Alliqua Nabs Wound Care Company Choice Therapeutics for $4 Million

Alliqua has broadened its offering of wound care products, purchasing fellow wound care company Choice Therapeutics for $4 million in stock and cash. The acquisition gives Alliqua access to Choice’s TheraBond 3D Antimicrobial Barrier Systems technology.

“The brand equity that TheraBond 3D has developed in burns, surgical site infections and chronic wounds should allow Alliqua to leverage its current portfolio into these areas,” said Lori Toner, chief marketing officer at Alliqua.

The deal calls for Alliqua to make additional payments if Choice’s products generate at least $2 million in annual revenue in any of the next three years, Chief Financial Officer Brian Posner told Device Daily Bulletin. The maximum payout is $5 million on $7 million of revenue, with a linear scale of payments between $2 million and $7 million, he said.

In addition to the TheraBond product line, Alliqua gains the Wrentham, Mass., company’s technology platform and sales and marketing team. The latter will be integrated with Alliqua’s team of 20 direct salespeople and its network of independent sales representatives.

According to Choice, TheraBond 3D employs silver ions to provide up to 14 days of antimicrobial activity against a wide range of pathogens. It uses capillary action to transfer fluid and cellular debris away from the wound to an inexpensive outer dressing. — Kellen Owings

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