Alliqua, Celgene Enter Investment/Licensing Deal

Alliqua, Inc. has entered into a licensing agreement with Celgene Cellular Therapeutics (CCT), a subsidiary of Celgene Corp., under which Alliqua receives rights to develop and market the wound care products Biovance and Extracellular Matrix (ECM). In addition to the license agreement, Alliqua will to sell $6 million in common stock to Celgene, which has also appointed a director to Alliqua’s board.
 
Biovance is a collagen-based decellularized and dehydrated topical wound covering produced from human amniotic membrane for the management of non-infected partial- and full-thickness wounds. The product is expected to launch in 2Q14. ECM is a suite of advanced wound management products made from extracellular matrix derived from the human placenta.
 
David Johnson, chief executive officer of Alliqua, said, “Celgene is recognized as a leader in the biopharmaceutical sector. We welcome Celgene’s investment in Alliqua and the expertise we expect to gain from the representative they will appoint to join our board. Biovance and ECM are complementary additions to our already well-received wound care portfolio that includes SilverSeal, Hydress and our other hydrogel-based products, as well as sorbion’s hydration response technology that was licensed earlier this year.”
 
Perry Karsen, chief executive officer of CCT, said, “Alliqua possesses the strength of leadership and the technical expertise necessary to convey the specific benefits of Biovance to wound care practitioners and their patients, and to help us further advance ECM. Our agreement positions us to work in tandem as we communicate the benefits of these products. We greatly look forward to working with David and the rest of the Alliqua team to bring these important products to patients.”