MDY Healthcare - Acquisition
RNS Number:5946O
MDY Healthcare PLC
25 February 2008
MDY Healthcare co-leads investor syndicate to acquire Stanmore Implants
Worldwide
Brian Steer, former Chairman of Gyrus Group plc, to become Executive Chairman of
Stanmore
25 February 2008 - MDY Healthcare plc ('MDY Healthcare') announces today that it
has co-led, with Abingworth Management ('Abingworth'), a syndicate of investors
to acquire the entire issued share capital of Stanmore Implants Worldwide Ltd
('Stanmore' or the 'Company'), an orthopaedic company focused on saving and
restoring the function of limbs and joints.
The investor syndicate is working closely with Brian Steer who will lead
Stanmore as Executive Chairman. Brian is a medical technology industry veteran
and was most recently Chairman of Gyrus Group plc, which was acquired for £935
million by Olympus UK Acquisitions Limited in late 2007. Stanmore's senior
management team, as well as its clinical and scientific collaborators, have
agreed to remain with the Company.
Stanmore Implants Worldwide
Stanmore was formed in 1949 and is an innovative orthopaedic business focused on
saving and restoring the function of limbs and joints. The Company designs,
manufactures and markets a custom implant service with a portfolio of
orthopaedic implants for limb salvage and complex joint replacement. Stanmore
is now a market leader in the UK and has a rapidly expanding presence in export
markets, delivered through both direct and distributor sales.
Stanmore is headquartered in a specialised facility at the world-renowned Royal
National Orthopaedic Hospital in Stanmore, Middlesex, and has a small
Continental European sales office in Lyon, France. The Company is currently
owned by University College London, and was spun out as an independent company
from UCL's Centre for Biomedical Engineering in 1996. The Centre is known for
its design of some of the world's most successful implants including the
Stanmore Hip.
Stanmore focuses on high value, technically demanding applications where it
differentiates itself by forming long-term relationships with specialist
surgeons, delivering advanced designs, high-quality products and rapid service.
The Company has annual sales in excess of £4 million and has been profitable for
several years.
Intraosseous Transcutaneous Amputation Prosthesis (ITAP)
Stanmore's key new product development is ITAP, an innovative device for
directly attaching prosthetic devices to the skeleton of amputees. It is being
developed for a wide-range of applications including upper and lower limb,
digits and craniofacial prostheses. ITAP builds on ground-breaking research
undertaken by UCL with a design that, by mimicking successful skin-penetrating
natural structures (such as deer antler) stably integrates with the skin. This
provides an effective barrier against infection, which has to date limited the
application of percutaneous implants to dental implants and craniofacial
applications.
Surgeons working closely with the company have implanted a number of
craniofacial ITAP devices over the last three years with encouraging clinical
results. Similarly, over the last two years, digit ITAP devices have been
implanted in a number of patients with positive results. In late 2007, the
first upper limb ITAP device was implanted in a 7/7 bomb victim. The patient is
progressing well, and Stanmore plans to implant further upper and the first
lower limb ITAP implants during this year.
Investment syndicate
The investment syndicate will invest a total of £12.5 million to acquire the
Company and provide funds for future growth of both the core business and the
clinical development of ITAP, its key new product development. The syndicate is
co-led by MDY Healthcare and Abingworth and also includes Ivy Capital Partners,
LLC ('Ivy Capital'). Abingworth is an investment firm dedicated to the life
sciences sector investing across all stages of development from early-stage
through to public companies. Ivy Capital is a US private equity firm specialised
in investing in companies operating in the musculoskeletal sector of the
healthcare industry.
MDY Healthcare has invested £3 million in the transaction and will have
approximately 20% of the issued share capital on a fully-diluted basis. Charles
Spicer, CEO of MDY Healthcare and Tim Haines a Partner at Abingworth, who will
be investing £8.5m, have been appointed to the board of SIW.
Brian Steer, Executive Chairman of Stanmore Implants Worldwide, said:
'In my many years in the industry, I have seen few products as innovative as the
ITAP implant. The ability to attach prosthetic devices directly to the skeleton
of amputees is truly ground-breaking and has already benefitted patients. I
look forward to working with the team at Stanmore to roll out the existing
business internationally while completing the clinical development and
commercial launch of ITAP.'
Cengiz Tarhan, Managing Director of UCL Business, added:
'Stanmore is a great example of academia and technology transfer working
together within an academic and NHS environment delivering benefits to society.
The sale of SIW to MDY and Abingworth will accelerate the development of ITAP
which will benefit both patients and the continuing academic research at UCL'.
Charles Spicer, CEO of MDY Healthcare, added:
'Stanmore is a key strategic investment for MDY and illustrates the evolution of
our business model. We are backing one of our senior advisers and working
alongside a specialised investor group to acquire a profitable company that has
been an international centre of excellence in its field for nearly 60 years.
With its world class range of marketed products and development projects, SIW
has significant growth potential which should therefore generate a healthy
return for MDY shareholders.'
For further information, please contact:
MDY Healthcare plc
Charles Spicer, CEO +44 (0) 207 647 1800
charles.spicer@mdyhealthcare.com
Financial Dynamics
Ben Atwell, Susan Quigley +44 (0) 207 831 3113
ben.atwell@fd.com, susan.quigley@fd.com
Brewin Dolphin Limited (Nomad)
Matt Davis +44 (0) 845 270 8600
Notes for editors:
About MDY Healthcare
MDY Healthcare plc is a sector specialised strategic investing company quoted on
AIM (ticker symbol: MDY). MDY Healthcare seeks to achieve superior returns for
shareholders by investing globally in companies, both public and private, across
the healthcare sector. The directors, executives and senior advisors have
significant operational and investment experience in the sector and therefore
the ability to identify and review a wide range of potential investments.
Further information can be found on the website www.mdyhealthcare.com
MDY Healthcare plc intends to publish its annual report and accounts for the
year ended 30 September 2007 by March 2008. When available, shareholders will
be able to download the report and accounts from the website
www.mdyhealthcare.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQELLFLVLBZBBL