Fibrocell

Canaccord Genuity Acts as Sole Financial Advisor to Fibrocell on its $63.3 Million Sale to Castle Creek Pharmaceutical Holdings

Canaccord Genuity is pleased to announce that on September 12, 2019, its client Fibrocell Science, Inc. (“Fibrocell”), announced that it had entered into a definitive agreement with Castle Creek Pharmaceutical Holdings, Inc. (“Castle Creek Pharmaceutical Holdings”) whereby Castle Creek Pharmaceutical Holdings will acquire Fibrocell for a total consideration of approximately $63.3 million. Under the terms of the agreement and plan of merger, Castle Creek Pharmaceutical Holdings will purchase all outstanding shares of Fibrocell common stock for $3.00 per share and provide repayment of outstanding debt, preferred shares and warrants as defined by their individual agreements. This offer represents a 63% premium to Fibrocell’s 30-day volume weighted average price as of September 11, 2019. The transaction was approved by the Boards of Directors of both companies and closed on December 13, 2019.

Fibrocell’s portfolio includes FCX-007, an investigational, late-stage stage gene therapy product candidate for the treatment of recessive dystrophic epidermolysis bullosa (RDEB), a congenital and progressive orphan skin disease caused by the deficiency of the protein COL7. FCX-007 is a genetically-modified autologous fibroblast that encodes the gene for COL7. By genetically modifying autologous fibroblasts ex vivo to produce COL7, culturing them and then treating wounds locally via injection, FCX-007 offers the potential to address the underlying cause of the disease by providing high levels of COL7 directly to the affected areas while avoiding systemic distribution. A Phase 3 trial was initiated recently, and if successful, a Biologics License Application (BLA) filing is expected in 2021.

The portfolio also includes FCX-013, an investigational, gene therapy candidate for the treatment of moderate to severe localized scleroderma. FCX-013 is an autologous fibroblast genetically modified using lentivirus and encoded for matrix metalloproteinase 1 (MMP-1), a protein responsible for breaking down collagen. FCX-013 is currently enrolling for the Phase 1 portion of a Phase 1/2 clinical trial.

These product candidates will augment Castle Creek Pharmaceuticals’ CCP-020, an investigational, late-stage topical ointment under development for the treatment of epidermolysis bullosa simplex.

The Canaccord Genuity team included Eugene Rozelman, Gaurav Mehta, Charles Tran, Tyler Chamberland and Esther Lee.