Allergan to acquire Australia's VC-backed Elastagen
Allergan, a US-listed pharmaceutical company and the owner of Botox cosmetic injectable products, has agreed to acquire Elastagen, an Australian skin treatment developer backed by a number of VCs, in a deal worth up to $260 million.
The transaction will include an upfront component of $95 million plus contingent considerations worth up to $165 million, according to a release. Although details regarding equity transfers have not been disclosed, backers set to realize exits include Brandon Capital, GBS Ventures, Korea Investment Partners, AmorePacific Ventures, Cell Innovation Partners, Cicada Innovations, and the Wellcome Trust.
As a spin-out of the University of Sydney, Elastagen has also received significant support from a number of federal grants and New South Wales’ Medical Devices Fund. Brandon invested the company via its Medical Research Commercialization Fund (MRCF) program, which combines the resources of more than 50 of Australia’s leading medical institutes and research hospitals.
The exit follows confirmation of a Series C funding round worth A$30 million ($23.6 million) last month and closure of a A$13 million Series B in 2016. The capital has focused on developing technologies based on the tropoelastin proteins found in connective tissue, which are associated with elastic, youthful skin. Potential clinical application areas include acne scars, stretch marks, aesthetic skin repair and surgical wound repair.
“Elastagen is gearing up for a pivotal year, when we expect to submit stretch mark, acne scar and aesthetic products for EU [European Union] approval, in addition to making an IDE [investigational device exemption] submission for a US clinical study for acne scars,” Robert Daniels, CEO at Elastagen, said in a statement last month. “We look forward to talking directly with physicians engaged in wound healing and aesthetics.”
The first MRCF closed in 2007 at A$11 million, followed by a second in 2011 at A$40 million. MRCF III, Brandon’s most recent vehicle in the program, closed at A$200 million in 2015 and was expanded to encompass New Zealand in 2016. These funds have supported companies including Spinifex Pharmaceuticals, which was acquired by Novartis for $725 million in 2015, and Fibrotech Therapeutics, which was acquired by Shire for $557 million in 2014.
Based in Sydney, Brandon focuses on domestic life science companies at the seed and early-stage levels. The firm was selected in late 2016 to manage the federal government’s A$500 million Biomedical Translation Fund alongside OneVentures and BioScience Managers.
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