Carmell Therapeutics has entered a definitive agreement and plan of merger with the regenerative medicine company Axolotl Biologix.

Axolotl's shareholders will receive an initial equity value of $65m.

They will also potentially receive $75m in milestone equity payments linked to reaching revenue and business milestones.

Axolotl CEO Josh Sandberg stated: “I am excited to partner with Rajiv and Carmell to build on our shared vision of offering industry-leading products that positively impact patients’ lives. Our teams have worked very diligently, and this transaction creates unlimited possibilities.”

Axolotl focuses on designing, developing and selling human amnion-based allograft products for active soft tissue repair, aesthetics and orthopaedic applications.

The company is currently enrolling participants for a Phase I/II clinical trial aimed at treating ankle osteoarthritis.

It is also working on the development of a topical cosmeceutical product designed to rejuvenate the skin.

On 30 June 2023, Axolotl's unaudited trailing 12-month (TTM) net revenue was $50m, with unaudited TTM earnings before interest, taxes, depreciation and amortisation from product sales reaching $5m.

Carmell executive chairman Rajiv Shukla stated: “I look forward to working with Josh and the Axolotl team to accelerate our goal of building Carmell into an industry-leading regenerative medicine company through a combination of in-house product development, bolt-on acquisitions and business development aimed at aesthetics/soft tissue and orthopaedic indications.”