Integrated healthcare company Generex Biotechnology has signed a letter of intent (LOI) to acquire surgical devices firm Pantheon Medical – Foot & Ankle.
The deal covers all assets, including business operations, accounts receivable and inventory, contracts, and a US Food and Drug Administration (FDA) letter for balanced plating system.
Under the terms of the agreement, Generex will pay $1.4m worth of its stock, along with additional cash and stock consideration on reaching select sales and profit milestones.
Founded in 2014, Pantheon Medical manufactures speciality orthopaedic surgery products and tools such as screws, plates, implants and anchors for foot and ankle surgeries.
Generex expects the acquisition to boost its commercial product portfolio into the surgical field.
Pantheon Medical– Foot & Ankle CEO Travis Bird said: “Partnering with Generex will enable us to expedite Pantheon’s ability to build a manufacturing company with proprietary product lines that offer convenience and cost-effectiveness to physicians.
“We are already seeing significant uptake in the marketplace with our ‘one stop shop’ approach to orthopaedic surgery, and the new product lines will expand our market reach.”
Over the coming three years, Pantheon Medical intends to develop multiple new product lines, including cannulated surgical screws, surgical staples and a Hammertoe System.
Generex Biotechnology CEO Joe Moscato said: “The acquisition of Pantheon expands the commercial product portfolio of Generex into the surgical field, adding revenues and profits with their current product line and significant upside opportunities for new FDA-approved product introductions over the next several years.
“Our MSO partners, many of whom are orthopaedic surgeons and podiatrists, will immediately benefit from Pantheon’s Foot & Ankle surgery kit.”
The company is currently working on completing the due diligence on the acquisition, which is expected to be closed in the coming weeks.