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| | | | | A-1 | | | |
| | | | | B-1 | | |
| | |
Fiscal Year Ended December 31,
|
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| | |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||
Total revenue
|
| | | $ | 25.4 | | | | | $ | 35.3 | | | | | $ | 46.4 | | | | | $ | 58.6 | | |
Cost of Goods Sold
|
| | | | 6.3 | | | | | | 8.8 | | | | | | 11.6 | | | | | | 14.6 | | |
Gross profit
|
| | | $ | 19.0 | | | | | $ | 26.5 | | | | | $ | 34.8 | | | | | $ | 43.9 | | |
Selling, General & Administrative
|
| | | | 24.7 | | | | | | 29.6 | | | | | | 34.4 | | | | | | 37.6 | | |
Stock Based Compensation
|
| | | | 2.0 | | | | | | 2.0 | | | | | | 2.0 | | | | | | 2.0 | | |
Royalties
|
| | | | 1.6 | | | | | | 2.4 | | | | | | 3.4 | | | | | | 4.4 | | |
Depreciation & Amortization
|
| | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | |
EBIT | | | | ($ | 14.0) | | | | | ($ | 12.2) | | | | | ($ | 9.7) | | | | | ($ | 4.7) | | |
( + ) Depreciation and Amortization
|
| | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | |
( - ) Capital Expenditures
|
| | | | (0.2) | | | | | | (0.2) | | | | | | (0.2) | | | | | | (0.2) | | |
( + ) Change in Working Capital
|
| | | | (1.7) | | | | | | 0.3 | | | | | | (0.4) | | | | | | (0.9) | | |
Unlevered Free Cash Flows
|
| | | ($ | 11.2) | | | | | ($ | 7.4) | | | | | ($ | 5.6) | | | | | ($ | 1.1) | | |
| | |
EVs (In Millions)
|
| |
CY 2017
Revenues (In Millions) |
| |
CY 2018
Revenues (In Millions) |
| |
EV/Revenue
Multiples (CY 2017) |
| |
EV/Revenue
Multiples (CY 2018) |
| |||||||||||||||
Avita Medical Limited
|
| | | $ | 54 | | | | | $ | 8 | | | |
Projected
numbers not publicly available. |
| | | | 6.59x | | | |
Not
Available |
| ||||||
Convatec Group Plc
|
| | | $ | 6,731 | | | | | $ | 1,744 | | | | | $ | 1,836 | | | | | | 3.86x | | | | | | 3.67x | | |
Derma Sciences, Inc.
|
| | | $ | 100 | | | | | $ | 108 | | | | | $ | 120 | | | | | | 0.9x | | | | | | 0.8x | | |
MediWound Ltd.
|
| | | $ | 87 | | | | | $ | 3 | | | | | $ | 8 | | | |
Not
Meaningful(1) |
| | | | 10.94x | | | |||
MiMedx Group, Inc.
|
| | | $ | 1,420 | | | | | $ | 322 | | | | | $ | 386 | | | | | | 4.42x | | | | | | 3.68x | | |
| | |
Average EV/NTM Revenue Multiples
|
| |||||||||
| | |
Alliqua
|
| |
Derma Sciences
|
| ||||||
Three Years
|
| | | | 2.06x | | | | | | 1.30x | | |
Two Years
|
| | | | 1.05x | | | | | | 0.98x | | |
One Year
|
| | | | 1.11x | | | | | | 0.73x | | |
Six Months
|
| | | | 1.05x | | | | | | 0.90x | | |
Three Months
|
| | | | 1.04x | | | | | | 0.90x | | |
Date
|
| |
Target
|
| |
Buyer
|
| |
EV (US
Dollars In Millions) |
| |
Upfront
Payment (US Dollars In Millions) |
| |
Milestone
Payment (US Dollars In Millions) |
| |
LTM
Revenue (US Dollars In Millions) |
| |
EV/LTM
Revenue Multiples(1) |
| |||||||||||||||
01/10/2017
|
| |
Derma Sciences
|
| | Integra | | | | | 222.6 | | | | | | 222.6 | | | | | | 0 | | | | | | 88.5 | | | | | | 2.52x(2) | | |
12/20/2016
|
| | LifeCell | | | Allergen | | | | | 2,900.0 | | | | | | 2,900.0 | | | | | | 0 | | | | | | 450.0 | | | | | | 6.44x | | |
07/28/2016
|
| | BioD | | | Derma Sciences | | | | | 77.8 | | | | | | 21.3 | | | | | | 56.5 | | | | | | 22.0 | | | | | | 3.54x | | |
05/24/2016
|
| | EuroMed | | | Scapa | | | | | 42.0 | | | | | | 35.0 | | | | | | 7.0 | | | | | | 18.0 | | | | | | 2.33x | | |
01/10/2016
|
| | Stability | | | MiMedix | | | | | 36.7 | | | | | | 11.1 | | | | | | 25.6 | | | | | | 17.2 | | | | | | 2.14x | | |
06/28/2015
|
| |
TEI Biosciences
|
| | Integra | | | | | 312.0 | | | | | | 312.0 | | | | | | 0 | | | | | | 63.5 | | | | | | 4.91x | | |
02/02/2015
|
| |
Celleration, Inc.
