Bioventus exercises call option to acquire CartiHeal
Bioventus Inc. announced it has exercised its call option to acquire CartiHeal Ltd., excluding the ownership interest already owned by Bioventus, for approximately $315 million, according to a company press release.
The release noted the deal has an additional approximately $135 million payable contingent upon the achievement of $100 million in trailing 12-month sales. This decision follows the FDA premarket approval of CartiHeal’s Agili-C implant for treatment of ICRS grade 3 or above knee-joint surface lesions.
The transaction is expected to close during the second quarter of 2022 subject to certain customary closing conditions, according to the release. The release also noted Bioventus plans a limited market release of CartiHeal in the U.S. during the third quarter of 2022.
“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, said in the release. “We look forward to leveraging our strong existing commercial infrastructure to begin commercializing CartiHeal in the coming months.”