United Therapeutics has announced plans to acquire synthetic organ company Miromatrix Medical, which is developing bioengineered organs composed of human cells. United intends to acquire all outstanding shares of Miromatrix at a purchase price of $3.25 per share in cash at the closing, amounting to approximately $91 million.
Miromatrix’s primary focus has been on bioengineering human livers and kidneys, leveraging “breakthrough advances” in perfusion decellularization and recellularization technology. The company uses porcine organs as the matrix for creating human organs because of the significant anatomical and vascular similarities between the two species.
The acqusition terms include an additional $1.75 per share in cash designated for the achievement of a clinical development milestone tied to Miromatrix’s mirokidney, a fully implantable manufactured kidney product.
“At United Therapeutics, we are determined to rectify the severe shortage of transplantable organs,” said Dr Martine Rothblatt, CEO of United Therapeutics. “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.”
United, which already boasts six FDA-approved therapies addressing rare, life-threatening conditions, has a robust pipeline that includes four ongoing registration-phase studies. The Miromatrix acquisition enhances its existing platform of organ manufacturing programs, encompassing ex-vivo lung perfusion, xenotransplantation, 3-D bioprinting, and regenerative medicine approaches.
“United Therapeutics’ dedication to solving the chronic shortage of transplantable organs is a vision we share at Miromatrix,” said Dr Jeff Ross, CEO of Miromatrix. “This transaction provides our shareholders with a substantial premium and allows them to participate in the potential upside of our combination, while accelerating the development of our pipeline as we strive to make bioengineered organs a reality for the many patients in need.”
The purchase price offered at closing reflects a notable premium of about 170% compared with the 30-day volume-weighted average trading price of Miromatrix’s common stock, concluding on October 27, 2023. This date marks the last trading day before the official announcement of this acquisition.