Irvine-based Pegasus Biologics Inc., a maker of tissue implants used in surgeries and wound care, is being bought for $12.1 million by Synovis Life Technologies Inc. of St. Paul, Minn.
Synovis said it won a competitive sealed bidding process for Pegasus’ assets, according to a report in the Minneapolis Star-Tribune.
Pegasus, which started in 2003, had raised more than $38 million in venture capital and debt but shut operations down in May after it was unable to raise more money.
Synovis, which is publicly traded, said Pegasus had about 75 workers, $9 million in 2008 revenue and that it would retain Pegasus’ Irvine plant.
Pegasus has two main products: the OrthAdapt Bioimplant, which helps repair soft tissue in orthopedic surgeries; and Unite Biomatrix, a collagen wound dressing used to treat diabetic foot ulcers and other chronic wounds.
The company uses collagen derived from horses to make its products.
Buying Pegasus was “really a grand opportunity,” Richard Kramp, Synovis’ chief executive, told the Star-Tribune.
Pegasus’ products complement Synovis, which makes tissue products for bariatric, hernia and breast reconstruction surgeries, Kramp said.
France Dixon Helfer, a former executive at Minneapolis-based Medtronic Inc., started Pegasus with $100,000 of her own money and an early $1.75 million from friends and family.
Helfer stepped down as chief executive in 2007 but stayed on as an adviser.
Pegasus’ venture backers included Minneapolis-based Affinity Capital Partners, Onset Ventures and Three Arch Partners, both of Menlo Park and Frazier Healthcare Ventures of Seattle.
