Shire Sells Dermagraft Wound Care Product to Organogenesis

Shire Pharmaceuticals is selling $683 million in assets related to its Dermagraft human fibroblast-generated skin substitute for diabetic foot ulcers to Organogenesis, the Irish specialty biopharma company said Friday.

The deal includes development, manufacturing, sales, intellectual property, regulatory filings and registration, manufacturing plants, equipment and materials, product inventory, as well as financial and management responsibilities for the Dermagraft line.

Shire will retain legacy liability for the product and is entitled to up to $300 million in milestone payments related to net sales targets until 2018.

“By acquiring Dermagraft, we now have two of the very, very few products that are commercially available and FDA-approved to treat chronic wounds,” said Organogenesis CEO Geoff MacKay. Alongside the company’s other wound treatment, Apligraft, Dermagraft will enable the Organogenesis to compete more effectively in the wake of reduced Medicare reimbursement rates.

The Massachusetts Institute of Technology and Children’s Medical Center Corporation filed suit in January 2013, alleging that Shire’s Dermagraft infringed patents on techniques held by those institutions. — Lena Freund

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