Fibrocell Science Inc. agreed to be acquired by Castle Creek Pharmaceutical Holdings Inc. for about $63.3 million in cash.
The consideration includes repayment of debt, preferred shares and warrants.
Shareholders of Exton, Pa.-based Fibrocell, which develops therapies for diseases of the skin and connective tissues, will receive $3 per share, a 63% premium to the company's 30-day average price as of Sept. 11.
The boards of both companies have approved the transaction. Fibrocell expects to complete the deal in the fourth quarter of 2019, subject to closing conditions, including shareholder approval. On completion, Fibrocell will become a unit of Castle Creek.
Castle Creek Pharmaceutical Holdings is the parent of Castle Creek Pharmaceuticals LLC, a Parsippany, N.J.-based biopharmaceutical company focused on therapies for rare and serious dermatologic conditions.
In April, Fibrocell and Castle Creek Pharmaceuticals entered into a partnership to develop FCX-007 for the treatment of a rare genetic skin condition. Fibrocell is evaluating FCX-007 in a late-stage study and expects to file a biologics license application with the U.S. Food and Drug Administration in 2021.
Latham & Watkins LLP is the legal adviser of Castle Creek Pharmaceutical Holdings, while Canaccord Genuity and Hogan Lovells US LLP are Fibrocell's financial and legal advisers, respectively.
