Isto Holdings Acquires Arteriocyte Medical

A new company is in the works…Isto Biologics. Isto Holdings, the parent company of St. Louis-based Isto Technologies, has acquired Arteriocyte Medical Systems Inc. of Hopkinton, Massachusetts. The merged company, Isto Biologics, will, according to the October 19, 2016 news release, ”…be focused on offering evidence-based solutions to expand its spine, orthopedics, and functional-medicine product portfolios. Isto Biologics will be headquartered in St. Louis, while maintaining operations in Massachusetts.”

Isto Biologics’ portfolio will feature Arteriocyte’s market-leading MAGELLAN Autologous Platelet Separator and Isto’s bone-growth and cell-therapy products, including InQu Bone Graft Extender & Substitute; Influx, a natural bone-graft material; and CellPoint, a concentrated bone marrow aspirate system.

“We’re excited to bring together two great organizations under the Isto umbrella and build upon their leading biologics platforms, ” said Anthony Chambers, director at Thompson Street Capital Partners, which provided capital for the transaction. “Both Isto and Arteriocyte have achieved remarkable success by developing innovative, clinically-proven product offerings that help improve patient outcomes. The integrated product portfolio, combined with the expanded sales force and broader distribution network, will allow Isto Biologics to extend its reach within the spine, orthopedics, and functional-medicine markets.”

George Dunbar, current CEO of Isto Technologies, will serve as CEO of Isto Biologics. “We are grateful for the support of Thompson Street Capital Partners and excited to lead Isto Biologics into the future, ” said Mr. Dunbar. “The integration of Isto and Arteriocyte presents an opportunity to leverage our combined expertise to establish a strong position in an ever-changing market and better serve our physician partners, as they work to grow their practice and meet the demands of value-based healthcare.”

Asked about the timing of the merger, Dunbar told OTW, “Increased emphasis on value-based healthcare is driving consolidation in the medical device sector, and biologics are critical to patient healing in spine and orthopedic procedures. While hospital customers are trying to streamline their supply chain and consolidate vendors, Isto Biologics is focused on expanding our portfolio of evidence-based solutions to meet the biologics needs of our customers across multiple categories. The integration with Arteriocyte, and the addition of their market-leading Magellan system to our portfolio, better positions Isto Biologics to expand our market reach and accelerate growth. We had been in discussions with Arteriocyte for over a year, and our investors, Thompson Street Capital Partners, were very supportive of financing the deal.”

“Over the next six months, our integration efforts will have a strong emphasis on training and cross-selling in the field, while maintaining operations in two sites—St. Louis, Missouri and Hopkinton, Massachusetts. We’ll implement best practices from both companies, and align the integrated organization structure for future growth.”