Histogenics raises $34 million after ProChon Biotech merger

May 27, 2011 by MassDevice staff

Histogenics, which merged with ProChon Biotech last week, reels in $34 million in equity and debt funding as part of the deal.

Histogenics, ProChon Biotech

Histogenics Corp. brought in more than $34 million in equity and debt financing after its acquisition of fellow Bay State firm ProChon Biotech Ltd.

The two companies merged in an all-stock deal that brings ProChon CEO Patrick O'Donnell into the Histogenics corner office.

O'Donnell told MassDevice.com last week that a deal has been in the works since the early part of 2011.

Histogenics has one product, an autologous knee cartilage regeneration system called NeoCart, in a pivotal Phase III trial. ProChon's BioCart product, which uses a proprietary growth factor with a biocompatible scaffold for knee cartilage repair, is in a Phase II trial.

The company plans to pursue both tracks, O'Donnell said.

The funding came from sales of equity issued as a result of the merger and debt issued by financing the two businesses together, according to the SEC filing.