Ireland-based Shire will acquire the U.S.-based Advanced BioHealing for $750 million in cash, according to Pharma Times.

Shire’s interest is in Advanced BioHealing’s Dermograft, a regenerative bio-engineered skin substitute used for the treatment of diabetic foot ulcers. Shire says Dermagraft has a "favorable reimbursement profile," notably with Medicare (100% coverage), and that generic products "would have to overcome high regulatory, development and manufacturing hurdles" to enter the DFU market.

Advanced BioHealing also has fully enrolled multinational trials to investigate Dermagraft to treat venous leg ulcers.

Mike Cola, president of Shire's specialty pharmaceuticals business, said the acquisition is "a strong and complementary strategic fit." He claimed that "the potential to build on the success of Dermagraft is attractive" as it provides a solution for a common complication suffered by diabetics that, "if not treated effectively, can lead to lower limb amputation and high cost to patients and society."