Turn Therapeutics
David H. Crean
Managing Partner
Cardiff Advisory
(858) 461-9490
Case Study: Strategic Licensing and Value Creation-Turn Therapeutics with MiMedx
Client
Turn Therapeutics
Industry
Antimicrobial Technology
Objectives
- Monetize Core IP: Secure a strategic partnership to license its technology platform to a well-established commercial leader.
- Accelerate Commercialization: Leverage a partner’s extensive sales, marketing, and distribution infrastructure to bring products to market quickly and broadly, particularly in the wound and surgical care sectors.
- Secure Non-Dilutive Capital: Obtain an upfront cash payment, and structured milestone and royalty payments to fund ongoing R&D and clinical programs.
- Validate Technology: Partner with a respected industry leader like MiMedx to provide scientific and commercial validation for its platform.
Engagement
Cardiff Advisory provided comprehensive strategic and financial advisory services to Turn Therapeutics to ensure the transaction structure achieved the maximum strategic and financial value for the company and its shareholders.
Executive
Summary
Turn Therapeutics, a clinical-stage biotechnology company with proprietary antimicrobial technology, faced the challenge of maximizing the commercial value of its intellectual property (IP), specifically the PermaFusion product.
Turn completed an exclusive, worldwide licensing and distribution agreement to MiMedx Group, Inc. for their proprietary antimicrobial technology platform, PermaFusion. The transaction was completed in November 2022.
Transaction
Outcome and
Value Creation
The successful execution of the licensing agreement with MiMedx provided transformative results for Turn Therapeutics, enabling a significant leap forward in its strategic development.
- Financial Impact: Secured an immediate upfront cash infusion and established a clear path to substantial, non-dilutive milestone and royalty payments, significantly strengthening Turn’s balance sheet.
- Pipeline Acceleration: The deal allowed Turn to leverage MiMedx’s scale to integrate the PermaFusion platform with MiMedx’s existing tissue products, accelerating the development of a new generation of antimicrobial biologic products for wound and surgical recovery markets.
- Strategic Focus: By out-licensing the commercialization for a mature product and its core IP platform, Turn Therapeutics was able to refocus its internal resources and capital on its other clinical-stage R&D programs (e.g., in dermatology).
- Risk Mitigation: The partnership provided a mechanism to derisk the commercialization pathway, placing the primary responsibility for the sales, marketing, and distribution of the licensed products onto the larger, established partner, MiMedx.
The transaction is a strong example of how strategic advisory can help an emerging biotech company monetize its intellectual property, secure non-dilutive financing, and align with a global partner to accelerate its product development and commercial reach.
Disclosure
David H. Crean, Ph.D., is a Managing Partner for Cardiff Advisory LLC, an M&A investment banking strategic advisory firm focused on the Life Sciences and Healthcare sectors. This article is provided for informational purposes only and does not constitute an offer, invitation, or recommendation to buy, sell, subscribe for or issue any securities.
The principals of Cardiff Advisory LLC are registered representatives of BA Securities, LLC Member FINRA SIPC, located at Four Tower Bridge, 200 Barr Harbor Drive, Suite 400 W. Conshohocken, PA 19428. Cardiff Advisory LLC and BA Securities, LLC are unaffiliated entities. All investment banking services and securities are offered through BA Securities, LLC, Member FINRA SIPC.