December 19, 2016
Kuros Biosciences is to acquire Xpand Biotechnology by way of a share-swapping deal structured as an exchange of all Xpand shares for up to 2.105 million new Kuros shares. A total of 1.36 million Kuros shares will be issued immediately upon the deal closing. Another 0.74 million Kuros shares will be issued on the achievement of product approval milestones. Kuros says that if all milestones are achieved its shareholders will own about 71% of the combined company. The transaction has been approved by both firms’ boards of directors.
The combined entity will exploit two complementary technologies—Xpand’s synthetic surface science technology and Kuros’s fibrin/PTH biologics platform. The Netherlands-based Xpand Biotechnology develops products for bone repair and regeneration. A granular formulation of the firm’s bone graft substitute, MagnetOs, was approved in the EU during mid-2016 and is under FDA 510(k) review. A putty formulation of MagnetOs is also being prepared for submission in the EU for orthopedic and dental applications and for submission in the U.S. for spinal fusion applications.
Switerland-based Kuros says the acquisition will also give it an operation in the EU, and certified GMP manufacturing facilities. Kuros’s in-house pipeline is headed by lead product Neuroseal (KUR-023), a synthetic dural sealant for the prevention of cerebrospinal fluid (CSF) leakage following cranial or spinal surgery. KUR-023 is being submitted to the European regulator for CE marking, and market launch is projected for 2017. The Kuros pipeline also includes the fibrin/parathyroid hormone (PTH) bone graft KUR-111 and a fibrin/PTH bone-healing polymer candidate, KUR-113, both of which have completed Phase IIb clinical trials. KUR-113 is also being prepared for Phase II trials in spinal fusion, which are projected to start in 2018.
“Kuros and Xpand’s products are highly complementary,” commented Didier Cowling, CEO of Kuros. “As a result of the acquisition, we will have leading products in key segments of the orthobiologics field and the opportunity to build an integrated business with promising products on the market and in development.” Professor Joost de Bruijn, CEO of Xpand Biotechnology, will be joining the Kuros executive management team. He added, “we are pleased to be joining forces with Kuros. With the unique and complementary synthetic and biologic technology platforms of Kuros and Xpand, we can proceed to build a leading, commercial stage orthobiologics company.”
Kuros Biosciences was formed by the merger of Cytos Biotechnology and Kuros Biosurgery Holdings in January 2016.