Why Is Life Sciences Company Miromatrix Medical Stock Trading Higher Today?

United Therapeutics Corporation UTHR has agreed to acquire Miromatrix Medical Inc MIRO for $3.25 per share in cash (an aggregate of approximately $91 million).

Miromatrix is a life sciences company focused on developing bioengineered organs composed of human cells. 

 United Therapeutics is a biotechnology company with six FDA-approved therapies for rare conditions and a pipeline with four ongoing registration-phase studies.

The deal value includes an additional $1.75 per share in cash upon achieving a clinical development milestone related to Miromatrix's development-stage, fully-implantable manufactured kidney product known as mirokidney by December 31, 2025.

The acquisition of Miromatrix will expand United Therapeutics' existing complementary platform of organ manufacturing programs, which include ex-vivo lung perfusion, xenotransplantation, 3-D bioprinting, and regenerative medicine approaches to create an unlimited supply of tolerable, transplantable organs.

"We expect that Miromatrix will help us in this mission, bringing a number of new approaches, highly-skilled personnel, and state-of-the-art facilities as additional shots on goal to complement our existing organ manufacturing programs," commented Martine Rothblatt, Chairperson and CEO of United Therapeutics. 

This transaction is expected to close in the fourth quarter of 2023

Price Action: MIRO shares are up 226.9% at $3.40 on the last check Monday.