Date: Jun 25, 2012 Author: Julie Donnelly Source: Boston Business Journal
Limerick, Penn.-based Medical device company Teleflex Inc. (NYSE:TFX) has acquired Cambridge, Mass-based Semprus BioSciences in order to get access to Semprus’ technology, which can help prevent hospital-acquired infections. Teleflex paid $30 million upfront for Semprus, in additional to potential milestones, which were not disclosed.
Privately-held Semprus, which has developed a polymer, which, when it coats medical devices such as catheters, can help prevent infection. Hospital-acquired infections are a persistent, costly health care problem at even the best medical centers, and new rules by government health care programs will soon financially penalize hospitals if their rates of hospital-acquired infections are too high.
Semprus was launched in 2007, after winning the MIT $100K entrepreneurship competition. It was founded by David Lucchino, Robert Langer, and Christopher Loose. As of last September, he company had 32 workers and has raised $28.5 million in venture capital funding to date. The company has since won a $1 million grant from the U.S. Army to help develop products that would prevent prosthetics infections.
“The combination of Teleflex and Semprus BioSciences is an excellent opportunity to capitalize on the strengths of both organizations,” David Lucchino, Semprus BioSciences co-founder, said in a statement. “We look forward to being a catalyst for continued growth through the development and rollout of the Sustain™technology on medical devices around the world.”
Lucchino will now become VP of Semprus Techology, a subsidiary of Teleflex.
The initial focus for the technology is called the Semprus Sustain coated Peripherally Inserted Central Catheter which is currently awaiting approval decisions from both U.S. and European regulators.
Teleflex has a market cap of $2.5 billion. The company’s shares closed at $60.78 on June 22 and have traded between $49.40 and $64.79 over the past year.