|
| | Alliqua | | | | | 30.4 | | | | | | 30.4 | | | | | | 0 | | | | | | 8.7 | | | | | | 3.49x | | |
10/23/2014
|
| | Transplant Technologies of Texas |
| | Globus Medical | | | | | 51.1 | | | | | | 36.1 | | | | | | 15.0 | | | | | | 12.0 | | | | | | 4.26x | | |
05/06/2014
|
| | Choice | | | Alliqua | | | | | 9.0 | | | | | | 4.0 | | | | | | 5.0 | | | | | | 1.8 | | | | | | 5.00x | | |
01/17/2014
|
| | Dermagraft | | | Organogenesis | | | | | 300.0 | | | | | | 0 | | | | | | 300.0 | | | | | | 89.8 | | | | | | 3.34x | | |
07/30/2013
|
| | Systagenix | | | Kinetic Concepts | | | | | 478.7 | | | | | | 478.7 | | | | | | 0 | | | | | | 196.0 | | | | | | 2.44x | | |
06/09/2013
|
| |
Pioneer Surgical
|
| | RTI Biologics | | | | | 126.4 | | | | | | 126.4 | | | | | | 0 | | | | | | 88.2 | | | | | | 1.43x | | |
11/28/2012
|
| | Healthpoint Biotherapeutics |
| | Smith & Nephew |
| | | | 782.0 | | | | | | 782.0 | | | | | | 0 | | | | | | 190.0 | | | | | | 4.12x | | |
06/11/2012
|
| | BSN Medical | | | EQT Partners | | | | | 2,258.0 | | | | | | 2,258.0 | | | | | | 0 | | | | | | 878.1 | | | | | | 2.57x | | |
05/03/2012
|
| | Kensey Nash | | |
Koninklijke DSM
|
| | | | 410.5 | | | | | | 410.5 | | | | | | 0 | | | | | | 83.9 | | | | | | 4.89x | | |
03/29/2012
|
| | MedEfficiency | | | Derma Sciences | | | | | 14.5 | | | | | | 14.5 | | | | | | 0 | | | | | | 5.3 | | | | | | 2.74x | | |
02/09/2012
|
| | Aldagen | | | Cytomedix | | | | | 49.1 | | | | | | 20.6 | | | | | | 28.4 | | | | | | 1.5 | | | |
Not
Meaningful |
| |||
12/13/2011
|
| | Synovis | | | Baxter | | | | | 268.9 | | | | | | 268.9 | | | | | | 0 | | | | | | 82.4 | | | | | | 3.27x | | |
05/17/2011
|
| | Advanced BioHealing, Inc. |
| | Shire plc | | | | | 750.0 | | | | | | 750.0 | | | | | | 0 | | | | | | 161.4 | | | | | | 4.65x | | |
05/16/2011
|
| | Orthovita | | | Stryker | | | | | 315.0 | | | | | | 315.0 | | | | | | 0 | | | | | | 94.4 | | | | | | 3.34x | | |
Minimum | | | | | 9.0 | | | | | | -0 | | | | | | -0 | | | | | | 1.5 | | | | | | 1.43x | | | ||||||
Mean | | | | | 471.7 | | | | | | 449.9 | | | | | | 21.9 | | | | | | 127.6 | | | | | | 3.55x | | | ||||||
Median | | | | | 245.7 | | | | | | 174.5 | | | |
Not
meaningful due to the limited number of data points |
| | | | 83.1 | | | | | | 3.34x | | | |||||||||
Maximum | | | | | 2,900.0 | | | | | | 2,900.0 | | | | | | 300.0 | | | | | | 878.1 | | | | | | 6.44x | | |
Name
|
| |
Number of
Shares of Common Stock (#) |
| |
Price per
Share ($)(1) |
| |
Total Value
of Shares ($) |
| |||||||||
David I. Johnson
|
| | | | 120,000 | | | | | | 2.20 | | | | | | 264,000 | | |
Brian Posner
|
| | | | 23,333 | | | | | | 2.20 | | | | | | 51,333 | | |
Bradford Barton
|
| | | | 23,333 | | | | | | 2.20 | | | | | | 51,333 | | |
Pellegrino Pionati
|
| | | | 23,000 | | | | | | 2.20 | | | | | | 50,600 | | |
Joseph Leone
|
| | | | — | | | | | | | | | | | | | | |
Gary Restani
|
| | | | — | | | | | | | | | | | | | | |
Jeffrey Sklar
|
| | | | — | | | | | | | | | | | | | | |
Mark Wagner
|
| | | | — | | | | | | | | | | | | | | |
Winston Kung
|
| | | | — | | | | | | | | | | | | | | |
