ATS bankruptcy
This article was originally published in The Gray Sheet
Executive Summary
Smith & Nephew will gain full control of the Dermagraft tissue-engineered dermal replacement product joint venture with Advanced Tissue Sciences via a proposed purchase of ATS' stake for $12 mil. ATS, which filed for Chapter 11 protection Oct. 10 in southern California federal bankruptcy court, expects to be advanced up to $5 mil. of the purchase price to continue operations until the sale is approved by the court. In addition to Dermagraft for diabetic foot ulcers, the deal includes TransCyte temporary skin cover for serious burns; combined sales are expected to reach $8 mil. this year, S&N says. Upon completion of the deal, S&N will become a contract manufacturer for non-wound care products retained by ATS. The companies will dissolve their NeoCyte human cartilage development joint venture...