Last Friday, a spinoff we’ve written about several times became a reality. Harvard Biosciences (HBIO) spun off Harvard Apparatus Regenerative Technologies(HART) to shareholders. HBIO shareholders received one share of HART for every four shares of HBIO owned. With management going to the spin off, recently appointed HBIO CEO Jeffery A. Duchemin received the additional titles of President and Director.
Duchemin will lead a more focused HBIO, with the removal of a long term cash drain. HBIO will rationalize its cost structure, expand sales internationally, and expand its existing product lines. HART, which has the benefit of $15 million in cash it received from HBIO, will continue the development of its regenerated trachea. The device is grown from the patients own cells so there is no fear of rejection, and it has been used in 10 surgeries overseas, one with 5 year survival. The company is working with the FDA to develop a plan to bring this to the clinic in the US, but it will be a long and slow journey. If successful, however, the upside of this technology could be large indeed.
Disclosure: The author owns shares in both HBIO and HART
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