Brookwood Pharmaceuticals, a wholly-owned drug delivery company created by Southern Research Institute in 2005, has been sold to Eden Prairie, Minn.-based SurModics Inc. for a package worth up to $62 million – $40 million in cash at closing and up to an addition $22 million upon achievement of specific milestones.

Brookwood provides proprietary polymer-based technologies to companies developing improved pharmaceutical products. The company’s operations and its approximately 70 employees will remain in Birmingham.

We have been very impressed by the success Art Tipton and the entire Brookwood team has achieved in its short history as an independent company,” said John A. “Jack” Secrist III, Ph.D., president and CEO of Southern Research Institute (SRI). “While we will miss having Brookwood as part of our extended organization, we are convinced that these two combined companies will be much more successful than they would apart.

“The Birmingham community has benefited from Brookwood’s growth and presence, and we are very pleased that SurModics plans to retain Brookwood in Birmingham,” Secrist said, noting that in early discussions with the Minnesota firm, SRI officials asked that the acquisition be favorable to Brookwood employees and that there be an opportunity for Brookwood to remain in Birmingham and continue to grow.

“This is a wonderful development for Southern Research, Brookwood and Birmingham,” said UAB President Carol Garrison, chair of the SRI board. “It speaks to the quality of the research pioneered at Southern Research Institute, as well as the Institute’s fiscal health and strategic acumen.”

Brookwood Pharmaceuticals will operate as a separate business unit of SurModics. Brookwood President and CEO Arthur J. Tipton, Ph.D., will remain as president of Brookwood Pharmaceuticals and lead the team as vice president of SurModics.
Brookwood generates revenues from research and development fees, polymer sales and royalty-generating licenses. The company generated $12.7 million in revenue in calendar year 2006.