BICO Acquires Allegro 3D, Adding New Light-Based 3D Bioprinting Technology – Complementing Existing Application-Ready Product Offering

The addition of Allegro 3D to the portfolio allows BICO Bioprinting to strengthen its position as a world leader in the supply of 3D bioprinters. BICO has a strong portfolio of bio-printers, using extrusion-based, 2PP and DLP technologies.

BICO acquired all the shares of San Diegoto Allegro 3D Inc. (“Allegro 3D”) for an initial enterprise value of $6 million. In addition, shareholders can receive $5 million in an earn-out based on Allegro 3D’s financial performance over the next two years. The entire purchase price will be paid in cash. Allegro 3D’s patented light-based printing technology will be marketed by CELLINK and is a strong complement to the existing offering of application-tailored products, as the technology will allow customers to increase precision and tailor their production of biofabricated constructs for regenerative medicine and drug discovery purposes.

“The acquisition of Allegro 3D is part of our strategy of mergers and acquisitions of complementary acquisitions where Allegro 3D complements by CELLINK product portfolio strongly and can be quickly integrated into current product offerings and go-to-market infrastructure. commented BICO’s Head of Mergers and Acquisitions, Jacob Thordenberg.

Reason for acquisition

The addition of Allegro 3D’s bioprinting portfolio brings a tremendous injection of opportunities to scale operations for bioprinting customers. Given the high throughput nature of the technique, customers will be able to increase their production of biofabricated constructs. The Allegro 3D portfolio enables high-precision, high-speed bioprinting suitable for multi-well printing, providing life science companies with the functionality needed to develop tissue constructs for regenerative medicine and workflows drug testing.

The acquisition aligns with BICO’s business agenda to deliver sustainable technologies and solutions that bring us closer to a world where on-demand tissues are a reality, reducing reliance on animal models. With Allegro 3D, BICO continues to add complementary bioprinting methods to the group. Adding to the CELLINK portfolio allows the company to strengthen its position as a world leader in the supply of bio-printers. With a robust portfolio of extrusion, 2PP and DLP printers, Allegro 3D’s patented printing technology is a solid complement to by CELLINK existing offer of products adapted to the applications.

The company will remain an independent entity but will be integrated into the commercial structure of the world leader in bioprinting, CELLINKanother company in the business area BICO bioprinting.

About Allegro 3D

Allegro 3D is a San Diego-company founded in 2016 by Dr. Wei Zhu and Dr. Shaochen Chen, a pioneer in digital light processing (DLP)-based printing and a driving force within the industry. Their DLP-based bioprinting technology enables high-precision, high-throughput fabrication of biomedical devices and human tissue for cell culture, drug screening, and regenerative medicine applications.

Allegro 3D’s products were commercialized at the end of 2021. In 2022, the company is expected to generate approximately $1.0 million in revenue with positive EBITDA margins. In the short term, Allegro 3D is expected to grow exponentially and exceed BICO’s financial goals.

“For many years CELLINK has set the standard for providing tissue engineering and regenerative medicine researchers with advanced bioprinters that accelerate meaningful progress in their fields,” said BICO CEO and Co-Founder Erik Gatenholm. “The addition of Allegro 3D’s outstanding portfolio, complemented by by CELLINK deep industry knowledge and market power will further facilitate the continued growth of BICO’s footprint in the bioprinting market. Provide researchers with tools to better capture the in vivo environment to effectively understand and master biology.”

“Allegro 3D’s products are an exciting complement to existing CELLINK portfolio, allowing us to provide researchers with a breakthrough system that greatly addresses the research areas of regenerative medicine and drug discovery,” adds CELLINK CEO, Cecilia Edebo. “We look forward to working alongside Dr Chen and the Allegro 3D team to continue to provide the best products in the industry.”.

“Broadening the impact of our patented technology has been the goal since the inception of Allegro 3D,” comments Dr Zhu on the acquisition. “With BICO, we have found the right commercialization partner to continue this journey and we are truly looking forward to ‘creating the future of healthcare’ alongside CELLINKand the wider BICO family.”

Enterprise value

The initial enterprise value of all outstanding shares of Allegro 3D is $6 million. In addition, shareholders can receive $5 million in an earn-out based on Allegro 3D’s financial performance over the next two years. The entire purchase price will be paid in cash.

Closing

The acquisition was completed on May 5. Allegro 3D will be consolidated in BICO’s financial statements and financial reports from the second quarter of 2022. Allegro 3D will remain under the current entity and management after the transaction.

Advisors

Foley & Lardner is acting as legal advisors to BICO on the acquisition, BakerTilly advised on financial and tax due diligence, and Zacco on IP due diligence.

For more information, please contact:

Erik Gatenholm, CEO, BICO

Telephone (EU): +46 73-267 00 00

Phone (US): +1 (650) 515-5566

Email: [email protected]

This information has been submitted for publication, through the contact persons indicated above, on May 6, 2022at 08:00 (CEST).

About BICO

Founded in 2016, BICO (formerly CELLINK) enables the future of life-saving treatments by reducing organ shortage and accelerating drug development by providing accessible solutions for the life sciences that combine biology and technology (bioconvergence). The company is focused on the development, manufacture, sale and support of its life science equipment, consumables and reagents for both manufacturing and research purposes. BICO has over 25,000 products in the field, sales in over 65 countries, ships to the top 20 pharmaceutical companies, and has been cited in over 10,000 scientific publications. BICO is listed on Nasdaq Stockholm under: BICO.

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