ATLANTA & FORT WORTH, Texas--(BUSINESS WIRE)--Brookhaven Medical, Inc., an Atlanta-based medical device company with interests in dialysis devices and advanced wound care, today announced an agreement to acquire Wound Management Technologies, Inc. (OTCQB: WNDM) of Fort Worth, an emerging commercial stage company focused on the worldwide advanced wound care market.
The letter of intent, which outlines the primary terms of a merger of Wound Management into Brookhaven, has been approved by the board of directors of both companies. The parties are engaged in completing a formal merger agreement underlying the transaction which is expected to close in the first half of 2014.
“I am pleased to enter this agreement with Wound Management,” said John Feltman, chairman and CEO of Brookhaven. “Wound Management is an ideal match for Brookhaven’s synergistic approach to building our leading medical technology and products, and I believe it will be an integral part of our success in ushering Brookhaven into the advanced wound care industry.”
Mr. Feltman said that, in addition to the Wound Management acquisition, Brookhaven recently entered into an agreement in principle to acquire a medical device company specializing in dialysis access and peripheral vascular applications, and also recently completed a strategic investment in CreatiVasc Medical, Inc., a private company based in Greenville, South Carolina, which is developing a breakthrough hemoaccess valve system for dialysis grafts. He said that CreatiVasc is one of only three companies recently selected by the FDA for inclusion in its Innovation Pathway Program. http://www.businesswire.com/news/home/20130723005969/en/Brookhaven-Medical-5-Million-Investment-CreatiVasc-Medical%E2%80%99s
Mr. Feltman said that he “believes that Brookhaven can achieve rapid growth and significant market share. The global market segments we serve represent a market opportunity in excess of $50 billion. It is our firm belief that Wound Management and our other planned acquisitions help position Brookhaven to capture a significant share of product sales in those targeted market segments,” he said.
Speaking for Wound Management, Robert Lutz, Jr., its chairman and CEO, said his company “is excited to execute this LOI and move forward with Brookhaven toward a definitive merger agreement. By merging with Brookhaven, Wound Management will be better able to implement our strategic plan and should also be welcome news to our shareholders in maximizing their return on investment as we become part of Brookhaven.
“By working with Brookhaven, we have the best opportunity for our CellerateRX® wound care and surgical products to achieve substantial growth and to expeditiously take our emerging resorbable bone wax technology to market,” he said. Wound Management recently entered into a three-year marketing and distribution agreement for CellerateRX® with WellDyne, Inc., a leading privately-held health services company that provides pharmacy benefit management, mail order pharmacy and specialty drug fulfillment, in addition to online access to a broad range of information on health, disease, pharmaceuticals and wellness. http://finance.yahoo.com/news/wound-management-welldyne-inc-enter-204700877.html
About Brookhaven Medical, Inc.
Brookhaven Medical, Inc. (www.brookhavenmed.com), headquartered in Atlanta, is an emerging developer, manufacturer and marketer of innovative, life-enhancing medical technologies and solutions in the fields of vascular, urology and advanced wound care.
About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. (www.wmgtech.com and www.celleraterx.com) is an emerging commercial stage company with its primary products in the $5 billion worldwide advanced wound care market. Wound Management's primary focus is the distribution of its unique, patented collagen product, CellerateRX, which is FDA-cleared and reimbursable under Medicare Part B. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in the late stages of development.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “forecast”, “plan”, “believe”, and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. Those factors also include the occurrence of any event, change or circumstance that could give rise to a termination of the merger agreement or the failure to satisfy the conditions to completion of the merger. Brookhaven Medical, Inc. and Wound Management Technologies, Inc. undertake no obligation to update any forward-looking statements. Please refer to the Cautionary Statement Regarding Forward-Looking Information in the Wound Management Technologies, Inc. June 30, 2013 Form 10-Q and December 31, 2012 Form 10-K for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.