Isolagen takes 57% stake in Agera Labs

Pennsylvania, USA-based Isolagen says that it has acquired a 57% interest in Agera Laboratories, for just under $2.7 million in cash plus an earn-out provision. Agera is a private skin care company that has proprietary rights to a scientifically-based advanced line of skin care products. Isolagen, which specializes in the development and commercialization of autologous cellular therapies for soft and hard tissue regeneration, has also obtained a six-month option to increase its stake in Agera to 65% for an additional $480,000 in cash.

"I believe this investment is an excellent first step in broadening our position in the skin care market. Agera represents a unique opportunity for us to enter this segment of the market and is an excellent fit for Isolagen from a variety of perspectives," stated Isolagen's chief executive, Nicholas Teti, adding: "Agera has a comprehensive range of technologically advanced skin care products that can be packaged to offer anti-aging, anti-pigmentary and acne treatment systems. Agera's scientific approach to skin care health complements our autologous cell therapy process in the area of skin rejuvenation."

Mr Teti continued: "Agera operates at a cash flow breakeven point but has been constrained by limited working capital and distribution capabilities. As part of the structure of the acquisition, we required that the seller add an additional $500,000 and we agreed to contribute $300,000 to the working capital of Agera to support marketing and inventory acquisition. These and other resources are earmarked for investment into this market segment."