pSivida to acquire Control Delivery Systems

By Jennifer Chiou

New York, Oct. 3 - pSivida Ltd. announced it entered an agreement to acquire Control Delivery Systems Inc. for about $104 million.

"This acquisition is an excellent opportunity for pSivida to capitalize on the combination of complementary technologies and skills," Gavin Rezos, managing director of pSivida, said in a news release.

"The diversified product portfolio and development capabilities of the combined company present value creating opportunities, reducing our overall risk profile whilst generating significant current and near term revenues."

The merger is conditioned upon regulatory and pSivida shareholder approval and is expected to close during the fourth quarter.

The merged company plans to benefit from the combination of pSivida's BioSilicon and Control Delivery's AEON drug delivery technologies for a pipeline of products focused on ophthalmology and oncology.

pSivida, a bio-nanotech company, intends to issue about 16 million of its American Depositary Shares to Control Delivery shareholders, representing about 40% ownership of the merged company.

Based in Boston, Control Delivery is a private drug delivery company. Bausch & Lomb Inc. and T. Rowe Price are among the company's larger shareholders.

Perth, Australia-based pSivida develops a modified form of silicon as a biomaterial.

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