Bioventus completes $315M CartiHeal acquisition

Bioventus (Nasdaq:BVS) announced today that it completed its previously announced $315 million acquisition of CartiHeal.

Durham, North Carolina-based Bioventus announced in April that it agreed to acquire CartiHeal in a deal worth at least $315 million. Just last month, the company amended the agreement for the deal to defer a large amount of payments.

The amendment to the acquisition agreement reduced the closing payment to $50 million in addition to the $50 million deposited into escrow last year.

Additionally, the remaining $215 million of the purchase price will instead be paid to CartiHeal stockholders upon the earlier achievement of certain milestones or the occurrence of certain installment payment dates. Israel-based CartiHeal develops orthopedic implants, including the Agili-C implant, which, in a randomized controlled trial, demonstrated superiority to either microfracture or debridement.

“We are excited to add …

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Bioventus restructures $315M CartiHeal acquisition

Bioventus (Nasdaq:BVS) amended the agreement for its pending acquisition of CartiHeal to defer a large chunk of payments.

Durham, North Carolina-based Bioventus announced in April that it agreed to acquire the orthopedic implant maker in a deal worth at least $315 million.

An amendment to the acquisition agreement reduces the closing payment to $50 million in addition to the $50 million deposited into escrow last year. The remaining $215 million of the purchase price will instead be paid to CartiHeal stockholders upon the earlier achievement of certain milestones or the occurrence of certain installment payment dates.

Bioventus will defer the bulk of the acquisition payment into five tranches, beginning in 2023 and ending no later than 2027, according to a news release. Interest on each tranche of the deferred portion will accrue at an 8% annual rate until such tranche is paid.

Approximately $135 million payable to CartiHeal’s stockholders u…

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Bioventus announces $415M offering

Bioventus (Nasdaq:BVS) announced today that it intends to offer $415 million in aggregate principal amount of senior notes due in 2027.

Durham, North Carolina-based Bioventus’ private offering of senior notes will be guaranteed by each of the its domestic restricted subsidiaries that guarantee its obligations under its senior secured credit facilities.

According to a news release, Bioventus will use the net proceeds to fund the remaining purchase price of its $315 million acquisition of CartiHeal. Additionally, funds will go toward repaying a portion of outstanding borrowings under Bioventus’ amended nad restated credit facilities and for paying fees and expenses in connection with the offering.

Should any net proceeds remain from the offering, they will be used for general corporate purposes, the company said.

Bioventus also announced preliminary first-quarter results, with net sales expected to range between $116.5 million and $118.5…

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Bioventus plans to buy CartiHeal for at least $315M to launch knee implant

The CartiHeal Agili-C implant for treating cartilage lesions [Image courtesy of CartiHeal]Bioventus (Nasdaq: BVS) today said it plans to buy CartiHeal following the FDA’s recent premarket approval of the Israel-based medtech developer’s Agili-C implant.

Durham, North Carolina-based Bioventus will pay about $315 million to buy the company, excluding the stake already owned by Bioventus after it made a $50 million escrow payment last year.

The deal also includes the potential for Bioventus to pay up to $135 million more if CartiHeal is able to hit $100 million in trailing 12-month sales. Bioventus plans to finance the acquisition with debt.

Get the full story at our sister site, Medical Design & Outsourcing.

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CartiHeal wins FDA premarket approval for its Agili-C knee implant

[Image from CartiHeal]CartiHeal announced today that it received FDA premarket approval for its Agili-C implant for treating knee joint surface lesions.

Kfar Saba, Israel-based CartiHeal designed its Agili-C implant as a proprietary implant for treating cartilage lesions in arthritic and non-arthritic joints. Its PMA indication covers the treatment of an International Cartilage Repair Society (ICRS) grade III or above knee-joint surface lesion(s), with a total treatable area of 1-7cm2, without severe osteoarthritis (Kellgren-Lawrence grade 0-3).

The platform received FDA breakthrough device designation in October 2020.

According to a news release, PMA approval arrived on the back of results from a two-year investigational device exemption (IDE) pivotal clinical study confirming the superiority of Agili-C compared to microfracture and debridement, the current standard of care.

“The 2-year study results, which demonstrated superiority of the Agil…

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Bioventus triggers $50M option to acquire CartiHeal

Bioventus (NSDQ:BVS) announced today that it chose to make a $50 million escrow payment to acquire CartiHeal and its Agili-C implant.

Durham, N.C.-based Bioventus elected to make its escrow payment pursuant to its option and equity purchase agreement with CartiHeal to signal its intent to move forward with an acquisition of the company.

According to a news release, the decision came on the back of a review of a statistical analysis report of the pivotal clinical trial of Agili-C, reimbursement coding analysis and significant market diligence, including surgeon interviews, with respect to Agili-C and its commercialization opportunity and market potential.

Bioventus’ obligation to consummate the transaction is subject to the exercise of the call option under the agreement or the exercise by CartiHeal of its put option, which may only be exercised following FDA premarket approval for Agili-C, which won FDA breakthrough device designation last year. Ca…

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