Avacen Medical said today it formally retained Objective Capital Partners to work on finding a qualified buyer for the company.
Avacen develops and produces the Avacen 100 microcirculation heat therapy system designed for the temporary relief of minor muscle and joint pain and stiffness, the company said. It is currently FDA cleared as a class II heat therapy system.
“Our patented Avacen treatment method is an entirely new concept in microcirculation therapy. This is accomplished by safely and noninvasively increasing core body temperature by infusing heat into the palm of the hand. Almost everything that can go wrong with the body, including aging, can be traced to compromised microcirculation. Our device and patents address the alleviation of symptoms associated with an autoimmune, circulatory, neurological, lymphatic, thermoregulatory disorder, or endocrinal dysfunction, or any combination thereof,” Avacen CEO Thomas Muehlbauer said in a press release.
Avacen said the results from its Avacen Treatment Method clinical trials were presented at the Society for Neuroscience’s annual meeting indicating a “major benefit for fibromyalgia sufferers.” The company said data from the study showed a reduction in widespread pain of over 40%.
“Of the alternatives we explored, the company has determined it is in the best interest of its shareholders to offer itself as an acquisition target to a buyer that possesses the necessary resources to advance our fields of use and support the worldwide demand for the Company’s products. We believe this is the most advantageous and quickest path to secure our $10 Billion annual sales potential while the 17 year average remaining term of our U.S. and International patents is most favorable,” CEO Muehlbauer said in prepared remarks.
During its search for a buyer, the company said it will “continue to execute” ongoing initiatives to bolster its brand, but said there was “no assurance of any transaction being entered into or consummated,” and that there was no timetables set.