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Organogenesis Acquires Shire’s Dermagraft Amid Reimbursement Challenges

Dublin-based Shire’s decision to sell Dermagraft and its assets to its competitor was made in light of substantial Medicare pay cuts that took effect this year based on policies in CMS’ 2014 hospital outpatient prospective payment system regulation.

Organogenesis Inc. has acquired Shire PLC’s Dermagraft, a regenerative medicine product approved in the U.S. and Canada for the treatment of nonhealing diabetic foot ulcers, the companies announced Jan 17. Organogenesis already sells Apligraf, a competing bioengineered cell-based product for diabetic foot ulcers and venous leg ulcers.

Dublin-based Shire’s decision to sell Dermagraft and its assets was made in light of substantial Medicare pay cuts that took...

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