University of Sydney spin-off Elastagen, which has a product to fix stretch marks and acne scars, has been bought by multi billion dollar global biopharmaceutical Allergan, the manufacturer of Botox, for $US95 million ($A120 million).
Elastagen’s technology is based on human tropoelastin, the precursor of elastin which is a key component of youthful skin.
The startup is part of the Medical Research Commercialisation Fund portfolio, managed by Brandon Capital Partners.
“Our technology has come a long way from the lab bench at the University of Sydney towards developing products for patients around the world,” says Professor Anthony Weiss, Elastagen’s founding scientist.
“I thank my team at the University of Sydney and greatly look forward to seeing our science commercialized by Allergan.”
Elastagen’s tropoelastin is identical to that present in human tissue and has many potential clinical applications, including treatment for acne scars, stretch marks, skin repair and surgical wound repair.
Bill Meury, Chief Commercial Officer at Allergan, said: “This acquisition and the development of a next generation of injectables based on this technology will ensure Allergan offers innovative filler products for years to come.”
The deal is subject to Foreign Investment Review Board approval.
Elastagen has in the past received investment from an international syndicate of venture groups including AmorePacific Ventures, Brandon Capital, Cell Innovation Partners, Cicada Innovations, GBS Ventures, Korea Investment Partners and the Wellcome Trust.
Two years ago Elastagen closed a $13 million Series B financing round. Investors included Korea Investment Partners, AMOREPACIFIC Ventures, and the Wellcome Trust. Existing investors including Brandon Capital Partners, GBS Ventures and ATP Innovations also participated in the round.
Elastagen was one of the inaugural recipients of NSW State Government Medical Devices Fund in 2013 and will be the first to repay the funding amount, $4 million.