CASE STUDIES

We are passionate about building companies and have a track record of success in delivering value to our investment partners and the healthcare system.

The following case studies illustrate our investment strategy and the potential outsized returns that can be realized by investing in commercial-stage companies and positioning them for growth.

ACQUIRED BY SHIRE
2011
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Advanced BioHealing

ACQUIRED BY SHIRE in 2011

Company
Advanced BioHealing (ABH) was a privately funded industry leader in the science of regenerative medicine, with a focus in the wound care market.

Situation
In 2006, led by Chairman and CEO, Kevin Rakin, ABH purchased Smith & Nephew’s advanced would care asset (Dermagraft) for $2 million. Estimates place the historic development investment in the product at >$500 million. The product had been a commercial failure and had been removed from the market.

Strategy
The ABH leadership team, which included a number of HighCape Partners, implemented a strategic and operational plan to re-establish the product in the marketplace and built a profitable business, growing sales to >$150million in less than 5 years.

Result
Hours before a planned Initial Public Offering, ABH was acquired by Shire for $750 million in 2011.

HighCape Partner Involvement
Rakin – Chairman and CEO
Zuga – Investor & Board Observer
Tozer – SVP (commercial and business development)
Barretta – VP Human Resources
Hart – VP and Chief Scientific Officer

FOUNDED BY HIGHCAPE
2015
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Aziyo Biologics

FOUNDED BY HIGHCAPE in 2015

Company
Aziyo Biologics is a privately funded, commercially oriented biotech company focused on regenerative medicine in the areas of cardiology, orthopedics and wound care.

Situation
Created in 2015 by HighCape and Deerfield Management, the base business was spun out of Tissue Banks International and formed the foundation for a new commercially oriented regenerative medicine company. Since its founding, the company has launched its own proprietary products and also completed the acquisition of five marketed products from CorMatrix in 2017 (see CorMatrix case study for more information).

Strategy
Aziyo is focused on assembling a world-class management team and optimizing existing, developed, and acquired assets. It provides a platform for developing and acquiring a wide range of regenerative medicine products that can subsequently be commercialized through a sophisticated commercial infrastructure and business development capabilities. For example, shortly after acquiring the CanGaroo BioEnvelope from CorMatrix in 2017, the company established a non-exclusive co-marketing partnership with a leading cardiovascular medicine company.

Result
Since 2015 the company has consistently grown by both organic and transactional means. The company continues to develop and launch its own proprietary products as well as aggressively pursue other transactional opportunities.

HighCape Partner Involvement
HighCape was the driving force behind the creation of Aziyo and, once established, the team has continued deep involvement.

Rakin – Chairman and Board Member
Zuga – Board Member
Barretta – Actively involved in all aspects of human talent management
Tozer – Actively involved in all business development activities

ACQUIRED BY AZIYO BIOLOGICS
2018
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CorMatrix Cardiovascular Inc.

ACQUIRED BY AZIYO BIOLOGICS in 2018

Company
CorMatrix was a privately held company focused on the development and commercialization of various extracellular matrix (ECM) based products for use in cardiovascular medicine. The company had a commercial effort as well as extensive research and development programs.

Situation
CorMatrix was originally introduced to HighCape as an investment in the entire company (commercial and research). After months of discussions, an agreement was reached for an outright purchase of the five CorMatrix-marketed products by Aziyo (HighCape portfolio company). In the transaction, Aziyo also assumed a 30-member direct sales team and other related team members.

HighCape led all aspects of this transaction and, in particular, conceived of a number of creative solutions to some very complex financial circumstances.

Result
The five marketed products and associated team members have been fully integrated into Aziyo. Of note, the CanGaroo product has seen tremendous revenue growth and is at the core of a co-marketing agreement with a large cardiovascular medicine company.

HighCape Partner Involvement
HighCape found this opportunity and all members of the team were actively involved in all facets of the transaction.

ACQUIRED BY BIO-TECHNE
2014
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Cyvek

ACQUIRED BY BIO-TECHNE in 2014

Company
CyVek was a privately funded developer of CyPlex, a disruptive technology for testing biomarkers and performing multi-analyte immunoassays.

Strategy
The company focused on early commercial partnerships to leverage its skills in developing research applications for its technology, thereby becoming an attractive acquisition target.

Result
CyVek was acquired by Bio-Techne Corporation for $95 million in 2014, consisting of a $60 million initial cash amount and a $35 million revenue-based earn-out.

HighCape Partner Involvement
Rakin – Board member and CEO mentor
Tozer – Commercial and branding consultant
Barretta – Leadership and human resource consultant

ACQUIRED BY QIAGEN
2011
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Ipsogen

ACQUIRED BY QIAGEN in 2011

Company
Ipsogen developed and marketed molecular diagnostic tests designed to map disease in order to guide patient and oncologists’ decisions along a very complex therapeutic path.

Situation
Ipsogen was a pioneer in oncology-focused molecular diagnostic tests but needed to focus on a few key products and commercial adoption.

Strategy
Under the leadership of CEO Vincent Fert, the Ipsogen management team refocused and developed a new, focused commercial strategy, ultimately growing sales by 5x over a four-year period.

Result
Ipsogen completed a $17 million IPO in 2008, and was subsequently acquired by QIAGEN for $101 million.

HighCape Partner Involvement
Rakin – Investor, board member and CEO mentor

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