United Therapeutics is set to enhance its arsenal of organ manufacturing technologies with the acquisition of Miromatrix Medical, a developer specializing in xenotransplants. The deal, valued at $91 million, equates to a price of $3.25 per share, representing approximately a 170% premium over Miromatrix’s average trading value over 30 days prior to the announcement. Prior to the acquisition, Miromatrix shares were trading slightly above $1.
Miromatrix, headquartered in Minnesota, previously received support for its bioengineered organ research from renal care giants like Baxter and DaVita. In mid-2021, Miromatrix went public through a $43 million Nasdaq IPO, with shares priced at $9 each. United Therapeutics’ acquisition offer includes an additional $1.75 per share in cash, contingent on the achievement of a clinical study milestone related to Miromatrix’s mirokidney implant by the end of 2025. Both companies intend to finalize the deal before the close of the year.
“At United Therapeutics, we are determined to rectify the severe shortage of transplantable organs. We expect that Miromatrix will help us in this mission, bringing a number of new approaches, highly-skilled personnel, and state of the art facilities as additional shots on goal to complement our existing organ manufacturing programs.”
– Martine Rothblatt, Chairperson and Chief Executive Officer of United Therapeutics
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Miromatrix employs a groundbreaking approach that begins with pig tissue, in which porcine cells are removed while retaining the essential supporting structures, including blood vessels. Subsequently, functional human cells are introduced in a process known as “decell/recell,” aiming to produce bioengineered organs that are ready for transplantation. These bioengineered organs offer enhanced functionality and a reduced risk of rejection.
In addition to kidney transplants, Miromatrix has applied a similar methodology to liver transplants and is exploring the incorporation of patient-derived stem cells into the organ construction process.
United Therapeutics has pursued an alternative path, utilizing DNA engineering to transform pig organs into human-compatible transplants. This approach involves eliminating genes responsible for producing cellular compounds that can trigger immediate rejection by the human body.
“United Therapeutics’ dedication to solving the chronic shortage of transplantable organs is a vision we share at Miromatrix. This transaction provides our shareholders with a substantial premium and allows them to participate in the potential upside of our combination, while accelerating the development of our pipeline as we strive to make bioengineered organs a reality for the many patients in need.”
– Jeff Ross, Ph.D., Chief Executive Officer of Miromatrix
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Recent milestones achieved by United Therapeutics include a successful transplant combining a kidney and thymus gland, which functioned within a patient’s body for at least two months. Another groundbreaking accomplishment involved a xenoheart transplant in a living patient with heart failure who was ineligible for a traditional donor heart. The company’s subsidiary, Revivicor, plans to initiate full clinical studies in 2025.
United Therapeutics’ comprehensive organ manufacturing endeavors encompass seven distinct programs: xenoheart, xenokidney, xenothymokidney, regenerative lungs, and 3D-printed lungs, livers, and kidneys. This strategic acquisition of Miromatrix positions United Therapeutics as a prominent player in the innovative field of organ manufacturing, with the potential to revolutionize the transplantation landscape and address the critical shortage of transplantable organs.
