United Therapeutics Buys Miromatrix for $91M to Expand Organ Manufacturing

United Therapeutics Corporation and Miromatrix Medical Inc. announced October 30th a definitive agreement for United Therapeutics to acquire Miromatrix.

Miromatrix is a life sciences company focused on the development of bioengineered organs composed of human cells. United Therapeutics is a biotechnology company with six FDA-approved therapies to address rare, life-threatening conditions, and a pipeline that includes four ongoing registration-phase studies. 

Buying Miromatrix will expand United Therapeutics’ existing complementary platform

Biotechnology has profoundly changed the way people are being diagnosed and treated. Medical trail blazers across the globe are developing new biotech tools not only capable of enhancing and prolonging life, but also of solving world-health crises such as infectious diseases.

The acquisition of Miromatrix will expand United Therapeutics’ existing complementary platform of organ manufacturing programs, which include ex-vivo lung perfusion, xenotransplantation, 3-D bioprinting, and regenerative medicine approaches with the objective of creating an unlimited supply of tolerable, transplantable organs.

“At United Therapeutics, we are determined to rectify the severe shortage of transplantable organs,” said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer 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 Therapeutics’ dedication to solving the chronic shortage of transplantable organs is a vision we share at Miromatrix,” said Jeff Ross, Ph.D., Chief Executive Officer 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.”

Between Alexa revolutionizing healthcare and artificial kidneys, the future is now

This barely seems believable, but the future is already here. The core of the Amazon Echo device in your kitchen might be the catalyst that upends the entire healthcare industry, although most healthcare professionals are still unfamiliar with the benefits of voice technology and the relevance of Alexa, and artificial organs for transplant are becoming real.

With kidney failure’s global rise, understanding its treatment options is extremely important, especially since each patient’s journey is distinct, needing a tailored approach to care. 

Bioartificial kidneys are a fusion of living kidney cells and synthetic materials, trying to replicate the functions of natural kidneys. These devices aim to provide patients with a continuous, wearable, or implantable solution, eliminating the need for regular dialysis sessions or potentially even transplants. The goal is clear: replicate the kidneys’ intricate functions outside the human body, offering patients a longer and better quality of life. 

With many technological advancements and continuous research, developing a fully functional artificial kidney is an ongoing journey. Multiple prototypes have been developed, some even reaching clinical trials. These innovations have been advanced by  progress in microelectronics, nanotechnology, and cellular biology, and scientists are closer to achieving the goal of creating a fully functional artificial kidney. 

What are the terms of the agreement

United Therapeutics will commence a tender offer to acquire all outstanding shares of Miromatrix for a purchase price of $3.25 per share in cash at closing (an aggregate of approximately $91 million) and an additional $1.75 per share in cash upon the achievement of a clinical development milestone related to Miromatrix’s development-stage, fully-implantable manufactured kidney product known as mirokidney™ by December 31, 2025.

This transaction is not subject to any financing condition and is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including the tender of a majority of the outstanding shares of Miromatrix’s common stock. Following the successful closing of the tender offer, United Therapeutics will acquire any shares of Miromatrix that are not tendered in the tender offer through a second-step merger at the same consideration as paid in the tender offer.

The purchase price payable at closing represents a premium of approximately 170% to the 30-day volume-weighted average trading price of Miromatrix’s common stock ending on October 27, 2023, the last trading day before the announcement of the transaction. Miromatrix’s Board of Directors unanimously recommends that Miromatrix’s stockholders tender their shares in the tender offer.

For United Therapeutics, Gibson, Dunn & Crutcher LLP is acting as legal counsel. For Miromatrix, Piper Sandler is acting as lead financial advisor and Faegre Drinker Biddle & Reath LLP as legal counsel. Craig-Hallum Capital Group LLC also acted as financial advisor to Miromatrix.

About United Therapeutics

At United Therapeutics, the vision and the mission are one. They use their enthusiasm, creativity, and persistence to innovate for the unmet medical needs of our patients and to benefit our other stakeholders. They are bold and unconventional. They have fun; they do good. The company is the first publicly traded biotech or pharmaceutical company to take the form of a public benefit corporation. Their public benefit purpose is to provide a brighter future for patients through the development of novel pharmaceutical therapies; and technologies that expand the availability of transplantable organs.

About Miromatrix

Miromatrix Medical Inc. is a life sciences company pioneering a novel technology for bioengineering fully transplantable human organs to help save and improve patients’ lives. Miromatrix Medical has developed a proprietary perfusion technology platform for bioengineering organs that it believes will efficiently scale to address the shortage of available human organs. Miromatrix Medical’s initial development focus is on human livers and kidneys.