According to Business Weekly, Avita Medical will sell its respiratory business to fellow Oz business Medical Developments International, MVP for $2.64 million.
Avita specialises in the treatment of wounds and skin defects and its respiratory business includes two products, Breath-A-Tech® and Funhaler®, which are both asthma spacers aimed at optimising the use of medicinal puffers. The products are marketed in pharmacies throughout Australia.
The transaction is expected to complete by early February and the consideration comprises $2.2m cash, plus (at MVP’s option) either 125,000 new MVP shares escrowed for six months or $0.44m cash.
The sale will be a second input of non-dilutive capital Avita has received in recent months following September’s conclusion of a deal worth up to $54.9m from the US federal disaster preparedness agency BARDA.
The company is already invoicing BARDA under a programme to support the completion of Avita’s FDA approval and US market entry.