Acquisition of Berkeley Advanced Biomaterials LLC
Tokyo, Japan - August 1, 2017 - GNI Group Ltd. (TSE Mothers listed code: 2160, "GNI" or the "Company"), a leading biopharmaceutical company listed in Japan, announced today that the acquisition of a 70% stake of Berkeley Advanced Biomaterials LLC (BAB) by GNI USA, Inc. was completed on July 31, 2017 as scheduled. BAB will be a consolidated subsidiary of the Company.
BAB has developed a range of proprietary technologies to process biocompatible ceramics, polymers and human allograft tissue to manufacture biologic products used in orthopedic, spine and dental surgery. The first product platform (H-GENIN) distinguishes itself in the market by providing a 100% pure human allograft demineralized bone matrix putty solution to surgeons. BAB will soon release its Advanced Mineralized Graft (AMG) product line that will involve osteoinductive bone fiber technology. The second product platform (OSTETIC) includes conventional resorbable calcium-based bioceramics (e.g. hydroxyapatite, tri-calcium phosphate, and other calcium salts) sometimes combined with a flexible or injectable fibrilar collagen matrix and formulated to be easily applied in a variety of surgical settings. BAB plans to complement this platform of bone void fillers later this year with 45S5 bioactive glass.
While BAB continues to expand its valued relationship with existing customers and private label partners, the acquisition will help BAB expand its global reach in Asia. It may also begin to shift some development projects back to the area of drug delivery to increase the synergy with GNI's area of expertise.
GNI will manage its new subsidiary through BAB's current management. Dr. François Génin will continue as Chief Executive Officer and Tissue Bank Director and will retain significant ownership in BAB. Five Managers have been appointed to the Board of the LLC, with three Managers including the Chairman of the Board representing GNI USA, Inc., as well as Dr. Ping Luo and, Dr. François Génin.
For further information on the background on this acquisition transaction, please refer to earlier disclosures on April 18 and July 18, 2017.
GNI Group Ltd. is listed on the Tokyo Stock Exchange Mothers Market, Code 2160, with headquarters in Tokyo and subsidiaries in Hong Kong, Shanghai, Beijing and the United States. For further information, please visit www.gnipharma.com.
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