Advanced BioHealing

About Advanced BioHealing

Advanced BioHealing (ABH) carved a significant niche in the regenerative medicine sector, focusing on cell-based therapies to repair damaged human tissue. The company's pivotal move came in June 2006 when it acquired the assets for Dermagraft and TransCyte from Smith & Nephew, a transaction that provided an immediate revenue base and market presence. This acquisition was spearheaded by CEO Kevin Rakin, who, along with his team, including Dean Tozer, VP of Marketing and Corporate Development, built the company's commercial infrastructure. ABH's strategy focused on re-establishing its key product in the marketplace, which led to substantial growth, with revenues soaring from zero in 2006 to $146 million by 2010.

The company's business was centered on the advanced wound care market, specifically serving patients with chronic wounds that are difficult to heal. Its primary client base included specialist physicians and over 1,000 advanced wound care centers and outpatient offices across North America. The business model revolved around the manufacturing and sale of its bio-engineered products, supported by a dedicated sales force and established reimbursement codes to ensure physicians were compensated for using the therapies. This focused commercial execution culminated in the acquisition of Advanced BioHealing by Shire plc in May 2011 for $750 million in cash, a deal made just before ABH's planned IPO. The acquisition was seen as a strategic fit, combining ABH's commercial strength in regenerative medicine with Shire's manufacturing and development expertise.

Advanced BioHealing's flagship product, Dermagraft, is a bio-engineered skin substitute designed for the treatment of full-thickness diabetic foot ulcers. It is a cryopreserved, human fibroblast-derived dermal substitute, created by culturing neonatal dermal fibroblasts onto a bioabsorbable polyglactin mesh scaffold. During manufacturing, these living cells produce collagen, proteins, and growth factors, forming a three-dimensional, metabolically active tissue. When applied to a wound, Dermagraft delivers this living dermal matrix, stimulating the patient's own cells to heal the ulcer more effectively than standard care alone. The product's benefit lies in accelerating the healing process for a condition that affects hundreds of thousands annually in the U.S. and can lead to lower limb amputation if not treated effectively. Following the acquisition by Shire, the Dermagraft asset was later purchased by Organogenesis Inc. in January 2014.