Sam Brusco, Associate Editor04.04.22
Bioventus today exercised its call option to buy CartiHeal, excluding ownership interest already owned, for about $315 million with potential further $135 million payable depending on CartiHeal's twelve-month revenue achievement.
Bioventus decided to acquire the Israeli firm shortly following U.S. Food and Drug Administration (FDA) approval for CartiHeal’s Agili-C implant. Bioventus made a step to acquire CartiHeal with a $50 million escrow payment in August 2021.
Granted FDA breakthrough status in 2020, Agili-C treats International Cartilage Repair Society (ICRS) grade II of above knee-joint surface lesions. The implant aims to be a cost-effective tool to regenerate cartilage and remodel bone and potentially delay total knee replacement.
“CartiHeal represents an important breakthrough for the treatment of osteoarthritis, and we are excited to bring this complementary product into our growing portfolio of medical devices. CartiHeal addresses an unmet need in joint preservation and cartilage regeneration for approximately 675,000 U.S. patients annually, representing an estimated $1.3 billion market opportunity for Bioventus. The CartiHeal team has done a tremendous job developing the implant, as evidenced by strong clinical data demonstrating clinical superiority over microfracture or debridement,” Ken Reali, CEO of Bioventus told the press. “We look forward to leveraging our strong existing commercial infrastructure to begin commercializing CartiHeal in the coming months.”
The deal is expected to close during the second quarter. Bioventus aims to initiate Agili-C’s limited U.S. market release in the third quarter.
The company also received FDA clearance in early March for the latest generation of its StimRouter PNS system for chronic pain acquired from Bioness last year.
Bioventus decided to acquire the Israeli firm shortly following U.S. Food and Drug Administration (FDA) approval for CartiHeal’s Agili-C implant. Bioventus made a step to acquire CartiHeal with a $50 million escrow payment in August 2021.
Granted FDA breakthrough status in 2020, Agili-C treats International Cartilage Repair Society (ICRS) grade II of above knee-joint surface lesions. The implant aims to be a cost-effective tool to regenerate cartilage and remodel bone and potentially delay total knee replacement.
“CartiHeal represents an important breakthrough for the treatment of osteoarthritis, and we are excited to bring this complementary product into our growing portfolio of medical devices. CartiHeal addresses an unmet need in joint preservation and cartilage regeneration for approximately 675,000 U.S. patients annually, representing an estimated $1.3 billion market opportunity for Bioventus. The CartiHeal team has done a tremendous job developing the implant, as evidenced by strong clinical data demonstrating clinical superiority over microfracture or debridement,” Ken Reali, CEO of Bioventus told the press. “We look forward to leveraging our strong existing commercial infrastructure to begin commercializing CartiHeal in the coming months.”
The deal is expected to close during the second quarter. Bioventus aims to initiate Agili-C’s limited U.S. market release in the third quarter.
The company also received FDA clearance in early March for the latest generation of its StimRouter PNS system for chronic pain acquired from Bioness last year.