According to the deal, Gurnet Point is slated to buy Innocoll for 1.75 per share in cash and up to $4.90 in cash from a contingent value right, in a deal valued up to $209 million.
The investment fund plans to provide a $10 million term loan to support the development of Innocoll’s late-stage implantable, bioresorbable collagen matrix, Xaracoll. The additional capital will fund the company’s re-submitted new drug application, according to Gurnet Point.
“With the close of this transaction, we are excited by the prospect of helping to develop and bring Xaracoll to the market and we look forward to assisting with the re-submission of Xaracoll for FDA approval and preparing for its commercialization,” managing partner Christopher Viehbacher said in prepared remarks. “We are looking forward to working closely with Innocoll’s management team to identify Xaracoll’s path to commercialization.”
“This transaction supports Gurnet Point’s strategy of deploying long-term capital in life sciences, medical technology and healthcare services companies across all stages of development through to commercialization,” Viehbacher added. “It builds on Gurnet Point’s track record of partnering with companies seeking long-term partners to develop and implement transformative technologies and health care solutions.”
“We are excited to begin our work with Gurnet Point with the aim of successfully filing and commercializing Xaracoll in the U.S. market,” Innocoll CEO Tony Zook said. “Gurnet Point’s deep knowledge of value-driven drug development, regulatory affairs and clinical trial design and execution will provide us with the opportunity to ultimately bring Xaracoll to patients.”
Xaracoll was designed to deliver bupivacaine directly at a surgical site to provide sustained, post-surgical pain relief. Last year, the company received a Refused to File letter from the FDA in response to its NDA for Xaracoll.
Among other things, the regulatory agency said that Xaracoll should be treated as a drug-device combination product, meaning that Innocoll would have to provide additional clinical data.
In March, the company met with the FDA to detail a path forward for its pain-relief product.