets Buy

Synovis Life Technologies. has completed its purchase of the assets of Pegasus Biologics Inc., a privately held medical device company focused on the development of advanced biological solutions for soft tissue repair. The purchase price was $12.1 million in cash.

Synovis, based in St. Paul, Minn., will retain manufacturing operations in Irvine, Calif., and operate the acquired assets as a separate division, according to the company.

Richard W. Kramp, Synovis Life Technologies president and CEO, said, “Growth through acquisition has been an important long-term strategy to augment Synovis’ organic growth. We bought this business at a very attractive price, given the established OrthADAPT and Unite products with U.S. and European regulatory clearances, complementary soft tissue repair technologies and expanding market opportunities for soft tissue in orthopedics and wound care.”

In 2008, Pegasus, based in Irvine, Calif., generated $9.1 million in revenue and had about 75 employees at year-end. The purchased technologies utilize flexible cross-linking and sterilization processes that stabilize and sterilize biological tissue for use in orthopedic, wound, oral/dental, spine and neurological, breast, abdominal and thoracic applications. The acquired assets include two commercialized products:

• The OrthADAPT Bioimplant, an equine pericardial-based scaffold developed with technologies for orthopedic surgical applications, including rotator cuff and Achilles tendon repair, where there is a clinical need to reinforce the repair;

• The Unite Biomatrix, an equine pericardial-based wound dressing that provides a new treatment alternative for chronic wounds, such as diabetic foot ulcers and pressure ulcers.

In addition, Synovis acquired the OrthADAPT PR product, a combination product composed of equine pericardial collagen and woven PEEK fabric, which received U.S. Food and Drug Administration marketing clearance in May. OrthADAPT PR is a device engineered for arthroscopic delivery for rotator cuff repair.