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ULURU Inc. (ULU) to Acquire Bio Med Sciences, Inc for $10 Million

ULURU Inc. is an emerging specialty pharmaceutical company focused on the development of a portfolio of wound management, plastic surgery and oral care products to provide patients and consumers improved clinical outcomes through controlled delivery utilizing its innovative transmucosal delivery system and hydrogel nanoparticle aggregate technology.

ULURU Inc. has developed a patented, water-erodable pharmaceutical carrier device. The multi-layered device is applied to mucosal surfaces, and delivers medications to treat specific localized diseases/disorders. This OraDisc™ technology can deliver drugs systemically across the mucosal surface or for the release of drugs into the oral cavity.

The device causes minimum discomfort, is easy to apply and capable of providing tailored erosion rates to deliver therapeutics over different time intervals. The erosion time, or “residence time”, can be easily regulated, from 15 minutes to over three hours, by simple compositional changes and/or coating thicknesses of the backing layer and mucoadhesive layer.

Potential product opportunities include:

• Opportunity for administration of products, which currently cannot be effectively delivered orally, such as poor GI tract absorption, Degradation by enzymes or low pH environment, extensive first-pass metabolism and delayed onset of action due to delayed absorption
• Product opportunities identified for development, such as pain management (e.g. cancer pain, post surgical pain), emesis (chemotherapy induced, post surgical emesis), migraine, radiation-induced oral thrush, and enhancing weight gain (e.g. cancer and AIDS patients)
• Product opportunities-consumer (OTC) such as saliva can rapidly wash away a topically applied active compound prior to the therapeutic benefit being achieved, and the action of eating, speaking, and drinking are some of the problems that have limited the usefulness of adherent pharmaceutical carriers
• Opportunities for delivery to the oral cavity include: cough suppressant, sore throat remedy, antimicrobials and breath freshener
• Opportunities for delivery to the tooth surface include: tooth whitening erodible strip, and de-sensitizing strip

The Bio Med purchase provides the opportunity for ULURU to expand its product base into the burn care and scar management market. The acquisition of Bio Med will give ULURU additional complementary products, manufacturing, product development and other resources along with a commercial base to more rapidly develop a strong presence in the wound and burn care markets. Bio Med is a privately held, specialty wound care, burn care and scar management company with an established reputation with burn specialists and plastic surgeons. The purchase price will be paid in two installments, $7 million at closing and $3 million 6 months after closing. Bio Med is a profitable company and the acquisition will be immediately positive to the company’s consolidated earnings. Bio Med’s range of wound, burn care and scar management products are developed from its patented Silon(R) film technology. The patents covering this technology extend beyond 2020. The products have characteristics that allow them to be clearly differentiated in the burn and scar care markets. Bio Med has a leadership presence in the burn care market, which should compliment ULURU’s product line nicely.

ULURU is trading around $1.09 today just above its 52-week low. The 52-week spread for ULURU is $.65 to $4.99. ULURU has not yet shown net income, but the purchase of Bio Med Science should help with that. They also currently have no debt.

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