Alliqua BioMedical And BSN medical Reach Distribution Rights Agreement For Sorbion Dressing Products

Alliqua BioMedical, Inc. ALQA revealed Alliqua reached a definitive agreement with BSN medical for the sale to BSN of its exclusive distribution rights for SORBION SACHET and SORBION SANA primary dressings in the United States, Canada and Latin America.

Shares traded 20 percent higher in the pre-market trading on Thursday.

Alliqua said BSN would pay Alliqua total consideration of a maximum of $4.4 million for the purchase by BSN of all of the rights out of Alliqua's existing distribution agreement with former Sorbion GmbH & Co KG.

The company's CEO, David Johnson, said "The sale of Alliqua's exclusive distribution rights for the SORBION dressing products represents an opportunity for us to add important growth capital to our balance sheet and to focus our future investments on commercializing our own highly differentiated advanced wound care and regenerative technologies in MIST Therapy, BIOVANCE and, later this year, Interfyl."

Johnson continued, "We believe our entire experience with the distribution rights for the SORBION® dressings is illustrative of the strong value creation that our organization can provide in the wound care space. After identifying an unmet need in the U.S. market, we secured the distribution rights for the SORBION® dressings in late-2013, and leveraged our highly-focused wound care distribution infrastructure to establish the product franchise in the U.S. and ultimately grow it into a strong commercial line in just two and a half years."