An Eden Prairie-based biotechnology company specializing in bioengineering organs for transplant announced its impending sale Monday.
Eden Prairie biotech company Miromatrix Medical sells for $91M
The company, which bioengineers organs for human transplant, saw its stock increase more than 200% on Monday.
October 30, 2023 at 1:52PM
Miromatrix Medical Inc. will sell to Maryland-based United Therapeutics Corp. for $91 million, $3.25 per share. The fellow biotech company will pay an additional $1.75 per share, approximately $54 million, if Miromatrix meets certain targets.
Research from Medical Alley showed Miromatrix would mark the 13th sale of a Minnesota medical device, digital health or health care-connected company this year. New Brighton-based Cardiovascular Systems Inc. sold to Abbott for $850 million in April. Boston Scientific Corp. announced plans in September to buy Edina-based Relievant Medsystems for at least $850 million. On Friday, New Hampshire-based Laborie Medical Technologies announced the closing of its $255 million acquisition of Plymouth-based Urotronic Inc., a deal first disclosed last month.
Miromatrix's stock closed up 216% on Monday following the announcement of the deal. Miromatrix went public at $9 per share in June 2021 during a busy year for initial public offerings. Its stock has been trading considerably lower and closed at $1.04 per share on Friday.
Miromatrix has been working to transform pig livers and kidneys into "bioengineered" human organs which could potentially be for transplantation. But the company does not yet have any approvals from the U.S. Food and Drug Administration. Miromatrix originally developed its technology at the University of Minnesota.
United Therapeutics produces treatments for pulmonary hypertension but has also been working toward developing manufactured organs.
"At United Therapeutics, we are determined to rectify the severe shortage of transplantable organs," said Martine Rothblatt, CEO of United Therapeutics, in a statement. "We expect that Miromatrix will help us in this mission, bringing a number of new approaches, highly skilled personnel and state of the art facilities as additional shots on goal to complement our existing organ-manufacturing programs."
Rothblatt was in Eden Prairie on Monday morning to speak to Miromatrix's 68 employees.
"They're really looking to be the organ manufacturer, which would include our technology," said Jeff Ross, Miromatrix CEO.
Ross added Miromatrix will "be the same company with a new parent," and there will be no job cuts in connection with the deal. He will also remain as chief executive.
Miromatrix remains a development-stage company. For 2022, it had a small amount of licensing revenue but reported a net loss of $30 million. United Therapeutics reported revenue of $1.9 billion for 2022.
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In its latest quarterly financial filing in August, Miromatrix indicated it was facing a looming cash crunch: "The company does not have adequate liquidity to fund its operations for at least 12 months from the issuance of these financial statements without raising additional capital." One of Miromatrix's Monday filings with the U.S. Securities and Exchange Commission said the company had been evaluating a range of financing, partnering and acquisition options.
The deal should close by the end of the year.
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