Jerome Zeldis
|
| | | | — | | | | | | | | | | | | | | |
TOTAL
|
| | | | 189,666 | | | | | | | | | | | | 417,266 | | |
Name
|
| |
Cash
($)(2)(3) |
| |
Equity
($)(4) |
| |
Perquisites/
Benefits ($)(5) |
| |
Total
($) |
| ||||||||||||
Named Executive Officer Intended to be Retained After Closing and for Which Severance May Not Be Payable | | | | | | | | | | | | | | | | | | | | | | | | | |
David I. Johnson President, Chief Executive Officer and Director |
| | | | 1,400,000 | | | | | | 264,000 | | | | | | 36,078 | | | | | | 1,700,078 | | |
Named Executive Officers Not Intended to be Retained After Closing and for Which Severance May Be Payable |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brian Posner Chief Financial Officer, Treasurer and Secretary |
| | | | 249,600 | | | | | | 51,333 | | | | | | 20,547 | | | | | | 321,480 | | |
Bradford Barton Chief Operating Officer |
| | | | 249,600 | | | | | | 51,333 | | | | | | 15,685 | | | | | | 316,618 | | |
Pellegrino Pionati Chief Strategy and Marketing Officer |
| | | | 249,600 | | | | | | 50,600 | | | | | | 20,432 | | | | | | 320,632 | | |
Name of Beneficial Owner
|
| |
Number of
Shares Beneficially Owned(1) |
| |
Percentage
Beneficially Owned(1) |
| ||||||
5% Owners | | | | | | | | | | | | | |
Celgene Corporation 86 Morris Avenue Summit, New Jersey 07901 |
| | | | 902,519(2) | | | | | | 17.8% | | |
Perceptive Advisors, LLC 51 Astor Place, 10th Floor New York, NY 10003 |
| | | | 638,017(3) | | | | | | 12.3% | | |
Officers and Directors | | | | | | | | | | | | | |
David I. Johnson
|
| | | | 234,225(4) | | | | | | 4.6% | | |
Brian M. Posner
|
| | | | 64,656(5) | | | | | | 1.3% | | |
Bradford C. Barton
|
| | | | 82,798(6) | | | | | | 1.6% | | |
Pellegrino Pionati
|
| | | | 34,327(7) | | | | | | * | | |
Joseph M. Leone
|
| | | | 19,648(8) | | | | | | * | | |
Jeffrey Sklar
|
| | | | 17,494(9) | | | | | | * | | |
Gary Restani
|
| | | | 13,246(10) | | | | | | * | | |
Mark Wagner
|
| | | | 51,976(11) | | | | | | 1.0% | | |
Directors and executive officers as a group (8 persons)
|
| | | | 518,370 | | | | | | 9.8% | | |
| | |
Page
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| | | | A-1 | | | |
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| | | | A-A-1 | | |
| If to Buyer: | | |||
| Celularity Inc. 33 Technology Drive, Warren, New Jersey 07059 |
| |||
| Email: | | | Tim.smith@celularity.com | |
| Attention: | | | Timothy L. Smith | |
| Jones Day 4655 Executive Drive, Suite 1500 San Diego, California 92121 |
| |||
| Email: | | | kpolin@jonesday.com | |
| Attention: | | | Kenneth D. Polin | |
| If to Seller: | | |||
| Alliqua Biomedical, Inc. 1010 Stony Hill Road, Suite 200 Yardley, PA 19067 |
| |||
| Email: | | | djohnson@alliqua.com | |
| Attention: | | | David Johnson, Chief Executive Officer | |
| with a copy (which will not constitute notice) to: | | |||
| Haynes and Boone, LLP 30 Rockefeller Plaza, 26th Floor New York, New York 10112 Fax: (212) 884-8234 |
| |||
| Email: | | | rick.werner@haynesboone.com greg.kramer@haynesboone.com |
|
| Attention: | | | Rick A. Werner Greg Kramer |
|