Bioventus Sheds Wound Biz for $85 Million

Bioventus has entered a deal to sell its wound business—including skin substitutes TheraSkin and TheraGenesis—to LifeNet Health for total cash consideration of $85 million.

LifeNet Health is a non-profit, global firm specializing in regenerative medicine and life sciences. The company focuses efforts on its Organ Procurement Organization, Health Biologics (tissue implants for a range of surgeries), and Health LifeSciences (human cell- and tissue-based solutions for biomedical researchers).
 
$35 million will be paid in cash at close, a $5 million cash payment deferred 18 months, and $45 million in potential earnout payments. Bioventus expects to net about $30 million after fees and expenses, which will be used to repay existing debt.
 
Bioventus and LifeNet Health also sighned a sales agent agreement, under which LifeNet will have exclusive rights to sell SonicOne ultrasonic would debridement products in the U.S. and Canada.
 
“The sale of our Wound business will enhance our liquidity and enable a greater focus on execution” Tony Bihl, Bioventus’ interim CEO told the press.
 
The divestiture reduces Bioventus’ annual revenue by about $40 million an annual adjusted EBITDA by about $5 million. The transaction is expected to close in approximately one week before the end of May.
 
In early April, former Bioventus CEO and board member Ken Reali stepped down from his roles. A reason was not specified, nor an exact date at the time.